Inventory Structure

Locator Alias, Oracle Warehouse Management User's Guide

Defining Costing Information

To define costing parameters and accounts

Navigate to the Organization Parameters window.
Select the Costing Information tabbed region.

Note: Note this tab applies only to discrete organizations.

The costing organization that controls the costs in your current organization and the costing method are displayed. You cannot make changes to these fields.

See: Cost Structure, Oracle Cost Management User's Guide, Standard Costing, Oracle Cost Management User's Guide, and Average Costing, Oracle Cost Management User's Guide.
When the Costing Method is Average, you can enter the Average Rates Cost Type. See: Defining Cost Types, Oracle Cost Management User's Guide.
Indicate whether all transactions are posted in detail to the general ledger.

Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due to the number of records created.
Indicate whether to reverse encumbrance entry upon receipt in inventory.

You normally select this option if you use encumbrances with Oracle Purchasing. See: Overview of Receipt Accounting, Oracle Purchasing User's Guide.
Indicate whether subinventories can be associated with a given project and task.

If the Project Cost Collection Enabled check box is selected, and the Enable Project References check box, located in the Project Manufacturing Parameters, is also selected, the cost collector process can transfer costs to project accounting.

See, Project Manufacturing Parameters, Oracle Project Manufacturing User's Guide and Project Manufacturing Costing, Oracle Project Manufacturing User's Guide for more information.
Indicate whether to defer logical transactions.
Optionally, enter a Cost Cutoff Date.

If you leave this field blank, all available transactions will be costed, as usual. If you enter a date, all transactions prior to this date will be costed. All transactions on or later than this date will not be costed. For inter-organization transfers, a standard costing, receiving organization will not cost a receipt if the sending organization did not already cost the transaction.

The default time is the first instant of the date. You can optionally choose another time.

The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by changing the cutoff date to blank, or a future date.
For standard costing, select a material sub-element that this organization uses as a default when you define item costs. For average costing, the default material sub-element you select can be used for cost collection when Project Cost Collection Enabled is set.

Important: Since a material sub-element is organization specific you must define the organization first, then the sub-element, then the organization parameters. When you first define your parameters you can leave this field blank, save your work, then return to this field later to specify a default material sub-element.
Optionally, select a Default Material Overhead Sub-Element from the list of values. During the Supply Chain Rollup process, when costs are merged from another organization, markup and shipping costs will use this value.

The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost Rollup identifies an organization with a default material overhead sub-element not set up, a corresponding warning message will be printed in the log file.
Indicate the default cost group for the organization. This will default into the Default Cost Group field for each subinventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used. See: Overview of the WMS Rules Engine, Oracle Warehouse Management User's Guide. This feature is available if you have Oracle Warehouse Management installed, and you are working with a WMS enabled organization. See: Defining Default Inventory Parameters.
Define default Valuation Account details. See: Valuation Accounts and Defining Subinventories.

To continue defining organization parameters

Select the Revision, Lot, Serial, LPN tabbed region. See: Defining Revision, Lot, Serial, LPN Parameters.

Related Topics

Defining ATP, Pick, Item-Sourcing Parameters

Valuation Accounts

You choose a default valuation account when you define organization parameters. Under standard costing, these accounts are defaulted when you define subinventories and can be overridden. Under average costing, these accounts (except for Expense) are used for subinventory transactions and cannot be updated. For a detailed discussion of cost elements see: Cost Structure, Oracle Cost Management User's Guide.

Material	An asset account that tracks material cost. For average costing, this account holds your inventory and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead	An asset account that tracks material overhead cost.
Resource	An asset account that tracks resource cost.
Overhead	An asset account that tracks resource and outside processing overheads.
Outside processing	An asset account that tracks outside processing cost.
Expense	The expense account used when tracking a non-asset item.

Other Accounts

Sales	The profit and loss (income statement) account that tracks the default revenue account.
Cost of Goods Sold	The profit and loss (income statement) account that tracks the default cost of goods sold account.
Purchase Price Variance	The variance account used to record differences between purchase order price and standard cost. This account is not used with the average cost method.
Inventory A/P Accrual	The liability account that represents all inventory purchase order receipts not matched in Accounts Payable, such as the uninvoiced receipts account.
Invoice Price Variance	The variance account used to record differences between purchase order price and invoice price. This account is used by Accounts Payable to record invoice price variance.
Encumbrance	An expense account used to recognize the reservation of funds when a purchase order is approved.
Project Clearance Account	When performing miscellaneous issues to capital projects, the project clearance account is used to post the distributions.
Average Cost Variance	Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing your inventory before your receipts.

