AIM

BR.100 INVENTORY
Application Setups

Reco & Rwasco

Author: Raymond Mangulama

Creation Date: May 26, 2010
Last Updated: June 14, 2010
Version: Final 1.0

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 1. Document Control

Change Record

Date Author Version Change Reference

01-June-10 Raymond Mangulama Draft No Previous Document

Reviewers

Name Position

Martin Ashelford Project Manager

Raymond Mangulama Team Leader

Distribution

Copy No. Name Location

1 Library Master Project Library

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3
4

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Table of Contents
1. Document Control ............................................................................................................................... 2
2. The prerequisites setups that must be done before setting up inventory..................................................4
3. Define your Inventory Flexfield ........................................................................................................... 5
4. Define your Calendar ...........................................................................................................................6
5. Update System Profile Options ............................................................................................................8
6. Define Locations................................................................................................................................ 10
7. Define your Inventory Organizations .................................................................................................. 11
8. Define your cost types........................................................................................................................ 15
9. Define your Unit of measure classes ................................................................................................... 16
10. Define your Subinventories ............................................................................................................ 17
11. Define your stock locators.............................................................................................................. 18
12. Define Item planners ...................................................................................................................... 19
13. Define your Categories .................................................................................................................. 20
14. Define your Category Sets ............................................................................................................. 21
15. Define your default category sets ................................................................................................... 22
16. Define your shipping networks ....................................................................................................... 23
17. Define custom transaction types ..................................................................................................... 24
18. Define your transaction reasons...................................................................................................... 25
19. Define your receiving options ........................................................................................................ 26
20. Modify your request managers ....................................................................................................... 27
21. Define Item Templates ................................................................................................................... 28
22. Open and Closed Issues on this deliverable .................................................................................... 39
Open Issues ............................................................................................................................................ 39
Closed Issues .......................................................................................................................................... 39

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 2. The prerequisites setups that must be done before setting
up inventory
I. Define Primary Ledgers
Navigate: Setup >> Financials >> Accounting Setup Manager>>Accounting setups
Description: Use window to define primary ledger
Note: Please refer to GL setup document

II. Define Calendar

Navigate: Setup >> Financials >> Accounting Calendar >> Accounting
Description: Use this form to define your calendar. You associate a calendar and a
period type.
Note: Please refer to GL setup document

III. Define Locations

Navigate: Setup >> Organizations >> Locations
Description: Use this form to enter locations and their addresses for your
organization
Note: Please refer to HRMS setup document

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 3. Define your Inventory Flexfield
Description: Plan your key flexfield structures carefully, including all your segment
information such as segment order and field lengths, before you define your segments using
this form.

Decide on which one to use, whether it’s the system items or the items categories
(N)Setup >> Flexfields >> Key >> Segments
Application : Inventory
Flexfield Title : Item Categories
Code : ITEM_CATEGORIES

Segments:
Number Name Window Column Valueset
Prompt
1 Item Category Item Category SEGMENT1 RR_Item_Category_VS
2 Item Code Item Code SEGMENT2 RR_Item_Code_VS

Value sets:
Value Set Name Description Security Format Max Size Validation Edit Information
Type Type Type
RR_Item_Code_VS Reco & Non- Char 10 Dependent Dependent on
Rwasco Hierarchical the Item Category
Item code
value set
RR_Item_Category_VS Reco & Non- Char 10 Independent
Rwasco Hierarchical
Item
Category
Value Set

After definition of the value sets Freeze and compile and make sure that it compiled
successfully before populating the list of values.

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 4. Define your Calendar
(N) Setup > Organizations > Calendars

A workday calendar defines the valid working days for an inventory organization and
consists of repeating pattern of days on and days off and exceptions to that pattern. This
allows you to, for example, designate a normal workday as a scheduled downtime day, or
designate a holiday as a workday.

