Fusion Inventory Student Guide

Oracle Internal & Oracle Academy Use Only
Introduction to Oracle SCM

Cloud: Inventory
Student Guide
D96372GC10
Edition 1.0 | August 2016 | D97339
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Contents
1 Introduction to Inventory Cloud

Objectives 1-2
Agenda 1-3
Introduction 1-4
Oracle SCM Cloud Modern Solutions for Your Value Chain 1-5
Oracle Inventory Cloud Overview 1-6

Fusion Inventory Management Cloud Service 1-7
R11: Three Inter-Related Orchestration Solutions 1-8
Integrated End-to-End Advanced Fulfillment 1-9
Summary 1-10
2 Product Navigation
Navigation in Oracle Inventory Cloud 2-2
Objectives 2-3
Navigation: Overview 2-4
Using the Navigator 2-5
Using Work Areas 2-6
Creating and Editing 2-7
Getting Help 2-8
Demo 2-9
Resources for Implementation 2-10
Summary 2-11
3 Reporting Overview
Objectives 3-2
Topics 3-3
Business Intelligence (OBIEE) Technologies for Oracle SCM Cloud 3-5
Oracle Business Intelligence Publisher (OBIP): Key Features 3-6
Oracle Transactional Business Intelligence (OTBI): Key Features 3-7
OTBI Enterprise (OTBI-E) for Oracle ERP: Planned Offering 3-8
Oracle SCM Cloud Reporting Toolsets 3-9
OBIP Report Sample 3-10
Topics 3-11
Oracle SCM Cloud 3-12
Oracle Transactional Business Intelligence: Key Features 3-13
iii
Oracle SCM Cloud OTBI: Content Coverage 3-14
Oracle SCM Cloud OTBI 3-15
Reports and Analytics Pane 3-16
Embedded OTBI Content 3-17
OTBI Report Web Catalog 3-19
Creating a New OTBI Analysis 3-20
Predefined Reports in the Reports and Analytics Pane 3-22
Fusion Security Integration 3-23
OTBI Documentation 3-24
Demo OTBI analysis and Reporting 3-25
Summary 3-26

4 Key Features
Objectives 4-2
Inventory Visibility 4-3
Topics 4-4
On-Hand Quantity and Availability: Overview 4-6
Topics 4-7
Manage Item Quantities Page 4-8
Material Locations and Availability 4-11
Demonstration: Viewing Item On-Hand Quantity 4-12
Topics 4-13
Reservations 4-14
Reservation Supply and Demand Types 4-15
Summary Inventory Visibility 4-16
Inventory Support of Transactions 4-17
Topics 4-18
Inventory Transactions: Overview 4-20
Inventory Transactions Process Flow 4-21
Inventory Transactions with or Without Documents 4-22
Control Options and Restrictions 4-23
Topics 4-24
Miscellaneous Transactions 4-25
Demonstration Inventory Transaction 4-26
Topics 4-27
Subinventory Transfers 4-28
Topics 4-29
Inventory Movement Requests 4-30
Movement Request Process Flow 4-31
Movement Request Source Types 4-33
Demonstration Create Movement Request 4-35
iv
Topics 4-36
Interorganization Direct Shipment 4-37
Interorganization In-Transit Shipment 4-38
Summary of Inventory Transactions 4-39
5 Key Features (Replenishment)

Objectives 5-2
Topics 5-3
Min-Max Planning: Overview 5-5
Min-Max Replenishment Sources of Supply and Demand 5-6
Topics 5-8

Min-Max Replenishment Calculation 5-9
Topics 5-10
Running Min-Max Planning and Generating Supply Requests 5-11
Demonstration: Run Min-Max Planning at the Organization Level 5-13
Summary: Min-Max Planning 5-14
6 Key Features (Inventory Accuracy)

Objectives 6-2
Topics 6-3
Inventory Accuracy: Overview 6-5
Topics 6-7
ABC Analysis 6-8
Topics 6-9
Cycle Counting 6-10
Defining a Cycle Count 6-11
Topics 6-12
Physical Inventory 6-13
Topics 6-14
Demo Cycle Count, Record Count Sequences, and Approve Count
Sequences 6-15
Topics 6-16
Inventory Accuracy Reports 6-17
Summary 6-19
7 Key Features (Inventory Controls)

Objectives 7-2
Topics 7-3
Lot Control: Overview 7-5
Topics 7-6
Setting Up Lot Control: Organization Parameters 7-7
v
Topics 7-8
Serial Numbers: Overview 7-9
Generating Serial Numbers 7-10
Serial Uniqueness 7-11
Demonstration: Item Setup Lot and Serial 7-13
Topics 7-14
Material Status Control Levels 7-15
Material Status Transactions 7-17
Summary 7-18
Introduction to Oracle Inventory Cloud: Summary 7-19
vi
1
Introduction to Inventory Cloud

Objectives
After completing this course, you should be able to:

• Describe Oracle Inventory in the Cloud platform
• Explain the functionality in Oracle Inventory Cloud
• Describe Oracle Inventory Cloud Navigation
• Describe the Reporting features offered with Oracle Inventory Cloud
• Describe the key features of Oracle Inventory Cloud

Introduction to Oracle SCM Cloud: Inventory 1 - 2

Agenda
• Introduction
• Product Overview
• Product Navigation
• Reporting Overview
• Key Features

• Introduction
• Product Overview
• Product Navigation
• Reporting Overview
• New Features

Introduction
Oracle SCM Cloud


Oracle SCM Cloud
Modern Solutions for Your Value Chain
Supply Chain Planning
Order
Product Procurement Manufacturing
Management
Lifecycle Logistics
Mgmt.
Inventory & Cost Management
Product Master Data Management
Globalizations & Localizations

Analytic
Social Predictive
Mobile KPIs & Integrations
Network Analytics
Dashboards
Oracle SCM and Manufacturing product offerings include Product Master Data Management, Product
Lifecycle Management (PLM), Order Management, Logistics and Transportation Management,
Procurement, Inventory and Costing, Value Chain Planning, and Manufacturing applications.
These products are all integrated with country-specific globalization and localization functionality.
Additionally, the applications support social network capabilities, mobile capabilities, analytics,
financial reporting, and integration to other systems.

Oracle Inventory Cloud Overview


Fusion Inventory Management Cloud Service
Overview Consign
Put Away Replenish
Inspect
Move
Purchases
Transfers Receive Cycle
Returns Count
Cost
Orders Physical
Ship Inventory
Transfers
Returns Pack
Pick Transfer
Consume Fulfillment Report & Issues

Visibility
SOA-based Integration
SC Managerial Acctg Planning Manufacturing
Financials SFO Procurement Order Management
Oracle Inventory Management Cloud provides core support for both inbound and outbound logistics.
For inbound, starting with purchase orders and inbound transfers, users can create receipts in the
warehouse, including inspections and put-away as well as support for manufacturing completions.
For outbound processing, Oracle Inventory Management Cloud supports picking, packing, and
shipping for both sales orders and transfer orders. In addition, within the warehouse, users can
replenish inventory, count stock (both cycle count and physical inventory), move material within the
warehouse, and issue goods to manufacturing. Consigned inventory capabilities are supported as
well.

R11: Three Inter-Related Orchestration Solutions
• Customer Shipments
• External Drop Shipments
• Coordination of Goods & Order
Services Management
Orchestration
• Internal Drop Supply Chain • Internal Orders

Supply Chain
Shipments Financial • Configured Orders
Orchestration

• Tax Efficient Orchestration • Back to Back
Revenue Orders
Recognition • Outsourced Mfg
Orders
There are three complementary orchestration solutions:

• Distributed Order Orchestration (DOO): It is the infrastructure of Oracle Order Management
Cloud and focuses on end customer fulfillment. It focuses on end customer shipments
(including drop shipments from suppliers), and coordination of services with those product
shipments.
• Supply Chain Orchestration (SCO): It is about managing supply. It gives you more control
and visibility over inter-related supply documents, especially in build-to-order or configure-to-
order scenarios.
• Supply Chain Financial Orchestration (SFO): It is about managing the financial aspects of
your physical movements. It manages all the financial documentation and accounting you need
to support both internal and external drop shipments in your tax-efficient supply chain.

