SEDICO OPM INV BusinessMapping V1

BP-80 FUTURE PROCESS MODEL
BR-30 Business Process Mapping

SEDICO- OPM Implementation
Oracle Inventory Management

Author: Mohamed Saied El Esnawy
Creation Date: Apr 01st, 2002
Last Updated: Apr 15th, 2002
Version: (1)
Approver:
Mr. Mamdouh Atteya

Document Control
Change Record
Date Author Version Change Reference
Apr 2002 Mohamed S. El 1 No previous document

Esnawy
Reviewers
Name Position
Mr. Mamdouh Atteya Project Manager
Distribution
Copy No. Name Location
1 CITE Library Master Project Library

2 SEDICO Project Library Project Library
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<SEDICO> Oracle Process Manufacturing Implementation Inventory

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Contents
Document Control..............................................................................................................................................2
Introduction.........................................................................................................................................................5
Business Mapping Outlines:...............................................................................................................................6
Gap Issues For Inventory Management:..........................................................................................................10
Event Catalog...................................................................................................................................................11
Process Description..........................................................................................................................................13
<PRC-01> Step Catalogue “Implementation start out”..................................................................................15
<PRC-02> Step Catalogue “New Manufactured Item Added”.......................................................................17
<PRC-03> Step Catalogue “New Non-Manufactured/Pur Item Added”........................................................19
<PRC-04> Step Catalogue “Non-Inventory Item Received”..........................................................................20
<PRC-05> Step Catalogue “Materials Received”...........................................................................................24
<PRC-06> Step Catalogue “Materials Accepted”...........................................................................................29
<PRC-07> Step Catalogue “Materials Rejected”............................................................................................34
<PRC-08> Step Catalogue “Supplier Returns”...............................................................................................38
<PRC-09> Step Catalogue “Non-Inventory Item Requested”........................................................................40
<PRC-10> Step Catalogue “Moving Items Internally”...................................................................................41
<PRC-11> Step Catalogue “Production Batch Is Released”..........................................................................45
<PRC-12> Step Catalogue “Produced Items Do Match The QC Standard”..................................................49
<PRC-13> Step Catalogue “FP Damaged/Expired”.......................................................................................53
<PRC-14> Step Catalogue “FP Needs Re-Packaging”...................................................................................57
<PRC-15> Step Catalogue “Finished Products About To Expire”.................................................................60
<PRC-16> Step Catalogue “Customer Order Is To Be Fulfilled”..................................................................62
<PRC-17> Step Catalogue “Customers Returns”............................................................................................65
<PRC-18> Step Catalogue “Balances Deviation”...........................................................................................67
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<PRC-19> Step Catalogue “Item Cost Changes”............................................................................................69
<PRC-20> Step Catalogue “Physical Count”..................................................................................................72
<PRC-21> Step Catalogue “Month-End Closing”..........................................................................................75
Open Issues.......................................................................................................................................................78
Closed Issues....................................................................................................................................................79
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Introduction
Document Purpose:
This document illustrates typical Oracle Inventory Management events

and business processes. It gives an overall view on how working with
Oracle Inventory Management will look like. This document also serves
the mapping document, which will enclose SEDICO complete solution.
Events, Processes and Relationship between events and processes related with
Oracle Inventory module and the business cycle for SEDICO are described
and explained in details.
All the details of each process and the corresponding business requirements
and procedure are explained as well.
Overview of Inventory Management:
Inventory management is the base that manages the most important and
valuable asset of your company, which is the item.
OPM Inventory will represents SEDICO inventory sites and business

units. This includes organizations/Plants, warehouses, warehouse
locations.
OPM Inventory management serves as a repository for holding all the

required information of the item during its lifetime. For example: item
code, item unit of measures, item supplier details, item family, lot
expiration, shelf life, retest intervals, grade, status, and more data else.
Moreover, OPM Inventory management contains the required

information of how the items are stored physically at the warehouses,
and the storing locations at these warehouses. This will lead SEDICO
organization to have organized and graded warehouses based on the
business needs.
At first stage, the items (issuing and receiving) transactions -for sales,
production, purchasing, or any other items moving purposes- will done
from specific screen not referenced by any sales, production, or
purchase orders. However, at a later stage all the transactions will be
attached and accounted automatically based on the transaction used.
OPM inventory management will be responsible of reconciling the

system balances and the physical balances counted through the Physical
Inventory and Cycle Count functions. The OPM Physical Inventory
function includes selections for defining and running both: Full
Physical inventories (counting of every item in a warehouse) and
Periodic counting of selected items (cycle counting).
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Business Mapping Outlines:
 <SEDICO> OPM Hierarchy.
The following are the future OPM Inventory structure that we are agreed upon:
 Company or Plant = Organization.
 A Company is an entity that groups and receives all the financial information and any
transactions happened in the plants will be accounted in the Company. Also it will be
assigned later by the fiscal policy that defines the company-wide parameters such as
operating unit SOB, and many data related.
 We are going to classify the production line, and departments into different plants.
 The objectives of maintaining plants are:
- Security wise. By assigning the users by specific organization (s) only, (One user can
be assigned to many plants at a time)
- Enabling the users to maintain group of similar information. For example, SYRP Plant:
might group all the data related by the syrup items (Formulas, Resources, Routings…).
- Based on the user organizations, the user can issues Production Batches for his
authorized organizations only.
- Based on the user organizations, the user can plan only onto his assigned organizations.
- Document Ordering segregation.
 Warehouses will be defined on the company level.
 The Standard is the agreed upon costing method for SEDICO.
 Items coding structure is an open issue that will be resolved by SEDICO project team and
to be delivered upon setup the application. Setup of the testing environment will be delayed
until this issue is sorted out.
 If any “Item Quality Control Attributes” used needs to be clarified before defining the
items to set them as an item master data. Item Quality Controls are:
 Item Warehouse Locations, Lot control, Lot/Sublot, Lot Grade, Lot Status, Shelf
Life/Expiration Date, and the Retest Intervals.
 Expiration Date will be set manually and could be changed later.
 The Non-Inventory (Expenses, Services …etc) Items will be tracked so they should be
coded. However, these items will be used after the implementation of Oracle Purchasing.
 If it’s intended to fully track the Fixed Assets from Oracle Inventory, then we need to
define them on the item master and to have a complete business and document cycle in
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SEDICO. However, it’s recommended to elaborate in this issue while implementing Oracle
Purchasing.
 Dual unit of measures feature will be used for many items, as a business need.
 Inspection is required and it takes place seriously for the Inventory items, and not required
for the Non-Inventory items.
 Lot Status Control for RM, Packaging and FG. Default status is “Pending/Under-
Inspection”. QC officer to change it to OK based on the test results.
 Automatic allocation is required for FG shipment using (FEFO) First Expired First Out
upon sales module implementation takes place.
 Automatic allocation is required for RM issuing to production using (FEFO) First

Expired First Out. However the system will recommend the lots to pick, but without
any reservation for these lots.
 Raw Materials outside the corresponding warehouse should be tracked. Likes what
happens with the work in process area.
 Lot control is used in Raw Materials and Batch number is used in Finished Goods.
 RM Lot number will represent the [Receiving date + Vendor + Concentration].
 We have lot tracability / genealogy.
 We are going to track the scraped RM (i.e. expired raw materials) and will be handled as
revenue upon sale it.
 Re-Work orders for the customer returns (Re-Packaging) will be handled.
 Since Oracle Purchasing is not implemented yet, so:
1. Any inspection procedures will take place manually outside the system upon the
receiving and inspection transactions done directly through Oracle Purchasing module.
2. Create the receiving transaction form Oracle Inventory to increase the on-hand quantity
balances by the delivered quantity.
3. Since the costing method is Standard, so the unit cost for the purchased items will be
driven automatically through the item standard cost.
 Since Oracle Order Management is not implemented yet, so:
1. The Customer Returns will be done by the item standard cost.
2. No inspection transactions upon receiving the customer returns.
3. Create issuing transaction form Oracle Inventory to decrease the on-hand quantity
balances by the sold quantity.
4. Manually issue the “Invoice” by the sales amount to record the sales value from “Oracle
Accounts Receivable”. (For each line item / or by the total invoice value)
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Note: The “item pricing” will be defined upon implementing Oracle Order Management.
 Since OPM Production management is not implemented yet, so:
The materials issuing and products receiving transactions will done through the quantities
form without attaching those transactions by the matched Sheet Order (Production batch).
 Since in phase one of the project Oracle Sales, Purchasing, and Production management
modules not implemented yet, so many “Reason Codes” will be designed instead to cover
all inventory transactions required.
 We agreed that the issuing by negative balances is not allowed.
 Document Ordering (voucher serial/sequence) will be entered manually at first stage to

