Thursday, January 31, 2008

Organization setup in Oracle Inventory

Below are are the minimum steps necessary to successfully define an Organization in Oracle Inventory:

1. Define your set of books (GL function)

2. Define the Key Flex Fields: System Items, Item Categories, Item Catalog Group, Stock Locators, Account Alias and Sales Order

3. Define locations

4. Define a workday calendar

5. Assign and enable the appropriate Organization classifications to each organization defined

6. Complete the minimum required 'other' information for each classification

For example, for the inventory Org;
a) Accounting information- Set of Books (SOB), Legal Entity, Operating unit
b) Inventory information- Org code, Item Master Org, calendar, costing Org and method, and Account information
c) The Receiving and Customer/Supplier information are optional

7. Define the Unit of Measure classes, Units of Measure and then Unit of Measure conversions

8. Define subinventories that represent the physical or logical locations for items within an organization

9. The remaining Organization setup sections are optional, based on what features and modules the customer intends to utilize

a) Define locators
b) Define Shipping Networks
c) Define Freight Carriers
d) Define Organization Access
e) Define Inter-Company Relations for inter-company functionality

Monday, January 28, 2008

Oracle Engineering - Setup steps

Step 1: Set Profile Options (Must)
Set the Engineering profile options for
a) ENG: Change Order Autonumbering – System Administrator Access
b) ENG: ECO Department
c) ENG: ECO Revision Warning
d) ENG: Engineering Item Change Order Access
e) ENG: Mandatory ECO Departments
f) ENG: Model Item Change Order Access
g) ENG: Planning Item Change Order Access

Step 2: Enter Employee (Must)
Define employees for your organization. ECO requestors and approvers must be defined as employees

Step 3: Define Change Order Types (Optional)
You can assign a change order type to your ECOs, either using the ’ECO’ change order type that Oracle Engineering provides or choosing a change order type from any number of types you define using your own terminology, such as Design Revision, Manufacturing Change etc

Step 4: Define ECO Departments (Optional)
You can group users that use the engineering change order (ECO) system through ECO departments, creating multiple ECO departments within your Inventory organization.

Step 5: Define Autonumbering (Optional)
You can define customized autonumbering (for a user, organization, or site) for new ECOs or mass change orders

Step 6: Define Approval Lists (Optional)
You can define lists of approvers required to approve an ECO before it
can be released

Step 7: Define Material Dispositions (Optional)
You can define your own customized material dispositions, and then assign them to revised items when defining ECOs

Step 8: Define Material Dispositions (Optional)
You can define your own customized material dispositions, and then assign them to revised items when defining ECOs

Step 9: Define Priorities (Optional)
You can define scheduling priorities for engineering changes to describe the urgency of your ECO

Step 10: Start AutoImplement Manager (Optional)
If you automatically implement ECOs, you must specify the frequency that you want the AutoImplement manager to run

Friday, January 25, 2008

Commonly used terms in Oracle Inventory

What is an Inventory Item?
A part number or product code used to track goods or services. Inventory item numbers represent physical goods that are purchased, built or assembled. Inventory item numbers may also be created to represent services sold to customers. These numbers have attributes that describe or control how the item is used.

Inventory items are created in an Item Master Organization and then assigned to execution inventory organizations. Attributes for items may be set at the master level, so the value is consistent across all organizations, or at the organization level, so that the value may vary by organization. The attribute control level determines if an attribute is set at the master or organization level. An example of a typical master level controlled attribute is Item Description, which you may want to be the same across all organizations. Planner code, however, is set at the organization level, as each organization has a planner responsible for managing the item.

What is an Inventory Organization?

An entity used to represent a manufacturing or distribution site. Inventory organizations are where a user tracks on-hand balances, manufactures goods, and transacts the daily ins and outs of material movement. An inventory organization is the lowest level entity for costing goods, planning material requirements, and securing system access. Only a single address may be assigned to an Inventory Organization. An inventory organization is assigned a Set of Books which determines the chart of accounts, fiscal calendar, and base currency for all financial and value added activities that occur within the organization. Inventory Organizations are also assigned to a Legal Entity Organization and an Operating Unit Organization.

A variation on the inventory organization is the master item organization. Generally, with Oracle Applications a single inventory organization is created and designated at the master organization. Items are defined first in the master organization, then enabled in other inventory organizations as necessary. Some of the item attributes are set as controlled at the master organization and therefore the attribute values cannot be updated within individual inventory organizations. Category sets may also be designated as master organization level. Cross-references are also master level only or master level optional as well

What is a Category Set?

A grouping of item categories. A category set is a user-defined entity for grouping items by category within the category set entity. Oracle inventory requires at least one category set be used. Product family, commodity, usage, or any other grouping and reporting requirements a user may have generally define category sets for grouping items. Category sets may be defined at the master organization level or the inventory item organization level.

What is an Item Category?

A code used for classifying or grouping items. Items are assigned to a category within a category set for reporting and grouping. To see the grouping, a user would specify a category set and one or more categories from that set

What is a Subinventory?

