Inventory Organization Parameters

Use the Manage Inventory Organization Parameters page to set up default inventory parameters for your organization.

In the Setup and Maintenance work area, use the Manage Inventory Organizations task:
- Offering: Manufacturing and Supply Chain Materials Management
- Functional Area: Facilities
- Task: Manage Inventory Organizations
Click the Create icon to create a new inventory organization.
Enter the basic information for your organization, such as Name, Organization, Management Business Unit, and Legal Entity.
Specify a Profit Center Business Unit to generate intercompany trade transactions for various business flows. If you don't associate a profit center business unit to an inventory organization, it may result in trade transaction errors during cost processing.
Enter a value for the Location Address if a value didn't already default based on your management business unit.
Click Next to access the Manage Inventory Organization Parameters page.

Let's look at the sections of the Manage Inventory Organization Parameters page:

General
Lot, Serial Number, and Packing Unit
Item Sourcing Details

General

Once you enter the Manage Inventory Organization Parameters page, the General parameters are visible. They are broken into these sections:

Item Definition Settings
Inventory Settings
Additional Usages
Movement Request

Here are the Item Definition Settings fields:

Field	Description
Item Master Organization	Select an item master organization. You can create items in the item master organization and assign them to other organizations within your business unit. Note: An enterprise typically needs only one item master organization, and that should usually be an item organization, not an inventory organization.
Item Grouping Behavior	Item attributes are defined in the organization or referenced from one another. Options include: Definition organization Reference organization The attribute values of items in a reference organization are derived from the item definition organization. For more details about item grouping, see the Oracle SCM Cloud: Implementing Product Management guide.
Item Definition Organization	Item organization that stores the item attribute values.
Starting Revision	Enter the initial alphabetic or numeric revision.

Here are the Inventory Settings fields:

Field	Description
Schedule	Select a schedule. Schedules represent the working and nonworking time in a warehouse, and are comprised of workday patterns and exceptions.
Time Zone	Select a time zone. Schedules are time zone neutral. Multiple warehouse can share schedules if desired, each having an appropriate time zone to reflect the local time.
Locator Control	Select a locator control option. Values include: No locator control: Inventory transactions in this organization don't require locator information. Previously defined locator control: Inventory transactions in this organization require a valid, predefined locator for each item. Dynamic entry locator control: Inventory transactions in this organization require entry of a locator for each item. You can chose a valid, predefined locator or define a locator dynamically at the time of transaction. Locator control determined at subinventory level: Inventory transactions use locator control information that you define at the subinventory level.
Enable inventory tracking by project	Select to enable Oracle Projects integration on the inventory organization. Materials management transactions and manufacturing transactions gather the project details.
Enable inventory tracking by country of origin	Select to report and track the country of origin on on-hand quantity and inventory transactions in receiving, shipping, and inventory.
Warehouse accepts substitue items	Select if the warehouse accepts substitute items in place of ordered items.
Allow negative balances	Indicate whether to allow negative balances. This parameter determines if inventory transactions can drive the inventory balance of an item negative. If selected, you can overpick and move more than the available on-hand quantity.
Allow negative on-hand transactions	Indicate whether to allow negative on-hand transactions. This parameter determines whether negative on-hand transactions are permitted during cycle counting.
Use original receipt date	Select to use the original receipt date. Organizations can maintain the original receipt date when transferring material between locations within a warehouse. For example, an inventory organization performs a purchase order receipt on 1-May-2020. The material is subsequently transferred on 10-May-2020 from the original put away subinventory to another subinventory. When the material is transferred, if this option is selected, both the original receipt date and the transaction date associated with the subinventory transfer transaction are captured.
Round reorder quantity	Select to round the reorder quantity. When you specify to round reorder quantities, the min-max planning reorders for item subinventories automatically round up or down.
Automatically cancel transfer order backorders	Indicate whether the remaining quantities on backordered transfer order lines are automatically canceled.
Use current item cost	Select to use the existing item cost when creating transactions. If selected, the Use Current Item Cost field also defaults to Yes on the Create Miscellaneous Transactions page.

Here are the Additional Usages fields:

Field	Description
Organization is a manufacturing plant	Select to set an organization as in-house manufacturing plant. Note: If the organization is set as a contract manufacturing plant, you must also provide the supplier and supplier site information for the plant.
Organization performs maintenance activities	Select to set the organization as a maintenance organization
Organization represents a contract manufacturer	Select to set an organization as contract manufacturing organization.
Integrated System Type	You can indicate that another system is managing the warehouse execution. Select one of these values: Oracle Inventory Management (this is the default value) Warehouse Management System Third-Party Logistics
Integrate manufacturing and maintenance with WMS	Specify if the plant uses a Warehouse Management System that is integrated to Oracle Manufacturing and Maintenance. This field is available only if you specify the integrated system type of Warehouse Management System. The default value is unselected.
Supplier	If the organization is set as a contract manufacturing plant, enter the supplier information for the plant.
Supplier Site	If the organization is set as a contract manufacturing plant, enter the supplier site information for the plant.
Organization is associated with an internal customer	Select to use the destination organization as the customer for internal material transfers. Once enabled, you can enter the customer name and account number that has been setup for your destination inventory organization.
Customer Name	If the organization is associated with an internal customer, enter the customer name for your destination inventory organization.
Account Number	If the organization is associated with an internal customer, enter the account number for your destination inventory organization.