Note: For standard costing, only the Purchase Price Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults to speed your set up.

Note: For average costing, only the Material, Average Cost Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults or are not required.

Related Topics

Defining Other Account Parameters.

Subinventory General Ledger Account Fields.

Defining Revision, Lot, Serial, and LPN Parameters

To define revision parameters

Navigate to the Organization Parameters window.
Select the Revision, Lot, Serial And LPN tab.
Enter a starting revision to be the default for each new item.

To define Lot Control parameters

Select the Revision, Lot, Serial and LPN tab.
Select an option for lot number uniqueness.

Across items: Enforce unique lot numbers for items across all organizations.

None: Unique lot numbers are not required.
Select an option for lot number generation.

User-defined: You can define a lot number for an item when you receive it.

At organization level: The system uses values you enter in the Prefix, Zero Pad Suffix, and Total Length fields to automatically generate a lot number for an item when you receive it.

At item level: The system uses the starting lot number prefix and the starting lot number you define in the item master to automatically generate a lot number for an item when you receive it.
Indicate whether to add zeroes to right-justify the numeric portion of lot numbers (Zero Pad Suffix).
Optionally, select an alphanumeric lot number prefix to use for system-generated lot numbers when you generate lot numbers at the organization level.
Optionally, define the maximum length for lot numbers.

If you use Oracle Work in Process and you set the WIP parameter to default the lot number based on inventory rules, then WIP validates the length of the lot number against the length that you enter in this field.
Indicate how to generate child lots if you lot control at the organization level. The available choices are:
- Parent: The system bases the child lot numbers on the same sequence as the lot number. For example, if a parent lot is P1, then the child lot is P2.
- Parent + Child: The parent lot acts as a prefix, and the system adds the next available number to form the child lot. For example if the parent lot is P1, then the child lot is P1-1.
Indicate whether to add zeroes to right-justify the numeric portion of lot numbers (Zero Pad Suffix).
Enter an alphanumeric prefix if you set the child lot generation to Parent + Child.
Enter the total amount of characters for the child lot. This includes the prefix if applicable.
Select Format Validation to ensure that manually entered lots conform to the predetermined naming convention.
Select Copy Lot Attributes to ensure the child lots inherit the parent lot information.
Select the desired value for Auto Create Lot UOM Conversion. If set to Yes or User Confirmation, then the system automatically creates lot-specific unit of measure conversions. The system bases the conversion on lot quantities that you receive in the transactional UOM, and creates a conversion between the transactional UOM and the secondary UOM. The system creates a lot conversion only if the item is under dual unit of measure control and the lot conversion is different from the item conversion. For example, a conversion would be created only if the user changes the secondary quantity (or the primary quantity without changing the secondary quantity) so that the conversion between primary and secondary is different from the item level conversion. The available values are:
- Yes
- No
- User Confirmation
- Null
Note: If you enable this parameter, then the system automatically creates lot level UOM conversions for lots that are created in Inventory and Process Manufacturing. It does not automatically create lot-level UOM conversions for lots that are created in Work in Process.
Select the value for Allow Different Material Status to control what happens if material statuses differ when you perform transactions (differences in material status of non-lot controlled items are included as well). The values are:
- Yes: You can transfer out of, receive into, or produce material into an existing status and the new quantity inherits the status of the existing material.
- No: You cannot transfer out of, receive into, or produce material into an existing status.
- With Exception: You can transfer out of, receive into, or produce material into an existing status only if the on-hand balance of the destination organization is zero.
Note: This feature is extended to Intra-Org Transactions like subinventory transfer, and staging transfer.

To define Serial Control parameters:

Select the Revision, Lot, Serial And LPN tab.
Select an option for serial number uniqueness.

Within organization: Enforce unique serial numbers within the current organization.

Within inventory items: Enforce unique serial numbers for inventory items.

Across organizations: Enforce unique serial numbers throughout all organizations.
Select an option for serial number generation.

