2Item Organizations

This chapter contains the following:

Setup Tasks for Item Organizations

You must create item organizations before you can create items in Oracle Fusion Product Hub. These tasks are completed in the Setup and Maintenance work area.

Task Description

Manage Item Organizations

Item organizations are used when the organization does not have dependencies on business units or legal entities.

Manage Organization Trees

In Product Hub, organization hierarchies (trees) are used across some of the mass change flows, including the Assign to Organization, Assign Items to Supplier Organization, and Create Item Structure from Common flows.

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 does not have dependencies on business units or legal entities.

  • 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 are not stored and inventory storage or inventory movement is not reflected in the Oracle Applications Cloud. 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 Fusion 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.

Organization Trees

Organization trees are used to create a list of organizations for use in some of the mass change flows.

In some implementations, customers may have a specific set of organizations that they use in their business and may want to retain that list. You can define an organization tree to represent the list of hierarchies that you want to use. In Oracle Fusion Product Hub, organization trees are called organization hierarchies.

In Product Hub, organization hierarchies are used across some of the mass change flows, including Assign to Organization, Assign Items to Supplier Organization, and Create Item Structure from Common. In the mass change flows, if you want to select a set of items and assign them to a specific set of organizations, then you have the option of selecting each organization individually or selecting an organization hierarchy that represents the list of organizations. Item hierarchies are created in the Setup and Maintenance work area using the Manage Organization Trees task.

An item definition organization is an item organization that stores the item attribute values. A reference organization is an item organization that collects the item attribute values from the item definition organization.

Currently, you have to model every location as an organization. Most of the item attributes are similar within a group of organizations. Typically, all locations within a group have the exact values for the item attributes. For example, if one million items are present in the Item Master, several million records are stored in the database. You create multiple records in the database and most of the data have duplicate records. It increases the time to query a record and it becomes difficult to maintain the database. To avoid this situation, you can model your organizations into two groups, namely item definition organization and reference organization. By doing so, the attribute values of items in the reference organization are derived from the item definition organization. This method reduces the total number of records in the database.

You can define the item definition organization on the Manage Inventory Organization Parameters setup page. You can define the reference organization using the Item Grouping Behavior attribute on the Manage Inventory Organization Parameters setup page.

Benefits of Modeling Definition Organizations

When you model your organizations into definition organizations and reference organizations, you have the following benefits:

  • Reduction in the data migration time

  • Reduction in item data volume for large, complex organizations

  • Reduction in data maintenance effort. Any attribute change to a definition organization is available to all the reference organizations automatically.

  • Reduction in the number of item rules

  • Reduction in the data audit effort. You need to audit only the definition organizations.

  • Improvement in the performance of item query, keyword searches, and transactions for large, complex organizations

When you create an item definition organization, you must consider how you want to manage the organization in your item-organization setup. In a reference organization, all item data are read-only, except packs. All item data comes from the associated definition organization. The following list includes some of the item data that are read-only:

  • Attachments

  • Attributes

  • Category and Category Assignments

  • GTIN

  • Item Structures

  • Source System Cross References

  • Spoke Systems

  • Trading Partner Items

Consider the following points related to item definition organizations and reference organizations when you:

  • Create an organization

  • Update an existing organization

  • Convert an organization to a definition or a reference organization

  • Set up a manufacturing plant

Create an Organization

Consider the following points when you create an organization:

  • The default value for the Item Definition Organization field is the value that you select in the Master Organization field.

  • If the item attributes don't vary for the newly created organization, then select the organization from where you would reference the item records as the value for the item definition organization.

  • If your business requires item attributes to vary in the newly created organization, then use the same organization as the item definition organization. For example, if you create Vision Germany as the new organization for your business, then set Vision Germany as the item definition organization.

  • When you create a new reference organization, associate an existing item definition organization with the reference organization. After the association, a new row is created in the EGP_ITEM_ORG_ASSOCIATIONS table for every item that's assigned to its item definition organization.

