Professional Documents
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Crisp Handout
11i or R12
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Wednesday, January 14, 2009
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Default
Category
set (DCS)
Function
DCS
Invnetory
Inv.Items
Purchasing
Purchsing
Contracts
Contracts
Asset Management EAM
Product family
Product
All other fn
Inv.Items
Default category set: for each functional area default category sets are there
Default
Category
Code(DCC)
Note:
Whenever an item is attached to a function DCS- DCC combination gets attached to the item. They cannot be deleted. They are
mandatory ( Item master -tools- category assignment)
Assigning is automatic, whereas un assigning is manual. ( except BOM type)
Controlled at Master level (after assigning u cannot change in org) and org level (can be changed in org)
Item can be assigned to many categories and a Category can be assigned to many items. (many-many)
An item cannot appear in more than one category in a default category set.
5) Item cross reference: referring an item (oracle) with old legacy number ( free text). ( Inv-Items-cross reference, enter and
assign
6) Customer item cross reference: relegating customer item (PO item) with our (oracle) number.
Note: For both Item cross references u can enter customer item/ legacy item is S.O line. In shipping transaction line the oracle
number will be referenced.
When the item is referenced/ related the color will change in S.O line
7) Item relationship: relating two oracle numbers by up sell, substitute (after enter state if u change the item the new line will be
created), cross sell, related, superseded (after committing u can change).
8) Manufacturing Part number: used in souring rule if u choose distributor.
9) Attributes: are information.
10) Item attributes: collection of information about an item.
1. Mater Items :
Item can be a component, service, Assembly which could be Purchase, Sell, Plan, Manufacture, Stock, Distribute, Prototype
Status control attributes: (8) all are Master level
Inventory: Stockable, Transactable
Purchase: Purchasable, Invoice Enabled
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Stockable
Item Defining
Attribute
Inventory Item
Transactable
Inventory Item
Purchasable
Purchased
Build in WIP
Work in Process
Customer Orders
Enabled
Internal Orders
Enabled
BOM Allowed
Invoice enabled
Customer Ordered
Item
Internal Ordered
Item
Inventory Item
Invoiceable Item
Status Attribute
Order Management
Inventory, Order
Management, Purchasing
Bills of Material
Receivables
Functionality
Allows you to store the item in an asset sub inventory.
Allows you to transact the item in Oracle Inventory, Oracle
Order Management, Oracle Purchasing and Oracle Work in
Process.
Allows you to place the item on a purchase order.
Allows you to build the item on a discrete job, and/or
repetitive schedule.
Allows you to place the item on a sales order.
Allows you to create an internal sales order for the item
Allows you to create a bill of material for the item
Allows you to create an invoice for the item
Master
Master
Inventory (T)
Inventory Item Master
Stockable
Transactable
Reservable
Revision Control
Lot Control
Starting Lot Number
Starting Lot Prefix
Serial No Generation
Starting Serial Number
Starting Serial Prefix
Lot Expiration Org
Shelf Life Days
Restrict Sub inventories
Locator Control
Restrict Locators
Master
Master
Org
Org
Org
No control / full control
Org
Org
Org
No control/at receipt/at sales order issue/predefined
Org
Org
No / Self life days / user defined
Org
Org
Org
No control / prespecified / dynamic entry
Org
Master
Master
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Costing (T)
Costing Enabled
Inventory Asset Value
Include in Rollup
Cost of Goods Sold A/c
Standard Lot Size
Org
Org
Org
Org
Org
Purchasing (T)
Purchased
Purchasable
Default Buyer
Use Approved Supplier
List Price
Outside Processing Item
Master
Master
Org
Org
Org
Org
Receiving (T)
Receipt Routing
Receiving sub inventory
Org
Org
Org
Org
Org
Org
Org
Org
Org
Org
Org
Org
Org
Make / Buy
Org
Master
Master
Master
Master
Master
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Org
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OE Transactable
Master
Picking Rule
Master
Pick Components
Master
Assemble to Order
Master
Check ATP
Org
ATP Components
Org
ATP Rule
Master
Ship Model Complete
Master
Default Shipping Organization Org
Default SO Source Type
Master
Returnable
Master
RMA Inspection Required
Master
Over Shipment Tolerance
Master
Under Shipment Tolerance
Master
Over Return Tolerance
Master
Under Return Tolerance
Master
Financing Allowed
Org
Invoicing (T)
Invoiceable Item
Invoice Enabled
Internal / External
Master
Master
Service (T)
Web Options (T)
Back Orderable
Master
Tools Menu :
1. Categories to assign to item categories
2. Catalog to assign to item catalog
3. Pending status item status history
4. Revisions
5. Item sub inventories
6. Item relationships Related / Substitute / cross-sell / up-sell / Service etc.,
7. Manufacture part numbers Manufacture & Part number
8. Cross references
9. Item cost to update the cost elements
10. Organization Assignment
11. Find Attribute select the attribute and find, you need not search each tab
12. Copy from used to copy from template or template
Profile Option:
INV: Default Item Status: Indicates the default item status for new items you define
INV: Default Primary Unit of Measure: Indicates the default primary unit of measure for new items you define
INV: Item Master Flex filed: Indicates which flex field is used to define items in MTL_SYTEM_ITEMS
INV: Updateable Customer Item: Indicates if you can change the customer item number.
