1. Implementing Product Management
  2. Item Organizations

Item Organizations

Item organizations are used to control the availability of attributes for items and item security. Item security is based on a combination of the item class, group or person, and the organization.

The item organization structure is similar to the inventory organization structure, except the item organization structure does not have an association with a business unit or legal entity.

Product Management can be configured with two different organization structures:

  • Item Organizations: An organization structure that doesn't have dependency on business units or legal entities. Adding the business unit and location is for reference only and doesn't support transactional processes.

  • Inventory Organizations: An organization structure that requires business units and legal entities. Used by the supply chain management and procurement applications.

An item organization defines an item when inventory balances aren't stored and inventory storage or inventory movement is not reflected in the Oracle Fusion Cloud Applications. For example, you would use an item organization in a retail scenario, if you need to know the items that are listed by and sold through each retail outlet even though inventory and transactions are recorded in another system. Item organizations are also used to control the availability of attributes for items and item security. The item organization structure is similar to the inventory organization structure, except the item organization structure is not required to have an association with a business unit or legal entity. The item organization also does not have the required inventory organization-level attributes.

Item organizations can be changed by administrators to an inventory organization by updating the necessary attributes. There is no difference in the way items are treated in these two types of organizations except that there cannot be any financial transactions in the downstream applications (such as the logistics applications) for items that are assigned to an item organization.

For customers who have licensed only Oracle Product Hub, item organizations are sufficient.

To create an item organization:

  1. Enter Organization Information: Item organizations are identified by a name and organization number. Each organization has a location which is defined by the location address. Locations are entered using the Manage Locations task. Optional information such legal entity and business unit can also be entered.

  2. Enter the Item Master Organization: If this is the first item organization being created, it should be a master organization. To make this a master organization, enter the organization name again. If the new item organization is a child organization of an existing master organization, then enter the name of the master organization.

  3. Enter the Starting Revision: Changes to the organization can be tracked through revisions and are usually represented by a letter or number or combination of the two.