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Inventory Structure

By Marcus Freeman,2014-10-06 00:35
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Inventory Structure

    Inventory Structure

    Overview

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Inventory Structure

    System References

    Oracle Inventory > Stock Locators

    Oracle Inventory > Subinventories

    Oracle Inventory > Subinventories Summary

    Distribution

    *Job Title

    Ownership

    The Job Title [list@YourCompany.com?Subject=EDU4097Y.doc] is responsible for ensuring

    that this document is necessary and that it reflects actual practice.

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    R12 Defining Inventory Organizations

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Objective

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Inventory Organizations

Inventory Organizations

    An inventory organization is a facility where you store and transact items. Before you can use Oracle Inventory, you must define one or more inventory organizations. Inventory organizations represent distinct entities in your enterprise and can be one of the following:

     A physical entity such as a manufacturing facility, warehouse, or distribution center.

     A logical entity such as an item master organization, which you use to define items. An inventory organization may have the following attributes:

     An inventory organization can have its own location, ledger, costing method, workday

    calendar, and items.

     An inventory organization can share one or more of these characteristics with other

    organizations.

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Inventory Organization Structure

Inventory Organization Structure

    An inventory organization, where you store and transact items can have one or more subinventories. Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. You must define at least one subinventory for every organization. You can track item quantities by subinventory as well as restrict items to specific subinventories.

    The subinventories in an inventory organization may be made up of one or more locators. You use locators to identify physical areas where you store inventory items. You can track items by locator and restrict items to a specific locator. Locator control is optional in Oracle Inventory. Instructor Note

    Mention that you can set up an inventory organization without subinventories; however, you cannot transact items without a subinventory.

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    Sample Inventory Organization

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Multi-Organization Structure

Multi-Organization Structure

    Multi-Organization structure enables you to model multiple business units in an enterprise using a single installation of Oracle applications. In a multi-organization architecture you can keep data secure and separate from each business unit.

    The following are the benefits of multi-organization structure:

     You can use a single installation of any Oracle Applications product to support any

    number of business units, even if those business units use a different ledger.

     Secure access to data so users can access only relevant information.

     You can define a organizational model that best suits your business requirements.

     In Inventory, you can fulfill any Sales Order or Purchase Order regardless of them being

    booked from any Inventory organization. You can also determine if any inter-company

    invoicing needs to occur based on if the Sales Order or Purchase Order was booked in a

    different Operating Unit other than the one to which the Inventory organization is assigned.

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Setting Up Locations

Setting Up Locations

     Define information describing the physical locations of employees and organizations.

     Locations are shared between Oracle Inventory, Oracle Purchasing, and Oracle Human

    Resource Management Systems. Locations flagged as global locations are available to all

    business groups. You can associate each organization with only one location; however,

    you can associate more than one organization with the same location. Refer to Guided Demonstration - Setting Up Locations [LAB408EY]

    Instructor Note

    Mention that physical locations are defined in Oracle Human Resource Management Systems.

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Defining Organizations

Defining Organizations

    Classify the Organization

     Choose an organization classification to describe the general purpose of your organization.

     Examples of organization classifications are inventory organization, legal company, and

    HR organization.

     Choose inventory organization as your organization classification to use your organization

    for inventory management.

    Ledger

     Tie each inventory organization to an operating unit. Each operating unit is associated to a

    legal entity and a primary ledger.

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