Invenotry Organization

An Inventory Organization is a facility where we can store and transact items. Before we can use Oracle Inventory, we must define one or more Inventory Organizations. Inventory Organizations represent distinct entities in your enterprise and can be one of the following.

• A Physical entity such as Manufacturing facility, warehouse, or distribution center.
• A logical entity such as an item master organization, which we use to define items.

An Inventory Organization may have the following the attributes.

• An Inventory Organization can have its own location, ledger, costing method, workday calendar and items.
• An Inventory Organization can share one or more of these characteristics with other organizations. 

Inventory Organization Structure 

An Inventory Organization, where we store and transact items can have one or more sub-inventories. Sub-Inventories are unique physical or logical separations of material inventory, such as raw material, finished goods and defective goods inventories. We must define at least one sub-inventory for every inventory organization. We can track item quantities by sub-inventory as well as we can restrict items to specific sub-inventories. Sub-Inventories in an Inventory Organization may be made up of one or more locators. We use locators to identify the physical areas where we store the inventory items. We can track item by locators as well as we can restrict items to specific locator. Locator control is optional in Oracle Inventory. Before we start defining an Inventory Organization 1st we should define Location.

Define Location

Navigation: Inventory > Setup > Organizations > Locations

Enter the values as per the below screen shot for location and address and save the changes and close the form.

Backend Table for Location:

SELECT * FROM HR_LOCATIONS WHERE LOCATION_CODE LIKE 'mcr%'

Define Inventory Organization

Navigation: Inventory > Setup > Organizations > Organizations > New (B)

Enter the values as per the below screen shot for Inventory Organization and check the enable check box and save the changes.

Click on others button.

Select Accounting Information from list and click on OK button.

Enter the values as per the below screen shot for Accounting Information and save the changes and click on OK button.

Why do we associate Inventory Organization to Primary Ledger, Legal Entity, Operating Unit and Business Group?

We can associate the Primary Ledger to the Inventory Organization to share accounting information like Currency, Calendar, COA and Sub-ledger Accounting Methods.

We can associate the Legal Entity to the Inventory Organization to calculate or share income tax information.

We can associate the Operating Unit to the Inventory Organization to share purchase and sales transactions.

We can associate the Business Group to the Inventory Organization for security purpose.

If an Operating Unit is having multiple Inventory Organizations then we have to make any one of Inventory Organizations as mater and all other Inventory Organizations as member/child to the master Inventory Organization.

• A master can’t be a member/child to another member organization.
• A member can’t be assigned to multiple master organizations.

A Master Inventory Organization can be Physical or Logical.

If Master Inventory Organization has without sub-inventory is called as logical, where we are not allowed material transactions and if a Master Inventory Organization has with sub-inventory is called as physical, where we are allowed material transactions.

Click on others button again and select Inventory Information from list and click on OK button.

 

Enter the values as per the below screen shot for Inventory Parameters.

Go to the Costing Information tab and Enter the values as per the below screen shot for Costing Information.

Go to the Revision, Lot, Serial and LPN tab and Enter the values as per the below screen shot for Revision, Lot, Serial and LPN. Enter starting serial number as 001 and starting revision as 01.

 

Go to the Other Accounts tab and Enter the values as per the below screen shot for Other Accounts.

 

Click on others button again and select Receiving Information from list and click on OK button.

Enter the mandatory/required (* specified) field values as per the below screen shot for Receiving Information and click on save button.