Name Description Quarterly Type From To Workday Pattern

RR_WDC Reco & Rwasco 5/4/4 Week 01-JAN- 01-JAN- - Seq 1 (On 5 days Off
Workdat Calendar Pattern 2010 2014 2 Days
- Seq 2 (On 6 Days Off
1 Day

Then click on Tools > Build

Make sure the calendar has completed successfully

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7
 5. Update System Profile Options
Switch responsibility to system administrator then follow the navigation
(N)Profile > System: Application = Inventory

Application Profile Options Setting

Option Value

INV: Item Form Folder Category Set Inventory

INV:Cross Reference Type Item's Global Trading Item Number
INV: Allow Expense to Asset Transfer Yes
INV:Debug Level 0
INV: Debug Trace No
INV: Debug file (Including the complete path) /tmp/invdbg.db
INV: Default Item Status Active
INV: Default Primary Unit Of Measure** EACH
INV: Dynamic Precision Option for quantity on -9,999,999.00
reports
HR User Type HR with Payroll User
INV: Inter-Organization Currency conversion Spot
INV: Intercompany Currency conversion Spot
INV: Item Master Flexfield System Items / Item Categories
INV: Maximum Number of Quantity Trees 500
INV: Minmax Reorder Approval Approvel Required
INV: Product Family Item Template Name @Purchased Item
INV: Replenishment Count Line Failure Continue processing
INV: Replenishment Count Requisition Approval Approval Required
INV: RPC Timeout 300
INV: Restrict Receipt of Serials No
INV: Round Reorder Qty Yes
INV: Save Search Items Yes
INV: Transaction Date Validation Provide warning when date in past period
INV: Updateable Item Name No
INV:Capable to Promise ATP Based on Collected Data
INV:Override Neg for Backflush No
INV:Purchasing By Revision No
INV: Updateable Customer Item Yes
TP:INV Cycle Count Approvals Form Online processing
TP:INV Cycle Count Entries form Online processing
TP:INV Enter replenishment count form Concurrent processing
TP:INV Inter-Organization Transfer Form Online processing
TP:INV Miscellaneous issue and receipt form Online processing
TP:INV Move Order Transact Form Online processing
TP:INV Transfer between subinventories form Online processing
TP:INV Transaction Processing Mode Form Level processing

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Option Value

TP:INV Transfer between Subinventories Form Online processing

TP:INV Update Average Cost form Online processing

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 6. Define Locations
These can be defined in the system if not yet defined from human resources module.
(N)Setup > Organizations > Locations

Use this zone to enter the names and addresses for the locations you use within you
organization.
Name AVENUE DU LAC IHEMA Global Yes

HEADQUARTERS
Description Inactive Date
Address Style Generic
Address P.O. Box 537, Kigali Rw
Shipping Details

Contact
Ship To Location AVENUE DU LAC IHEMA

Yes Bill To Site Yes

Ship To Site
Receiving Site Yes Internal Site Yes

Yes
Office Site
Other Details

Inventory Organization HQ-Head Office

Tax Code

EDI Location

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 7. Define your Inventory Organizations
(N) Setup > Organizations > Organization
Description: Use this form to define an organization and its related information. This Setup
should be done for each and every inventory organization. Note that this is the Item master
organization which should only be used to define inventory Items and not for any
transactions.

Note: This is an Oracle Inventory required setup.

Name Location Dates, From Internal or Organization Classifications Enabled

External
Head Quarters Internal HR Organization Yes

Inventory Organization Yes

Inventory Organization > Accounting Information

Name Value

Primary Ledger RR_LEDGER2021(RWF)

Legal Entity RECO & RWASCO_LE

Operating Unit Reco & Rwasco Operating Unit

Inventory Parameters
Organization Code HQM

Master Organization HEADQUARTERS

Calendar RR_WDC

Demand Class

Move Order Timeout Period

Move Order Timeout Action Approval automatically

Locator Control None

Enforce Locator Alias No

Uniqueness

Quantity Skipping Inspection No

Control

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 Allow Negative Balance No

Auto Delete Allocations at None

Move Order cancel

Costing Information
Use this window to define the Costing Information
Costing Organization HEADQUARTERS
Costing Method Average
Rates Cost Type RR_AVG
Transfer to GL Yes
Reverse Encumbrance None
Defer Logical None
Transactions
Cost Cutoff Date None

Default material sub- None

Element
Material Overhead sub-
Element
Default Cost Group RR_CG

Material 00-000-000-00-3100000-000
Outside Processing 00-000-000-00-3711000-000
Valuation Accounts Material Overhead 00-000-000-00-3712000-000
Overhead 00-000-000-00-3713000-000
Resource 00-000-000-00-3714000-000
Expense 00-000-000-00-3715000-000
Revision, Lot and Serial Number Controls Window
Use this Window to define and update revision, lot & serial number control details for the organization.