At organization level: Define the starting prefix and serial number information for items using the information you enter in the following fields of this window.

At item level: Define the starting serial number prefix and the starting serial number when you define the item.
Optionally, select an alphanumeric serial number prefix to use for system-generated serial numbers when generation is at the organization level.
Optionally, enter a starting serial number to use for system-generated serial numbers.

If serial number generation is at the organization level, you must enter a starting serial number.
Indicate whether the system suggests serial numbers as part of the move order line allocating process. If you do not select this option, you must manually enter the serial numbers in order to transact the move order.

To define LPN Generating Options

If you have Oracle Warehouse Management installed, and you are working with a Warehouse Management enabled organization, you can define LPN Generating Options. LPNs must be unique across organizations. Setting the parameters on this tab enables the system to generate LPNs on demand, or through a concurrent request. As long as the number is unique, Oracle Warehouse Management also enables you to generate your own LPNs. You can also generate LPNs using the 18-digit Serialized Shipping Container Code (SSCC-18) standard. The SSCC-18 number ensures a unique LPN number for shipping containers across the supply chain. This number is required to generate a UCC-128 shipping label. SSCC-18 or the license plate number appearing on UCC-128 label is also required on outbound ASNs that the system transmits customers. Consequently, it is important that LPNs are generated using SSCC-18 standard within Oracle Warehouse Management. Oracle Shipping Execution refers to this LPN in the outbound ASN. The data structure for the 18-digit number consists of the following:

SSCC-18 Standards
Extension Digit	UCC Company Prefix	Container Serial Number	Check Digit
0	123556	3047	4
Extension Digit No Intelligence	Company Prefix	Serial Number	Mod 10 Check digit

LPN Generation Parameters can be setup to auto-generate LPNs confirming to SSCC-18 standards. In order to do so, the UCC Company Prefix and Extension Digit is defined as the LPN Prefix. The LPN length is entered as 18. The serial number is the starting serial number for LPN generation. This system increments this number when it generates LPNs. This number will be padded by leading ‘0’ to generate LPN with the desired length. As per UCC standards, the combined length of UCC company prefix and container serial number cannot exceed 16 digits. In Oracle Warehouse Management, LPN generation setup can autocreate LPNs using SSCC-18 standards.

LPN Generation Setup in Oracle Warehouse Management to auto-create LPNs using SSCC-18 standard
Total Length	LPN Prefix	Serial Number	UCC-128 Suffix Flag
18	123556	3047	Yes

The previous table auto-generates LPNs confirming to SSCC-18 standards as follows:

012355600000030474
012355600000030481
012355600000030498
012355600000030504

Often times UCC Application Identifier (AI) for LPN 00 is also added in the LPN prefix and the LPN number with AI is transmitted in EDI messages. In such a case, the LPN length is entered as 20 and the Application Identifier 00 is added to the LPN Prefix. The following example illustrates this type of scenario:

LPN Generation Setup in WMS to auto-create LPNs using SSCC-18 standard
Total Length	LPN Prefix	Serial Number	UCC-128 Suffix Flag
20	123556	3047	Yes

In the previous table, the system auto-generates LPNs that confirm to SSCC-18 standards as follows:

00012355600000030474
00012355600000030481
00012355600000030498
00012355600000030504

Note: The Modulo-10 check digit remains the same even when Application Identifier 00 is included in the LPN generation prefix.

To generate LPNs:

Enter the prefix to append to every LPN generated in this organization.
Enter the suffix to append to every LPN generated in this organization.
Enter the starting number from which LPNs the system generates LPNs.
Indicate if a UCC-128 suffix is appended to the LPN.

To continue defining organization parameters

Select the ATP, Pick, Item-Sourcing tab. See: Defining ATP, Pick, Item-Sourcing Parameters.

Related Topics

Defining Items

Inventory Attribute Group

Setting Up Serial Number Control

Overview of Lot Control

Defining ATP, Pick, Item-Sourcing Parameters

To define optional ATP and Picking defaults

Navigate to the Organization Parameters window.
Select the ATP, Pick, Item-Sourcing tab.
Select a default ATP rule.

ATP rules define the options the system uses to calculate the available to promise quantity of an item. If you are using Oracle Order Management, the default is the ATP rule for the Master organization.
Select a default picking rule.