Integrated End-to-End Advanced Fulfillment
Drop Shipments / Back-to-Back Orders / Configured Product Fulfillment
Vendor Shipment direct

G Drop Ship PO
Customer to Customer
Order O Work Order Customer Shipment
P PO Vendor Shipment Customer Shipment

Internal Material Internal Shipment Customer Shipment
Transfer
Configured or Standard Executed & Changed
Planned & Promised
Products Real Time
Integrated end-to-end fulfillment support enables you to plan in advance, or build directly to a
customer’s order. It is most commonly used for configured products, but standard products are also
supported.
• All of the orchestrated flows can be planned in advanced, and promised through Oracle Fusion
Global Order Promising.
• After it is promised, the orchestration engine picks it up and automatically creates and reserves
the supply to the customer order line. Any changes to supply or demand are automatically
synchronized.
• For configured products, details are passed onto the supplier through purchase order details, to
manufacturing through a configured work definition or job.

Summary
In this lesson, you should have learned how to describe the Oracle Inventory
Cloud platform.
• Next up: Navigation


2
1
Product Navigation

Navigation in Oracle Inventory Cloud


Objectives
After completing this lesson, you should be able to navigate in Oracle Inventory
Cloud.


Navigation: Overview
Global icons
Navigator

Welcome springboard
After you sign in to the applications, you land on the Home page, which shows:
• A set of global icons, such as Home, Favorites, Watchlist, Help, and so on, across the top of
the page. These icons are available at the top of the page (the global area) no matter where
you are in the applications, which is why they are called global icons.
• The Navigator icon, which is also available in the global area everywhere in the applications. In
the Navigator, you can open all the work areas and dashboards to which you have access.
• The Welcome springboard, which provides access to most of the same work areas and
dashboards that you see in the Navigator
No matter where you are in the applications, you can click the Home icon in the global area to return
to this Home page.

Using the Navigator

Click the Navigator icon to view the work areas and dashboards to which you have access.
• Work areas are where you perform tasks. For example, in the Counts work area, you can
create cycle counts, record physical inventory tags, and so on. In the Product Information
Management work area, you can create and manage items, manage item imports and batches,
and perform a range of additional tasks related to product management.
• Dashboards provide access to business intelligence. For example, the Warehouse Operations
dashboard provides insight into warehouse activity, and allows you to compare current activity
against a previous day’s activity.

Using Work Areas
Springboard
Tasks panel tab

Tasks panel drawer
shows tasks available in
the work area.
When you click a work area name in the Navigator, you access the work area’s home page. On this
page, you can typically get immediate insight into urgent tasks that need your attention. The work
area may also have some embedded analytics that highlight key performance indicators of which you
need to be aware.
Click the Tasks panel tab to open the Tasks panel drawer, where you can launch a range of tasks
specific to that work area.
Many work areas also include a springboard of icons near the top of the page. These icons provide
quick access to closely related work areas.

Creating and Editing
Actions Create icon

menu

Object name
When you click a task name, such as Manage Items, in the task panel, you access that task’s page in
the work area. Task pages that support managing a specific business object typically give you access
to search for existing business objects, edit those objects, and create new objects. For example, on
the Manage Items page, you can search for existing items, edit those items, and create new items.
In work areas that support creating and editing of business objects, you can work with those objects
in many ways:
• You can use the Create icon to create a new business object. You can also select the Create
action from the Actions menu to create a new object.
• You can search for existing business objects and click the hyperlinked object name to begin
editing the object.
• In many cases, after you search for a business object, you can select the object in the Search
Results table, and then click the Edit icon (or select Edit from the Actions menu) to begin editing
the object.

Getting Help
Show/Hide Help icon
Help is
available for
this page.
Terminology definition is

available for the Pack Access the
Type field. Help site.
On most pages, you have a range of help options available to you if you need additional information
or support:
• You can access various types of embedded help. These include terminology definitions (to
explain what something means) and pop-up bubble text (to explain what something does). On
the Edit Item page, the dotted underline markings under the User Item Type and Pack Type
field prompts indicate that terminology definitions are available to define those terms. Place the
cursor on the underlined terms to display the corresponding help.
• Many pages have a range of more detailed, context-sensitive help topics available as well.
These topics can provide conceptual background information, explain architecture, support
decision-making, answer FAQs, or show how to perform a task in a self-paced instructional
video.
To access these help topics, first click the Show/Hide Help global icon. If context-sensitive help
topics are available for the page, or for specific regions on the page, you see orange Help
(question mark) icons embedded on the page. Click this Help icon to open a window that shows
you the available help topics, and then click any help topic to open it. Note that you do not
navigate away from the application page when you open help—the application page is always
open and available in the background.
• On any page, you can also directly access the Applications Help site, where you can search for
or browse through all the help topics that are available to support the applications. To access
the Applications Help site, click your username to open the Setting and Actions menu, and then
click Applications Help.

Demo


Resources for Implementation
For documentation, videos, and additional information, see the Oracle Supply
Chain Management Cloud documentation, which is available in the Oracle Help
Center.
docs.oracle.com
cloud.oracle.com

To locate the Oracle Supply Chain Management Cloud resources on the Oracle Help Center, perform
the following:
1. Go to the Oracle Help Center at: docs.oracle.com.
2. Click the Cloud icon.
3. On the Cloud Documentation page, click the Applications tab, and then click Supply Chain
Management Cloud.
4. On the Oracle Supply Chain Management Cloud page, click the Books tab.

Summary
In this lesson, you should have learned how to navigate in Oracle Inventory
Cloud.
• Next up: Reporting


3
1
Reporting Overview

Objectives
After completing this lesson, you should be able to:

• Identify the Business Intelligence reports and analyses that support Oracle
SCM Cloud
• Describe the components and key features of Oracle Transactional
Business Intelligence (OTBI)
• Access reports and analytics


Topics
• Business Analytics for Oracle SCM Cloud

• OTBI for Oracle SCM Cloud


Topics



Business Intelligence (OBIEE)
Technologies for Oracle SCM Cloud
• Oracle Business Intelligence Publisher (OBIP)
• Oracle Transactional Business Intelligence (OTBI)
• Oracle Transactional Business Intelligence - Enterprise (OTBI-E)
BIP OTBI OTBI-E (Future Roadmap)
Best used for: Best used for: Best used for:
• Reporting for scheduled batch • Historical reporting • Historical analysis – trending,
processes • Current state reporting and snapshot balances, aging, etc.
• Pixel perfect reporting ad-hoc analyses • Comparative analytics,
• All real-time reporting needs benchmarking, cross source, and
cross functional analytics

Source Source Source
• OTBI data model (recommended) • OTBI semantic data model, • OTBI-E semantic data model,
or direct SQL against source data based on flattened BI VOs persisted data warehouse, pre-built
model ETL using flattened BI VOs and cloud
adapters for other sources

Oracle Business Intelligence Publisher (OBIP):
Key Features
Oracle Business Intelligence Publisher (OBIP) is an enterprise reporting solution
for authoring, managing, and delivering reports from many data sources in
different formats through multiple channels.
• Uses data sources such as SQL Query, MDX Query, Oracle BI Analysis,
View Object, Web Service, LDAP Query, XML File, Microsoft Excel File,
CSV File, and HTTP (XML Feed)
• Prints reports on standard templates, also known as fixed format sheets
• Enables report bursting; separates a single report to multiple output formats

and destinations on a scheduled basis
Oracle Business Intelligence Publisher (OBIP) separates the data model, layout, and translation,
which means that BI reports can be:
• Generated and consumed in many output formats, such as PDF and Excel
• Scheduled for delivery to email, printers, and so forth
• Printed in different languages by adding translation files
• Burst and scheduled to be delivered to many recipients
With OBIP, you have the ability to query unsecured Oracle Fusion tables.
Sometimes a report developer will want to bypass data security, but you should limit who has access
to do this.
The BI Publisher Customize feature enables you to copy an existing seeded report and either add a
layout, amend an existing layout, or delete a layout. Any changes that you make to the customized
report will not be overwritten if the seeded report is patched.