employ the preprinted voucher number. However, at later stage it will be generated
automatically.
 Document Ordering is independent for each Document Type. In other word, document
ordering might be automatic for specific type and manually for another one.
 Moreover, Document Ordering is independent for each organization. In other word,

document ordering might be automatic for specific type in organization (X) and automatic
for the same type but in different organization (Y).
 The Material Account will be transacted based on the reason code used while the
transaction because there are different material accounts used.
 According to the “Items with concentration” we agreed upon the following manipulation
for such cases:
- Items with concentration will be defined in inventory module as dual unit of measure
(UOM) items.
- The primary UOM will be expressing the concentration mass equivalent, while the
secondary UOM is the standard mass UOM, Kgm.
- Such ingredients will be used in formulas with their concentration equivalent UOM.
That is, a 100kgm of a 56% concentration is 56, concentration mass equivalent.
- To receive item with concentration you need to: Firstly, define a lot at lot/sublot OPM
inventory form. It is recommended that the lot name reflect the concentration (e.g. day-
month-year-vendor code- concentration).
- Secondly, define item/lot conversion specific for the formerly created lot.
- Thirdly, while receiving the ingredient at the warehouse, enter the quantity in secondary
unit of measure (i.e. Kgm) and the system -using the item/lot conversion will calculate
the concentration mass equivalent.
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- In PM, batch input, ingredients with concentration quantities will be allocated using the
primary unit of measure, and the system will in turn calculate the equivalent secondary
unit of measure.
 It’s agreed upon by all parties that some of the processes listed below will require us to
modify the business procedures in order to be able to implement the system efficiently.
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Gap Issues For Inventory Management:
 N/A.
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Event Catalog
Event Id Name Description

EV-01 Implementation startup The users are trained, system setup is
completed, and we are ready to startup the
system
EV-02 New Manufactured item is introduced to the New Item to be produced
business
EV-03 New Non-Manufactured item (Purchased) is New Item to be add to the item list
introduced to the business
EV-04 Non Inventory Items (Expenses/Fixed Asset) Non Inventory Items have been delivered
have been received from suppliers according to purchase order
and received at its corresponding warehouse
EV-05 Materials Received Purchased Inventory Items have been
delivered to the stores from suppliers
according to purchase order
EV-06 Shipped Materials Are Sampled And Quality Control department reported that the
Matching The Quality Standards shipped items are sampled and inspected and
its matching the quality control polices and
standards
EV-07 Shipped Materials not Matching The QC Shipped Items not Matching The QC
Standards Standards and needs decision by SEDICO
quality control committee, such as MRB
committee (Sale, Destroy)
EV-08 Supplier Returns Specific item are returned to its vendor due to
manufacturing defects
EV-09 Specific department requested Non- Specific department requested non-inventory
Inventory items items (FA items, or Expenses)
EV-10 Moving Items For an example, when you want to transfer

items between different warehouses, or
between two locators within the same
warehouse
EV-11 Production Batch is Released The Planning department decided to produce
certain product, by certain quantity, on certain
date and this production batch requires
specific ingredients.
EV-12 Finished Goods found matching the QC Finished Products are completed and
standards delivered
EV-13 Finished Product Damaged and/or Expired Quality Control Department reported that
specific product (s) found expired and/or
damaged, and could not be reworked/re-
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Event Id Name Description
packed
EV-14 Finished Product Re-Pair/Re-Packaging We agreed that some products might be
Process Required repaired to meet the QC standards. Here
Quality Control Department reported that
specific product (s) pack is damaged, and
needs repackaging process
EV-15 Finished Product About To Expire Quality Control Department found product (s)
will be expired sooner
EV-16 Customer Order Is To Be Fulfilled Finished Products are requested to be shipped
to customer upon previously approved order
EV-17 Customers Returns Finished Products are returned from

customers
EV-18 Balances deviation Create Adjustment transactions (Receiving or
Issuing) to adjust the deviations in item
quantities
EV-19 Item Cost Changes
EV-20 Physical Count It means that we need to reconcile system

maintained item on–hand balances with actual
counts of the inventory
EV-21 Month end closing Month end closing procedures to be done
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Process Description
Event Event Process Id Process Title Involved

Id Department
EV-01 Implementation PRC-01 Create the opening balance for all Project Team
startup the defined items
EV-02 New Manufactured PRC-02 Define the new item, item Planning,
item is introduced to formula, and routing. Engineering,
the business Inventory, Finance,
IT
EV-03 New Non- PRC-03 Define the item master file as per Planning,
Manufactured item the Request Form Engineering,
(Purchased) is Inventory, Finance,
introduced to the IT
business
EV-04 Non Inventory Items PRC-04 Follow the receiving transaction Inventory –
(Expenses/Fixed process for the Fixed Asset items Purchasing-,
Asset) have been Finance Depts.
received
EV-05 Materials Received PRC-05 Apply The Materials Receiving Quality - Inventory –
Process Purchasing,
Finance Depts.
EV-06 Shipped Materials PRC-06 Receipt The Approved Quantity Quality - Inventory –
Are Sampled And According To Process Purchasing,
Matching The Regulations Finance Depts.
Quality Standards
EV-07 Shipped Materials PRC-07 Refer To Such Process Described Quality - Inventory –
not Matching The Below For The Mismatched Purchasing,
QC Standards Materials Finance Depts.
EV-08 Supplier Returns PRC-08 Supplier Returns Process Steps Quality - Inventory –
Will Be Taken Purchasing,
Finance Depts, Top
Management
EV-09 Specific department PRC-09 Issue The Requested Items For Inventory, Finance
requested Non- The Requesting Department Depts.
Inventory items
EV-10 Moving Items PRC-10 Perform Inventory Transfer Inventory - Finance

Internally Transaction Depts, Top
Management
EV-11 Production Batch is PRC-11 Proceed with the Batch Release Planning -
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Event Event Process Id Process Title Involved
Id Department
Released process steps Production -
Inventory
EV-12 Finished Goods PRC-12 Create receiving transaction for Quality - Inventory –
found matching the the approved quantity Production
QC standards
EV-13 Finished Product PRC-13 Follow the Damaged/Expired Quality - Inventory –
Damaged and/or products process procedures Production
Expired
Finished Product Re- Repackaging Process required Quality - Inventory –

Pair/Re-Packaging Production
EV-14 PRC-14
Process Required
Mark these products as NFS (Not Quality - Inventory –

Finished Product
EV-15 PRC-15 For Sale) products to be used Production
About To Expire
internally
Planning - Sales
Customer Order Is Go through the customer demand Department –
EV-16 PRC-16
To Be Fulfilled processes Inventory - Finance
Depts.
Customer Service -
Follow the “customer returns” Sales Department –
EV-17 Customers Returns PRC-17
process steps Inventory - Finance
Depts.
Create Adjustment transactions to Finance Depts. - Top
EV-18 Balances deviation PRC-18 adjust the deviations in item Management –
quantities or values Inventory
Finance Depts. - Top

EV-19 Item Cost Changes PRC-19 Change The Item Cost Details Management –
Inventory
Inventory Controller
Complete physical count - Finance Dept. -
EV-20 Physical Count PRC-20
procedures Top Management
Inventory
Accounting
Apply The Month End Closing
EV-21 Month end closing PRC-21 Controller - Finance
Procedures
Dept. - Top
Management
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<PRC-01> Step Catalogue “Implementation start out”
Event Id Event Process Process Title Dept. / Person

Id
EV-01 Implementation start PRC-01 First Period Implementation All Project

out Procedures Team
Process ID Description
PRC-01.1 Define/Upload the items Master Data
PRC-01.2 Create opening balance for all the items
PRC-01 Policies / Procedures
Type System/Module Path Procedures/Rules

