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AIM

BR.100 INVENTORY

Application Setups

Reco & Rwasco

Author: Raymond Mangulama

Creation Date: May 26, 2010 Last Updated: June 14, 2010 Version: Final 1.0

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1. Document Control

Change Record

Date Author Version Change Reference

01-June-10 Raymond Mangulama Draft No Previous Document

Reviewers

Name Position

Martin Ashelford Project Manager

Raymond Mangulama Team Leader

Distribution

Copy No.

Name Location

1 Library Master Project Library

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3

4

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Table of Contents

1. Document Control ............................................................................................................................... 2

2. The prerequisites setups that must be done before setting up inventory.................................................. 4

3. Define your Inventory Flexfield ........................................................................................................... 5

4. Define your Calendar ........................................................................................................................... 6

5. Update System Profile Options ............................................................................................................ 8

6. Define Locations................................................................................................................................ 10

7. Define your Inventory Organizations .................................................................................................. 11

8. Define your cost types........................................................................................................................ 15

9. Define your Unit of measure classes ................................................................................................... 16

10. Define your Subinventories ............................................................................................................ 17

11. Define your stock locators.............................................................................................................. 18

12. Define Item planners ...................................................................................................................... 19

13. Define your Categories .................................................................................................................. 20

14. Define your Category Sets ............................................................................................................. 21

15. Define your default category sets ................................................................................................... 22

16. Define your shipping networks ....................................................................................................... 23

17. Define custom transaction types ..................................................................................................... 24

18. Define your transaction reasons...................................................................................................... 25

19. Define your receiving options ........................................................................................................ 26

20. Modify your request managers ....................................................................................................... 27

21. Define Item Templates ................................................................................................................... 28

22. Open and Closed Issues on this deliverable .................................................................................... 39

Open Issues ............................................................................................................................................ 39

Closed Issues .......................................................................................................................................... 39

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2. The prerequisites setups that must be done before setting

up inventory

I. Define Primary Ledgers

Navigate: Setup >> Financials >> Accounting Setup Manager>>Accounting setups

Description: Use window to define primary ledger

Note: Please refer to GL setup document

II. Define Calendar

Navigate: Setup >> Financials >> Accounting Calendar >> Accounting

Description: Use this form to define your calendar. You associate a calendar and a

period type.

Note: Please refer to GL setup document

III. Define Locations

Navigate: Setup >> Organizations >> Locations

Description: Use this form to enter locations and their addresses for your

organization

Note: Please refer to HRMS setup document

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3. Define your Inventory Flexfield

Description: Plan your key flexfield structures carefully, including all your segment

information such as segment order and field lengths, before you define your segments using

this form.

Decide on which one to use, whether it’s the system items or the items categories

(N)Setup >> Flexfields >> Key >> Segments

Application : Inventory

Flexfield Title : Item Categories

Code : ITEM_CATEGORIES

Segments:

Number Name Window

Prompt

Column Valueset

1 Item Category Item Category SEGMENT1 RR_Item_Category_VS

2 Item Code Item Code SEGMENT2 RR_Item_Code_VS

Value sets:

Value Set Name Description Security

Type

Format

Type

Max Size Validation

Type

Edit Information

RR_Item_Code_VS Reco &

Rwasco

Item code

value set

Non-

Hierarchical

Char 10 Dependent Dependent on

the Item Category

RR_Item_Category_VS Reco &

Rwasco

Item

Category

Value Set

Non-

Hierarchical

Char 10 Independent

After definition of the value sets Freeze and compile and make sure that it compiled

successfully before populating the list of values.

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4. Define your Calendar

(N) Setup > Organizations > Calendars

A workday calendar defines the valid working days for an inventory organization and

consists of repeating pattern of days on and days off and exceptions to that pattern. This

allows you to, for example, designate a normal workday as a scheduled downtime day, or

designate a holiday as a workday.