Starting Revision 0

Lot Number Uniqueness None

Lot Number Generation At Item Level

Lot Number Prefix

Zero Pad Suffix Not applicable

Total Lot Number length 30

Serial Number Control Within Inventory model and items

Uniqueness

Serial Number generation At Organization Level

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 Prefix None

Serial Number Prefix

Starting serial Number 01

ATP/ Picking Defaults Window “1”

Use this Window to define and update available to promise, picking options, and item sourcing details. Used in
conjunction with Order Entry.

Default ATP Rule None

Default Picking Rule None

Sub inventory Picking Order None

Locator Picking Order

Type

Organization

Sub Inventory

Overpicking for Tranfer Yes

Order Enabled

Inter-Organization Options & Accounts Window

Inter-organization Tranfer None
Changes
Purchase Price Variance None

Receivable None

Payable None

In Transit Inventory 00-000-000-00-3100000-000

Other Accounts Window

Use this Window to define and update receiving accounts, profit and loss and average cost variance accounts
Purchase Price Variance None

Invoice Price Variance 00-000-000-00-3721000-000

Inventory Accounts Payable 00-000-000-00-3722000-000

Accrual

Encumbrance None

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Sales 00-000-000-00-71-000

Cost of Goods Sold 00-000-000-00-6000000-000

Project Clearance Account None

Deferred COGS Account 00-000-000-00-3723000-000

Cost Variance Account 00-000-000-00-3724000-000

R Receiving Information

Receiving Inventory Account 00-000-000-00-3716000-000

Clearing Account 00-000-000-00-3717000-000

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 8. Define your cost types
(N)Setup > Costs > Cost Types
Cost Type : RR_AVG
Description : Reco & Rwasco Weighted Average Cost Type
Default Cost Type : Average
Multi Org : Yes
Allow Updates : Yes
Available for engineering : No

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 9. Define your Unit of measure classes
(N)Setup > Units Of Measure > Classes
Base Inactive
Name Description Unit UOM On
Each Each Item Eac
Length Length Meter Mtr
Mass Mass Kilogram Kg
Packet Packet Pack Pkt
Period Period Daily DAY
Piece Pieces Piece Pcs

Define the Unit Of Measures

(N)Setup > Units Of Measure > Unit Of Measure
Base Inactive
Name UOM Description Unit Class On
Each Eac Each * Each
Meter Mtr Meter * Length
Kilogram Kg Kilogram * Mass
Pack Pkt Pack * Packet
Bi-
Weekly BWK Bi-Weekly Period
Daily DAY Daily * Period
Half
Yearly HYR Half Yearly Period
Monthly MTH Monthly Period
Quarterly QTR Quarterly Period
Weekly WK Weekly Period
Yearly YR Yearly Period
Piece Pcs Piece * Piece

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 10.Define your Subinventories
Navigate: Setup >> Organizations >> Subinventories

Description: Use this form to define and update subinventories

Note: The Number of sub inventories is set to grow with the organization.
Main Window
Name Central Stores

Description Main Stores

Status Active
Default Cost Group RR_CG
Type Storage
Qty Tracked Yes
Asset Subinventory Yes
Depreciable No
Include in ATP Yes
Allow Reservation Yes
MAIN
Nettable Yes

Enable PAR level Planning No

Default Replenishment Order Quantity
Qty Tracked Yes
Material
Outside Processing
Material Overhead
ACCOUNTS Overhead
Resource
Expense
Encumbrance none

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 11.Define your stock locators
Navigate: Setup >> Organizations >> Stock Locators
Description: Use this form to define and update locators.
Note: The stock locator flexfield has to have been defined before
(N)Setup > Flexfields > Key > Segments >
Application : Inventory
Title : Stock Locators
Number : 10
Name : Stock Locators
Windows Prompt: Stock Locators
Column : Segment 1
Value Set : RR_Stock_Locator

Name Row Rack Bin

Subinventory Water

Description Rows

Descriptive Text

Picking Order

Inactive On

Maximum Units

Volume UOM

Maximum Volume

Weight UOM

Maximum Weight

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 12.Define Item planners
This Varies from Organization to organization, as in most cases this becomes apparent to the users later on
during and or after training once the min-max planning has been thoroughly demonstrated.