Internal OPM Inventory Inventory>OPM Inventory No doubt that you should feed the system by your
Control>Setup>Item Master items at first to be able to transact and maintain
your items.
Inventory>OPM Inventory
Control>Quantities> This will either be done manually (for ad-hoc items
Create Immediate/Journal definition) through the mentioned windows, or
automatically by utilizing the Inventory interface
Inventory> tables.
OPM Inventory Control>
Mass Transactions In this form (Item Master) you will enter the item
code, description, dual/non-dual UOM, lot
information, item classes, and item Q.C
information.
In all cases, we need to prepare an “Excel Sheet” –

Data Collection Template- containing the item
codes and the entire opening balances information
for all inventory items as well.
If the number of the transactions is high, then it’s

better to go for opening balance upload. This issue
should be closed immediately to be applied in the
Oracle Testing environment before the production
one.
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<PRC-02> Step Catalogue “New Manufactured Item Added”

Id
EV-02 New Manufactured PRC-02 Define the new item master data, Planning,
Item Added item formula, and routing. Engineering,
Inventory,
Finance, IT
PRC-02.1 Define the item as per the Request Form master file
PRC-02.2 Define the item Formula
PRC-02.3 Define the item Routing
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Internal OPM Inventory <PRC-02.01> In this form you will enter the item code,
Inventory>OPM Inventory description, dual/non-dual UOM, lot information,
Control>Setup>Item Master item classes, item Q.C information.
As long we have a system for tracking the

inventory transactions, we need to establish a
system for creating any new item. In order to make
this true, we have to have a special form for adding
any new item in the item database.
If one department needs to add new item the

following procedure should be followed:
- “New Item Request” form should be filled by

the requesting department
- “System administrator” to make sure that this
item is not existing in the database.
- “Item to be created” in the database.
The form should indicate the requesting

department.
The Inventory System Administrator is responsible

for creating this form and get approval from all
departments on the contents of it.
Also, a memo should be sent to all departments to

formalize this new document.

Internal OPM Formula <PRC-02.02> Described in OPM Formula mapping document
Management Product Development> EV-01
Formula Mgmt> Formulas

Internal OPM Formula <PRC-02.03> Will be described in OPM Routing mapping
Management Product Development> document
Formula Mgmt> Formulas
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<PRC-03> Step Catalogue “New Non-Manufactured/Pur Item Added”

Id
EV-03 New Non- PRC-03 Define the item master file as per Planning,
Manufactured item the Request Form Engineering,
(Purchased) is Inventory,
introduced to the Finance, IT
business
PRC-03 Define the item as per the Request Form master file

Internal OPM Inventory <PRC-03> In this form you will enter the item code,
Inventory>OPM Inventory description, dual/non-dual UOM, lot information,
Control>Setup>Item Master item classes, item Q.C information.
Since we have a system for tracking the inventory

transactions, we need to establish a system for
creating any new item. In order to make this true,
we have to have a special form for adding any new
item in the item database.
If one department needs to add new item the

following procedure should be followed:
- “New Item Request” form should be filled by

the requesting department
- System administrator to make sure that this
item does not exist in the database.
- Item to be created in the database.
The form should indicate the requesting

department.
The Inventory System Administrator is responsible

for creating this form and get approval from all
departments on the contents of it.
Also, a memo should be sent to all departments to

formalize this new document.
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<PRC-04> Step Catalogue “Non-Inventory Item Received”

Id
EV-04 Non Inventory Items PRC-04 Follow the receiving transaction Inventory -
(Expenses /Fixed process for the Fixed Asset items Purchasing-,
Asset) have been Finance Depts.
received
PRC-04.01 Create receiving transaction
PRC-04.02 Run Transaction Inquiries & Reports
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Internal OPM Inventory <PRC-04.01> The Inventory Quantities window lets you perform
Inventory> transactions for a single item in a single warehouse.
Quantities OPM Inventory offers two ways to process quantity
transactions:
- Immediate: processes the quantity updates the

moment you save your screen entries.
- Journaled: updates are written to a journal, and
the updates not made until you post the
journals.
Use the CREATE Immediate/Journal region if you

are entering the beginning balance, or if you are
defining new lots “on the fly”.
However use the ADJUST immediate/Journal
region for the repetitive (normal, or daily work)
transactions.
Specific Reason Code will be used for this process

for sake of reporting and monitoring.
If the item is lot/sublot and/or location controlled,

you must also specify the locations and lots for
which the inventory is being established.
The Fixed Assets items could be tracked in OPM

Inventory as a quantity only. This type of items
will be defined as Non-Inventory Item in the item
master file.
In the initial phase, we recommend to start by a

high level coding structure without going into the
details of each asset. As an example, we can have
one item code for the Air Conditioner, not single
code for each Air Conditioner type and
specifications.
Note: In order to be able to apply this business

scenario, we need to code all the fixed assets items
first.
The financial impact of this process is as

follows:
Dr./ The Expense Account

Cr./ Accounts Payable Accrual
The cost of this transaction incurred will be

calculated as per the following equation:
Transaction Cost
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[Receipt Qty x Receipt Price]

Internal OPM Inventory <PRC-04.02> Transaction inquiries allow you to view each
Inventory> completed or pending transaction for a specified
OPM Inventory Control> item.
Inquiries>Transaction Inquiry
PENDING: used with Journal transactions before
Transaction Inquiry> Actions> posting it.
Transaction Details COMPLETED: Used with Immediate or Posted
journals.
Firstly, by using this screen, you can restrict the

inquiry to transactions for a specific company,
organization, warehouse, transaction date, specific
lots, lot status, locations, and quality control
grades, or any other criteria you’d like to display.
Secondly, you can drill down in a specific selection
to view additional Transaction Details.
Also, you can use many inquiries and reports to

view the other data related.
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<PRC-05> Step Catalogue “Materials Received”

Id
EV-05 Materials Received PRC-05 Apply The Materials Receiving Quality,

Process Inventory,
Purchasing,
Finance Depts.
PRC-05.01 The purchasing department to print report by the expected receipts and distribute copy for
the inventory and quality departments
PRC-05.02 Receive the incoming items under specific lot number by Lot Status equal to QC
(incoming inspection process required) at the quarantine warehouse
PRC-05.03 Manually inspect the received quantities
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External N/A <PRC-05.1> Upon Oracle Purchasing implementation takes
N/A place, the user can inquire on the expected receipts
by running the “Incoming Goods Notification
report”.
However in phase one of the project, this process

will be done manually with coordination between
the warehouse, and purchasing departments. So the
purchasing department to inform the quality, and
warehouse departments by the expected receipts.
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Internal OPM Inventory <PRC-05.02> Upon Purchasing implementation takes place, P.O.
Inventory> Receiving transaction will be done by the inventory
OPM Inventory Control> dept. at the receiving warehouse with LOT status
Quantities> Q.C. instead of Inventory quantities form.
Adjust Immediate/Journal
The received materials should be received first at
the quarantine (receiving) w/h until the inspection
process done. The received items will be referenced
automatically by default lot status called Q.C. This
lot status designed to preventing the materials from
being used in the production operations. Also Q.C
lot status indicates that those materials require
inspection process.
RM Lot number will represent the [Receiving date

+ Vendor + Concentration].

Specific Reason Code will be used for the

“Materials Receiving” transactions for sake of
reporting and monitoring.
The Inventory Quantities window lets you perform

transactions for a single item in a single warehouse.
OPM Inventory offers two ways to process quantity

transactions:
- Immediate: processes the quantity updates the

moment you save your screen entries.
- Journaled: updates are written to a journal, and
the updates not made until you post the
journals.
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Cont. <PRC-05.02> Use the ADJUST immediate/Journal region for the
repetitive (normal, or daily work) transactions.
The financial impact of this process is as follows

(STANDARD):
Inventory Items without PPV

Dr./ Item Material Account
@[Receipt Qty x Receipt Price]
Inventory Items with PPV

Dr./ Item Material Account
Dr./Purchase Price Variance
@[Receipt Qty x (Receipt Price -Item Cost
for PPV Calculation)]
Material account: is the inventory asset account

A/P Accrual: is an interim account that will be
written off once the supplier invoice is approved in
the A/P module.