Name Description Quarterly Type From To Workday Pattern

RR_WDC Reco & Rwasco

Workdat Calendar

5/4/4 Week

Pattern

01-JAN-

2010

01-JAN-

2014

- Seq 1 (On 5 days Off

2 Days

- Seq 2 (On 6 Days Off

1 Day

Then click on Tools > Build

Make sure the calendar has completed successfully

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5. Update System Profile Options

Switch responsibility to system administrator then follow the navigation

(N)Profile > System: Application = Inventory

Application Profile Options Setting

Option Value

INV: Item Form Folder Category Set Inventory

INV:Cross Reference Type Item's Global Trading Item Number

INV: Allow Expense to Asset Transfer Yes

INV:Debug Level 0

INV: Debug Trace No

INV: Debug file (Including the complete path) /tmp/invdbg.db

INV: Default Item Status Active

INV: Default Primary Unit Of Measure** EACH

INV: Dynamic Precision Option for quantity on

reports

-9,999,999.00

HR User Type HR with Payroll User

INV: Inter-Organization Currency conversion Spot

INV: Intercompany Currency conversion Spot

INV: Item Master Flexfield System Items / Item Categories

INV: Maximum Number of Quantity Trees 500

INV: Minmax Reorder Approval Approvel Required

INV: Product Family Item Template Name @Purchased Item

INV: Replenishment Count Line Failure Continue processing

INV: Replenishment Count Requisition Approval Approval Required

INV: RPC Timeout 300

INV: Restrict Receipt of Serials No

INV: Round Reorder Qty Yes

INV: Save Search Items Yes

INV: Transaction Date Validation Provide warning when date in past period

INV: Updateable Item Name No

INV:Capable to Promise ATP Based on Collected Data

INV:Override Neg for Backflush No

INV:Purchasing By Revision No

INV: Updateable Customer Item Yes

TP:INV Cycle Count Approvals Form Online processing

TP:INV Cycle Count Entries form Online processing

TP:INV Enter replenishment count form Concurrent processing

TP:INV Inter-Organization Transfer Form Online processing

TP:INV Miscellaneous issue and receipt form Online processing

TP:INV Move Order Transact Form Online processing

TP:INV Transfer between subinventories form Online processing

TP:INV Transaction Processing Mode Form Level processing

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Option Value

TP:INV Transfer between Subinventories Form Online processing

TP:INV Update Average Cost form Online processing

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6. Define Locations

These can be defined in the system if not yet defined from human resources module.

(N)Setup > Organizations > Locations

Use this zone to enter the names and addresses for the locations you use within you

organization. Name

AVENUE DU LAC IHEMA Global Yes

Description HEADQUARTERS

Inactive Date

Address Style Generic

Address P.O. Box 537, Kigali Rw

Shipping Details

Contact

Ship To Location

AVENUE DU LAC IHEMA

Ship To Site Yes Bill To Site

Yes

Receiving Site

Yes Internal Site

Yes

Office Site Yes

Other Details

Inventory Organization

HQ-Head Office Tax Code

EDI Location

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7. Define your Inventory Organizations

(N) Setup > Organizations > Organization

Description: Use this form to define an organization and its related information. This Setup

should be done for each and every inventory organization. Note that this is the Item master

organization which should only be used to define inventory Items and not for any

transactions.

Note: This is an Oracle Inventory required setup.

Name Location

Dates, From

Internal or

External

Organization Classifications

Enabled

Head Quarters Internal HR Organization Yes

Inventory Organization Yes

Inventory Organization > Accounting Information

Name Value

Primary Ledger RR_LEDGER2021(RWF)

Legal Entity RECO & RWASCO_LE

Operating Unit Reco & Rwasco Operating Unit

Inventory Parameters

Organization Code

HQM

Master Organization

HEADQUARTERS

Calendar RR_WDC

Demand Class

Move Order Timeout Period

Move Order Timeout Action Approval automatically

Locator Control None

Enforce Locator Alias

Uniqueness

No

Quantity Skipping Inspection

Control

No

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Allow Negative Balance No

Auto Delete Allocations at

Move Order cancel

None

Costing Information

Use this window to define the Costing Information

Costing Organization HEADQUARTERS

Costing Method Average

Rates Cost Type RR_AVG

Transfer to GL Yes

Reverse Encumbrance None

Defer Logical

Transactions

None

Cost Cutoff Date None

Default material sub-

Element

None

Material Overhead sub-

Element

Default Cost Group RR_CG

Valuation Accounts

Material 00-000-000-00-3100000-000

Outside Processing 00-000-000-00-3711000-000

Material Overhead 00-000-000-00-3712000-000

Overhead 00-000-000-00-3713000-000

Resource 00-000-000-00-3714000-000

Expense 00-000-000-00-3715000-000

Revision, Lot and Serial Number Controls Window

Use this Window to define and update revision, lot & serial number control details for the organization.