Oracle Transactional Business Intelligence (OTBI):
Key Features
Oracle Transactional Business Intelligence (OTBI):
• Provides real-time insight to the business, addressing questions about
operational responsibilities
• Reports directly from transactional tables and displays the changes in real
time
• Displays transactional analytics in various forms, such as charts, tables,
fields, labels, icons, inserted rows, and columns
• Queries directly from Oracle Fusion tables; no need for data warehouse or

a data store
• Provides ad hoc analysis by using the Oracle Business Intelligence
Enterprise Edition (Oracle BI EE) platform
Oracle Transactional Business Intelligence (OTBI) is first and foremost an ad hoc reporting layer
against the Oracle Fusion transactional tables and balances cube. With OTBI, you can easily build
custom reports and perform ad hoc analyses.

OTBI Enterprise (OTBI-E) for Oracle ERP:
Planned Offering
CROSS SOURCE CROSS FUNCTIONAL
• Integrate Supply Chain Cloud data with ERP cloud or CX • Integrate Supply Chain Cloud data with Finance,
Cloud Procurement, Projects, and HCM Cloud data (Accounts
• Integrate Supply Chain Cloud data with on-premise Receivables, Procurement, Inventory , Pricing, Projects, etc)
sources (EBS, Psoft, JDE, etc)
• Integrate Supply Chain Cloud data with third-party data
sources (External Forecast, Commodity Price Indexes, etc.)
ADVANCED
• Historical, trending, and predictive analysis
• Complex metrics (Inventory Turn, DSO, etc)
• Data enrichment (Classification, Supplier Risk, Portfolio
cash flow analysis, internal and external benchmarking

FLEXIBLE
• Extensible and secure
• Built for analysts and executives

Oracle SCM Cloud Reporting Toolsets
Fusion BI Composer
• Access from within Fusion Applications.
• Run report.
• Create simple reports.
Casual Users
Oracle BI Answers
• Create full-featured reports.
• More graph options, conditional format
• Create dashboards.
Business Power Users • Schedule reports.
Oracle BI Publisher

• Build SQL reports with direct
database connection or use OTBI
subject areas as the data source.
• Create fixed-format reports.
IT Developers • Schedule, FTP reports, bursting.

OBIP Report Sample


Topics



Oracle SCM Cloud
Supply Chain Planning

Order
Product Procurement Manufacturing
Management
Lifecycle Logistics
Management
Inventory & Cost Management
Product Master Data Management

Globalizations & Localizations

Analytic
Social Predictive
Mobile KPIs & Integrations
Network Analytics
22 Dashboards
Oracle SCM Cloud provides comprehensive solutions for your value chain.

Oracle Transactional Business Intelligence: Key Features
1 Real-Time Business 2 Ease of Use, Highly
Intelligence Interactive
• Built on best-in-class OBIEE tool
• Real-time, no latency
• Business-centric reporting subject areas
• No persistent data store • Prebuilt calculated measures
3 Seamless Integration with 4 Support Fusion

Fusion Applications Extensibility
• Flexfields, trees and column labels
• Minimal configuration
available for reporting
• Uses Fusion Application security

• Support multi-language
• Uses Fusion Application metadata; for • Custom reports can be embedded on
example, trees, column labels, etc. Fusion pages via Page composer
• Uses Fusion Application language,
locale, and currency preferences

Oracle SCM Cloud OTBI: Content Coverage
Inventory Product Information Innovation
Management Management
• Inventory Balance
• Change Order Line
• Inventory Supply • Ideas
• Change Order
• Inventory Transactions • Portfolio Cost
• Components
• Inventory Organization • Portfolio Life Cycle
• Cross Reference Item
• Receiving - Interorganization Receipts • Portfolio Resource
• Item Revisions
• Receiving - In transit Advanced Shipment • Portfolio Revenue
Notifications • New Item Request Line
• Product Portfolio
• Receiving - In transit Interorganization • New Item Request
Inventory Transfers • Requirements
• Related Item
• Receiving - In transit Shipments • Scenario Life Cycle
• Source System Item
• Receiving - Purchase Receipts • Concepts
• Structures Real Time
• Receiving - Receipts • Proposals
• Trading Partner Item
• Receiving - Transactions
• Receiving - Unordered Receipts
• Shipping Real Time
Order Management Costing
Manufacturing

• Fulfillment Lines
• COGS and Gross Margin
• Order Headers • Cost Accounting
• Work Order Performance
• Order Holds • Inventory Valuation
• Material Usage
• Order Lines • Item Cost
• Resource Usage
• Price Adjustments • Receipt Accounting
• Actual Production
• Process Instances
HCM OTBI ships over 1400 unique reporting data fields.

Oracle SCM Cloud OTBI
How and where?
You can find OTBI content:

• As reports and dashboards embedded directly on an ADF page
• As sample reports and dashboards in the BI catalog
• By creating new ad-hoc analyses using BI Answers


Reports and Analytics Pane
The Reports and Analytics pane provides a central place where:

• You can quickly view or run operational analyses or reports relevant to your
work
• Create a new report or analysis and access Oracle Business Intelligence
Answers

Each link in the Reports and Analytics pane is generically referred to as a report or analytic and
represents a mapping to an object in the BI Catalog. The catalog contains reports and analyses in
Oracle Fusion Applications and presents them in an organized hierarchy. Links with the Report type
are BI Publisher content, and those with Analysis type are OTBI or OBIA. Many other object types are
available, but these are the most common.

Embedded OTBI Content
An entire OTBI dashboard embedded on an ADF page:

Navigator > Costing > Costing Dashboard

Embedded OTBI Content
OTBI reports embedded directly on an ADF page:

Navigator > Costing > Costing Dashboard

OTBI Report Web Catalog
• Web Catalog contains a library of answers, OTBI

reports, OTBI dashboards, and BI Publisher
reports.
• Web Catalog is secured by Fusion user security
roles.
• A custom folder is available for custom reports.
• Custom reports are preserved during the
upgrade.


Creating a New OTBI Analysis
First select a subject area:

When you create an analysis, you first select a subject area, which contains columns related to a
specific business object or area. You then open folders within the subject area and find the columns
to include in your analysis.
OTBI subject areas always have a suffix of Real Time.

Creating a New OTBI Analysis
Open folders, and find the columns to include in your analysis:

You then open folders within the subject area and find the columns to include in your analysis.
OTBI subject areas always have a suffix of Real Time.

Predefined Reports in the Reports and Analytics Pane
Many OTBI and OBIP reports are available to help you track areas such as
Inventory, Costing, Product Catalog Management, and Product Planning.

You can find these reports in the Reports and Analytics work area > SCM family folder > Warehouse
Operations folder.

Fusion Security Integration
• Fusion job roles are assigned with corresponding OTBI transaction analysis
duty roles.
• You can assign OTBI transaction analysis duty roles to custom job roles.
Assigned
Subject Areas:
Inventory Balances Real
Time
Is BI Duty Role Inventory Transactions Real
Assigned Fusion Job Role Assigned
Inventory Time
Compensation
Analyst Transaction
Analysis Duty
Web Catalog

Folders
User Job Role: /Shared Folders/Supply
Inventory Manager, Assigned Chain
Management/Warehouse
Warehouse Manager Operations

OTBI Documentation
• Oracle Cloud Documentation – SCM Cloud  Analyze and Report

– Available at: https://docs.oracle.com/cloud/latest/scmcs_gs/index.html
• OTBI Admin Guide
– Available at: http://docs.oracle.com/cloud/latest/common/OATBI/toc.htm
• Oracle Customer Connect
– Available at:
https://ora-fusion-apps.custhelp.com/
We will continue to post more OTBI

content in the near future. Look for BI
tagged content.

Demo OTBI analysis and Reporting


Summary
In this lesson, you should have learned how to:

• Describe the components and key features of OTBI
• Identify the Business Intelligence reports and analyses that support Oracle
SCM Cloud
• Access reports and analytics


4
1
Key Features

Objectives
After completing this lesson, you should be able to describe:

• Inventory Visibility
• Inventory Support of Replenishment, Moves, and Transactions


Inventory Visibility
• On-Hand Quantity and Availability

• Manage Item Quantities Page
• Reservations


Topics

• Reservations


Topics

• Reservations


On-Hand Quantity and Availability: Overview
Subinventory: FGI Subinventory: FGI

Locator: 1.1.1 Locator: 1.1.2
On-hand quantity: 19 On-hand quantity: 5

Subinventory: FGI Subinventory: Bulk
Locator: 1.1.3 On-hand quantity: 15
On-hand quantity: 9
On-hand quantity refers to inventory that you have on hand within your organization.
Subinventory
• On-hand quantity is the physical quantity that resides in your subinventory.
• A subinventory is a physical or logical grouping of inventory, such as raw material or finished
goods. For example, the Bulk subinventory has an on-hand quantity of 15 items.
Stock Locator Level
• On-hand quantity can also be stored at the stock locator level.
• Stock locators are used to identify physical areas within the warehouse where you store
inventory items.
• For example, locator 1.1.1 under subinventory FGI contains an on-hand quantity of 19 items.

