31
Oracle Inventory Management
Oracle Inventory Management is part of the supply chain management solution and integrates seamlessly with
other supply chain management applications, including Oracle Warehouse Management, Oracle Mobile Supply
Chain Applications, Oracle Order Management, Oracle Purchasing, Oracle Discrete Manufacturing, Oracle
Process Manufacturing, and Oracle Cost Management.
Oracle Inventory Management allows organizations to consolidate their disparate inventory tracking and control
systems into a single, global inventory management solution for material in every stage of the product or
production lifecycle as well as for different business types.
This chapter describes the following test flows in Oracle Inventory Management:
Inventory Miscellaneous Receipt
Inventory Miscellaneous Issue
Move Order Requisition of Type Move Order Issue with Automatic Allocation
Direct Transfer between Two Inventory Organizations
Inventory Intransit Shipment with Direct Receipt between Two Inventory Organizations
Inventory Sub-inventory Transfer
Perform Cycle Counting
Perform Physical Inventory
Kanban Replenishment
Min- Max Planning
Replenishment Count
Standard PO Partial Receipt with Immediate Mode
Positive Correction Transactions
Return to Vendor from Inventory Transactions
Material Issue through Sales Order
RMA Direct Receipt
Prerequisites
Organization (M1) with Non WMS and Non Process Manufacturing options enabled.
Open cost periods for corresponding transaction dates.
Profile Options
Table 31-1 Profile Options for Oracle Inventory Management
Profile Name Profile Value Level
TP:INV Transaction processing mode On-line processing Site
RCV: Processing Mode Immediate Site
Predefined Data
Table 31-2 Predefined Data for Oracle Inventory Management
Window Name Field Name Field Value
Organization Parameters Organization Code M1
Templates Template Purchased Item template
Setup Data
Table 31-3 Setup Data for Oracle Inventory Management
Window Name Field Name Field Value
Inventory Accounting Periods Period or Status 'Open' (Current month period should be opened)
31.1 Inventory Miscellaneous Receipt
Miscellaneous receipts are used to receive material from general accounts ledger into the current organization. This feature
can be used to perform receipts of items that were acquired by means other than a purchase order.
Prerequisites
Transactable inventory item.
If the item is locator enabled, sub inventory used is also locator enabled.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.2 Inventory Miscellaneous Issue
Miscellaneous Issue is used to issue material from general accounts ledger in the current organization. This feature can be
used to issue items to individuals, departments, projects or to issue damaged goods to expense accounts such as scrap.
Prerequisites
Transactable inventory item.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.3 Move Order Requisition of Type Move Order
Issue with Automatic Allocation
Move order issue is used to issue material from a stock location in the organization. This transaction will check for
sufficient material at the stock location, and on approval, will deliver the material to the destination location specified by
the user. The material is automatically allocated for transfer from the source location.
Prerequisites
Reservable stock for the material.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.4 Direct Transfer between Two Inventory
Organizations
Direct transfer is used to transfer material from one inventory organization to another. In this type of transfer the receiving
organization is not required to perform any operation to receive the material. The material is transferred from the source to
the destination organization as soon as the transaction is saved.
Prerequisites
Material is available at the source organization.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.5 Inventory Intransit Shipment with Direct
Receipt between Two Inventory Organizations
Inventory intransit shipment is used to transfer material from one inventory organization to another. For this type of
transfer, the user creates a shipment from the source organization and saves it. The receiving organization is expected to
create a receipt to receive the material. The creation of the receipt concludes the transfer.
Prerequisites
Material is available at the source organization.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.6 Inventory Sub-inventory Transfer
Sub-inventory transfer is used to transfer material within the current organization between sub-inventories or between two
locators within a sub-inventory. This transfer can be performed from an asset to expense sub-inventory and from a tracked
to a non tracked sub-inventory.
Prerequisites
Material is available at the source sub-inventory.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.7 Perform Cycle Counting
Cycle counting is used to check the inventory in a specific location that can be restricted to a particular sub-inventory.
Cycle counting is performed in a specific location that can be restricted to a particular sub inventory.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.8 Perform Physical Inventory
Physical inventory is used to check and update the system with the actual on hand inventory. Snapshots are taken of the
system inventory values and cross checked with the actual on hand quantity. Reconciliation is performed based on the
difference.
During this activity the system will not prevent the user from performing inventory transactions.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.9 Kanban Replenishment
Kanban replenishment is a pull based replenishment to be used on items with a fairly constant demand and high
production volume. A Kanban item is defined along with the pull sequence to indicate from where the replenishment will
take place. A color card can be used to serve as a trigger to start the replenishment. It is a means of supporting pull-based
replenishment in manufacturing systems, which can be replenished from an external supplier or an internal organization.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.10 Min-Max Planning
Min-max planning maintains inventory levels, or sub-inventory level, for all of the items or selected items. With min-max
planning, minimum and maximum inventory levels can be specified for the items. When the inventory level, or sub-
inventory level, for an item (on-hand quantities plus quantities on order) drops below the minimum, Oracle Inventory
suggests a new purchase requisition, internal requisition, move order, or job to bring the balance back up to the maximum.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.11 Replenishment Count
Replenishment count is used to plan and create requisition orders for items that need to be replenished. Verify the
replenishment count when the order quantity and the maximum ordered quantity are defined for the item.
Prerequisites
Replenishment count can only be used at the sub-inventory level.
Item-sub-inventory relationship.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.12 Standard PO Partial Receipt with Immediate
Mode
A standard purchase order is used to receive material from a supplier to the inventory organization. The user creates a
purchase order and sends it for approval. After approval the material is shipped to the organization. The receiving
organization creates a receipt for the material. During receipt the receiver can choose to receive a partial quantity.
Prerequisites
Receiving sub-inventory for receipt of material.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.13 Positive Correction Transactions
Positive correction transactions are used for purchase orders. This feature permits the user to increase the quantity on a
receipt for a previously received order.
Prerequisites
Purchase order receipt.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.14 Return to Vendor from Inventory
Transactions
Return to vendor feature is used when the receiver wants to return the goods previously received through a purchase order.
After receipt of a purchase order, if any goods are to be returned, a return to vendor transaction is created and the goods
are sent back to the supplier of the purchase order.
Prerequisites
Purchase order receipt.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.15 Material Issue through Sales Order
Sales order is used to ship goods to the customer. During the outbound flow, the user creates a sales order. Based on the
availability of the goods, the sales order is booked and released. Material is allocated against this sales order and then
shipped out to the customer.
Prerequisites
Reservable and transactable quantity in the inventory location.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
31.16 RMA Direct Receipt
Return material authorization (RMA) is used when the customer, to whom goods have been previously sold, wants to
return the goods. These are the goods for which a sales order was previously created. When the goods are returned at the
receiving dock, an RMA is created. A receipt is made against this RMA to acknowledge the returned goods.
Prerequisites
Sales Order that was previously shipped.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.
