What is Inventory?

●Inventory defines the item you use in manufacturing and maintain perpetual inventory balances through transactions that reflect daily activities such as receipts and material movement. Oracle Inventory provides the transaction needed to maintain on-hand quantities. These transactions records most inventory movements like receipts, issues and location changes.
●Inventory Organization is further subdivided into sub inventories A subinventory is a subdivision of an organizations inventory, frequently it represents a physical location. Oracle Inventory provides basic inventory planning like min-max planning and re-order point planning and basic forecasting capabilities.
●Oracle Inventory can be seamlessly integrated since Oracle General Ledger provides a set of books and currency exchange rates and receives transaction accounting summary and details.
●Inventory is the crucial module, connecting all of Oracle Manufacturing Applications together. It shares UOM, items, item information, receipts, delivers, inter-org information ATP/on-hand quantity and basic forecasting info with Cost Management, WIP, ASCP, BOM, OM, Purchasing, as well as engineering items and information with Engineering.

Thanks & Regards,
S.Grace Paul Regan

Oracle Inventory Organizations

Oracle Applications uses multiple types of organizations to build the business execution structure. At the top of the structure is the accounting set of books SOB), defined in the General Ledger. Next, different types of organizations are used to further define the organization structure and relationships. All organizations are defined and updated with the Define Organization form.

Set of Books:

A General Ledger SOB, linked to the inventory organization, controls the financial accounting of inventory transactions. A SOB is made up of a chart of accounts, a financial calendar, and a currency. The general ledger secures transactions (journal entries, balances) by SOB.

Legal Entity:

A legal entity organization defines the tax and fiscal reporting level. The legal entity represents the legal company.

Operating Unit:

An operating unit organization defines the Purchasing, Order Entry, Accounts Payable and Accounts Receivable level of operation. An operating unit may span multiple manufacturing facilities, distribution points and sales offices, or it may be limited to a single site.

Inventory Organization:

Two flavors of inventory organizations are found in Oracle Applications. They are defined the same, and both are assigned a set of books, a legal entity organization, an operating unit organization, and a location. An item master organization is used for item number maintenance and validation, No item transaction will be done in an Item Master Organization.

This master organization serves as a data repository storing items and item attributes, master level categories and category sets, master level cross references, and numerous data defaults. On-hand balances, inventory movements, and other on-going inventory activities are not performed in an item master organization. Generally, the master organization is used as the validation organization for Purchasing and Order Entry. It is recommended that a single item master organization be defined, even in multiple organization, multiple sets of books environments.

In addition to the item master organization there are one or more non-master inventory organizations. Like the item master inventory organization, the non-master organizations are assigned a set of books, a legal entity organization and an operating unit organization. The non-master inventory organization points to a master organization and looks to the master organization for master level item attributes, master level categories, and other master level controlled data.

Note that each organization has its own set of books/legal entity/operating unit relationship, so inventory organizations with differing SOB’s or operating unitsmay share the same master organization.

These non-master inventory organizations are the execution level organizations. They hold on-hand balances and transaction history. Here is where inventory users execute their daily activities, such as receiving and issuing material, performing cycle counts, and viewing material availability and transaction history. A single organization therefore generally represents a single manufacturing site or distribution center.

Locations:

A location code is an address. Each inventory organization must be assigned at least one location code.

Subinventories:

A subinventory is used as a holding point for on-hand
inventory and generally represents a stockroom, stocking area or cage used for storing material. Subinventories are defined within inventory.

organizations:

An inventory organization may have any number of subinventories, and an asset account is assigned to each subinventory. Since the subinventory entity is logical, as there is not an address or physical location description associated with it, clients may define subinventories for any physical or logical grouping of inventory.

Examples of subinventories:

Stores. Used for the primary stockroom for storing raw materials and sub-assemblies

FG. Used for Finished Goods inventory if finished goods are stocked

WIP. Used for raw material and sub-assemblies stored in production areas and issued at operation or job completion (backflush).

MRB. Used for Material Review Board goods. This is generally material that requires engineering review before disposition as scrap, rework, return to supplier or use as is.