Topics

• Reservations


Manage Item Quantities Page
View “Available to On Hand,
Transact” and Receiving, and
“Available to Reserve” Inbound
quantities. quantities
Drill down to specific

subinventories and locators.

View Item, Lot, Serial
Number, Inbound, and
Consigned details.
Uses of the Manage Item Quantities User Interface

• Is used to search and view item quantities within the organization
• Provides both a regional search and advanced search region
• Provides a variety of attributes to filter your search, such as Organization, Item, Item
Description, Subinventory, Locator, Lot, and Serial Number
• Is the landing page in the Inventory Work Area
• Can be accessed by the job roles of Warehouse Operator, Warehouse Manager, and Inventory
Manager
Manage Item Quantities User Interface Format
• The Manage Item Quantities user interface is presented in a tree table format.
• You can drill down from the organization into specific subinventories and locators.
• There are three columns presented in the tree table for On Hand, Receiving, and Inbound
Quantities.
• In the Detail section, you can view Item, Lot, Serial Number, Inbound, and Consigned Details.

• The Item Details tab presents information about the item such as item description and item
category.
• The Lot Details tab presents information about the lot such as grade, status, origination date,
and lot expiration date.
• The Serial Number Details tab presents information about serial numbers such as serial
number status and context.
• The Consigned Details tab presents information about consigned inventory such as owning
party, owning party site, and consigned on-hand quantity.
View Item Availability Link
• Displays the availability dialog box
• This dialog box provides additional availability details such as Available to Transact and
Available to Reserve quantities.
- Available to Transact represents the available quantity of an item that you can transact

across an organization.
- Available to Reserve represents the available quantity of an item that you can reserve
across an organization.

Manage Item Quantities Page
There are five separate actions available from the Manage Item Quantities user
interface:
• Request Subinventory Transfer
• Request Item Issue
• Request Cycle Count
• Manage Material Status
• Edit Lot Grade

There are five separate actions available from the Manage Item Quantities user interface:
• Request Subinventory Transfer: Ability to transfer material from a source subinventory to a
destination subinventory
• Request Item Issue: Ability to transfer material to a destination account
• Request Cycle Count: Ability to initiate a cycle count by entering count name and schedule
date
• Manage Material Status: Ability to manage material status at Subinventory, Locator, and Lot
levels
• Edit Lot Grade: Ability to edit the lot grade for a selected lot

Material Locations and Availability
Material Locations
Inbound Receiving On Hand
Availability
Availability = - -

On Hand Reservations Pending
transactions
The Manage Item Quantities user interface enables users to view inventory balances by material
location. There are three separate material locations: On Hand, Inbound, and Receiving.
• On-hand inventory balances refer to material residing in storage locations within the
warehouse.
• Inbound inventory balances refer to material yet to be received by the warehouse (material in
transit to the warehouse).
- Inbound material is typically on an inbound document such as a purchase order or
advance shipment notice.
- In the Detail section of the Manage Item Quantities page, the Inbound tab shows detailed
information about the inbound document, such as document number, document type,
supplier, and supplier site.
- You can view item quantity for a specific document and document line. Additionally, users
can view lot and serial number details for inbound item quantities by selecting View Lot
and Serial Information from the actions menu.
• Receiving inventory balances refer to material residing in designated receiving subinventories.
Viewing Available Items
You can use the Manage Item Quantities user interface to view item availability. The system can
display item availability for a given item at the organization, subinventory, and locator levels. You can
view items that are available to reserve as well as available to transact. The system shows the
information in both the primary and secondary quantities if applicable.

Demonstration: Viewing Item On-Hand Quantity

• In the Navigator, click the Inventory link under Warehouse Operations.

• If the Select Organization popup is not displayed, click the Change Organization button and
click the LOV to see a list of Inventory Organizations.
• Select, search, or enter your Inventory Organization 001 and click the OK button.
• In the Advanced Search, enter item AS65001.
• Click the Search button.
• Click the Expand icon next to the organization to see on-hand quantity in all subinventories.
• Click the Expand icon next to the subinventory.
• Note the on-hand quantity for your subinventory Stores.

Topics

• Reservations


Reservations
Book sales order
Demand
document Reservation
Receive material

Supply
document
A reservation is a link between a supply document and a demand document.

• A reservation creates a permanent data link between a supply document and a demand
document, and represents a guaranteed allotment of material to a specified demand document.
• Item reservations prevent picking material you previously set aside for a sales order, account,
account alias, or user-defined demand.
• You can also create reservations for different types of supplies such as on-hand inventory or
purchase orders.
Reservation Types
For on-hand inventory supply, there are two types of reservations:
• High level reservations: Contain information about the item and the organization
• Low level reservations: Contain more detailed information about the item such as revision, lot,
subinventory, serial, and locator
You use the Manage Reservations user interface to create, view, update, transfer, and delete
reservations.

Reservation Supply and Demand Types
Supply Types Demand Types
On Hand Sales Order
Purchase order Account and

account alias
Reservation

Requisition
User-defined
A reservation is the association between a supply document and a demand document. For example,
you can create a reservation for a demand document type of sales order against a supply document
type of purchase order. The reservation creates the association between these two documents.
Demand Document Types
• Account
• Account Alias
• Cycle Count
• Movement Request
• Sales Order
• Shipment Request
• User Defined
• Transfer Order
Supply Document Types
• On Hand
• Purchase Order
• Requisition
• Transfer Order
• Work Order

Summary Inventory Visibility

• View and manage item quantities
• Perform transactions in the Manage Item Quantities UI
• Explain item availability types
• Describe reservation supply and demand documents
• Create inventory reservations


Inventory Support of Transactions
• Inventory Transactions: Overview

• Miscellaneous Transactions
• Subinventory Transfers
• Movement Requests
• Direct and In-Transit Interorganization Transfers


Topics


Topics in this course include:

• Inventory transactions overview
• Miscellaneous transactions
• Subinventory transfers
• Direct and in-transit interorganization transfers

Topics



Inventory Transactions: Overview
Material Flow Business Flow
Receive Goods
Manufacturing Purchasing
Move Goods
Inventory

Ship Goods Order Management
Inventory Transactions
• A transaction is an item movement into, within, or out of inventory.
• A transaction changes the quantity, location, planning responsibility, and cost of an item.
• Oracle Fusion Inventory Management supports several predefined and user-defined transaction
types. Every material movement has a corresponding set of accounting transactions that Oracle
Fusion Cost Management automatically generates. All transactions validate the various controls
(revision, locator, lot number, serial number and secondary unit of measure) that you enable for
items.

Inventory Transactions Process Flow
Transactions
Miscellaneous
Receipt
Subinventory Miscellaneous Inventory
Bulk Issue Adjustment
Subinventory
Transfer
Subinventory Subinventory
FGI Interorganization Stores
Transfer

- Direct
- In Transit
Organization M1 Organization M2
You can perform the following inventory transactions:

• Receive items into your organization from a general ledger account number.
• Issue items from your organization to a general ledger account number.
• Transfer items from a subinventory in your organization to another subinventory in the same
organization.
• Transfer items directly between organizations.
• Transfer items between organizations by way of in-transit shipments.
• Reserve items for a specific account to temporarily prevent the use of items.