Here are the Movement Request fields:

Field	Description
Pick Slip Batch Size	Enter the amount of order lines to process together.
Replenishment Movement Request Grouping	Choose your grouping selection for replenishment movement requests: Destination subinventory Organization None Consider the size of your operation, your usage of subinventories, and the type of labor or equipment required when considering whether you want to use organization or subinventory-level replenishment movement request grouping.
Automatically delete picks when movement requests are canceled	Indicates whether the removal of the pick happens automatically when the movement request or sales order is canceled.
Close movement request lines at pick confirmation	Select to automatically close replenishment movement requests from min-max planning that are partially filled at pick confirmation time.

Lot, Serial Number, and Packing Unit

Click the Lot, Serial Number, and Packing Unit link to set organization parameters for these areas:

Lot Control
Lot Generation
Child Lot Control
Serial Number Generation
Packing Unit Generation

Here are the Lot Control fields:

Field	Description
Uniqueness	Specify whether lot numbers should be unique for an item. No uniqueness control: If you don't establish lot number uniqueness, you can assign the same lot number to multiple items in the same organization and across organizations. Organizations that choose No uniqueness control can enter any lot as long as the lot doesn't exist in any organization that's set to Across items. Unique across items: If you control lot number uniqueness at the master level, you can assign a specific lot number only to one item in the same organization and across organizations. When you perform transactions, Inventory checks the lot number uniqueness control to generate lot number defaults.
Generation	Specify how to generate lot number defaults. At item level: You can generate sequential lot numbers based on an alphanumeric prefix that you specify when you define an item. At organization level: Inventory can generate lot number defaults for the entire organization using the Lot Generation options for the prefix, zero pad suffix, and total length. In this case, you must define a lot number prefix at the organization level. User defined: If you don't want Inventory to generate lot number defaults automatically for you, you can enter your own lot numbers when you receive items.
Allow Different Lot Status	Select your choice for allowing different lot statuses: No: Disallow transacting of new lot quantities into existing lots. With exception: Allow transacting of lot quantities if the on-hand balance of the destination organization is zero. Yes: Allow new lot quantities to inherit the status of the existing lot.
Automatically Create Lot UOM Conversion	Specify whether to automatically create lot UOM conversions: No: Lot UOM conversions aren't created automatically. User confirmation: When lot UOM conversions are created as a result of user confirmation, lot-specific UOM conversions are created using the lot quantities received. Yes: When lot UOM conversions are created automatically, lot-specific UOM conversions are created using the parameters of the lot quantities received. Note: This field is currently reserved for future use.

Here are the Lot Generation fields:

Field	Description
Prefix	If you select At organization level for the lot control generation option, optionally enter an alphanumeric lot number prefix for lot numbers generated by the application at the organization level. Inventory can generate lot number defaults for the entire organization if you define a lot number prefix at the organization level.
Total Length	Enter the maximum length for lot numbers. Note: When using Oracle Work in Process (WIP): if the WIP parameter is set 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.
Zero pad suffix	Indicate whether to add zeroes to right-justify the numeric portion of lot numbers.

Field

Description

Prefix

If you select At organization level for the lot control generation option, optionally enter an alphanumeric lot number prefix for lot numbers generated by the application at the organization level.

Inventory can generate lot number defaults for the entire organization if you define a lot number prefix at the organization level.

Total Length

Enter the maximum length for lot numbers.

Note: When using Oracle Work in Process (WIP): if the WIP parameter is set 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.

Zero pad suffix

Indicate whether to add zeroes to right-justify the numeric portion of lot numbers.

Here are the Child Lot Control fields:

Field	Description
Generation	Select a value for generating child lots: Parent: The application 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 and child: The parent lot acts as a prefix, and the application 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.
Prefix	Enter an alphanumeric prefix if the child lot generation is set to Parent and child.
Total Length	Enter the total amount of characters for the child lot. This includes the prefix if applicable.
Zero pad suffix	Indicate whether to add zeroes to right-justify the numeric portion of lot numbers.
Copy lot attributes	Select to ensure the child lots inherit the parent lot information.
Format validation	Select to ensure that manually entered lots conform to the predetermined naming convention.