Physical or logical locations for storing inventory. Subinventories are generally defined to represent the main stores area as well as stocking points on the production floor. Additional subinventories may be used to specify supply closets or cabinets and the cage area for discrepant material. Subinventories are flagged as to availability for planning (nettable), reservations, and available to promise checks, thereby determining the availability of the material stored in the subinventory. Subinventories are assigned material asset account numbers. As goods move in and out of a subinventory a transaction posts to the asset account.

What is a Workday Calendar?

The workday calendar indicates the manufacturing workdays for an inventory organization. The calendar indicates holidays as well as work shifts. Multiple calendars may be defined for an organization to represent differences in workdays by department or group.

What is a Stock Locator?

A physical area within a stockroom. The stock locator is a key flexfield that is often defined as a multiple segment flexfield with the segments representing the physical layout of a stockroom. For example, a stockroom may be laid out in rows of shelves with bins on the shelves, each numbered so that a row/shelf/bin combination would direct someone to a particular material storage compartment. Such an implementation would define a locator flexfield as a 3 segment flexfield with segments for row, shelf, and bin

Tuesday, January 22, 2008

Monthly Dose !

Hi Team,

Not sure if you noticed that we had our 25000 th visitor on Jan 20th, 2008. Really encouraging !!

We received couple of mails with wonderful suggestions on how we could improve our efforts to make it more useful to team members visiting this blog. If we have missed replying to your emails, let us thankyou here for your kind inputs. Keep writing !

Please do find a minute to type in your thoughts in the "comments" below each post! Beleive us, we really look forward for that.

Would it be a good idea to include couple of Oracle related news in the next dose?

We would also recommend you to visit for a world of information on any kind of quality training you might be looking for. Worth visiting !

Thanks !

applearn team

Wednesday, January 16, 2008

Oracle Payables - Introduction

Oracle Payables helps you to manage all the supplier invoice and payments activities. This module is closely integrated with Oracle Purchasing and Oracle General Ledger module

Key areas covered by Oracle Payables module are...

- Set up Suppliers
- Enter, review and Approve invoices
- Pay invoices and reconcile payments to bank accounts
- Enter and apply pre-payments
- Create journal entries for posting to GL

Saturday, January 12, 2008

The Road ahead...

New career opportunities are born every day especially in the technology and IT sector. You might come across a job offer and have absolutely no idea what it is exactly referring to and what it needs to be there. So is the case with ERP Jobs. Did you know more than 90% of ERP consultants come from non-IT background !

ERP is an information system that integrates all manufacturing and related applications for an entire enterprise into one computer system. ERP runs off a single database, enabling various departments to share information and communicate with each other. ERP systems comprise function-specific modules designed to interact with the other modules.

For more on ERP Basics, please check this -->

If you are already working in industry with some domain experience or If you are fresh out of college and wish to pursue a career becoming an ERP consultant - its a great idea ! Besides being financially rewarding, it offers you with an opportunity to work on evolving technologies and work on best practices

What next?
1. Learn the basics of ERP
2. Discuss with an expert and select 4-5 modules to learn and focus on
3. Select the right trainer
4. Read, think of scenarios and options available

For more on ERP Job profiles, please check this -->

Questions? Doubts? Mail me on

Wednesday, January 9, 2008

Purchasing - Most Asked Questions (MAQs)

Hi Friends,

Here are few MAQs on Purchasing which can be looked as a starter. Shall be really good to see some answers to the below questions in the comments below this post.
It would be good to collaborate on this topic, would like to kindly request your help here - please add in a couple of questions you can on Purchasing in the comments below.

Q1. What are the different authorization status can a requisition have?

Q2. Can an approved requisition be viewed in the Requisition form?

Q3. Can an approved requisition be revised?

Q4. Is the Supplier item field a validated field on Purchase Requisitions?

Q5. How can you have specific Requestor defaulted on Requisition form?

Q6. Can I change the item number in requisition lines after saving the record?

Q7. What all control actions I can perform on a requisition through Document control window?

Q8. What does the status Pre-Approved mean, and how does a document reach this status?

Q9. Is it possible to perform a receipt against a document with a status of Pre-Approved?

Q10. When a requisition is autocreated to a purchase order, supplier information is not populated in the purchase order header - Why?

Q11. The requisition can be saved without the need-by date field being populated. What setups need to be done to make it mandatory to enter the need by date ?

Looking for answers to above questions?

Tuesday, January 8, 2008

Entering Receipts from a Supplier

Navigation: Inventory --> Receiving --> Receipts

1) Choose the Source Type as Supplier
2) Enter Purchase Order Number
3) Click Find button

On the next screen that pops up,
1) Check the Line which is to be received
2) Enter Subinventory name in the Subinventory Field & Save the record
3) Click on Header button to see Receipt Number

Note: The Lines will be behind the Header window. If the header window is closed, the lines can be viewed

On saving this transaction, the receipt for the item selected from the Purchase Order is completed

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