Inventory Transactions with or Without Documents
Inventory transactions can be processed with or without supporting

documentation.
Without Documents With Documents
• Miscellaneous Issue • Purchase Order Receipt
• Miscellaneous Receipt • Transfer Order Shipments and
• Subinventory Transfer Receipts
• Interorganization Transfer • Movement Request Issue
• Interorganization Receipt • Movement Request Subinventory

Transfer
Inventory Transactions Without Documents and Requisitions

• You can use interorganization transfers without using a requisition or transfer order.
• You can use miscellaneous receipts to receive material without a purchase order number.
• Use miscellaneous issues to issue material without approvals or a document number.
• Use subinventory transfers to transfer the location of material without a document number.
Inventory Transactions with Documents and Requisitions
• You can use requisitions and purchase orders to provide an approval mechanism to authorize
and track purchased material coming into the warehouse.
• You can use requisitions and transfer orders to provide a document to track when you transport
material across inventory organizations or within an inventory organization:
- Use movement requests with a Movement Request Issue transaction type to provide a
document to track the issue of the material.
- Use movement requests with a Subinventory Transfer transaction type to approve a
transfer and to provide a document to track the transfer of the material.

Control Options and Restrictions
You can set the following options and restrictions before you perform inventory
transactions:
• Locator control
• Lot control
• Serial number control
• Revision control
• Subinventory and locator restrictions for specific items
• Dual unit of measure control

• Material status control

Topics



Miscellaneous Transactions
Transactions used to issue material to, or receive material from, general ledger
accounts into an inventory organization
Receive items without
documentation
(Miscellaneous Receipt)
Issue items without

documentation
(Miscellaneous Issue)

Issue items to an
account
(Account Issue)
Miscellaneous transactions enable you to issue material to individuals or projects that are not in
inventory, receiving, or manufacturing. These could include a research and development group or an
accounting department. You can also make manual adjustments to the general ledger by receiving
material from one account to inventory, and then issuing that material from inventory to another
account.
Miscellaneous Transactions Applications
With miscellaneous transactions, you can:
• Load items when you implement Oracle Fusion Inventory Management
• Scrap items by issuing them to scrap accounts
• Issue items to individuals, departments, or projects
• Receive items that were acquired without purchase orders
• Enter adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life
expiration, or inaccurate record keeping

Demonstration Inventory Transaction

In this demo, you will learn how to create an inventory transaction using the Create Miscellaneous
Transaction user interface. For example, the Engineering department needs to issue an item out of
inventory for a prototype they are building. The warehouse operator will need to create a
Miscellaneous Issue transaction to record the item issue.

Topics



Subinventory Transfers
Transactions used to transfer material within an organization between two

subinventories, or between two locators within the same subinventory
Subinventory Transfer
Sub: Stores Sub: FGI
Subinventory transfer
between two
subinventories
Sub: FGI Sub: FGI

Locator: 1.1.1 Subinventory transfer Locator: 1.1.2

between two locators
within the same
subinventory
Subinventory transfer transactions are used to transfer material within an organization between two
subinventories, or between two locators within the same subinventory.
Some of the uses of subinventory transfers include:
• Replenishing from bulk storage subinventories to front-loading picking locations
• Rebalancing inventory locations for space management
• Transferring between asset and expense subinventories
• Transferring between tracked and non-tracked subinventories

Topics



Inventory Movement Requests
Requests to move material within an inventory organization
• Process flow includes creating a movement request, printing a movement
request pick slip report, physically picking material, and confirming pick
slips.
Create movement
request Confirm pick slips
1 4
Run movement

request pick slip
report + Physically move
material
2 3
Movement requests are requests for the movement of material within a single organization.
• A movement request document formalizes the process to request movement of material within
a warehouse or facility for purposes like replenishment, material storage relocations, and quality
handling.
• Movement requests are generated manually or automatically depending on the source type
used.
• Movement requests are restricted to transactions within an organization. Transfers between
organizations require an interorganization transfer or a transfer order.

Movement Request Process Flow
Create Pick Release
Movement
Request Assign Picks Print Pick Slip
Pick Confirm
Picking Deliver

Source Destination
Location Location
The movement request process flow includes the creation of a movement request, pick release
(assigning picks and printing movement request pick slip report), and pick confirm (physically picking
material and confirming pick slips).
Movement Request
Movement requests are manually or automatically generated, depending on the source of the
transaction.
Movement requests can be one of the following three types:
• Requisition Movement Requests: Manually created using the Manage Movement Requests
page as necessary to relocate material or adjust perpetual inventory records.
• Replenishment Movement Requests: Min-Max processing automatically creates them to refill
depleted inventory locations.
• Pick Wave Movement Requests: Shipping automatically creates them to support the staging
of picking waves.

Pick Release
• Movement requests must be assigned detailed source and destination locations, or used to
identify shortages for further action. The process of designating a pick assignment is part of the
pick release process that must occur for all movement requests. This allocates the quantity to
the movement request making it unavailable to any other transactions. Move instructions can
then be issued for available quantities through printing of a pick slip.
• If the material could not be fully sourced because of lack of available quantity, the movement
request is backordered and the unsourced balance can be re-released at a later time.
• Pick release processing can be fully automated, assigning the pick quantity and printing the
pick slip in a single step by selecting the Release Approved Lines option when running the Print
Movement Request Pick Slip report. This is usually run as a scheduled process, automatically
generating the pick slips for movement requests ready to be released.
• To manually assign a pick and create a pick slip for a movement request, use the Manage
Reservations and Picks user interface.

Pick Confirm
After material is physically issued and delivered to the destination location, the material movement is
recorded with a Pick Confirm transaction.

Movement Request Source Types
Movement Request Type Source/Purpose Process
Requisition Movement • Account Transfer • Manually Generated
Request • Subinventory Transfer • Print Pick Slip***
• Pick Confirm
Replenishment Movement Min-Max • Automatically Generated

Request • Print Pick Slip***
• Pick Confirm
Pick Wave Movement Pick Wave Processing against • Automatically Generated

Request Shipment Requests • Print Pick Slip

(Sales Orders and • Pick Confirm
Transfer Orders)
***Assignment of pick can optionally be performed manually or as part of Print

Pick Slip processing.
Oracle Inventory Management provides three types of movement requests:

• Requisition movement requests
• Replenishment movement requests
• Pick wave movement requests
The movement request type refers to the entity that created the movement request. For all movement
requests, the final result is one of the two supported transactions: subinventory transfer or movement
request issue.
Requisition Movement Requests
The requisition movement request is manually generated using the Manage Movement Requests
page. You can generate requests for subinventory transfers or movement request issues.

Replenishment Move Order
These movement requests are generated automatically for min-max planned items where the item’s
replenishment source (set at the item-subinventory level) is another subinventory. In this case, the
min-max process automatically generates a move order.
Note: The source subinventory must be set up at the item subinventory level. For the min-max report
to generate a movement request, the report must be generated at the subinventory level.
Pick Wave Move Order
The pick release process generates move orders to bring the material from its source location in
stores to a staging location, which you define as a subinventory in Inventory Management. This
transaction is a subinventory transfer. These movement requests are generated automatically by the
Shipping Pick Waves process.

Demonstration Create Movement Request

In this demonstration, you will learn how to create, pick, and pick confirm a movement request
requesting an item to be issued out of inventory.

Topics



Interorganization Direct Shipment
Direct interorganization transfers move inventory directly from a shipping

organization to a destination organization.
Shipping Destination

Organization Organization
Direct interorganization transfers move inventory directly from a shipping organization to a destination
organization. The destination organization receives the material immediately when you submit the
transaction. Unlike an in-transit interorganization transfer, a direct interorganization transfer does not
require a receipt at the destination organization.
Unit of Measure Conversions
When you transfer items under dual UOM control between organization, the system honors the UOM
conversion of the destination organization. Consequently, the system could potentially recalculate the
secondary quantity for the item if the conversions differ between the shipping organization and the
destination organization. The system always processes transaction quantities in the primary UOM.
You must define UOM conversions in both the shipping and destination organization before the
system can process the transaction.

Interorganization In-Transit Shipment
Material is transferred through in-transit inventory when transportation time is

significant.
• Material is moved to in-transit inventory before being received at the
destination.
• Receipt and put-away is performed at the destination inventory organization.

Shipping In-Transit Destination
Organization Shipment Organization
You usually transfer material to in-transit inventory when transportation time is significant.
• When you perform the transfer transaction, you do not need to specify the delivery location.
• You need to enter only the subinventory you are shipping from, shipment number, and the
freight information.
• At the time of shipment, you must define your receiving parameters for the destination
organization.
• You can receive and deliver your shipment in a single transaction or you can receive and store
your shipment at the receiving dock.