INV: Updateable Item Name: Indicates whether you can update the item flex field.
Relationships between Attributes
When you define items, Oracle Inventory enforces particular relationships between some of the item attributes:
Required attribute--you must enter a value for the attribute based on the settings for other related attributes.
Interdependent attributes--you can enter only certain values depending on other attribute values.
Updatable attributes--you can update values under certain conditions.
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Control level dependencies--you can update the control level of some attributes only under special conditions and with
certain consequences.
1.2 Item Templates
Templates are defined sets of attributes that you can use over and over to create many similar items. Templates make initial item
definition easier. Oracle recommends that you use templates--either those Oracle provides or those you define--when you define your
items.
1.3 Organization Item
Items specific to the organization. The Org level parameters can be changed for the Org item.
1.4 Item subinventory
Item specific or exclusive to the sub-inventory. The characteristic controls and attributes of the same item will vary among the
sub-inventories.
1.5 Deletion constraints: are seed used to protect the integrity of your system. U cannot delete an item if on-hand qty exists or
performed any type of action of an item. Oracle inv checks all possible references to item and does not allow it be deleted until every
reference is removed.
1.6 Item copy: a) if a template / item is copied on new item, only the enabled and filled attributes get copied.
b) If template / item is copied on existing item, the enabled fields in the item wont get disturbed, the values will be
overridden by the new values.
c) If template and item is copied at same time first the template will be copied followed by item.
d) u cannot copy items across IMO.
2. Unit of Measurement :
1. A unit of measure is a value that specifies the quantity of an item. For example, "each" is a unit of measure that you
would use to specify the number of units of an item
2. A UOM class is a group of units of measure with similar characteristics. Example, "Weight" can be a unit of measure
class with UOMs such as Kilogram, Gram, Pound and Ounce. From this Class, you should have any one in primary uom
and transaction uom. So you could see one UOM in transaction and another uom in final storage uom.
3. A UOM conversion has 2 classes.
a. Intra class - is a mathematical relationship between two different UOMs (1kg=1000g)
b. Inter class is an user defined logic which won't have any standard relationship (1box=5each)
Set-up :
1. UOM class :
Inventory (N) -> Setup -> Unit of measure -> Classes
1. Insert new record
Name :
Description :
Base unit & UOM code
2. Unit of Measure (B)
The first uom will be defaulted from the class as base unit for the class.
Name :
UOM code :
3. Conversions
a. Standard creating a standard conversion among the UOMs of the class which is applicable for all the Items
b. Intra-class different conversion can be specified for specific items which has the UOM of this class as base UOM
of the item
c. Inter-class conversion between 2 different classes
Example :
Class : XX_Quantity
UOM : Each (base uom), Dozen, Case, Gross
Conversion :
Standard : X_Dozen=12 X_each,X_ Case=24 X_each, X_Gross=144 X_each
Intra-class : Box01=25 X_each
Inter-class : Basket02=5 X_each
3. Inventory controls : 4 types Revision, Lot, Serial, Locator control
3.1 Locator control : A technique used to enforce the storage of items in a SI . It is a way of stocking pattern. Eg: heavy items
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Result / (Precidence)
No locator control (Org)
Prespecified (Org)
Dynamic entry (Org)
None / Prespecified/Dynamic entry (Subinventory)
None / Prespecified/Dynamic entry (item)
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4. Transaction :
1. Transaction is an item movement into, within, out of inventory. It changes the qty, location, planning responsibility and cost of an
item.
