1. Implementing Manufacturing and Supply Chain Materials Management
  2. Set Up Inventory Organizations for Contract Manufacturing

Set Up Inventory Organizations for Contract Manufacturing

In Contract Manufacturing, every Contract Manufacturer's manufacturing site is modeled as an inventory organization in the Original Equipment Manufacturer's Oracle Fusion Cloud Applications.

For general details about setting up inventory organizations and setup steps common to all SCM offerings, refer to the Implementing Common Features for SCM guide.

The following table displays the values of the inventory organization's attributes:

Attribute Name

Attribute Value

Usage

Inventory Management

Location Address

The Location Code or Address created in the earlier step for the Contract Manufacturer

Internal or External

External

Organization or Manufacturing Plant

Yes

External Application Type or Organization which represents a Contract Manufacturer

Yes

Supplier

Select the Contract Manufacturer (defined as a Supplier)

Supplier Site

Select the Contract Manufacturer's Site or Location (defined as a Supplier Site)

You must also specify the following:

  • Supply subinventory

  • Supply locator (if the supply subinventory is locator controlled)

  • Completion subinventory

  • Completion locator (if the completion subinventory is locator controlled)

Note: The parameter in the organization definition Auto Associate Serial Numbers to Work Order must be set to Yes for serial-tracked production, and if the original equipment manufacturer (OEM) supplies serials.

Setting Up Item Inventory Organization in Contract Manufacturing

In contract manufacturing, you must set up item inventory organization to define the items and components. Negative inventory isn't valid in the Contract Manufacturer Finished Goods Server.

The following table describes the attribute values that must be set up for Contract Manufacturer Finished Goods Server and Contract Manufacturer inventory organization:

Attribute Name

Attribute Value

Receipt Date Exception Action

None

Over Receipt Action

None
Note: You must ensure that overreceipt tolerance on the Purchase Order and overproduction tolerances are the same in Purchase Order and Work Order.

For more details about setting up item inventory organizations and setup steps common to all SCM offerings, refer to the Implementing Common Features for SCM guide.