Starting Revision

0

Lot Number Uniqueness

None

Lot Number Generation

At Item Level

Lot Number Prefix

Zero Pad Suffix

Not applicable

Total Lot Number length

30

Serial Number Control

Uniqueness

Within Inventory model and items

Serial Number generation

At Organization Level

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Prefix None

Serial Number Prefix

Starting serial Number

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ATP/ Picking Defaults Window “1”

Use this Window to define and update available to promise, picking options, and item sourcing details. Used in

conjunction with Order Entry.

Default ATP Rule

None

Default Picking Rule

None

Sub inventory Picking Order

None

Locator Picking Order

Type

Organization

Sub Inventory

Overpicking for Tranfer

Order Enabled

Yes

Inter-Organization Options & Accounts Window

Inter-organization Tranfer

Changes

None

Purchase Price Variance

None

Receivable None

Payable None

In Transit Inventory

00-000-000-00-3100000-000

Other Accounts Window

Use this Window to define and update receiving accounts, profit and loss and average cost variance accounts

Purchase Price Variance

None

Invoice Price Variance

00-000-000-00-3721000-000

Inventory Accounts Payable

Accrual

00-000-000-00-3722000-000

Encumbrance None

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Sales 00-000-000-00-71-000

Cost of Goods Sold

00-000-000-00-6000000-000

Project Clearance Account

None

Deferred COGS Account 00-000-000-00-3723000-000

Cost Variance Account 00-000-000-00-3724000-000

R Receiving Information

Receiving Inventory Account 00-000-000-00-3716000-000

Clearing Account 00-000-000-00-3717000-000

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8. Define your cost types

(N)Setup > Costs > Cost Types

Cost Type : RR_AVG

Description : Reco & Rwasco Weighted Average Cost Type

Default Cost Type : Average

Multi Org : Yes

Allow Updates : Yes

Available for engineering : No

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9. Define your Unit of measure classes

(N)Setup > Units Of Measure > Classes

Name Description

Base

Unit UOM

Inactive

On

Each Each Item Eac

Length Length Meter Mtr

Mass Mass Kilogram Kg

Packet Packet Pack Pkt

Period Period Daily DAY

Piece Pieces Piece Pcs

Define the Unit Of Measures

(N)Setup > Units Of Measure > Unit Of Measure

Name UOM Description

Base

Unit Class

Inactive

On

Each Eac Each * Each

Meter Mtr Meter * Length

Kilogram Kg Kilogram * Mass

Pack Pkt Pack * Packet

Bi-

Weekly BWK Bi-Weekly Period

Daily DAY Daily * Period

Half

Yearly HYR Half Yearly Period

Monthly MTH Monthly

Period

Quarterly QTR Quarterly

Period

Weekly WK Weekly

Period

Yearly YR Yearly

Period

Piece Pcs Piece * Piece

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10.Define your Subinventories

Navigate: Setup >> Organizations >> Subinventories

Description: Use this form to define and update subinventories

Note: The Number of sub inventories is set to grow with the organization.

Main Window

Name Central Stores

Description Main Stores

Status Active

Default Cost Group RR_CG

Type Storage

MAIN

Qty Tracked Yes

Asset Subinventory Yes

Depreciable No

Include in ATP Yes

Allow Reservation Yes

Nettable

Yes

Enable PAR level Planning No

Default Replenishment Order Quantity

Qty Tracked Yes

ACCOUNTS

Material

Outside Processing

Material Overhead

Overhead

Resource

Expense

Encumbrance none

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11.Define your stock locators

Navigate: Setup >> Organizations >> Stock Locators

Description: Use this form to define and update locators.