Upgrade Existing Organizations

When you upgrade from a previous release to a new release, consider the following points related to organizations:

  • Update all master and child organizations of item organizations, and materials management organization in SCM, and define the item definition organizations to itself.

  • Update existing item definition organization to a reference organization. This will reduce the records in the EGP_SYSTEM_ITEMS_B table.

Convert a Definition Organization to a Reference Organization

To convert a definition organization to a reference organization, the organizations and items must meet certain conditions. If the conditions aren't met, then the validation checks result in an error and the conversion fails.

You can't convert a definition organization to a reference organization if any of the following conditions are met:

  • The revision code or effective date for an item are different in the reference and definition organizations

  • The supplier-organization association for an item is different in the reference and definition organizations

  • The item-category assignments for organization-controlled catalogs are different in the reference and definition organizations

  • The status of change order for an item is anything other than Completed or Failed

  • The structures are common from an organization other than definition organization.

  • The definition organization is a manufacturing plant.

Convert a Reference Organization to a Definition Organization

You can edit your items in a definition organization only. If you want to edit any items in a reference organization, then you have to first covert the reference organization to a definition organization. After the conversion, you can maintain a copy of the item record in the new definition organization. You initiate the conversion through a scheduled process and there are no validation checks for the conversion.

Change a Definition Organization of an Associated Reference Organization

You can convert a definition organization to a reference organization only after you have realigned all its associated reference organizations to another definition organization. You can also convert all the associated reference organizations to a definition organization. If you don't reassign the associated reference organization before the conversion, you will receive error messages depending on the validation checks, and the conversion will fail. However, if a reference organization is a manufacturing plant, you can't realign its definition organization to another definition organization.

Set Up a Manufacturing Plant

Consider the following points when you set up a manufacturing plant:

  • You can define a new manufacturing plant either as a definition organization or a reference organization. However, if you're looking for the following capabilities in your organization, then don't set up a manufacturing plant as a reference organization:

    • You want to calculate manufacturing lead times and update the lead-time values for items.

    • You want organization-specific supply subinventory for an item.

    • You want organization-specific serial-control attributes and lot-control attributes for an item.

  • You can convert a manufacturing plant that's a reference organization to a definition organization. However, you can't convert a manufacturing plant that's a definition organization to a reference organization.

You can edit your items in a definition organization only. If you want to edit any items in a reference organization, then you have to first covert the reference organization to a definition organization. After the conversion, you can maintain a copy of the item record in the new definition organization. You initiate the conversion through a scheduled process and there are no validation checks for the conversion.

Converting an organization is a two-part process. In the first part, you convert the organization from a reference organization to a definition organization. In the second part, you grant appropriate permissions to the converted organization.

This procedure covers both the parts.

  1. From the Setup and Maintenance work area, select the following:

    • Offering: Product Management

    • Functional Area: Inventory Organizations

    • Task: Manage Inventory Organizations

  2. Search for the organization of your interest.

  3. Select the organization from the Results table, and click Actions > Process Item Grouping Change.

  4. From the Item Grouping Behavior drop-down list, select Definition Organization.

  5. Click Submit to initiate a scheduled process.

  6. Return to the Setup: Product Management page.

  7. Click the Items functional area, and then click the Manage Item Classes task.

  8. Grant the required privileges for the organization that you have just converted. For example, you can grant the Maintain Item Basic privilege for basic item privileges in the newly converted definition organization.

Now, you can edit items in this organization.

Item organizations contain only definitions of items. Use item organizations in implementations when the storage or movement of inventory doesn't need to be physically or financially tracked. For example, in a retail implementation you can create an item organization to contain only the definitions of items that are listed by and sold through each retail outlet, while a different system tracks the physical inventory and transactions of those items. If Oracle Fusion Inventory Management is installed, you can change an item organization to an inventory organization.