What’s new in R12- Inventory Management

R12 Oracle Inventory Management, New Features

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• Changed Features in R12 Inventory
----o OPM Inventory conversion.
----o Material traceability: Enhanced material control
----o Dual UOM functionality.
----o Material Status control.
----o Advanced Lot control.
----o Lot indivisibility functionality.
----o Material aging workflow.

• OPM Inventory Convergence
----o Structural changes in Inventory Organization
----o Benefits of OPM Inventory convergence

• Changed features for Inventory Process Convergence
----o Oracle Process Inventory Obsolescence
----o OPM Functionalities are supported by Oracle Inventory
----o New features pertaining to OPM
-------- Dual unit of Measure control
-------- Material status control
-------- Advanced Lot Control
-------- Support for Indivisible lot
-------- Material Aging workflow.

• Oracle Process Inventory Obsolescence: Before

• Oracle Process Inventory Obsolescence: After

• Advantages: Oracle Process Inventory Obsolesces
----o Single Item Master to be maintained.
-------- Process Attributes are added to Item definition
-------- Dual quantity tracking for item.

----o Combined view of Inventory
-------- On-Hand balance in one application
-------- Inventory transacted by one system

----o Integrated Supply Chain
-------- Seamless integration to other products like WMS & MSCA available to Process users.


• Advantages: Oracle Process Inventory Obsolesces
----o Dual Units of Measure control
----o Material Status control
----o Advanced Lot control
----o Lot Indivisibility
----o Material Aging Workflow


• Inventory tracking in Dual Units of Measure
----o Explanation
----o Set up and Process
----o Dependencies and Interactions.
----o Even without constant conversion, quantity can be tracked in two Units of Measures.
----o Transact, reserve, check on-hand and availability in multiple Units of Measure.
----o For Planning and Costing, Primary Units of Measure is used.


• Dual Units of Measure: Set up
----o Define Tracking for Single or Dual UOMs Specify defaulting logic for secondary UOM

• Dual Units of Measure control:
----o Transaction Enter Secondary Quantity at Receipt and all subsequent transactions

• Dual Units of Measure control: On-Hand material
----o View on hand and availability in both UOMs

• Dual Units of Measure control: Dependencies and Interactions
----o Oracle Receiving, Shipping Execution, Order Management, Inventory, WMS and the process manufacturing modules will honor dual UOM
----o If another module in e-Business suit or third party application posts a transaction to inventory via transaction open interface that does not indicate

the secondary quantity, the default conversion is used.


• Enhanced Material control by Material Statuses
----o Introduction
----o Set up and processes
----o Dependencies and Interactions
----o Material Status
-------- List of Allowed and Disallowed transactions
-------- Determination of whether or not the product is nettable, Reservable & ATP-able.

----o Applied to Lot, Serial, Sub inventory & Locator
-------- Assigned at receipt of new lot or serial
-------- Assigned in Sub inventory and Locator forms
-------- Disallowed transactions and planning actions are cumulative
-------- Location status applies to material in location and not Location

----o Update status in material workbench or mobile status update forms
----o Status change history report
----o View On-Hand balances by Material status.


• Set up required to enable Material Status:

• Material Status control setup: Enable Transaction
----o Specify which transaction types can be restricted by status

• Material Status control setup: Define Status code
----o Specify planning attributes for material status Specify allowed and disallowed transactions for this material status

• Material Status control setup: Enable Item
----o Enable status control selectively for Items

• Material Status Control Process- Perform Transaction
----o Status restrictions enforced during transactions
-------- Transactions prohibited by status at any level will not be allowed.
-------- Material will not be allocated for transaction not allowed to complete.


• Material Status Control: Dependencies and Interactions
----o Oracle Receiving, Shipping Execution, Advanced Planning and Scheduling, Inventory and Process manufacturing modules will honor material status.
----o If another module in e-Business suit or third party application posts transaction to inventory via transaction open interface that violated material status restriction, that transaction will be allowed.


• Improved Lot Traceability
----o Additional Lot attributes
-------- Grade, Origination, Retest Date, Expiration Action Code, Expiration Action Date, Maturity Date, Hold Release Date.

----o Sub-Lot tracking
----o Lot-level UOM conversions
----o Indivisibility of Lots


• Additional Lot Attributes:
----o Grade, Origination, Retest Date, Expiration Action Code, Expiration Action Date, Maturity Date, Hold Release Date.
----o Grade attributes allowed for allocating a particular grade of material for specific customer or order.
----o Expiration action code allows for particular action to be taken on material when lot has expired.