Summary of Inventory Transactions

• Identify the different inventory transaction types
• Understand the difference between document-based and
non-document-based inventory transactions
• Create miscellaneous inventory transactions
• Create subinventory transfers
• Create and process movement requests
• Perform direct and in-transit interorganization transfers


5
1
Key Features (Replenishment)

Objectives
After completing this lesson, you should be able to describe Inventory Support of
Replenishment.


Topics
• Min-Max Planning: Overview

• Min-Max Replenishment Calculation
• Running Min-Max Planning and Generating Supply Requests


Topics



Min-Max Planning: Overview
This is a method of inventory planning to determine order quantity based on

user-defined minimum and maximum inventory levels.
Minimum Inventory Level Maximum Inventory Level

Below Minimum! Time to Order
• Min-max planning is a method of inventory planning that determines how much to order based
on user-defined minimum and maximum inventory levels.
• With Oracle Fusion Inventory Management, you can perform min-max planning at both the
organization and the subinventory levels.
• To perform organization-level min-max planning for an item, you must specify organization-level
minimum and maximum quantities.
• Min-max planning is typically used to control low-value inventory items that do not need great
control.
• To perform subinventory-level min-max planning for an item, you must specify item
subinventory-level minimum and maximum quantities.

Min-Max Replenishment Sources of Supply and Demand
Purchasing
Inventory
Min-Max Processing

Order Management Manufacturing
• Min-max replenishment processing uses current on-hand balances in inventory in addition to

optional features that allow a view into current “on-order” balances that affect supply and
demand. On-order balances can be impacted by orders in inventory, purchasing, order
management, and manufacturing.
• You should order when the following is true: (on-hand quantity – demand) + (quantity on order)
< minimum quantity.
• Quantity on order is the sum of purchase order quantities, requisition quantities, and in- transit
shipments. It also includes work orders as supply at the organization level. Quantity on order
represents supplies that you have not yet received in your organization.
• The system calculates demand quantity by using information from the following sources:
- Sales orders
- Transfer orders
• You can include work order component requirements as a source of demand as well.
• You can net unfulfilled demand against on-hand quantity and also include inventory
reservations in netting on-hand quantity against demand.
• Cutoff dates are entered as runtime parameters when the min-max process is initiated. These
cutoff dates determine how far into the future “on-order” and “demand” information coming from
the different order types is to be used.

Inventory Sources of Supply and Demand
Inventory on-hand balances are always used in replenishment calculations. In addition, inbound and
outbound transfer order supply and demand can also optionally be included as available supply
(inbound) and as existing demand (outbound) in replenishment calculations. When performing
min-max processing at the subinventory level, movement requests for subinventory transfers and
account issues are also included in min-max supply and demand calculations.
Purchasing Sources of Supply and Demand
Current on-order supply on purchase orders and requisitions can optionally be included as available
supply in min-max calculations.
Order Management Sources of Supply and Demand
Current demand on sales order can optionally be included as available supply in min-max
calculations.
Manufacturing Sources of Supply and Demand

Current on-order supply on work orders can optionally be included as available supply in min-max
calculations. In addition, component demand on these work orders can optionally be included as
demand in min-max calculations having the effect of reducing the available balance in the
organization.

Topics



Min-Max Replenishment Calculation
Min-max planning calculates whether the total available quantity is less than the
minimum quantity.
• A new order is suggested if total available quantity is less than the minimum
quantity.
• Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on
order) ]
= - +

Order Maximum On-Hand Quantity
Quantity 8 = Quantity 16 - Quantity 4 + on Order 4
Min-max planning calculates whether the total available quantity is less than the minimum quantity
The min-max planning calculation is as follows: Order Quantity = Maximum Quantity – (On-Hand
Quantity + Quantity on Order)

Topics

• Running Min-Max Planning and Generating Supply Request


Running Min-Max Planning and Generating Supply
Requests
Inventory Supply Requests
- Transfer Orders
- Replenishment Movement Requests
Inventory
Purchasing Supply Requests

- Purchase Requisitions
Min-Max Purchasing
Processing

Manufacturing Supply Requests
- Work Orders
Manufacturing
Min-max replenishment processing optionally generates supply requests.

Submitting the Min-Max Planning Requests
In addition to setting up planning attributes, min-max planning involves submitting a scheduled
process that generates the min-max planning report. You can also perform exception reporting with
the min-max planning reporting feature. When you submit the min-max planning request, you must
specify a number of parameters including parameters that address the following:
• Nettable subinventories
• Demand quantities
• On-order quantity information
• Requisitions, transfer orders, replenishment move orders, and work order requests
• Exception reporting
You can submit the planning process for all items under min-max planning. You can also submit the
planning process for only those items under their minimum quantities, and for only those items over
the maximum quantities.

Using Nettable Subinventories
Oracle Inventory Management enables you to use on-hand quantities that exist in either nettable or
non-nettable subinventories, or both.
Displaying Demand Quantity
Oracle Inventory Management displays the sum of all unfulfilled demand created before the cutoff
date. The system calculates demand quantity by using information from existing sales orders and
transfer orders.
You can include WIP job component requirements as a source of demand as well. You can net
unfulfilled demand against on-hand quantity and also include inventory reservations in netting on-
hand quantity against demand.
Creating Requisitions, Transfer Orders, Replenishment Movement Requests, and Work Order
requests
If you request a restock, Oracle Fusion Inventory Management creates requisitions and WIP

unreleased jobs for all items that meet the following condition:
(on-hand quantity) + (quantity on order) < minimum quantity
Oracle Fusion Inventory Management creates purchase requisitions (if the source is Supplier) and
transfer orders (if the source is Organization) for all Buy items, and WIP unreleased jobs for all Make
items with the Build in WIP option set to yes for the item. The order quantity is constrained by the
following attributes:
• Fixed-lot size multiplier
• Minimum order quantity
• Maximum order quantity

Demonstration: Run Min-Max Planning at the
Organization Level

In this demonstration, you will run min-max for a specific item at the organization level.

Summary: Min-Max Planning

• Explain the purpose of min-max replenishment planning
• Explain the different sources of supply and demand used in min-max
planning calculations
• Perform min-max replenishment planning
• Explain the different types of supply requests generated from min-max
planning


6
1
Key Features (Inventory Accuracy)

Objectives

• Explain ABC classes, ABC classification sets, and ABC assignment group
• Define and maintain a cycle count
• Define a physical inventory
• Discuss count adjustments and approvals
• Explain how to use inventory accuracy reports
• Explain inventory accuracy implementation considerations


Topics
• Inventory Accuracy: Overview

• ABC Analysis
• Cycle Counting
• Physical Inventory
• Count Adjustments and Approvals
• Inventory Accuracy Reports


Topics

• ABC Analysis
• Cycle Counting


Inventory Accuracy: Overview
ABC Analysis
Components of
Inventory Accuracy A
B
C

Physical Inventory Cycle Count
Cycle counting is an inventory practice followed to ensure inventory accuracy in operations. Inventory
accuracy helps in avoiding frequent disruptions in production operations due to missing items and, at
a high level, ensures higher level of customer satisfaction by delivering orders as planned. The
frequency with which you count your items depends on criticality of item, cost of the item, lead time of
the item, and also past stock movements of the item. Usually, ABC classification of your items
becomes the basis for deciding the count frequency with A class items being counted more frequently
compared to B or C class items. The recommended practice is to plan your cycle count program in
such a way that you count certain items or locations daily without disrupting your normal operations.
The Functional Setup Manager serves as the central location for all setup tasks. All setup is
performed with the Manufacturing and Supply Chain Materials Management offering. The Define
Warehouse Administration activity supports the necessary setup for the Perform Cycle Counting
activity.

In Fusion, you can manage all your cycle counting‒related tasks from a single Counts work area. By
accessing the Counts work area, users can view the count sequences that need to be recorded and
the count sequences awaiting approval.
The ABC analysis is used to drive the contents of the cycle count and is performed in Setup and
Maintenance tasks.
Cycle count interface records can be uploaded by using File-Based Data Import (FDBI) by way of a
SaaS template. You can enter all of the data for the respective attributes and then upload the data to
the interface tables by using the control files. This loaded data can be processed later by using the
Import Count Sequence scheduled process.
The Manage Cycle Counts Interface Application Development Framework Desktop Integration
(ADFDI) is a corrections user interface. When an error occurs while importing and processing the
records, use the ADFDI to view and correct errors. You can either resubmit for processing, (using the
Save > Submit action), or the next run of the Import Count Sequences ESS job picks up these
corrected records. The ADFDI cannot be used to enter or create new rows in the cycle count

interface.