2. Transaction managers control the number of transaction workers, processing intervals and number of transactions processed by
each worker during each interval. These run at the periodic intervals that you specify until you disable with the concurrent
manager.
Only 6 actions are performed for all the transactions.
(i) cost update
(ii) Receipt into stores
(iv) sub inventory transfer
(v) Direct Org transfer
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Slno
It is used to identify certain transactions to include in historical usage calculations for ABC analysis or forecasting.
TYPE
WITH DOCUMENT
WITHOUT DOCUMENT
1Receipt
PO Receipt
Miscellaneous Receipt
2Transfer with in Sub inventory
Locator -to- Locator
3Transfer between in Sub inventory
Move order transfer
Sub inventory transfer
4Transfer between Organization
ISO Internal sales order
IOT Inter Org transfer
5Issue
Move order issue
Miscellaneous Issue
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Values
The move transaction manager processes move transactions in Oracle Work in Process and move transactions that
import from devices such as portable barcode readers or your custom data entry forms using the Open Move
Interface.
5. Planning Methods :
5.1 MIN-MAX
Definition :
a)
It is a method of inventory planning that determines how much to order based on the minimum & Maximum inventory levels.
It is done at Organization & Sub inventory level for a specific item.
b)
To perform Min-max at SI, then Item/SI details have be to set.
c)
d)
It is used for non-critical items which has independent demand
Can't perform Min-max if you are running MRP for the same item
e)
It does not consider the lead-time and forecasted demand
f)
g)
When -to- order : [(on_hand_qty demand) + planned receipt ] < minimum qty
How much -to- order : Maximum_Qty - [(on_hand_qty demand) + planned receipt ]
h)
The output of Min-max will be influenced by fixed lot multipliers, min order qty and max order qty.
i)
Set-up :
1. Create Master Item and ensure the following mandatory attributes
1. General planning (T) (planning method min-max ; make/buy based on purchase / WIP item; Minimum &
Maximum Qty ; minimum order qty & Maximum order qty; Source : Inventory / Sub inventory / Supplier / none ; Order
modifier)
2. If you want to run at Item sub-inventory then specify the details here only for Buy items (Planning, Order modifier,
Sourcing region tabs)
3. Profile option INV: Min-max Reorder Approval pre-approved (not incomplete / approval required) user level or above
4. Verify Purchasing options, Receiving options, Financial options, WIP parameters, WIP accounting classes and Open
accounting period (SOB level, Org level, control purchasing periods in purchase module)
5. Run Min max planning
Process :
1. Run : Min-max planning report
Inventory(N) -> Planning -> Min-Max Planning
Planning level : Organization / Sub inventory
Item selection : Items under minimum quantity
Restock : Yes for requisition or Discrete Jobs
Demand cutoff date:
Supply cutoff date:
2. Output will be based on Source type & make or buy
Buy & Source : Inventory Internal requisition
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1. Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components
demand.
2. The INV:Purchasing by Revision profile option determines whether a revision will be specified when a purchase
requisition is created for revision-controlled items.
3. Accounting information for the Organization is must (SOB, LE, OU)
4. Expired lots will not be considered for Min-max, ROP. But disabled lots will be considered.
Is a type of planning which replenishes stock before the stock goes below safety stock.
Used for Items under independent demand, item which needs high control and critical
It uses demand forecasts to decide when to order.
It is done ar Org level but org should be MRP planned.
ROP
Safety stock
Time
Lead-time : The interval between re-order point to safety stock.
Re-order qty: The difference between the maximum qty and the safety stock.