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 13.Define your Categories
(N)Setup > Items > Categories > Category codes

Structure Name Contract Categories

Category Inventory.Expense

Description Inventory Expense Items (Stockable)

Enabled Yes

Inactive Date

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 14.Define your Category Sets

Navigate: Setup >> Items >> Categories >> Category Sets

Description: Use this form to create sets that group your categories into functional areas
.

This is an Oracle Inventory required setup.

Name Inventory

Description Inventory category set

Flexfield Structure Item categories

Control Level Organization level

Default Category Inventory.Expense

Allow Multiple Item No

category Assignments

Enforce List of Valid No

Categories
Valid Categories Window Use this Window to define and update a list of valid categories for
this set

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 15.Define your default category sets
Navigate: Setup >> Item >> Categories >> Default Category Sets

Description: Use this form to define and update default category sets for your functional
areas.

Note: This is an Oracle Inventory required setup.

FUNCTIONAL AREA CATEGORY SET DESCRIPTION

Inventory Inventory Inventory Category Set

Purchasing Inventory Inventory Category Set
Planning Inventory Inventory Category Set
Service Inventory Inventory Category Set
Cost Inventory Inventory Category Set
Engineering Inventory Inventory Category Set
Order Entry Inventory Inventory Category Set
Product line accounting Inventory Inventory Category Set

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 16.Define your shipping networks
Navigate: Setup >> Organizations >> Shipping Networks
This setup must be done after the inventory organizations have all been defined and confirmed on the
shipping networks.

Organization Scope

HQ From or To Org
From To Transfer FOB Receipt Charge Transfer Credit Inter-Org Receivable Inter-Org Intransit
Type Routing Type Account Account Payable Account
Transfer Account
CST HQ Intransit Receipt Standard None 00-000-000- 00-000-000-00- 00-000-000- 00-000-000-
00-3100000- 4710000-000 00-4710000- 00-3100000-
000 000 000

Do this for all the subsequent inventory organizations that have shipping networks

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 17.Define custom transaction types
Navigate: Setup >> Transactions >> Types

Description: Use this form to define your transaction types

Name Description Source Type Action Notification Location
Reqrd

Opening Balance Opening Balances Inventory Receipt into Yes Yes

stores
Issue To User Items Issuance to user Inventory Issue from stores YES

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 18.Define your transaction reasons
Navigate: Setup >> Transactions >> Reasons

Description: Use this form to define your transaction reasons.

Name Description Inactive Date

POST Increase and Decrease

Opening Balance Opening Stock / Insufficient
Balances
Issue from stores Issue Items from Stores

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 19.Define your receiving options
Navigate: Setup >> Organization>>Receiving Parameter

Description: Use this Window to define the defaults you can later use to speed up data entry and enforce
system wide requirements. Although this form is part of the Oracle Inventory set up the field data should
be coordinated with the purchasing function
Inventory Organization

Central Stores
Enforce Ship-To Warning
ASN Control Action Warning
Receipt Days Early 3
Receipt Days Late 3
Receipt Days Exceed-Action Warning
Over Receipt Tolerance (%) 3
Over Receipt Action Warning
Receiving Option RMA Receipt Routing Inspection Required
Receipt Routing Inspection Required
Allow Substitute Receipts Yes
Allow Unordered Receipts -
Allow Express Transactions -
Allow Cascade Transactions -
Allow Blind Receiving -
Validate Serial Numbers on RMA Receipts -
Receipt Number Generation Automatic
Receipt Number Type Alphanumeric
Next Receipt Number 1
Validate Lots on RMA Receipts Restricted
ACCOUNTING Receiving Inventory Account
Retroactive Price Adjustment Account -
Clearing Account
Cost Factors Interface to Advanced Pricing None
Interface to Transportation Execution None

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 20.Modify your request managers
Navigate: Setup >> Transactions >> Interface Managers