Note: The stock locator flexfield has to have been defined before

(N)Setup > Flexfields > Key > Segments >

Application : Inventory

Title : Stock Locators

Number : 10

Name : Stock Locators

Windows Prompt: Stock Locators

Column : Segment 1

Value Set : RR_Stock_Locator

Name Row Rack Bin

Subinventory

Water

Description Rows

Descriptive Text

Picking Order

Inactive On

Maximum Units

Volume UOM

Maximum Volume

Weight UOM

Maximum Weight

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12.Define Item planners

This Varies from Organization to organization, as in most cases this becomes apparent to the users later on

during and or after training once the min-max planning has been thoroughly demonstrated.

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13.Define your Categories

(N)Setup > Items > Categories > Category codes

Structure Name

Contract Categories

Category Inventory.Expense

Description Inventory Expense Items (Stockable)

Enabled Yes

Inactive Date

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14.Define your Category Sets

Navigate: Setup >> Items >> Categories >> Category Sets

Description: Use this form to create sets that group your categories into functional areas

.

This is an Oracle Inventory required setup.

Name Inventory

Description Inventory category set

Flexfield Structure

Item categories

Control Level

Organization level

Default Category

Inventory.Expense

Allow Multiple Item

category Assignments

No

Enforce List of Valid

Categories

No

Valid Categories Window Use this Window to define and update a list of valid categories for

this set

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15.Define your default category sets

Navigate: Setup >> Item >> Categories >> Default Category Sets

Description: Use this form to define and update default category sets for your functional

areas.

Note: This is an Oracle Inventory required setup.

FUNCTIONAL AREA

CATEGORY SET

DESCRIPTION

Inventory Inventory Inventory Category Set

Purchasing Inventory Inventory Category Set

Planning Inventory Inventory Category Set

Service Inventory Inventory Category Set

Cost Inventory Inventory Category Set

Engineering Inventory Inventory Category Set

Order Entry Inventory Inventory Category Set

Product line accounting Inventory Inventory Category Set

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16.Define your shipping networks

Navigate: Setup >> Organizations >> Shipping Networks

This setup must be done after the inventory organizations have all been defined and confirmed on the

shipping networks.

Organization Scope

HQ From or To Org

From To Transfer

Type

FOB Receipt

Routing

Charge

Type

Transfer

Transfer Credit

Account

Inter-Org Receivable

Account

Inter-Org

Payable

Account

Intransit

Account

CST HQ Intransit Receipt Standard None 00-000-000-

00-3100000-

000

00-000-000-00-

4710000-000

00-000-000-

00-4710000-

000

00-000-000-

00-3100000-

000

Do this for all the subsequent inventory organizations that have shipping networks

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17.Define custom transaction types

Navigate: Setup >> Transactions >> Types

Description: Use this form to define your transaction types

Name Description Source Type Action

Notification

Location

Reqrd

Opening Balance Opening Balances Inventory Receipt into

stores

Yes Yes

Issue To User Items Issuance to user Inventory Issue from stores YES

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18.Define your transaction reasons

Navigate: Setup >> Transactions >> Reasons

Description: Use this form to define your transaction reasons.

Name Description Inactive Date

POST Increase and Decrease

Opening Balance Opening Stock / Insufficient

Balances

Issue from stores Issue Items from Stores

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19.Define your receiving options

Navigate: Setup >> Organization>>Receiving Parameter

Description: Use this Window to define the defaults you can later use to speed up data entry and enforce

system wide requirements. Although this form is part of the Oracle Inventory set up the field data should

be coordinated with the purchasing function

Inventory Organization

Central Stores

Receiving Option

Enforce Ship-To Warning

ASN Control Action Warning

Receipt Days Early 3

Receipt Days Late 3

Receipt Days Exceed-Action Warning

Over Receipt Tolerance (%) 3

Over Receipt Action Warning

RMA Receipt Routing Inspection Required

Receipt Routing Inspection Required

Allow Substitute Receipts Yes

Allow Unordered Receipts -

Allow Express Transactions -

Allow Cascade Transactions -

Allow Blind Receiving -

Validate Serial Numbers on RMA Receipts -

Receipt Number Generation Automatic

Receipt Number Type Alphanumeric

Next Receipt Number 1 Validate Lots on RMA Receipts Restricted

ACCOUNTING Receiving Inventory Account

Retroactive Price Adjustment Account -

Clearing Account

Cost Factors Interface to Advanced Pricing None

Interface to Transportation Execution None

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20.Modify your request managers