(Average):
Dr./ Material Account @ Receiving Price

Cr./Accounts Payable Accrual @ Receiving Price
J.E is as follows:
Dr./Accounts Payable Accrual @ Invoice Price

Cr./Accounts Payable @ Invoice Price
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External N/A <PRC-05.3> This process concerned by the major role of the
N/A Quality Control Officer.
Whenever Oracle Quality Management

implementation takes place, the Quality Control
Officer will be able to record the test results (total
quantity inspected, accepted, rejected, rejection
causes…), and to print reports by the sample results
and distribute copy of them for the inventory and
purchasing departments.
However in the current stage, this process to be

done outside the system and the Q.C department to
inform the other departments by the test results.
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<PRC-06> Step Catalogue “Materials Accepted”

Id
EV-06 Shipped Materials PRC-06 Receipt The Approved Quantity Quality -

Are Sampled And According To Process Regulations Inventory –
Matching The Purchasing,
Quality Standards Finance Depts.
PRC-06.01 Quality Department to issue the COA “Certificate Of Analysis” for the approved materials
PRC-06.02 Move the ACCEPTED quantity from the quarantine warehouse to corresponding materials
warehouse (RM/PCGK)
PRC-06.03 Change the Lot Status of the accepted item(s) to OK
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External N/A <PRC-06.1> Since Oracle Quality Management didn’t
N/A implemented yet, so this process will be done
externally.
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Internal OPM Inventory <PRC-06.2>
In Process Manufacturing, transactions treated as
OPM Inventory>
intra-company moves Immediate transactions
Inventory Transfer
where the Source Warehouse and Target
Warehouse both belong to the same Process
Company.
This will Decrease the original lot quantity
received at the Quarantine w/h by the
ACCEPTED quantity, and will Increase the item
balance at the RM warehouse.
Although the item will be transferred to different

(target) warehouse and different stock locator, but
the item will be transferred from the (source) w/h
by its:
- Original lot number.
- Original lot status assigned (Q.C.)
- Original Grade.
Transfer transaction here will be done like the

following scenario:
- Define new transfer: enter the transfer

transaction data (item, lot, source w/h, source
location, target w/h, target location, and
transferred quantity). Save your work and you
will get the transfer transaction number, and the
status will be PPENDING.
- Release the transfer: Releasing transfer will

cause to change the status to IN-TRANSIT, and
decreases the item balance at the source
warehouse by the quantity transferred.
- Receive the transfer: Receiving the transfer

will cause to change the status to COMPLETE,
and increases the item balance at the
destination warehouse by the quantity received.
You cannot receive SHORT or OVER the quantity

shipped. You have to receive the exact quantity
shipped. You can use the Quantities window later
to make any adjustments.
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Internal OPM Inventory Cont. <PRC-06.2> The Financial Impact Of this Process:
At time of “Release” from Source Warehouse:
Dr./ XFR – In-Transit Account
Cr./ INV- Item Material Account
Transaction Costs:
XFR- @Transaction Qty x Source Warehouse
Total Item Cost
INV- @Transaction Qty x Source Warehouse Total
Item Cost
At time of “Receiving” into the target Warehouse:

Dr./ INV- Item Material Account
Dr./ IVV- inventory valuation variance
Cr./ XFR- In-Transit Account
Transaction Costs:
INV@ Transaction Qty x Target Warehouse Total
Item Cost
IVV@ [ Transaction Qty x ( Source Warehouse

Total Item Cost in Target Company Base Currency
– Target Warehouse Total Item Cost) ]
* If the calculation determines the IVV is zero, no
entry is created for IVV.

Total Item Cost
Notice: The currencies may differ between the two

companies, therefore currency conversions occur as
part of these transactions. That’s why we are using
the XFR account to calculate the differences in item
cost at the source and destination warehouses,
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Internal OPM Inventory <PRC-06.3> We agreed that the item will be transferred from the
Inventory> (source) w/h by its:
OPM Inventory Control> - Original lot number.
Quantities> - Original lot status assigned (Q.C.)
Status Immediate - Original Grade.
So, we need change the current lot status at the
RM/PCKG warehouse to be OK.
This lot status OK designed to allow for the

materials to be used in the production operations,
and to be viewed by the planning modules.
Also OK lot status indicates that those materials
are inspected, and matching the quality standards.
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<PRC-07> Step Catalogue “Materials Rejected”

Id
EV-07 Shipped Materials PRC-07 Refer To Such Process Described Quality,

not Matching The Below For The Mismatched Inventory,
QC Standards Materials Purchasing,
Finance Depts.
PRC-07.01 Move the REJECTED Quantity From the Quarantine Warehouse, To The REJECTED
Materials Warehouse (RM/PCGK)
PRC-07.02 Change the Lot Status of the rejected item(s) to Rejected
PRC-07.03 For the “Non-Manufacturing Defects” decrease the on hand by the rejected Qty. to SALE or
DESTROY it.
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Internal OPM Inventory <PRC-07.1>
In Process Manufacturing, transactions treated as
OPM Inventory>
intra-company moves Immediate transactions
Inventory Transfer
where the Source Warehouse and Target
Warehouse both belong to the same Process
Company.
This will Decrease the original lot quantity
received at the Quarantine w/h by the
REJECTED quantity, and will Increase the item
balance at the REJECTED (RM/PCKG)
warehouse.

by its:
- Original lot status assigned (Q.C.)
- Original Grade.

following scenario:




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Internal OPM Inventory Cont. <PRC-07.1> The financial impact of this process is as follows
For The Source Warehouse (Source Company)

Dr./ ICT- Inventory Inter-Company Transfer
Transaction Costs:
ICT- @Transaction Qty x Source Warehouse Total
Item Cost

Item Cost
For The Target Warehouse (Target Company)

Cr./ ICT- Inventory Inter-Company Transfer
Transaction Costs:
INV @Transaction Qty x Target Warehouse Total
Item Cost
IVV@[ Transaction Qty x ( Source Warehouse

- Target Warehouse Total Item Cost) ]
ICT @[ Transaction Qty x Source Warehouse

]

part of these transactions.
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Internal OPM Inventory <PRC-07.2> We agreed that the item will be transferred from the
Inventory> (source) w/h by its:
Quantities> - Original lot status assigned (Q.C.)
REJECTED RM/PCKG warehouse to be REJ.
This lot status REJ designed to reject the lots with

the status code entered. Any lots with that status
will not be usable for Production, Order Processing,
or Shipping. Also REJ lot status indicates that
those materials are inspected, and doesn’t match the
quality standards.

Internal OPM Inventory <PRC-07.3> The rejected Materials are resulted from two ways:
Inventory> - Due to Manufacturing Defects.
OPM Inventory Control> - Due to Non-Manufacturing Defects.
Quantities> For the second type of rejection, we should
Adjust Immediate/Journal decrease the inventory stock by the rejected
Material quantity from the RM rejection
warehouse.
To do this use the inventory quantities form and the

corresponding reason code.

Dr./ Materials Scrap Account
Cr./ Item Material Account
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<PRC-08> Step Catalogue “Supplier Returns”

Id
EV-08 Supplier Returns PRC-08 Supplier Returns Process Steps Will Quality,
Be Taken Inventory,
Purchasing,
Finance Depts. ,
Top Mgmt.
PRC-08.01 Warehouse to inform the purchasing department
PRC-08.02 Purchasing department to inform the requesting department
PRC-08.03 Move the items out of the warehouse
PRC-08.04 Accounting department to create Return Voucher in Oracle Inventory
PRC-08.05 Notification to be sent to the Accounts Payable department
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Internal OPM Inventory Inventory> Returns and Voids are basically the reverse
OPM Inventory Control> transaction to the prior ones.
Quantities> For the time being until Oracle Purchasing
Adjust Immediate/Journal implemented, the user will use quantities screen to
create return transactions for all items.
Use the ADJUST immediate/Journal region for the

Specific Reason Code will be used for the “Vendor

Returns Transactions” process for sake of reporting
and monitoring.
Related document number, such as purchase order

#, and the return voucher number could be entered
in the Journal # field.

follows:
Inventory Items without PPV

Dr./ AP Accrual Account
@[ Receipt Qty x Receipt Price]
Inventory Items with PPV

Dr./ AP Accrual Account
Cr./Purchase Price Variance
@[ Receipt Qty x (Receipt Price -Item Cost
for PPV Calculation) ]
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<PRC-09> Step Catalogue “Non-Inventory Item Requested”

Id
EV-09 Specific department PRC-09 Issue The Requested Items For The Inventory,
requested Non- Requesting Department Finance Depts.
Inventory items
PRC-09 Create issuing transaction based on the Expense Request