Name Status Worker Rows Timeout Process Interval

Minutes Minutes
Cost Manager Inactive 200 0 59

Lot Move transactions Inactive 200 0 5

Material Transaction Inactive 500 0 5

Move transactions Inactive 200 40 5

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 21.Define Item Templates
Navigate: Setup>>Items>>Templates

Reco Stockable Description RR Item Template

Template Name
Reco Stores
Organization
Control At Value
Attribute Name
Master Inventory Type
User Item Type
Master Active
Item Status
Master Each
Primary Unit of Measure
Master Standard
Conversions
Master
Description
Master Primary
Tracking UOM Indicator
Master Primary
Pricing UOM Indicator
Master Default
Defaulting Control
Master Each
Secondary Unit of Measure
Master
Deviation Factor +
Master
Deviation Factor -
Master Yes
Inventory Item
Master Yes
Stockable
Master Yes
Transactable
Master Not under revision quantity control
Revision Control
Master No lot control
Lot Control
Master
Starting Lot Number
Master
Starting Lot Prefix
Master No serial number control
Serial Number Generation
Master
Starting Serial Number

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 Master
Starting Serial Prefix
Master
Lot Expiration
Master
Shelf Life Days
Master
Restrict Subinventories
Master
Locator Control
Master
Restrict Locators
Master Reservable
Reservable
Master Yes
Cycle Count Enabled
Master
Negative Measurement Error
Master
Positive Measurement Error
Org
Check Material Shortage
Org
Lot Status Enabled
Org
Default Lot Status
Org
Serial Status Enabled
Org
Default Serial Status
Org
Lot Split Enabled
Org
Lot Merge Enabled
Master
Lot Translate Enabled
Org
Lot Substitution Enabled
Org
Bulk Picked
Org
Lot Divisible
Org
Grade Controlled
Org
Default Grade
Org
Child Lot Enabled
Org
Child Lot Generation
Org
Child Lot Prefix

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 Org
Child Lot Starting Number
Org
Child Lot Format Validation
Org
Retest Interval
Org
Expiration Action Interval
Org
Expiration Action
Org
Maturity Days
Org
Hold Days
Org
Copy Lot Attributes
Master
BOM Item Type
Master
BOM Allowed
Master
Base Model
Master
Autocreated Configuration
Master
Configurator Model Type
Master
Create Configured Item, BOM
Master
Match Configuration
Master Yes
Costing Enabled
Master Yes
Inventory Asset Value
Org
Cost of Goods Sold Account
Master
Include in Rollup
Master
Standard Lot Size
Master Yes
Purchased
Master Yes
Purchasable
Master
Default Buyer
Master
Use Approved Supplier
Org
Input Tax Classification Code
Master
Taxable

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 Master
Receipt Close Tolerance
Master Yes
Allow Description Update
Master
Inspection Required
Master
Receipt Required
Master
Market Price
Master
UN Number
Master
Hazard Class
Master
RFQ Required
Master
List Price
Master
Price Tolerance %
Master
Asset Category
Master
Rounding Factor
Master
Unit of Issue
Master
Outside Processing Item
Master
Outside Processing Unit Type
Master
Invoice Close Tolerance
Org
Encumbrance Account
Org
Expense Account
Org
Outsourced Assembly
Master
Over-Receipt Qty Action
Master
Receipt Routing
Master
Over-Receipt Qty Tolerance
Master
Enforce Ship-To
Master
Allow Substitute Receipts
Master
Allow Unordered Receipts
Master
Allow Express Transactions

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 Master
Days Early Receipt Allowed
Master
Days Late Receipt Allowed
Master
Receipt Date Action
Master
Weight Unit of Measure
Master
Unit Weight
Master
Volume Unit of Measure
Master
Unit Volume
Master
Container
Master
Vehicle
Org
Maximum Load Weight
Org
Minimum Fill Percentage
Org
Internal Volume
Org
Container Type
Master
Collateral Item
Master
Event
Master
Electronic Format
Master
Downloadable
Org
OM Indivisible
Master
Dimension Unit of Measure
Master
Length
Master
Width
Master
Height
Master
Inventory Planning Method
Master Buy
Make or Buy
Org
Planner
Master
Min-Max Minimum Quantity