Topics

• ABC Analysis
• Cycle Counting


ABC Analysis
Higher More
Importance Control

Lower Less
ABC Analysis Details

• ABC Classification is an inventory categorization technique in the purview of inventory
management.
• It provides a mechanism for identifying:
- Items that will have a significant impact on overall inventory cost in the organization
- Different categories of stock that will require different management and controls
• The inventory items are selected (based on various parameters) constituting an ABC
Classification Set.
• These items are valued (cost of the item multiplied by quantity) with the results then ranked in
decreasing order of their dollar value. Items can also be ranked by quantity or historical order
value.
• The results are then grouped (called ABC Assignment Group) typically into three Classes:
Class A, Class B, Class C.
• However, Oracle Fusion Inventory Management also provides the flexibility to the Warehouse
Managers to maintain more or less number of classes, depending on the business
requirements.

Topics

• ABC Analysis
• Cycle Counting


Cycle Counting
Recount / Investigate Discrepancies
or
Schedule Count Inventory Reject Counts Approve Counts

Cycle Count Items

• Periodic counting of individual items throughout the course of the year.

• Count a certain number of items every workday with each item counted at a prescribed
frequency.
• Use cycle counting along with ABC analysis to count items of greater importance more
frequently than those of less importance.
• Identify patterns in count errors found over time and make improvements to increase the level of
inventory accuracy.
Note: It is important that, when creating items in the item master, the Cycle Count Enabled flag is
selected for the item. If this flag is not enabled (even if you have defined the item in your cycle count)
the cycle count will not recognize the item as available for cycle count, and it will not be considered
when count schedules and count sequences are generated.

Defining a Cycle Count
ABC ABC ABC Define Cycle

Classes Classification Assignment Count
Set Group

Create Cycle Count is an integrated flow of count definition in a step-by-step train flow.
Enter Primary Details
In the first step, enter the unique name of the cycle count definition and a description. You can enter
these additional details:
• Subinventories to Count region: Under the Subinventories to Count region, select the
subinventories for which the cycle count is being created.
• ABC Assignment Group: You can assign an ABC Assignment Group to the cycle count, which
will be the basis for the cycle count program. ABC classes and items assigned to this ABC
group are included in the cycle count program.
• Synchronization mode: Controls how the ABC classes and items included in the cycle count
are synchronized with the ABC group. When the mode is complete, ABC classes and items
included in the cycle count are completely synchronized with the ABC classes and items
included in the ABC group. When the mode is Append Changes, then only the net changes are
applied.
• Synchronize ABC association option: Is applicable only when the synchronization mode is
Append Changes. When enabled, it updates the current ABC class associated with an item as
per the ABC Assignment group name.

Topics

• ABC Analysis
• Cycle Counting


Physical Inventory
Physical inventory is a process where a business physically
counts its entire inventory.

Inventory All On-hand items in Enter Counts
Organization Inventory
Physical inventory is a process where a business physically counts its entire inventory.
• A physical inventory may be mandated by financial accounting rules or tax regulations to place
an accurate value on the inventory. A physical inventory is performed on a periodic basis to
evaluate and reconcile inventory quantities and values.
• The physical inventory process requires the inventory organization to suspend incoming and
order fulfillment activities for the time it takes to conduct the physical inventory.
• Because revenue-generating processes are halted for the duration of the physical inventory, it
is important to perform the required process steps sequentially and efficiently to complete the
process in a timely manner. As important as it is to complete the process quickly and efficiently,
it is equally important to provide thorough and accurate counts so the company’s financial
picture is represented correctly.
• Physical inventory allows you to get an accurate count of stock and identify count variances. It
also lets you determine an accounting value for the entire on-hand inventory. It is a periodic
reconciliation of system on-hand balances with physical counts in inventory. You can perform a
physical inventory for an entire organization or subinventories within an organization.
• A physical inventory is typically performed once every six months or once a year depending on
the organization requirements.

Topics

• ABC Analysis
• Cycle Counting


Demo Cycle Count, Record Count Sequences, and Approve
Count Sequences
Create
Record

Approve
Create, record, and approve a cycle count.
The practice for this lesson cover the following topics:

• Creating a cycle count
• Generating count schedules and count sequences
• Recording count sequences
• Approving/rejecting count sequences

Topics

• ABC Analysis
• Cycle Counting


Inventory Accuracy Reports
Report Name Description

Cycle Count Listing report This report lists all items currently due for cycle counting. The report is used
as the document you give to employees performing the cycle counts.
Physical Inventory Tags report This report lists all items to count in the physical inventory. This report is
used as the document you give to employees performing the physical
inventory.
Physical Inventory tag Listing report This report lists all default and blank tags that were generated and all the
dynamic tags that you entered.

Physical Inventory Missing Tag This report lists the tags that are missing from a specified range of tag
Listing report numbers.
The report also shows what information was printed on the tag to aid in the
search. A tag is considered missing when it has not been entered.
Cycle Count Listing Report

The Cycle Count Listing report is an indication for the warehouse operator to manually count the
specified items at specified locations at the specified times. The warehouse operators update the
count quantity for each entry in the Cycle Count Listing report. The user can print important details of
all the recounts done for this count sequences in the Cycle Count Listing report. The Cycle Count
Listing report can be used to print the history for a count sequence. The user can print the Cycle
Count Listing report from the Action Menu on the Count Sequences to Record table. The user can
select a count and launch the request.
Physical Inventory Tags Report
These are the actual default and blank tags that are generated using the Generate Physical Inventory
Tags action. This is what the physical counters use to record count details.

Physical Inventory Tag Listing Report
This report lists all the default and blank tags that you generated and all the dynamic tags that you
entered. The report shows the tag number, item, revision, subinventory, locator, lot, and serial
number for each tag used in your physical inventory. You can use this report as the document you
give to the employees performing the counts. You can also use this report as a complete count
history after all counts have been completed.
Physical Inventory Missing Tag Listing Report
This report lists the tags that are missing from a user-specified range of tag numbers. The report also
shows what information was printed on the tag, if any, to aid in the search. Oracle Fusion Inventory
Management considers as missing those tags for which you have not entered counts. Void tags are
not considered to be missing. Use this report before initiating physical adjustments to verify that you
have accounted for all tags generated by the system. Otherwise, if you have not entered a count for a
tag and approvals are not required, Oracle Fusion Inventory Management adjusts your on-hand
balances down to zero quantity.

Summary

• Explain ABC classes, ABC classification sets, and ABC assignment group
• Define and maintain a cycle count
• Define a physical inventory
• Demonstrate count adjustments and approvals
• Explain how to use inventory accuracy reports
• Explain inventory accuracy implementation considerations


7
1
Key Features (Inventory Controls)

Objectives

• Describe lot control
• Explain shelf life and lot actions
• Explain grade control
• Describe serial number control
• Explain Material Status


Topics
• Lot Control: Overview

• Lot Control Organization Parameters
• Serial Number Control
• Material Status


Topics

• Material Status

This section of the course will cover an overview of lot control.

Lot Control: Overview
A lot represents a quantity of items produced together sharing the same

production costs and specifications.
Lot Controlled Item Non‒Lot Controlled Item
Item AS3339 Item AS1129

Description: CPU Description: Mouse
Lot # C1498
• A lot can represent a quantity of an item that shares the same specifications, one or more
receipts from the same supplier, or whatever you choose.
• You can divide each lot into child lots that can reflect whatever characteristics you choose for
items within the lot. For example, you may divide a lot of items from a supplier into child lots to
reflect differences in quality specifications.
• When you allocate stock for production, you can allocate specific lots to a production batch
based on the potency, age, or other item characteristics. Oracle Fusion Inventory Management
provides complete lot number support for inventory transactions.
• You can enable lot control for specific items in your inventory. For items under lot control, you
assign lot numbers to each receipt, and thereafter reference the same lots each time you
perform material transactions. This enables you to have tight control over lot-controlled items in
your inventory.
• All the material produced in a manufacturing batch may be assigned a lot number. For example,
you can create a manufacturing batch of penicillin and assign it a parent lot number A100. You
can then use parent lot A100 to create child lot A100_01 to make pills, child lot A100_02 to
create emulsion, and child lot A100_03 to create capsules. Each child lot has the same
ingredients as the original parent lot A100, but they are in a different format.