Internal OPM Inventory Inventory>
Within inventory, items are flagged as either
inventory or non-inventory in the Item Master
Quantities>
record. Non-inventory items are considered to be
expense items. Things such as office supplies fall
into this category.
The user will use this screen to create issuing

transactions out of the warehouse and to a specific
department.

follows:
Dr./ Cost Account Of The Requesting Department

Cr./ The Corresponding Expense Account
The cost of this transaction incurred over the

requesting department will be calculated as per the
following equation:
Transaction Cost
= [ Receipt Qty x Receipt Price]
Specific Reason Code will be used for this process

for sake of reporting and monitoring.
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<PRC-10> Step Catalogue “Moving Items Internally”

Id
EV-10 Moving Items PRC-10 Perform Inventory Transfer Inventory,

Internally Transaction Finance Depts.,
Top Mgmt
PRC-10.01 Entering Inventory Transfer Information
PRC-10.02 Releasing a Transfer
PRC-10.03 Receiving a Transfer
Inventory Transfer Outlines:

- In Oracle Process Manufacturing, there is a functionality to facilitate the transfer of material from one
warehouse to another within the same company.
- Here the timing of the two transactions can be separated by several days as the material moves from
the source warehouse to the target warehouse. There is an underlying assumption here that the Target
or Destination Warehouse owns the inventory while in transit. A profile option determines whether
the Source or Target Warehouse is used for mapping the XFR account.
XFR = Transfer Account = Clearing Account = In-Transit Account
- The XFR account title is used as a Clearing Account for the inventory while it is “in-transit” between
the two warehouses. The XFER Event is assumed to happen over a period of time; that is, the date of
shipment is not assumed to be the date of the receipt in the second warehouse.
- There are really two different transactions created here. One for each warehouse involved. At the time
of “Release” transaction is created for the Source Warehouse shipping the goods. Then, at the time of
“Receipt” another transaction is created for the Target Warehouse receiving the goods.
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Internal OPM Inventory OPM Inventory>
In Oracle Process Manufacturing, transactions
Inventory Transfer
treated as intra-company moves Immediate
transactions where the Source Warehouse and
Target Warehouse both belong to the same Process
Company.
There are two steps in the inventory transfer
process:
- Shipping inventory from the source warehouse
- Receiving inventory at the target (destination)

warehouse

by its:
- Original lot status assigned
- Original Grade.

following scenario:




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Cont. <PRC-10> The Financial Impact Of this Process:
Transaction Costs:
Total Item Cost
Item Cost

Transaction Costs:
Item Cost


Total Item Cost

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<PRC-11> Step Catalogue “Production Batch Is Released”

Id
EV-11 Production Batch is PRC-11 Proceed with the Batch Release Planning -
Released process steps Production –
Inventory
PRC-11.01 Print the Shop Bucket Reports
PRC-11.02 Work In Process warehouse materials replenishment
PRC-11.03 Pick the raw materials from the specified Lot(s)
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Internal OPM Production <PRC-11.1> We have here tow reports essential for the shop
Execution OPM Production Execution> floor control purposes:
Production>Reports  Batch Pick list Reports
 Batch Ticket Report
The Batch Pick-List identifies the material that

must be picked for production batches. If you
allocate your ingredients before releasing (starting) your
batches, the Batch Pick list identifies the lots which
must be picked and the warehouse locations from which
the ingredients must be picked. The ability to use the
Batch Pick-list as a guide to picking is one of the
primary advantages to allocating ingredients before
batch release.
The Batch Ticket report prints one or more batch

tickets. It includes information about the formula
used, the starting and completion dates, and the
items and item quantities.
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Internal OPM Inventory <PRC-11.2> This transaction is used when we want to issue
Inventory> different ingredients on the production lines, and
OPM Inventory Control> since the production batch/sheet order is released,
Quantities> so we should replenish the WIP warehouse by the
Adjust Immediate/Journal required ingredients.
Although this transfer transaction is not against

specific production batch, but we can define
specific REASON CODE (WIP_ISSUE) that
replicates this type of transaction journals (Dr/Cr.).
Also it will be used for reporting purposes as well.
Replenishment Scenario:
Step (#1):
1. Issue the required ingredients from the RM
warehouse.
2. Financial Impact:
Dr.\ Work in process
Cr.\ The Corresponding Material Account
Step (#2):
1. Receive the ingredients at the WIP
warehouse.
2. Financial Impact:
Dr.\ The Corresponding Material Account
Cr.\ Work in process
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Internal OPM Inventory <PRC-11.3> To Pick the desired ingredients from the specified
Inventory> Lot(s), you have two methods:
OPM Inventory Control> - From the inventory QUANTITIES form, as an
Quantities> issuing transaction.
Adjust Immediate/Journal - Through the Production Management module,
as a BATCH INPUT transaction.
OPM Production Execution>
Production>Batch Input The Ingredients release type: Ingredients at will
assume User Initiated release type. This will allow
for user-initiated allocation during batch input.
Note: For more details about this process, please

refer to the Production Future Process model, and
find the event that describes such process.
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<PRC-12> Step Catalogue “Produced Items Do Match The QC Standard ”

Id
EV-12 Finished Goods PRC-12 Create receiving transaction for the Quality -
found matching the approved quantity Inventory –
QC standards Production
PRC-12.01 Create Finished Goods Receiving Voucher (Y‫ )إذن تسليم‬/ Allocate the finished good quantity
PRC-12.02 Quality Control department to inform the inventory department by the approved quantity
PRC-12.03 Change the lot status for the approved quantity to OK
PRC-12.04 Quality Department to issue the “Finished Product Quality Certificate” / COA “Certificate
Of Analysis”
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Internal OPM Inventory & <PRC-12.01> Here we need to inform the system by the produced
quantities. This will be done either by:
OPM Production - Inventory Quantities form, as a casual receiving
Execution Inventory> transaction referenced by the production data
OPM Inventory Control> required (Lot #: that identifies the production
Quantities> date, and other data related)
- Allocating products refers to creating and
naming new lots or specifying the location in
OPM Production Execution> which the product will be placed.
Production>Batch Output Anyway, the received items will be referenced
automatically by default lot status called PROD
This lot status designed to prevent the produced
items from being used in the Sales Orders
processing, Sales Shipping, and Netting unless this
status changed. Also PROD lot status indicates that
those produced items requires inspection process.
For sake of lot genealogy, FP Lot number will

should represent the [Receiving date + production
order # +…].


“Products Receiving” transactions for sake of

follows:
Dr./ IVV- Inventory Valuation Variance
Cr./ WIP- Work In Process
Cr./ RCA- Resource Control Account
Transaction Costs:
INV@ Actual Product Output Qty x
Replenishment Warehouse Total Item Cost
IVV@ [ Actual Product Output Qty x
(Replenishment Warehouse Total Item Cost - WIP
Warehouse Total Item Cost) ]
WIP@ [ Actual Product Output Qty x WIP
Warehouse Item Material Cost ]
RCA@ [ Actual Product Output Qty x
( WIP Warehouse Item Resource Cost +
WIP Warehouse Item Burden Cost +
WIP Warehouse Item Standard Cost Adjustment
Cost)]
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Internal OPM Inventory <PRC-12.3> We agreed that the produced item will be received
Inventory> by its:
OPM Inventory Control> - Default lot status assigned (PROD)
Quantities> - Default Grade.
Status Immediate So, we need change the current lot status at the FP
warehouse to be OK.
This lot status OK designed to allow for the

produced items to be used in the Sales Orders
Processing, Sales Shipping, and to be viewed by
the planning modules.
Also OK lot status indicates that those products are
inspected, and matching the quality standards.
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<PRC-13> Step Catalogue “FP Damaged/Expired”

Id
EV-13 Finished Product PRC-13 Follow the Damaged/Expired Quality -

Damaged and/or products process procedures Inventory –
Expired Production
PRC-13.01 Quality Control department to inform the inventory department by the Damaged/Expired
quantity
PRC-13.02 Inventory department to transfer the Damaged/Expired quantity to the Rejected FP

warehouse
PRC-13.03 Change Lot status for the transferred quantity at the Rejected FP w/h to DMG/EXP
PRC-13.04 MRB committee -“Material Review Board”-to decide the final decision of
Damaged/Expired items
PRC-13.05 Destroy those items by issuing transactions from the rejected FP warehouse
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Internal OPM Inventory <PRC-13.2> Inventory department to transfer the
OPM Inventory> Damaged/Expired quantity to the Rejected FP
Inventory Transfer warehouse.

by its:
- Original lot status assigned (OK)
- Original Grade.

following scenario:




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Cont. <PRC-13.2> The Financial Impact Of this:
Transaction Costs:
Total Item Cost
Item Cost

Transaction Costs:
Item Cost


Total Item Cost

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Internal OPM Inventory <PRC-013.3> We agreed that the Expired/Damaged items will be
Inventory> transferred from the (source) w/h by its:
Quantities> - Original lot status assigned (OK)
REJECTED FP warehouse to be REJ.
This lot status REJ designed to reject the lots with

the status code entered. Any lots with that status
will not be usable for Production, Order Processing,
or Shipping. Also REJ lot status indicates that
those Products are inspected, and doesn’t match the
quality standards.