Navigate: Setup >> Transactions >> Interface Managers

Name Status Worker Rows

Timeout

Process Interval

Minutes Minutes

Cost Manager Inactive 200 0 59

Lot Move transactions Inactive 200 0 5

Material Transaction

Inactive 500 0 5

Move transactions Inactive 200 40 5

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21.Define Item Templates

Navigate: Setup>>Items>>Templates

Template Name Reco Stockable Description RR Item Template

Organization Reco Stores

Attribute Name Control At Value

User Item Type Master Inventory Type

Item Status Master Active

Primary Unit of Measure Master Each

Conversions Master Standard

Description Master

Tracking UOM Indicator Master Primary

Pricing UOM Indicator Master Primary

Defaulting Control Master Default

Secondary Unit of Measure Master Each

Deviation Factor + Master

Deviation Factor - Master

Inventory Item Master Yes

Stockable Master Yes

Transactable Master Yes

Revision Control Master Not under revision quantity control

Lot Control Master No lot control

Starting Lot Number Master

Starting Lot Prefix Master

Serial Number Generation Master No serial number control

Starting Serial Number Master

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Starting Serial Prefix Master

Lot Expiration Master

Shelf Life Days Master

Restrict Subinventories Master

Locator Control Master

Restrict Locators Master

Reservable Master Reservable

Cycle Count Enabled Master Yes

Negative Measurement Error Master

Positive Measurement Error Master

Check Material Shortage Org

Lot Status Enabled Org

Default Lot Status Org

Serial Status Enabled Org

Default Serial Status Org

Lot Split Enabled Org

Lot Merge Enabled Org

Lot Translate Enabled Master

Lot Substitution Enabled Org

Bulk Picked Org

Lot Divisible Org

Grade Controlled Org

Default Grade Org

Child Lot Enabled Org

Child Lot Generation Org

Child Lot Prefix Org

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Child Lot Starting Number Org

Child Lot Format Validation Org

Retest Interval Org

Expiration Action Interval Org

Expiration Action Org

Maturity Days Org

Hold Days Org

Copy Lot Attributes Org

BOM Item Type Master

BOM Allowed Master

Base Model Master

Autocreated Configuration Master

Configurator Model Type Master

Create Configured Item, BOM Master

Match Configuration Master

Costing Enabled Master Yes

Inventory Asset Value Master Yes

Cost of Goods Sold Account Org

Include in Rollup Master

Standard Lot Size Master

Purchased Master Yes

Purchasable Master Yes

Default Buyer Master

Use Approved Supplier Master

Input Tax Classification Code Org

Taxable Master

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Receipt Close Tolerance Master

Allow Description Update Master Yes

Inspection Required Master

Receipt Required Master

Market Price Master

UN Number Master

Hazard Class Master

RFQ Required Master

List Price Master

Price Tolerance % Master

Asset Category Master

Rounding Factor Master

Unit of Issue Master

Outside Processing Item Master

Outside Processing Unit Type Master

Invoice Close Tolerance Master

Encumbrance Account Org

Expense Account Org

Outsourced Assembly Org

Over-Receipt Qty Action Master

Receipt Routing Master

Over-Receipt Qty Tolerance Master

Enforce Ship-To Master

Allow Substitute Receipts Master

Allow Unordered Receipts Master

Allow Express Transactions Master

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Days Early Receipt Allowed Master