Topics

• Material Status

This section of the course will cover lot control organization parameters.

Setting Up Lot Control: Organization Parameters
Lot control attributes can be defined when creating an inventory organization.

Lot Control Attribute
Tab
Lot Generation
Parameters

Child Lot Control
Parameters
Specifying Lot Number Uniqueness

You use the Inventory Organization Parameters window to specify whether lot numbers should be
unique for an item.
• If you do not establish lot number uniqueness, you can assign the same lot number to multiple
items in the same organization and across organizations.
• If you control lot number uniqueness at the item level, you can assign a specific lot number only
to one item in the same organization and across organizations.
When you perform transactions, Oracle Fusion Inventory Management checks the lot number
uniqueness control to generate lot number defaults.
Specifying How to Generate Lot Number Defaults
You use the Organization Parameters window to specify how to generate lot number defaults.
• You can generate sequential lot numbers based on an alphanumeric prefix that you specify
when you define an item.
• Oracle Fusion Inventory Management can also generate lot number defaults for the entire
organization. In this case, you must define a lot number prefix at the organization level in the
Organization Parameters window.

Topics

• Material Status

This section of the course will cover serial number control.

Serial Numbers: Overview
Serial number is an alphanumeric identifier assigned to an item.

• It is used to track items requiring tight controls.
• One serial number is assigned per unit of an item.
Serial Number Controlled Items

Item AS5222 Item AS5222
Serial #5847329 Serial #3798490
• A serial number is an alphanumeric piece of information that you assign to an individual unit of
an item.
• You use serial numbers to track individual item units.
• Serial number control is a system technique for enforcing the use of serial numbers during
material transactions.
• You can use serial numbers to track items over which you want to maintain very tight control.
• One serial number is assigned to an individual unit of an item.

Generating Serial Numbers
Serial number generation can be determined at the item or organization
level.
• Dynamic entry at inventory receipt
• Entry at sales order, transfer order, or work order issue
• Serial numbers can be predefined for an item.
#100
Serial
Number Entry

at Receipt
#101
Supplier Receiving
Organization
#102
How you set up serial number control at the master item level determines serial number generation:
• If you specify No Serial Number Control as the serial number generation option, then the
system does not enforce serial number control.
• If you specify Predefined Serial Number as the serial number generation option, then you must
predefine serial numbers for the item.
• If you select Entry at sales order, transfer order, or work order issue as the serial number
generation option, then you can enter the serial number when performing a sales order, transfer
order, or work order issue transaction.
• If you select Dynamic entry at inventory receipt as the serial number generation option, then
you can dynamically enter serial numbers when performing a receipt transaction.
Oracle Fusion Inventory Management uses the starting serial number prefix and the starting serial
number that you specify in the Item window to load the number of predefined serial numbers you
request. You can load as many serial numbers as you want for any item under serial number control.
The process of generating serial numbers is done through a scheduled process. This process does
not assign numbers to units in inventory, it simply reserves specific serial numbers for an item for
later use.

Serial Uniqueness
Within Items Within an Organization Across Organizations
Item AS100
Serial SN100

Item AS101 Item: AS101 Item: AS100 Item: AS101 Item: AS100
Serial SN100 Serial: SN101 Serial: SN100 Serial: SN101 Serial: SN100
Unique Within Items

You cannot assign the same serial number to the same item, regardless of whether that item exists in
the same or a different inventory organization.
For example, if you assign serial number SN100 to item A, you cannot assign serial number SN100
to any other instance of that item in any inventory organization. You could, however, receive a
different item with serial number SN100 in any inventory organization.
Unique Within Organization
The same serial number uniqueness rules apply as when you set serial number uniqueness control
to be within items. Additionally, setting serial number uniqueness control to be within an organization
prevents the same serial number from existing multiple times within the same inventory organization.
For example, if you assign SN100 to item A in a particular inventory organization, you cannot receive
item B with serial number SN100 in the same inventory organization. You can, however, receive item
B with serial number SN100 in any other inventory organization.

Unique Across Organizations
The same serial number uniqueness rules apply as when you set serial number uniqueness rules to
be within an organization. Additionally, setting serial number uniqueness control to be across
organizations prevents the same serial number from being assigned to more than one item,
regardless of the inventory organization.
For example, if you assign SN100 to item A, you cannot receive item B with the serial number SN100
in any inventory organization. In this example, SN101 and SN100 belong to different inventory
organizations.
When you assign a particular inventory organization’s serial number uniqueness control to be across
organizations, serial number uniqueness is similarly restricted for all inventory organizations.
Oracle Fusion Inventory Management uses the starting serial number prefix and the starting serial
number that you specify in the Item window to load the number of predefined serial numbers you
request. You can load as many serial numbers as you want for any item under serial number control.

The process of generating serial numbers is done through a scheduled process. This process does
not assign numbers to units in inventory, it simply reserves specific serial numbers for an item for
later use.

Demonstration: Item Setup Lot and Serial


Topics

• Material Status

This section of the course will cover lot and serial number control profile options.

Material Status Control Levels
Material status enables you to control the movement and usage of material for
portions of your inventory.
Material Status Control
Usage

SN: 2233
Subinventory Locator Lot Controlled Serial Number

Item Controlled item
Material status control restricts the movement and usage of portions of on-hand inventory.
• Using material status control enables you to control whether you can pick or ship an internal
order or sales order, or issue material.
• You can also specify whether material needs to be quarantined until you inspect it.
• In addition, you can determine whether products with a particular status can be reserved,
included in available to promise calculations, or netted in production planning.
You assign material statuses at four levels:
• Subinventory
• Locator
• Lot
• Serial number

Assigning Material Statuses
• You assign subinventory and locator statuses in the subinventory and locator windows. The
location status applies to the material in the location and not the location itself.
• To assign a material status to a lot or serial number, you must first enable the Lot Status
Enabled and Serial Number Status Enabled item attributes on the item in the Item Master.
• You can also optionally assign a default lot or serial status to an item on the Item Master.
• When you receive the item, the system automatically assigns the default lot or serial status to
the item. The lot or serial status remains the same through all inventory transactions including
organization transfers.
• If necessary, you can change the material status at receipt or use the Manage Item Quantities
user interface.
• You can track material status at the subinventory, locator, lot, or serial number level by using
the Manage Item Quantities user interface.

• When a material status is assigned to a subinventory or locator, the material is not assigned the
material status of the subinventory or locator; rather, it takes on the behavior indicated by the
material status at the subinventory or locator level.

Material Status Transactions
Material Status
Allowed Disallowed
Display Sample
Transaction Transaction
Types Types
Purchase Order
Sales Order
Receipt
Issue
Account Receipt
Subinventory
Transfer to Transfer
Owned

Miscellaneous
Issue
A material status is a combination of transactions and planning actions that you choose to disallow in
a particular circumstance. Disallowed transactions and planning actions are cumulative. When you
set up transaction types, you determine whether some transactions can be restricted by material
status. The transactions for which you enable status control in the Transactions Types window
appear in the Manage Material Statuses user interface.

Summary

• Describe lots
• Explain shelf life and lot actions
• Explain grade control
• Explain serial number control
• Explain Material Status


Introduction to Oracle Inventory Cloud: Summary
In this course, you should have learned how to:

• Describe Oracle Inventory Cloud platform
• Explain the modules in Oracle Inventory Cloud
• Explain Oracle Inventory Cloud Navigation
• Explain the Reporting features offered with Oracle Inventory Cloud
• Explain the key features Oracle Inventory Cloud



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Introduction to Oracle SCM

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1 Introduction to Inventory Cloud

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5 Key Features (Replenishment)

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6 Key Features (Inventory Accuracy)

7 Key Features (Inventory Controls)

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Introduction to Inventory Cloud

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After completing this course, you should be able to:

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Oracle SCM Cloud

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Product Master Data Management

Globalizations & Localizations

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• Internal Drop Supply Chain • Internal Orders

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There are three complementary orchestration solutions:

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Vendor Shipment direct

P PO Vendor Shipment Customer Shipment

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Tasks panel tab

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