Internal OPM Inventory <PRC-13.5> As SEDICO FP Flow Chart, we should decrease
Inventory> the inventory stock by the Expired/Damaged
OPM Inventory Control> Products from the FP rejection warehouse.
Quantities>
Adjust Immediate/Journal To do this use the inventory Quantities form and
the corresponding reason code.

Dr./ FP Scrap Account
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<PRC-14> Step Catalogue “FP Needs Re-Packaging”

Id
EV-14 Finished Product PRC-14 Repackaging Process required Quality -

pack is damaged but Inventory –
could be Re-Packed Production
again
PRC-14.01 Inventory department to transfer the Damaged quantity to the Rejected FP warehouse
PRC-14.02 Change Lot status for the transferred quantity at the Rejected FP w/h to RPCKG
PRC-14.03 MRB committee -“Material Review Board”-to decide the final decision of
Damaged/Expired items
PRC-14.04 Production department to issue Re-Packaging order
PRC-14.05 Add new Ingredient(s) Quantity to the Batch Input to compensate the needed packaging
materials
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Internal OPM Inventory <PRC-14.1> Apply process PRC-13.02 OPM Inventory
OPM Inventory>
Inventory Transfer

Internal OPM Inventory <PRC-14.2> We agreed that the Damaged items will be
REJECTED FP warehouse to be RPCKG.
This lot status RPCKG designed to prevent those

products to be shipped to Customers. Any lots with
that status will not be usable for Shipping. Also
RPCKG lot status indicates that those Products are
needs Re-Packed again.

Internal OPM Process <PRC-14.5> OPM Production Management is very flexible to
Execution OPM Process Execution> such processes.
OPM Production Management> For example, you can amend additional attributes
Batches>Actions> for any line in a batch (product, ingredient, or
Additional Edit byproduct) by placing the cursor on that line and
selecting Additional Edit from the Actions menu.
This will enable you to change in the driven data
came from the product formula master file likes the
ingredient Required Quantity, Release type, etc.
you can add new ingredient not listed before as
well.
So, in our case it is easy enough to Over-Issue the

required packaging materials for the Re-Packaging
process.
The Financial Impact Of This Process:

Dr.\ Work in process
Cr.\ The Corresponding Material Account
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<PRC-15> Step Catalogue “Finished Products About To Expire”

Id
EV-15 Finished Product (s) PRC-15 Mark these products as NFS (Not Quality -
About To Expire For Sale) products to be used Inventory –
internally Production
PRC-15.01 Quality control approves the change for the item to be Scrapped / Obsolete
PRC-15.02 Inventory department to transfer the About To Expire Items to the Rejected FP warehouse
PRC-15.03 Change Lot status for the transferred quantity at the Rejected FP w/h to NFS (Not For Sale)
OPM Advanced Features:
Oracle Process Manufacturing has its own tools to discover the Products/Ingredients that needs more
attention like those items that needs Re-Testing, or About To Expire.
 Lot Expiry/Retest Workflow:

Without this workflow the expiration or retesting of a lot is not visible to the user without a query
for the expiration and retest information. The Lot Expiry/Retest Workflow changes this. Lot
creation is associated with a workflow designed to notify a user a defined number of days in
advance of expiration and retest dates.
 “Item/Location Required Analysis” Report:

If Oracle Quality Management module implemented, you can this quality control report that
identifies the following:
- Currently expired items.
- Items required retesting.
- Items that are about to expire.
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Internal OPM Inventory <PRC-15.2> Apply process PRC-13.02 OPM Inventory
OPM Inventory>
Inventory Transfer

Internal OPM Inventory <PRC-15.3> We agreed that the About To Expire items will be
Isolated/ Rejected FP warehouse to be NFS.
This lot status NFS (Not For Sale) designed to

prevent those products to be Sold, or shipped to
Customers. Any lots with that status will not be
usable for Order Processing, Shipping, or Planning.
Also NFS lot status indicates that those Products to
be used internally for the Staff or for the Company
Clinics.
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<PRC-16> Step Catalogue “Customer Order Is To Be Fulfilled”

Id
EV-16 Customer Order Is PRC-16 Go through the customer demand Planning, Sales
To Be Fulfilled processes Department,
Inventory,
Finance Depts.
PRC-16.01 Check the item availability
PRC-16.02 Reserve the requested quantities
PRC-16.03 Create issuing transaction for the requested products quantity
PRC-16.04 Issue the invoice from Oracle Accounts Receivable
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Internal OPM Inventory <PRC-16.01> The Inventory Summary window lists (by
Inventory> warehouse) usable on-hand quantities and
OPM Inventory Control> commitments for the item that you specify. It also
Quantities> Actions lists pending receipt quantities from production and
Inventory Summary> purchasing.
Line Double Click (Details)
The Inventory Summary Detail window lists
available and committed quantities for an
individual summary line that you select. Quantities
are shown in both the primary and secondary units
of measure. Both windows may be requested from
various applications in OPM. The usable quantities
shown (which reflect the primary unit of measure)
are specific to the application from which you call
the lookup. For example, quantities that are usable
for production may not be usable for sales. When
accessed from the Quantities window, the quantity
nettable for MRP is displayed. The "usable" flags
are set on the Lot Status window.

Internal OPM Inventory <PRC-16.02> Actually there is no explicitly reservation function
Inventory> from OPM inventory module, however you can
OPM Inventory Control> simulate the following scenario:
Quantities> - Create Reservation warehouse: This w/h will
be concerned by the sales reservation purposes.
- Define Lot Status called SLS_RSRV (Sales
Reservation): The indicators of this lot status
are (Order Processing YES), and (Nettable
YES).
- Transfer Transaction: Once the sales order is
placed you will transfer the desired products
quantity from the main FP warehouse to this
warehouse under LOT status SLS_RSRV, and
referenced the LOT number that implies to the
customer order and other order details.
On this way, we are guaranteed that this quantity
will be viewed by the Planning modules (P/MPS,
P/MRP), and this quantity will be available for
Sales Orders processing only, but not available for
the Shipping process.
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Internal OPM Inventory <PRC-16.03> Here we need to Ship products to the Customer
Inventory> (external shipment), and the Oracle Order
OPM Inventory Control> Management (sales) not implemented yet. So the
Quantities> sales transaction will be divided into two parts:
- Decrease the Inventory balances.
- And map the financial impacts for the
receivables.
Actually in this process we are concerned only by
the balances.
Use the ADJUST immediate/Journal region for the
Specific Reason Code will be used for the “Sales

Issue Transactions” process for sake of reporting
and monitoring.
Related document number, such as customer order

number, and the voucher number could be entered


follows:
Dr./ PCO- Product Cost Account

Cr./ INV- Product Material Account
PCO@ [ Shipment Qty x Source Warehouse Total

Item Cost]
INV@ [ Shipment Qty x Source Warehouse Total
Item Cost]

Internal Oracle Receivable <PRC-16.04>
Manually issue the “Invoice” by the sales amount
to record the sales value from “Oracle Accounts
Receivable”. (for each line item / or by the total
invoice value)
Refer to the Oracle Receivables Document
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<PRC-17> Step Catalogue “Customers Returns”

Id
EV-17 Customers Returns PRC-17 Follow the “customer returns” Customer

process steps Service, Sales
Department,
Inventory,
Finance Depts.
PRC-17.01 Create returned products voucher
PRC-17.02 Inspect the returns on receipt
PRC-17.03 Receive the returned quantity into the corresponding subinventory under
PRC-17.04 Change the Lot Status of the rejected item(s) to Rejected
PRC-17.05 Refund the cash from the main treasury
Since Oracle Order Management not implemented yet, so:
1. The Customer Returns will be done by the item standard cost.
2. No inspection transactions upon receiving the customer returns.
3. Create issuing transaction form Oracle Inventory to decrease the on-hand quantity balances by
the sold quantity.
4. Manually issue the “Invoice” by the sales amount to record the sales value from “Oracle
Accounts Receivable”. (for each line item / or by the total invoice value)
5. The “item pricing” will be defined upon implementing Oracle Order Management.
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External Manual <PRC-17.02> Until Oracle Order Management implementation
N/A takes place, the returns inspection transaction will
be handled manually.