Required information:
1. Safety stock (to protect the fluctuations in the supply and demand)
2. Replenishment lead-time (the consumption time between the re-order point -to- safety stock)
3. Item demand
4. Order cost
5. Carrying cost
When to order : (on hand qty expected supply) < Re-order point
Re-order point = (Safety stock) + [(Lead-time) * (average demand during lead-time)]
Re-order Quantity= EOQ= SQRT{ [ 2* annual demand*ordering cost] / [ inv carrying cost* unit price]}
Re-order qty can be constrained by Fixed lot multiplier, Minimum order qty and Maximum order qty
Setup steps :
1. Enter Item Planning attributes
2. Forecast Item demand
3. Define safety stock
4. Run Re-order point report
Define forecast:
1. Item planning attributes {Organization Items (N) -> General planning (T)}
Planning Method : Reorder point
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Carrying cost % :
% of std cost
Order cost
:
cost of preparation of order
Enter Fixed order qty, fixed lot multipliers, min order qty, Maximum order qty must be null (If it is less than the reorder point,
then order generates for that qty)
Lead-time (T)
Preprocessing, Processing, post processing, lead time lot size
2. Forecast Item demand
2.a. Create forecast set - collection of forecast. Level: Item/ customer/ ship to / bill to
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Items from to
Planners
Buyer
:
:
:
Requests :
1. Reload safety stocks
2. Reorder Point Report
Example:
Forecast ,
1 50
2 150
3 150
4 200
5 250
6 - 150
Forecasting Methods :
1. Manual based on experience manually u enter forecast
2. System generated- Oracle inventory uses historical values / transaction for generating forecast
a) Focus forecasting- uses predefined formulas ( 5 methods) and selects the best by APE ( Absolute percentage error)
1) Demand for May 2006 = demand of may 2005
2) Demand for May 2006= demand of April 2006
3) Demand for May 2006= {(demand of April 2006 + demand of March 2006)}/ 2
4) Demand for May 2006= demand of April 2005 * (demand of April 2006 / demand of April 2005)
5) Demand for May 2006= demand of April 2006 * (demand of April 2006 / demand of March 2006)
APE = | (actual demand forecast demand) | / actual demand.
APE is calculated for 5 formulas to previous bucket and best forecast model is selected (lowest error)
b) Statistical forecasting- Enables to use detailed history and applies factors to exponentially smooth data.
1) Exponential smoothing forecast (ESF) - uses exp smoothing factor ( alpha )
2) Trend Enhanced Forecast (TEF) uses exp smoothing factor (alpha) and trend factor (beta) {0 1}
3) Season- Enhanced Forecast (SEF)- uses seasonality factor
4) Trend & Season Enhanced forecast (TSEF) combination of 2 + 3
Forecast Rule: Rule defined to generate system generated forecast.
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It is Periodic Automated Replenishment at locator level. Example, model a hospital storeroom as subinventory and the shelves
and trolleys are locators.
Can perform each item stored, when quantity goes below PAR level.
Cannot perform Min-max for that Sub-inv ( since min max should be unchecked)
Setup :
1. Enable PAR level planning for the sub inventories
2. Define locators for the sub inventory
3. Enter the PAR level.
4. Enter Replenishment count
5. Enter count ( default items) Replenishment count: On hand qty/ Order qty/ Order PAR
6. Process and report
Note: If u does not enter PAR qty, then u can choose only Order qty
If it is done at tracked sub inv, then RC type= Order qty / Order PAR.
5.4 KANBAN:
Definition :
1. Kan-ban itself is a self regulating pull leads to shorter lead time and reduced inventory.
2. Multi-stage replenishment process
3. It is applied to items which has relatively constant demand and medium & high production volume.
4. Kanban can be replenished from the supplier, sub inventory or an internal organization, production, flow schedules, user
defined
5. Locator control can be used even it locator is turned off at the organization and item levels.
6. Cards can be created for Item, Sub inventory, locator
7. Supply status New, Full, Wait, In-transit, Empty, In-process
Sets:
1. Set item attributes ( MRP/MPS- release time fence = Kan-ban do not release)
2. Define pull sequence
3. Generate cards
4. Replenish
5. check for requisitions/ replenishment.
Kan-ban status:
Card status Active , Hold, Cancel
Supply status New, full, Empty, In process, Wait, In transit, Exception
a) Empty -triggers replenishment
b) wait for replenishment
Set up:
1. Creation of pull sequences {Kan-ban(N) -> pull sequences -> New(B)}
Source (T) - enter item, sub inventory, source type, supplier site.
Kan-ban (T)- (a) calculate : kan-ban size / No of cards / do no calculate
(b) size
( c) number of cards
2. Generate cards (B)
It automatically runs Print Kan-ban Cards request
3. Replenish kan-ban cards
Kan-ban(N) -> Kan-ban cards
Select the cards and replenish, The replenishment activity runs based on the minimum order qty
a) manually change form New -> full -> empty---> In process-- > Move order--> transact-- > status=full
6. Inventory Accuracy Methods :
6.1 ABC Analysis :
Definition : An analysis used to categories items in the inventory into High, medium, low based on On-hand qty/ Value/
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Consumption/ historical transaction etc. Similar to pareto analysis ( i.e., 80% of the inventory values are held by 20% of the items
and vice-versa )
Mainly used for inventory analysis and for maintain accuracy.