Stock Locators:

Stock locators are an optional entity that may be used to represent physical locations within a subinventory. You may choose to use stock locators for selected subinventories or selected items within selected subinventories. If locators are used, subinventory and locator track on-hand balances. Therefore, if locators are defined to represent a shelf within a stockroom, on-hand balances on the system would show the item and quantity down to the physical location within the facility.

Oracle Inventory uses a key flexfield for stock locators. This presents a few limitations for its use. Only one locator flexfield definition is allowed per install. Therefore, if the stockroom (subinventory) wants to track material by row, bin and shelf, it will likely define a three-segment flexfield with segments for row, bin, and shelf. If locators are desired for another subinventory, even in another organization, the structure will again be 3 segments for row, bin and shelf. In addition to this limitation, locators must be unique within an organization; you cannot use the same locator in different subinventories within an organization, but you can use the same locator in subinventories in a different organization.

Thanks & Regards,

S.Grace Paul Regan

Overview Oracle Inventory R-12

Dear All,
Kindly find the document to have an breif about Oracle Inventory in R-12.
Click Me - R-12 Oracle Inventory Overview
Thanks & Regards,
S.Grace Paul Regan.

Receiving: Returns and Corrections

Q1. Is it possible to perform Returns for Internal Shipments (Inter-Org and Internal Order)?

A: No, it is not possible to perform Returns on Internal Shipments. You need to reverse the original process if you want to return an internally ordered item. You have to create an internal requisition for the item in the source organization, and then process that order back to the source organization.

Q2. Is it possible to perform Returns/Corrections for RMAs?

A:The Returns/Corrections for RMAs that are delivered to Inventory is not supported if the customer has file poxrcv.odf version higher than or equal to 115.52.

Q3. Can I return/correct a cancelled PO line or shipment to a vendor?

A: It is not possible to return/correct a cancelled PO line or shipment.
As a workaround the following can be performed:
For Inventory Item:
Enter a 'Miscellaneous Issue' in Inventory Module against this Item. This will correct the quantity in inventory.
For expense item:
Enter adjustment directly in GL, or credit memo to cancel accruals.

Please note: The Cancel Action (and Final Close) in the PO Summary form is an irreversible action. A warning message is displayed indicating no futher transaction activity will be allowed if the Cancel action is selected. The warning message provides an opportunity for the User not to continue with the Cancel. Oracle development does not support any datafixes on cancellation and finally closed (user actions) since there are double verifications done while proceeding on this action.

Q4. Can I change the line status of PO to "Closed for Receiving" and then query the PO in Returns/Corrections Form to correct them?

A: The customer should NEVER change the status of the cancelled/finally-closed line without development's consent via a bug.
Oracle Development may not provide a datafix for explicitly cancelled lines because of "user errors".


Q5. I cannot do returns/adjustments for an un-ordered receipt. Why?

A: Adjustments and/or returns to vendor on unordered receipts can only be done after the receipt has been matched to a Purchase Order. Verify this has been done.


Q6. Can Returns/Corrections be performed when the deliver_to person is not active?

A: Returns/Corrections are not allowed if the deliver to person is not active. You have to re-activate the employee to perform returns/corrections.


Q7. I am not able to return an item under serial control. What should I do?

A: Check whether the Serial Number is available in the subinventory and organization.

Thanks & Regards,
S.Grace Paul Regan

How do users delete the receipts made in error?

Users cannot delete a receipt once it is made, however users can perform either a
'Correction' or a 'Return' to the receipt dependant upon the nature of the error
made when performing the receipt:

Return To Vendor - This is typically done if you do not want the shipment received
from the vendor (for example, vendor over-shipped, or items received were damaged
or wrong color, or you just don't want to receive that shipment at this time). You can return
the shipment for the full amount.

Correction - This is typically done when you wish to correct an error made when receiving
a shipment (for example, you physically received 9 but put down that you received 10).

Both methods above ensure that correct accounting adjustments are made when performing
either a return or a correction.

Thanks & Regards,
S.Grace Paul Regan

Closing Inventory Period

Oracle Inventory uses accounting periods to group material transactions and work in process transactions for accounting purposes. So normally these deatils are grouped for a month and the transaction details are posted to GL.

