Inventory Organization Parameters
Use the Manage Inventory Organization Parameters page to set up default inventory parameters for your organization.
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In the Setup and Maintenance work area, use the Manage Inventory Organizations task:
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Offering: Manufacturing and Supply Chain Materials Management
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Functional Area: Facilities
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Task: Manage Inventory Organizations
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Click the Create icon to create a new inventory organization.
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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.
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Enter a value for the Location Address if a value didn't already default based on your management business unit.
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Click Next to access the Manage Inventory Organization Parameters page.
Let's look at the sections of the Manage Inventory Organization Parameters page:
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General
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Lot, Serial Number, and Packing Unit
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Item Sourcing Details
General
Once you enter the Manage Inventory Organization Parameters page, the General parameters are visible. They are broken into these sections:
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Item Definition Settings
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Inventory Settings
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Additional Usages
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Movement Request
Here are the Item Definition Settings fields:
Field |
Description |
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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:
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 |
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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:
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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 |
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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:
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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 |
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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:
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:
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Lot Control
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Lot Generation
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Child Lot Control
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Serial Number Generation
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Packing Unit Generation
Here are the Lot Control fields:
Field |
Description |
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Uniqueness |
Specify whether lot numbers should be unique for an item.
When you perform transactions, Inventory checks the lot number uniqueness control to generate lot number defaults. |
Generation |
Specify how to generate lot number defaults.
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Allow Different Lot Status |
Select your choice for allowing different lot statuses:
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Automatically Create Lot UOM Conversion |
Specify whether to automatically create lot UOM conversions:
Note:
This field is currently reserved for future use. |
Here are the Lot Generation fields:
Field |
Description |
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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 |
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Generation |
Select a value for generating child lots:
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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 |
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Uniqueness |
Choose the type of serial number uniqueness for your organization:
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Generation |
Specify the level at which to generate serial control:
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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.
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Here are the Packing Unit Generation fields:
Field |
Description |
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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:
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Picking Defaults
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Item Sourcing Details
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Distribution Parameters
Here are the Picking Default fields:
Field |
Description |
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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 |
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Type |
Select the item sourcing type:
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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.