Here are the Serial Number Generation fields:

Field	Description
Uniqueness	Choose the type of serial number uniqueness for your organization: Unique across organizations: Enforces unique serial numbers throughout all organizations. The same serial number uniqueness rules apply as when you set serial number uniqueness rules to be within an organization. Additionally, setting serial number uniqueness control across organizations prevents the same serial number from being assigned to more than one item, regardless of the inventory organization. Unique within inventory items: Enforces unique serial numbers for inventory items. After a serial number is assigned to a particular item, you can't assign the same serial number to the same item, regardless of whether that item exists in the same or different inventory organization. Unique within model and inventory items: Enables configurations of the same model to be assigned the same serial number as the base model item. This is useful in ATO (assemble-to-order) configurations where you generate a serial number for the base configuration, and need to generate the same serial number for the next configuration of the same model. Unique within organization: Enforces unique serial numbers within the current organization. The same serial number uniqueness rules apply as when you set serial number uniqueness control to be within items. Additionally, setting serial number uniqueness control to be within an organization prevents the same serial number from existing multiple times within the same inventory organization.
Generation	Specify the level at which to generate serial control: At item level: You can generate sequential serial numbers based on an alphanumeric prefix that you specify when you define an item. Define the starting serial number prefix and the starting serial number when you define the item. At organization level: Inventory can generate serial number defaults for the entire organization. In this case, you must define a lot number prefix at the organization level. User defined: If you don't want Inventory to generate serial number defaults automatically for you, you can enter your own lot numbers when you receive items.
Prefix	Select an alphanumeric serial number prefix to use for system-generated serial numbers when generation is at the organization level.
Starting Serial Number	Enter a starting serial number to use for system-generated serial numbers. Inventory uses the starting serial number prefix and the starting serial number to create predefined serial numbers. Note: If serial number generation is at the organization level, you must enter a starting serial number.
System Selects Serial Number	Choose if you want to have the application perform pick release for serialized items automatically. No: If set to No, you must enter the serial numbers when confirming the picks manually. Yes: If set to Yes, the application performs automatic pick release for serialized items.

Here are the Packing Unit Generation fields:

Field	Description
Total Length	Define the maximum length for packing units.
Prefix	Enter the prefix to add to every packing unit that's generated in this organization.
GS1-128	Indicates if the packing unit should adhere to the GS1 standards, given the prefix and suffix.
Starting Packing Unit	Enter a starting packing unit number to use for system-generated packing units Inventory uses the starting packing unit prefix and the starting packing unit number to create predefined packing units.
Suffix	Enter the suffix to append to every packing unit that's generated in this organization.

Item Sourcing Details

Click the Item Sourcing Details link to set organization parameters for these areas:

Picking Defaults
Item Sourcing Details
Distribution Parameters

Here are the Picking Default fields:

Field	Description
Picking Rule	Select a default picking rule. Picking rules define the priority that Order Management Cloud uses to pick items. Note: This rule won't be used in a WMS-enabled organization. Instead, the WMS picking rules are used.
Subinventory Order	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.
Locator Order	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. Note: A picking order of 1 means that Order Management Cloud picks items from that subinventory or locator before others with a higher number (such as 2, 3, and so on).
Quantity Exception Reason	Select a default value to use when changing the quantity of inventory to pick
Pick confirmation required	Select if you want your pickers to pick confirm manually. If you don't select this check box, pick confirmation occurs automatically. Note: This check box is deselected for WMS-enabled organizations.
Overpicking for movement requests enabled	Select to enable overpicking for movement requests. If selected, you can overpick more than the request quantity for movement requests.
Allow overpicking for special handling	Enable overpicking for sales orders, transfer orders, and work orders. This lets you specify more than the requested quantity on your pick-and-move requests for sales orders, transfer orders, and work orders.
Automatically populate picked quantity during pick confirm	Select to confirm pick slips without entering quantities manually. This lets you automatically populate the picked quantity during pick confirm.
Capture picking exceptions	Select to capture picking exceptions when confirming pick transactions on a pick slip.

Here are the Item Sourcing Details fields:

Field	Description
Type	Select the item sourcing type: Organization: Replenish items internally from another subinventory in the same organization or another organization Supplier: Replenish items externally from an external supplier. None: No default source for item replenishment.
Organization	Select the organization used to replenish items. You must enter a value in this field if you selected Organization in the Type field.
Subinventory	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 can't enter a value in this field if you selected Supplier in the Type field.
Purchasing by revision	If you select this check box, the revision information passes to the purchasing interface tables when you create a requisition in Inventory for revision-controlled items. If you don't select this check box, the requisition is created without revision control.

In the Distribution Parameters section, you can select the Logistics services organization check box to create an inventory organization as a logistics services organization. If selected, the inventory organization isn't costed, and shipment lines from different logistics service provider customers can't be packed in the same packing unit.