Internal OPM Inventory <PRC-17.03> To perform this transaction, we need to have the
Inventory> customer reference and the sales order number.
OPM Inventory Control> This is useful to report on the total quantity sold to
Quantities> the customer.
Related document number, such as customer order
number, and the voucher number could be entered


“Customers Returns” transactions for sake of
The financial impact of this process is as follows:
Dr/ Product Account

Cr./ Cost Of Good Sold

Internal OPM Inventory <PRC-17.4> We need change the current lot status at the
Inventory> Returned FP warehouse to be RTRNS.
Quantities> This lot status RTRNS (Returns) designed to
Status Immediate prevent those products from being used at all.
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<PRC-18> Step Catalogue “Balances Deviation”

Id
EV-18 Balances deviation PRC-18 Create Adjustment transactions to Finance

adjust the deviations in item Depts.- Top
quantities or values Management –
Inventory
PRC-18.01 Adjust Immediate/Journaled Transaction

PRC-18.02 Update the Item Cost
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Internal OPM Inventory <PRC-18.1> Like any Quantities transaction done previously,
Inventory> you will use OPM Inventory Quantities form to
OPM Inventory Control> maintain this type of adjustments.
Quantities>
Adjust Immediate/Journal The adjustment transactions might be done due to:
 Item balances maintained in wrong way and we

need to make correction transactions to avoid these
deviations, or
 Physical Count deviations found.
For the first purpose we have to make Adjustment -

(Issue, or Receive)- to adjust the deviation. Based on
the transaction sign (+/-), the transaction will be passed.
However for the second purpose the deviations will be

maintained against specific Physical Inventory on
specific adjustment account.
The financial impact of this process is as follows:
Negative Deviation (Stock Decreased)

Dr/ Variances Account (Adjustment Account)
Cr./ The Corresponding Material Account
Positive Deviation (Stock Increased)

Dr/ The Corresponding Material Account
Cr./Variances Account (Adjustment Account)

Internal OPM Financials <PRC-18.2> Go to Process PRC-19.1 Inventory
OPM Financials>
Cost Management>
Cost Details
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<PRC-19> Step Catalogue “Item Cost Changes”

Id
EV-19 Item Cost Changes PRC-19 Change The Item Cost Details Finance Depts.,
Top Mgmt,
Inventory
PRC-19.01 Change The Item Cost Details

PRC-19.02 View The Cost Details Inquiries
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Internal OPM Financials PRC-19.01 Use the Cost Detail window to inquire on the cost
OPM Financials> of producing a product, formula item or ingredient,
Cost Management> or to define costs for new items or ingredients.
Cost Details
Enter the required data to define the item cost likes:
- Item: that you define the cost to.
- Warehouse: the cost will be applied to this
warehouse.
- Calendar, Period: Enter a valid calendar and
period code within this calendar.
- Cost Method: Enter a valid cost method code.
- Component Class Code: enter the cost
component class for raw materials.
- Analysis Code: The analysis code describes
cost categories such as Value Added or Direct.
- Component Cost: Enter the cost per unit.
In order to derive the cost of a product, formula

item, or ingredient, the cost of each of its
constituents must be defined and rolled up into the
product. For example, if the product A01 has two
constituents (Ingredient1, and Ingredient 2) before
you can derive the cost of A01, you must first
define a cost for each of the ingredients, and then
roll up the Ingredients costs into the product A01.
To perform cost rollup, complete the Cost Detail

window for each constituent and define the
appropriate formula and effectivity. Then select
Cost Rollup to perform a cost rollup.
Once this is done, if you select Cost Detail for the

product A01 using the same cost factors, you will
see the constituent costs summed into the total cost
for the product.
Note:
You cannot make changes to cost details in a period
that has been frozen through a successful final cost
update process. Also, you cannot add new costs to a
period that has been closed using the Close Period
option on the Cost Calendar window.
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Internal OPM Financials PRC-19.02 By opening This window you can view:
OPM Financials>
Cost Management> Item Cost List - Use this window to display item
Cost Details> Actions costs for a particular cost calendar, period, and cost
method. You can display costs for all, one, or a
range of items or item classes for a particular
calendar, period, and cost method.
Actual Transaction View - View transactions in a

costing period used to calculate actual costs. You
can also view actual cost transactions from the
previous period.
Burden Details - The Cost Burdens window

displays burden cost details for an item to calculate
component costs during the cost calculation. The
window displays the burden costs that have been
included for the item shown on the Cost Details
window.
Formula Details - Use the Formula Costs window

to display the formula ingredient cost for each item
displayed on the Cost Details window. The Cost
Details window displays the costs for each cost
component class. The sum of the ingredient
components in a formula should be equal to the
product component cost on the Cost Details
window.
Routing Details - Use this window to display the

cost of resources used in operations and routings in
the production of items or intermediate items. If
you
use operations and routings in your formulas, the
cost rollup process will roll up the cost of the
resources used in the operations and routings into
the end-product cost, which can then be viewed
using this window.
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<PRC-20> Step Catalogue “Physical Count”

Id
EV-20 Physical Count PRC-20 Complete physical count procedures Inventory

Controller -
Finance Dept. -
Top
Management
PRC-20.01 Create a physical cycle count, and close the warehouse to business
PRC-20.02 Initiate and perform the physical count
PRC-20.03 Print physical count sheets.
PRC-20.04 Count Items and enter data.
PRC-20.05 Print physical count entries report and audit its contents.
PRC-20.06 Reconciling and Posting Physical Inventory Counts, and open the warehouse and resume
the business work
PRC-20.07 Optionally Purge the physical count cycle.
Physical Count Outlines:
- Using OPM Physical Inventory you will be able to determine the value of entire SEDICO actual
inventory quantities. In a full physical inventory, current quantities are frozen for the purposes of
counting. Current quantities are copied to a temporary area (table). OPM then compares these frozen
quantities to the actual count quantities to determine if there are discrepancies.
- When you perform a physical inventory, all item quantities in the selected warehouse are frozen based
on the criteria you specify (on the Physical Count window). Items are then counted and reconciled in
one cycle. This usually requires that the warehouse be shut down, so that all items can be counted.
- Freezing of the on-hand inventory quantities does not prevent other users from Processing transactions
(such as sales orders or production batches/sheet orders) for that inventory. The physical inventory
process contains no mechanism to reconcile the time of the transaction with the time of the count. If
you allow any transactions during the counting period you will jeopardize the accuracy of the post-
inventory records.
- Like the cycle count process, there is no immediate update of on-hand quantities after you save actual
physical count results. You must post inventory to update data records.
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Internal OPM Physical <PRC-20.1> A full physical inventory is one that requires
Inventory OPM Inventory> production and the warehouse to be shut down, and
OPM Physical Inventory> every item in the warehouse(s) counted and
Physical Count reconciled in a single cycle (for example, once a
year). This allows you to get an accurate count of
stock and identify count variances. It also lets you
determine an accounting value for the entire on-
hand inventory.
- Select the warehouse and the date on which the

physical inventory count is to take place.
- Save your Work: this will Close the warehouse to
business.
- Write down the Physical Count number to the
so that you can (later) enter actual count
information.

