How to Setup Oracle inventory – Required Steps

How to Setup Oracle inventory – Required Steps

This post will cover brief overview of steps required to implement the parts of Oracle Applications specific to Oracle Inventory.There are some required, optional steps and for some steps you have to check some pre defined system default values that weather it suits your business needs or change them. Perform optional steps only if you are using that business functions.

Step- 1. Define flexfield of Inventory Items (Required)
You must design and configure your System Items Flexfield before you can start defining items. On basis of your requirement specific no of segments with fixed length are defined. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition.

Step-2. Define flexfield of item categories (Required)
Before defining items must design and configure your Item Categories Flexfield as all items need to be assigned with categories. After defining compile the flexfield definition to enable the Categories Flexfield pop-up window. Multiple structures for Item Categories Flexfield can be defined.

Step-3. Define flexfield of item catalog group (Required)
If you do not use catalog group still at least one segment must be enabled. To group items according to certain descriptive elements, Item Catalog Group Flexfield need to be configured. Defining and Compiling the flexfield definition enables the Item Catalog Group Flexfield pop-up

Step-4. Define flexfield of stock locators (Required)
In order to keep track record of locators for inventory items stock locators need to be configured. e.g. bin, row indicators. Must compile stock locator flexfield even locator control is not implemented

Step-5. Define flexfield of account aliases (Required)
If you want to define logical references to frequently used account number and combinations and use them as transaction source types,you need to configure your account aliases flexfield and define account aliases.

Step-6. Define flexfield of sales orders (Required)
If you want to ship items from inventory to meet customer demand as specified in a sales order, regardless of whether you are using Oracle Order Entry, you must configure your Sales Orders Flexfield. Sales order flexfield must be configured if items will be shipped from inventory.

Step-7. Define Organization Calendar (Required)
If you want to predict needs of your material or to plan material requirement then you can configure workday calendar for this.Work day calendar provide lot of flexibility in terms of shifts, pattern for working days also you can configure exceptions.

Step-8. Define organizations. (Required)
Organization define different entities in company which may have different manufacturing facilities, warehouses, distribution centers, and branch offices.

Step-9. Define organizations Parameters (Required)
You must define the control options and account defaults for your organization before you can define items or perform any transactions. You can assign a unique short code to your organization and use this code to identify the organization with which you want to work. You must also specify the master organization and the costing organization for your organization

Step-10. Setup Change Organizations (Required)
This setup enables you to change organization you define in oracle inventory.using the Change Organization window you can log out and log back in to Oracle Inventory.

Step-11. Define Inventory Relations (Required)
For inter company relations between two operating units (typically the Shipping and Selling organizations) in a multi-organization environment, you must define the relationship in the Intercompany Relations window.

Step-12. Define unit of measure classes (Required)
You need to define unit of measure (UOM) classes and the base unit of measure for each class. UOM classes represent groups of units of measure with similar characteristics, such as Volume or Length. All items having similar characteristics fall under same UOM class like Kilogram or Length.

Step-13. Define Units of Measure (Required)
You need to define units of measure for tracking, moving, storing, and counting items. Each item that you define in Oracle Inventory must have a primary unit of measure and each transaction you perform in Oracle Inventory must have a unit of measure associated with the transaction quantity.

Step-14. Define Sub inventories (Required)
Sub inventory groups inventory logically or physically, at least one sub inventory must be assigned to each organization.

Step-15. Define Item attribute controls (Required)
Attributes are detail information about items.Each attribute is maintained at master level or organization level.If an attribute is defined as master level then it can only be updated at item master level and attributes maintained at item/organization level can only be updated at this level only.

Step-16. Define Categories (Required)
You must define categories to group items that share similar characteristics. You must define the flexfield structure to be used for each category you define. The flexfield structure you select for a category will determine how it may be grouped with other categories. (Similar flexfield structures can be grouped.).

Step-17. Define Category Set (Required)
Sets are defined to further group categories more functionally.Also define at least one default category set.

You need to define category sets to create different category grouping schemes. Category sets group your categories into functional areas, such as inventory, cost, purchasing, order entry, and so on. You can associate different flexfield structures with each category set, thereby introducing different naming structures for your categories. You may only group categories with the same flexfield structure as the category set in a single category set. For example, the catgories metal, rubber, and paper might be members of the Inventory category set, while taxable and non-taxable might be members of the Cost category set. You can also a create category set such as Priority, with members like high, medium, and low and use it as your personal item grouping mechanism for a report.

Step-18. Define default Category Set (Required)
You need to define a default category set for each of the seven predefined functional areas. Oracle Inventory will automatically assign items defined for use by a particular functional area to the category set associated with the functional area. Oracle Inventory defaults the appropriate category set in all the category set fields in the products that correspond to the functional areas. You may choose the same category set for more than one functional area if you have identical ways of grouping your items across those functional areas

Step-19. Define statuses (Required)
Statuses are defined to restrict or enable item for different functional areas.

You need to define statuses that you can assign to items, denoting the level of activity you allow for them. A status is a set of Yes/No values for the status attributes. Status attributes are flags that exist for each functional area for which you enable an item: stockable, transactable, purchasable, build in WIP, customer orderable, internal orderable, BOM allowed, and invoice enabled. When you define an item, you can use statuses to control the values of or provide default values for the status attributes.

Step-20. Define Cost Types (Required)
Some predefined types are already defined but you can also define your own cost type.

You need to define cost types before you can start entering item costs. A cost type is a set of costs, used for historical, current and future costs, as well as for simulation purposes. You can create as many cost types as you need, but Oracle Inventory is installed with three predefined cost types: Frozen, Average, and Pending. These are costs currently in use for an item and include material and overhead charges.

Step-21. Define Accounting Periods (Required)
Periods are defined in oracle General Ledger and in oracle inventory can be opened using inventory periods.

Before you can use Oracle Inventory to enter transactions, you need to open an accounting period. You must define your accounting periods in Oracle General Ledger, and open them for Oracle Inventory using the Inventory Accounting Periods window. Oracle Inventory allows you to have multiple periods open at any given time.

Step-22. Set profile options (Required)
Profile options specify how Oracle Inventory controls access to and processes data. In general, profile options can be set at one or more of the following levels: site, application, responsibility, and user.

Oracle Inventory users use the Personal Profile Values window to set profile options only at the user level. System administrators use the System Profile Values window to set profile options at the site, application, responsibility, and user levels.


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