• Sub-Lot tracking:
----o Sub-Lot: A lot with parent
----o Sub-Lot numbers & Parent numbers can be generated at receipt.
----o Search for material by Lot or Sub-Lot.
----o Automatically name lots as a concatenation of parent lot and sub-lot name.


• Sub-Lot Track: Set up
----o Enable Sublot Control on Item Master

• Sub-Lot track: process
----o Parent Lot number entered during transaction for sublot controlled Items

• Lot level UOM Conversion:
----o Conversions can be created or modified for specific lots
----o Lot level conversions automatically stored as a part of initial receipt transactions for item.
----o Update conversion for the lot and automatically adjust on-hand balances accordingly.
----o View lot level conversions in lot maintenance form


• Lots Indivisibility:
----o Need for Lot Indivisibility
----o Item attribute to determine Indivisibility
----o System will over or under allocate accordingly so that only full lots are chosen
----o Indivisible lots may be manually split, but other transactions for partial quantities are prevented
-------- Exception for receipt into same locator and miscellaneous issue


• Lot Indivisibility: Set up
----o ‘ Lot Divisible’ flag indicates whether lots of this Item can be divided

• Management of Aging of Material
----o Material aging workflow: allows user to be notified about specific date attributes of lot or serial.
----o Concurrent Request: Designed to take action on any date attributes.
-------- The date attributes usually are Expiration date, retest date, maturity date or other types of dates.

----o Workflow is initiated when the given date attribute is within the given number of days of current date defined in concurrent request.
----o Default workflow sends notification, but can be customized to support any functionality.


• Lot Genealogy Enhancement:
----o The enhancement is incorporated in the lot genealogy form to allow user to:
-------- Highlight a particular item lot on a genealogy tree
-------- Toggle between the tabs like ‘where used’ & ‘source’ using highlighted item lot as a top node in the tree.
-------- Refresh the tree with different top level nodes without being forced to go back to query window
-------- View more level of details in the left side navigator where lot branches are expanded before they are forced to scroll horizontally.


• Summary
----o We have learnt about:
----o OPM inventory conversion
----o Dual UOM functionality
----o Material Status control
----o Advanced Lot control
----o Lot Indivisibility
----o Aging of material
----o Lot Genealogy Enhancement



*NOTE: This article is not completely prepared by me, content is edited and complied after referring various sites

Material Status Control in R12 Oracle Inventory

           Material Status control restricts the movement and usage of portions of on-hand inventory. Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it. In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning. You assign material statuses at four levels:

• Sub-inventory
• Locator
• Lot
• Serial Number

           Item status drives the item attributes by allowing you to keep an item from being built in Oracle Work In Process, ordered, procured etc. Material status is a granular control over each inventory transaction that applies to specific material within your warehouse or manufacturing facility

Material Status Control Levels:

           You assign subinventory and locator statuses in the subinventory and locator windows. The location status applies to the material in the location and not the location itself. To assign a material status to a lot or serial, you must first enable the item attributes Lot Status Enabled, and Serial Status enabled on the item in the Item Master. You can also optionally assign a default lot or serial status to an item on the Item Master. When you receive the item, the system automatically assigns the default lot or serial status to the item. The lot or serial status remains the same through all inventory transactions including organization transfers. If necessary, you can change the material status at receipt, use the material workbench, or mobile status update page to modify the material status.

  

            When a material status is assigned to a subinventory or locator, the material is not assigned the material status of the subinventory or locator; rather, it takes on the behavior indicated by the material status at the subinventory or locator level. i.e. Material Status is not directly assigned to Material, it is assigned to subinventory / locator / lot / serial and then Material is assigned to subinventory / locator / lot / serial. This way Material and Material Status are indirectly tagged to each other.

Cumulative Effective Status: 

            A cumulative effective status is the combination of all disallowed transactions. Disallowed transactions and planning actions are cumulative.

           When you transact an item, the system checks all of the material statuses. If the system finds a status that disallows the transaction, whether at the serial, lot, locator, or subinventory level, then the transaction fails.

           For example, if you have a locator whose status disallows WIP Issue and that locator is in a subinventory whose status disallows Sales Order Issue, neither of those transactions will be allowed for material that is in the locator

 
 
1. Enable Status Control for the Transaction Type :

We have to set Profile option INV: Material Status Support = Yes

• If you do not enable status control for a transaction type, then the transaction type is always allowed

2. Define Material Status Code :



3. Attach Material Status Code to Sub-inventory / Locator / Lot / Serial : 
Here we are attaching it to Locator.

As we defined Status code for Usage at Locator and Lot level, this can be used only for Locator or Lot