Internal OPM Physical <PRC-20.2> This will initialize the count process.
Inventory OPM Inventory>
OPM Physical Inventory>
Physical Count>Actions>
Initiate Physical

Internal OPM Physical <PRC-20.3> These Report generate the count sheets, or count
Inventory OPM Inventory> tags, on which Inventory personnel will record the
OPM Physical Inventory> results of a cycle count.
Reports> The count forms formats are identical for cycle
Physical Counts Forms Report counting and full physical inventories. For each
listed item to be counted, OPM assigns a tag
number (for tag-count items), or a page and line
number (for the count sheet).
Space is allowed for entry of the item quantity

counted. When you eventually enter the cycle count
results (on the Cycle Count Entry form) or the
physical count results (on the Physical Count Entry
form), you must specify the tag numbers and/or
count sheet numbers. OPM then searches and
identifies the item that was counted based on these
counted numbers.
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Internal OPM Physical <PRC-20.4> Use this window to enter the actual quantities from
Inventory OPM Inventory> physical inventory counting.
OPM Physical Inventory>
Physical Count Entries OPM compares the count results to frozen on-hand
quantities; variances between the two are
highlighted on the Count Entries report.

Internal OPM Physical <PRC-20.5> This report lists the actual count results that were
Inventory OPM Inventory> recorded for a full physical count (on the Physical
OPM Physical Inventory> Count Entry form).
Reports>
Physical Inventory Count
Entries Report

Internal OPM Physical <PRC-20.6> You must post the physical inventory quantities as
Inventory OPM Inventory> a separate procedure, using the Post Counts
OPM Physical Inventory> selection on the Physical Inventory window
Physical Count>Actions> Actions menu. After you post these selections, the
Post perpetual inventory is updated.

follows:
Negative Deviation (Stock Decreased)

Dr/ Variances Account (Adjustment Account)
Cr./ The Corresponding Inventory Account
Positive Deviation (Stock Increased)

Dr/ The Corresponding Inventory Account
Cr./Variances Account (Adjustment Account)
@ [ Transaction Qty x Warehouse Total Item

Cost ]
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<PRC-21> Step Catalogue “Month-End Closing”

Id
EV-21 Month end closing PRC-21 Apply The Month End Closing Inventory
Procedures Accounting
Controller,
Finance Dept.,
and Top Mgmt.
PRC-21.01 Run Cost Rollup
PRC-21.02 Run Preceding Update/Freeze Costs for General Ledger
PRC-21.03 Close Inventory Calendar Period
PRC-21.04 Running the Inventory Valuation Report
PRC-21.05 Run Final Cost Update
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Internal OPM Cost <PRC-21.1> Run the cost rollup at period-end time to
Management OPM Financials> consolidate standard costs of ingredients into the
Cost Management> product costs.
Standard Cost> The rollup encompasses component costs that have
Cost Rollup changed, and also new items, formulas, products,
routings, and burdens that were added and set up
for costing.
The rollup incorporates formula details, routing
details, and burden details for each item selected.
Also, whenever you add a new product, you must
perform a cost rollup.

Internal OPM MAC <PRC-21.2> On the Cost Update form, indicate that you are
OPM Financials> Freezing the results of the cost rollup for the
Manufacturing Accounting period. You can then (optionally) run a test update
Controller> of the general ledger subsidiary ledger for testing
GL Cost Update purposes (you may later change component costs,
then run another cost update to replace those costs).

Internal OPM Inventory <PRC-21.3> Close the period (month, quarter, fiscal year) to
OPM Inventory> prevent any further inventory transactions from
OPM Inventory Control> being posted to it. Select either the Preliminary
Inventory Close Close or Final Close.
Preliminary Close - Period has been closed to

transactions, but you may still open it and post
transactions for the period
Final Close - Transactions will no longer post for
the period (balances have been frozen; you cannot
open the period again)
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Internal OPM Inventory <PRC-21.4> The Inventory Valuation report provides a tool
OPM Inventory> to evaluate the cost of items in Inventory by
OPM Inventory Control> warehouse. This report lists the true value of
Reports> inventory items for a specified period of time, in
Inventory Valuation Report specified warehouses. The costs listed are the
accounting costs for the item in the warehouse, if
available. Otherwise, the cost of the item for the
organization is used. The inventory valuation can
be based on balances available at report printing
time, or the closing balance for the end of a
specified calendar period.
The report is listed by item within warehouse. This

includes item on-hand balances for both primary
and secondary units of measure, unit cost and total
cost (value).
You can print the report for one or more
warehouses or items.

Internal OPM Financial <PRC-21.5> Specify that this update is Final; this locks the
Integration OPM Financial Integration> component costs for the specified period. Through
Financial Integration> an interface with a general ledger application (such
GL Update as Oracle General Ledger) you can then export
these booked costs to the proper general ledger
accounts. Account mapping parameters that you
establish in the Manufacturing Accounting
Controller module (MAC) determines the accounts
to which costs will update.
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Open Issues
ID Issue Resolution Responsibility Target Impact Date

Date
1 The mapping between OPM

Inventory standard reports and
<SEDICO> reports is not sorted
out yet until developing the
reporting requirements (RD-80),
and reporting fit analysis
documents (BR-70)
2
3
4
5
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Closed Issues
ID Issue Resolution Responsibility Target Date Impact Date
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SEDICO OPM INV BusinessMapping V1

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BP-80 FUTURE PROCESS MODEL

BR-30 Business Process Mapping

Oracle Inventory Management

Mr. Mamdouh Atteya

Date Author Version Change Reference

Apr 2002 Mohamed S. El 1 No previous document

Mr. Mamdouh Atteya Project Manager

Copy No. Name Location

1 CITE Library Master Project Library

<SEDICO> Oracle Process Manufacturing Implementation Inventory

Business Mapping Outlines:...............................................................................................................................6

Gap Issues For Inventory Management:..........................................................................................................10

<PRC-01> Step Catalogue “Implementation start out”..................................................................................15

<PRC-02> Step Catalogue “New Manufactured Item Added”.......................................................................17

<PRC-03> Step Catalogue “New Non-Manufactured/Pur Item Added”........................................................19

<PRC-04> Step Catalogue “Non-Inventory Item Received”..........................................................................20

<PRC-05> Step Catalogue “Materials Received”...........................................................................................24

<PRC-06> Step Catalogue “Materials Accepted”...........................................................................................29

<PRC-07> Step Catalogue “Materials Rejected”............................................................................................34

<PRC-08> Step Catalogue “Supplier Returns”...............................................................................................38

<PRC-09> Step Catalogue “Non-Inventory Item Requested”........................................................................40

<PRC-10> Step Catalogue “Moving Items Internally”...................................................................................41

<PRC-11> Step Catalogue “Production Batch Is Released”..........................................................................45

<PRC-12> Step Catalogue “Produced Items Do Match The QC Standard”..................................................49

<PRC-13> Step Catalogue “FP Damaged/Expired”.......................................................................................53

<PRC-14> Step Catalogue “FP Needs Re-Packaging”...................................................................................57

<PRC-15> Step Catalogue “Finished Products About To Expire”.................................................................60

<PRC-16> Step Catalogue “Customer Order Is To Be Fulfilled”..................................................................62

<PRC-17> Step Catalogue “Customers Returns”............................................................................................65

<PRC-18> Step Catalogue “Balances Deviation”...........................................................................................67

<SEDICO> Oracle Process Manufacturing Implementation Inventory

<PRC-20> Step Catalogue “Physical Count”..................................................................................................72

<PRC-21> Step Catalogue “Month-End Closing”..........................................................................................75

<SEDICO> Oracle Process Manufacturing Implementation Inventory

This document illustrates typical Oracle Inventory Management events

Overview of Inventory Management:

OPM Inventory will represents SEDICO inventory sites and business

OPM Inventory management serves as a repository for holding all the

Moreover, OPM Inventory management contains the required

OPM inventory management will be responsible of reconciling the

<SEDICO> Oracle Process Manufacturing Implementation Inventory

 <SEDICO> OPM Hierarchy.

 Company or Plant = Organization.

 The objectives of maintaining plants are:

- Document Ordering segregation.

 Warehouses will be defined on the company level.

 The Standard is the agreed upon costing method for SEDICO.

 Expiration Date will be set manually and could be changed later.

<SEDICO> Oracle Process Manufacturing Implementation Inventory

 Automatic allocation is required for RM issuing to production using (FEFO) First

 RM Lot number will represent the [Receiving date + Vendor + Concentration].

 We have lot tracability / genealogy.

 Re-Work orders for the customer returns (Re-Packaging) will be handled.

 Since Oracle Purchasing is not implemented yet, so:

 Since Oracle Order Management is not implemented yet, so:

1. The Customer Returns will be done by the item standard cost.

2. No inspection transactions upon receiving the customer returns.