Only costed items are considered for completion.
Steps:
1. Define & Compile ABC compile
2. Define class
3. ABC Assignment group - Assign items to the classes.
Setup :
1. Define ABC compile {ABC codes(N) -> ABC compiles}
C.S
V.S
Org
Org
SI (3)
SI
SI(4)
Org
Org
SI
SI and items
SI(1)
1 2 3 SI(2)
2 3 4
SI(3)- 3 4 1 SI(4)
4 1 2
Qty
Valuation
1- 300
2- 600
3-900
4- -1200
3000
1-100
3-300
4-400
800
1-300
2-600
4-1200
2100
NOT POSSIBLE
Item
1
2
3
4
Value
100
200
300
400
Auto Requests: Compile ABC analysis & ABC descending value report
2. Define ABC classes : like High value, Medium value, Low value
3. ABC assignment groups : Link complied and selected classes (i.e)
a) Enter group name, select compile name
b) Group classes
c) Assign items for selected classes Sequence/ Inv value/ Items/ Value
It runs a request: Define ABC assignments
Click Update items (B) to see the items under each class.
Report: ABC assignments report
6.2 CYCLE COUNT :
Definition: Periodic counting of inventory items for accuracy purpose. Inventory records are kept accurate by correcting errors
between the system on-hand and actual quantities. It is performed without affecting the production / Sales and mostly performed for
the high value items.
Process:
1. Cycle count entry {Counting(N) -> Cycle counting -> Cycle counts}
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Snapshots (B) This will run Freeze physical inventory requests. The output shows the system on-hand qty.
Click Tags (B) to set the Tags starting, digits increment
Tag generation Click Generate this will run Generate physical inventory tags request
Tag count - select our count name and click find.
- enter quantity ( note: for S.No only 0 or 1 is possible) , u can void and unvoid to select items to be counted
- The Main tab shows the item at a sub inventory & locator level. The Detail tab shows the item at a Lot and Serial
control level. 6. Approval Adjustment - select our count name and click find.
- Approval should be either approved or reject, if any item is selected none then Launch adj will be error.
7. Launch Adjustment ( Tools-->) is concurrent for adjustment
You can't perform the adjustment for reserved / allocated qtys
2.
3.
4.
5.
Cycle count
Physical inventory
Seheduling is possible
Snapshot possible
Not possible
10
11
Multiple per request for serial numbers is possible Oly one per request ( 0 ot 1)
12
13
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4. Oracle Bill of Material receives UOM and item information from Oracle Inventory.
5. Oracle Engineering provides engineering item information and receives UOM and item information from Oracle Inventory.
6. Oracle Order Management provides shipping, reservations and demand information and receives UOM, items and ATP/onhand quantity information from Oracle Inventory.
7.Oracle Purchasing provides receipts/deliveries, ATP supply and planning supply information and receives UOM, requisition and
inter-org shipment information from Oracle Inventory.
8. Integration of Oracle Inventory to Financial Applications.
1. Oracle General Ledger provides set of books and currency exchange rates and receives transaction accounting summary
and/or detail from Oracle Inventory.
2. Oracle Payables receives UOM and item information from Oracle Inventory.
3. Oracle Receivables provides intercompany invoice information and receives UOM and item information from Oracle
Inventory.
4. Oracle Assets receives UOM and item information from Oracle Inventory.
8. Shortage Alerts and Notifications
* Alerting or notifying individuals that material needed elsewhere in the organization is newly available
* A material shortage occurs whenever outstanding demand exceeds the available quantity for incoming supply of material.
* Oracle Inventory can check during a receipt transaction to see if the material received is needed elsewhere in the organization.
* If a shortage exists the system can notify you either by a real-time material shortage alert or a workflow-based notification.
* We can use this technology to increase the product flow through warehouse, stream order fulfillment and reduce unnecessary
material handling.
* Alerts are real-time messages sent to a window before a transaction is committed, allowing you to immediately redirect delivery.
Setup: Material Shortage Parameters
9. Mobile Transaction
Oracle Mobile Materials Management provides the ability to do inventory receiving and shipping transactions using mobile
devices.
You can record inspections, deliveries and material movements when entering receiving transactions.
Information is sent from mobile industrial devices to the Telnet Listener. The information is processed and updated in the
application database.
This avoids duplicate data entry and helps to enter the transactions at the spot with accuracy.
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