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 Master
Min-Max Maximum Quantity
Master
Safety Stock Bucket Days
Master
Carrying Cost Percent
Master
Order Cost
Master
Safety Stock Percent
Master
Safety Stock
Master
Fixed Order Quantity
Master
Fixed Days Supply
Master
Minimum Order Quantity
Master
Maximum Order Quantity
Master
Fixed Lot Size Multiplier
Master
Source Type
Org
Source Organization
Org
Source Subinventory
Org
Minimum Quantity
Org
Minimum days of supply
Org
Maximum Quantity
Org
Maximum days of supply
Org
Fixed Quantity
Org
Release Authorization Required
Org
Consigned
Org
Forecast Type
Org
Window Days
Org
Auto-expire ASN
Org
Subcontracting Component
Master
MRP Planning Method

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 Master
Forecast Control
Org
Planning Exception Set
Master
Shrinkage Rate
Master
End Assembly Pegging
Master
Round Order Quantities
Org
Planned Inventory Point
Org
Create Supply
Master
Acceptable Early Days
Org
Critical Component
Org
Exclude From Budget
Master
Calculate ATP
Master
Reduce MPS
Master
Repetitive Planning
Master
Overrun Percentage
Master
Acceptable Rate -
Master
Acceptable Rate +
Master
Planning Time Fence
Master
Planning Time Fence Days
Master
Demand Time Fence
Master
Demand Time Fence Days
Master
Release Time Fence
Master
Release Time Fence Days
Org
Substitution Window
Org
Substitution Window Days
Org
DRP Planned
Org
Maximum Inventory Days Supply

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 Org
Maximum Inventory Window
Org
Target Inventory Days Supply
Org
Target Inventory Window
Org
Continuous Inter Org transfers
Org
Convergence Pattern
Org
Divergence Pattern
Org
Repair Program
Org
Repair Lead-time
Org
Repair Yield
Org
Pre-positioning Point
Org
Preprocessing Lead Time
Org
Processing Lead Time
Org
Post processing Lead Time
Org
Fixed Lead Time
Org
Variable Lead Time
Org
Cum Manufacturing Lead Time
Org
Cumulative Total Lead Time
Master
Lead Time Lot Size
Master
Build in WIP
Master
WIP Supply Type
Org
WIP Supply Subinventory
Org
WIP Supply Locator
Org
Over completion Tolerance Type
Org
Over completion Tolerance Value
Org
Inventory Carry Penalty
Org
Operation Slack Penalty

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 Master
Customer Ordered
Master
Customer Orders Enabled
Master Yes
Internal Ordered
Master Yes
Internal Orders Enabled
Master
Shippable
Master
OE Transactable
Master
Picking Rule
Master
Pick Components
Master
Assemble to Order
Master
Check ATP
Master
ATP Components
Master
ATP Rule
Master
Ship Model Complete
Master
Default Shipping Organization
Master
Default SO Source Type
Master
Returnable
Master
RMA Inspection Required
Master
Over Shipment Tolerance
Master
Under Shipment Tolerance
Master
Over Return Tolerance
Org
Financing Allowed
Master
Charge Periodicity
Master
Invoiceable Item
Master
Invoice Enabled
Master
Accounting Rule
Master
Invoicing Rule

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 Master
Output Tax Classification Code
Org
Sales Account
Master
Payment Terms
Master
Contract Item Type
Master
Contract Duration Period
Master
Contract Duration
Master
Coverage Template
Master
Service Request
Master
Enable Contract Coverage
Master
Billing Type
Master
Enable Service Billing
Org
Enable Defect Tracking
Master
Track in Installed Base
Org
Create Fixed Asset
Master
Item Instance Class
Master
Starting Delay (Days)
Org
Recipe Enabled
Org
Process Quality Enabled
Org
Process Execution Enabled
Org
Process Costing Enabled
Org
Process Supply Subinventory
Org
Process Supply Locator
Org
Process Yield Subinventory
Org
Process Yield Locator
Org
Hazardous Material
Org
CAS Number

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 22.Open and Closed Issues on this deliverable
Open Issues
ID Issue Resolution Responsibility Target Date Impact
Date

1
2
3
4

Closed Issues
ID Issue Resolution Responsibility Target Date Impact
Date

39