Days Late Receipt Allowed Master

Receipt Date Action Master

Weight Unit of Measure Master

Unit Weight Master

Volume Unit of Measure Master

Unit Volume Master

Container Master

Vehicle Master

Maximum Load Weight Org

Minimum Fill Percentage Org

Internal Volume Org

Container Type Org

Collateral Item Master

Event Master

Electronic Format Master

Downloadable Master

OM Indivisible Org

Dimension Unit of Measure Master

Length Master

Width Master

Height Master

Inventory Planning Method Master

Make or Buy Master Buy

Planner Org

Min-Max Minimum Quantity Master

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Min-Max Maximum Quantity Master

Safety Stock Bucket Days Master

Carrying Cost Percent Master

Order Cost Master

Safety Stock Percent Master

Safety Stock Master

Fixed Order Quantity Master

Fixed Days Supply Master

Minimum Order Quantity Master

Maximum Order Quantity Master

Fixed Lot Size Multiplier Master

Source Type Master

Source Organization Org

Source Subinventory Org

Minimum Quantity Org

Minimum days of supply Org

Maximum Quantity Org

Maximum days of supply Org

Fixed Quantity Org

Release Authorization Required Org

Consigned Org

Forecast Type Org

Window Days Org

Auto-expire ASN Org

Subcontracting Component Org

MRP Planning Method Master

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Forecast Control Master

Planning Exception Set Org

Shrinkage Rate Master

End Assembly Pegging Master

Round Order Quantities Master

Planned Inventory Point Org

Create Supply Org

Acceptable Early Days Master

Critical Component Org

Exclude From Budget Org

Calculate ATP Master

Reduce MPS Master

Repetitive Planning Master

Overrun Percentage Master

Acceptable Rate - Master

Acceptable Rate + Master

Planning Time Fence Master

Planning Time Fence Days Master

Demand Time Fence Master

Demand Time Fence Days Master

Release Time Fence Master

Release Time Fence Days Master

Substitution Window Org

Substitution Window Days Org

DRP Planned Org

Maximum Inventory Days Supply Org

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Maximum Inventory Window Org

Target Inventory Days Supply Org

Target Inventory Window Org

Continuous Inter Org transfers Org

Convergence Pattern Org

Divergence Pattern Org

Repair Program Org

Repair Lead-time Org

Repair Yield Org

Pre-positioning Point Org

Preprocessing Lead Time Org

Processing Lead Time Org

Post processing Lead Time Org

Fixed Lead Time Org

Variable Lead Time Org

Cum Manufacturing Lead Time Org

Cumulative Total Lead Time Org

Lead Time Lot Size Master

Build in WIP Master

WIP Supply Type Master

WIP Supply Subinventory Org

WIP Supply Locator Org

Over completion Tolerance Type Org

Over completion Tolerance Value Org

Inventory Carry Penalty Org

Operation Slack Penalty Org

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Customer Ordered Master

Customer Orders Enabled Master

Internal Ordered Master Yes

Internal Orders Enabled Master Yes

Shippable Master

OE Transactable Master

Picking Rule Master

Pick Components Master

Assemble to Order Master

Check ATP Master

ATP Components Master

ATP Rule Master

Ship Model Complete Master

Default Shipping Organization Master

Default SO Source Type Master

Returnable Master

RMA Inspection Required Master

Over Shipment Tolerance Master

Under Shipment Tolerance Master

Over Return Tolerance Master

Financing Allowed Org

Charge Periodicity Master

Invoiceable Item Master

Invoice Enabled Master

Accounting Rule Master

Invoicing Rule Master

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Output Tax Classification Code Master

Sales Account Org

Payment Terms Master

Contract Item Type Master

Contract Duration Period Master

Contract Duration Master

Coverage Template Master

Service Request Master

Enable Contract Coverage Master

Billing Type Master

Enable Service Billing Master

Enable Defect Tracking Org

Track in Installed Base Master

Create Fixed Asset Org

Item Instance Class Master

Starting Delay (Days) Master

Recipe Enabled Org

Process Quality Enabled Org

Process Execution Enabled Org

Process Costing Enabled Org

Process Supply Subinventory Org

Process Supply Locator Org

Process Yield Subinventory Org

Process Yield Locator Org

Hazardous Material Org

CAS Number Org

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22.Open and Closed Issues on this deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact

Date

1

2

3

4

Closed Issues

ID Issue Resolution Responsibility Target Date Impact

Date