Picking rules define the priority that Order Management functions use to pick items.

Important: This rule will not be employed in a WMS enabled organization. The WMS picking rules will be used. See Defining Default Inventory Parameters.
Enter a default subinventory picking order.

This value indicates the priority with which you pick items from a subinventory, relative to another subinventory, in which a given item resides. The value that you enter appears as the default when you define a subinventory.
Enter a default locator picking order.

This value indicates the priority with which you pick items from a locator, relative to another locator, where a given item resides. The value you that enter appears as the default when you define a locator.

Important: A picking order of 1 means that order management functions pick items from that subinventory or locator before others with a higher number (such as 2, 3, and so on).
Select the Pick Confirmation Required check box if you want your pickers to manually pick confirm. If you do not select the check box, then pick confirmation occurs automatically.

Important: For Oracle Warehouse Management to dispatch picking tasks to users, this check box should be deselected in Warehouse Management enabled organizations.
Select Overpicking for Manufacturing Enabled to allow operators to over pick components and ingredients for WIP jobs and process batches.
Select Overpicking for Transfer Orders Enabled to allow over allocation for move orders.
Select Enable Rules Override for Lot-Level Reservation to allow a reservation to take priority over an allocation, if the reservation is fully detailed. This means that if an order has a reservation that includes all necessary details such as subinventory, locator, and lot, then the system uses this reservation instead of picking rules to create the allocation.

To define optional Item Sourcing defaults

Select the ATP, Pick, Item-Sourcing tab region.
Select a source type for item replenishment. The source types are as follows:

Inventory: Replenish items internally from another subinventory in the same organization or another organization.

Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.

None: No default source for item replenishment.
Select the organization used to replenish items.

You must enter a value in this field if you selected Inventory in the Type field.
Select the subinventory used to replenish items.

You must enter a value in this field if you selected your current organization in the Organization field. You cannot enter a value in this field if you selected Supplier in the Type field.

To continue defining organization parameters

Select the Inter-Organization Information tabbed region. See: Defining Inter-Organization Information.

Related Topics

Defining Picking Rules

Defining Revision, Lot, Serial, LPN Parameters

Defining Inter-Organization Information

To define a default inter-organization transfer charge

Navigate to the Organization Parameters window.
Select the Inter-Org Information tabbed region.
Select an Inter-Organization Transfer Charge option.

None: Do not add transfer charges to a material transfer between organizations.

Predefined percent: Automatically add a predefined percent of the transaction value when you perform the inter-organization transfer.

Requested value: Enter the discrete value to add when you perform the inter-organization transfer.

Requested percent: Enter the discrete percentage of the transfer value to add when you perform the inter-organization transfer.
If you selected Predefined percent in the Inter-Organization Transfer Charge field, enter a percentage value to add to a material transfer.

To define optional default inter-organization transfer accounts

Select the Inter-Org Information tabbed region.
Enter default inter-organization cost accounts. These accounts are defaulted when you set up shipping information in the Inter-Organization Shipping Networks window. See: Inter-Organization Transfer Accounts.

To continue defining organization parameters

Select the Other Accounts tabbed region. See: Defining Other Account Parameters.

Related Topics

Defining Revision, Lot, Serial, LPN Parameters

Defining ATP, Pick, Item-Sourcing Parameters

Inter-Organization Transfer Accounts

You define default inter-organization transfer accounts in the Organization Parameters window. These accounts are defaulted when you set up shipping information in the Inter-Organization Shipping Networks window.

Note: When you set up accounts the primary ledger restricts the legal entity and operating unit.

Transfer Credit

The default general ledger account used to collect transfer charges when this organization is the shipping organization. This is usually an expense account.

Purchase Price Variance

The default general ledger account used to collect the purchase price variance for inter-organization receipts into standard cost organizations. This is usually an expense account.

Payable

The default general ledger account used as an inter-organization clearing account when this organization is the receiving organization. This is usually a liability account.

Receivable

The default general ledger account used as an inter-organization clearing account when this organization is the shipping organization. This is usually an asset account.

Intransit Inventory

The default general ledger account used to hold intransit inventory value. This is usually an asset account. For average cost organizations, this account is the default material account.

Related Topics