An automatic general ledger transfer is processed when you close an accounting period.

1. Material Transaction
=======================

The Material Transaction includes miscellaneous issue, sales order issue, or cycle count adjustment.

2. WIP Transaction
==================

Resource transaction Lists resource transaction details.

Overhead transaction Lists overhead transaction details.

Outside processing Lists outside processing transaction details.

Cost update Lists cost update transaction details.

Period close variance Lists transaction details for period close variance transactions for expense jobs and certain instances of repetitive schedules.

Job close variance Lists job close variance transaction details.

Closing a Period
================

You can close the earliest accounting period with a status of Open or Error.

Before you close a Inventory period make sure you have noticed all the pending transactions that is showing for the particular accounting period that you have chosen to close, to find the pending transactions (navigation)

1.Inventory Superuser > Accounting Close Cycle > Inventory Accounting Period >
Pressing the pending button in the bottom left corner of the screen !

2. After Choose the Pending button. The Pending Transactions window appears
Resolution Required: Displays the number of unprocessed material transactions,
uncosted material transactions, and pending WIP costing transactions existing in
this period. These must be resolved before the period is closed.
Resolution Recommended: Displays the number of pending receiving transactions,
pending material transactions, and pending shop floor move transactions existing
in this period. You can close the accounting period, however, after it is closed
these transactions cannot be processed.

See

Unprocessed Transaction Messages

One of the following messages appear if there are unprocessed transactions:

Pending receiving transactions for this period
When you use Purchasing, this message indicates you have unprocessed purchasing transactions in the RCV_TRANSACTIONS_ INTERFACE table. These transactions include purchase order receipts and returns for inventory. If this condition exists, you will receive a warning but will be able to close the accounting period. These transactions are not in your receiving value. However, after you close the period, these transactions cannot be processed because they have a transaction date for a closed period.

Unprocessed material transactions exist for this period
This message indicates you have unprocessed material transactions in the MTL_MATERIAL_TRANSACTIONS_TEMP table. You are unable to close the period with this condition. Please see your system administrator. Inventory considers entries in this table as part of the quantity movement.

Closing the period in this situation is not allowed because the resultant accounting entries would have a transaction date for a closed period, and never be picked up by the period close or general ledger transfer process.

Pending material transactions for this period
This message indicates you have unprocessed material transactions in the MTL_TRANSACTIONS_INTERFACE table. If this condition exists, you will receive a warning but will be able to close the accounting period. These transactions are not in your inventory value. However, after you close the period, these transactions cannot be processed because they have a transaction date for a closed period.

Uncosted material transactions exist for this period
This message indicates you have material transactions in the MTL_MATERIAL_TRANSACTIONS table with no accounting entries (Standard Costing) and no accounting entries and no costs (Average Costing). You are unable to close the period with this condition. These transactions are part of your inventory value.

Closing the period in this situation is not allowed because the resultant accounting entries would have a transaction date for a closed period, and never be picked up by the period close or general ledger transfer process.

Pending move transactions for this period
This message indicates you have unprocessed shop floor move transactions in the WIP_MOVE_TXN_INTERFACE table. If this condition exists, you will receive a warning but will be able to close the accounting period. These transactions are not in your work in process value. However, after you close the period, these transactions cannot be processed because they have a transaction date for a closed period.

Pending WIP costing transactions exist in this period
This message indicates you have unprocessed resource and overhead accounting transactions in the WIP_COST_TXN_INTERFACE table. You are unable to close the period with this condition. These transactions are in your work in process value, and awaiting further processing.

Closing the period in this situation is not allowed because the resultant accounting entries would have a transaction date for a closed period, and never be picked up by the period close or general ledger transfer process.

After you have checked all the pending transactions and after clearing all the mandatory pending transactions and again once again check for any pending transactions, Once you are sure that you are ready to close the inventory period you can come back to the main inventory accounting periods page in the right end corner press the change status button in the pop up window select Close and be sure that INVENTORY PERIOD CLOSED CANNOT BE REOPENED (This is a irreversable process), Take extra care while closing inventory period.

Thanks & Regards,
S.Grace Paul Regan.