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Creating Inventory Organisation in Oracle Fusion


Inventory Organization: Explained
In Oracle Fusion, storage facilities, warehouses, and distribution centers are implemented as inventory organizations.
Inventory organizations are:
• Managed by a business unit, with the materials management business function enabled.
• Mapped to a legal entity and a primary ledger.
There are two types of inventory organizations:
• Manufacturing facilities
• Storage facilities
Storage and manufacturing facilities are related to other organizational entities through a business unit that stores
factories, warehouses, and distribution centers. The material parameters are set for both the facilities, enabling movement of has the business function of Materials Management enabled. Oracle Fusion Applications allow many inventory organizations to
Oracle Fusion Applications v1.0, does not include manufacturing capabilities, so setup your manufacturing facilities outside Distribution Center as an Inventory Organization
A distribution center can store inventory that is the responsibility of different business units. In this situation, assig
representation of the inventory in the distribution center. The multiple inventory organizations representing the inventory are they are a part of the same distribution center.
Legal Entities Own Inventory Organizations
A legal entity owns the inventory located in a storage or manufacturing facility. This ownership is assigned through
the inventory and the legal entity assigned to the inventory organization. The legal entity assigned to the inventory organization inventory organization's business unit.
The inventory is tracked in the inventory organization owned by the legal entity of which the business unit is part. All transactions the legal entity that owns the inventory.

Facility Schedules Are Associated with Inventory Organizations
A prerequisite to defining an inventory organization is to define a facility schedule. Oracle Fusion Applications allow
schedule.
Facility schedules allow creating workday calendars for inventory organizations that are used in the Oracle Fusion Supply Chain
workday calendars in the scheduling of cycle counts and calculating transit time.
Item Organization: Explained
An item organization defines an item when inventory balances are not stored and inventory storage or inventory movement is For example, you would use an item organization in a retail scenario, if you need to know the items that are listed by and sold
inventory and transactions are recorded in another system. In Oracle Fusion Customer Relationship Management (
Items belong to an • item organization.
• Item attributes that are associated with financial and accounting information are hidden from the item if it exists within • Item organizations can be changed by administrators to an inventory organization by updating the necessary
There is no difference in the way items are treated in these two types of organizations except that there cannot
applications for items that are assigned to an item organization.
To Create An Inventory Organization
1. To create a new inventory organization, use the 'Manage Inventory Organizations' task in Materials Managemen
Navigation in FSM:
Materials Management and Logistics (Offering)
> Define Common Application Configuration for Materials Management and Logistics (Task List)
>> Define Enterprise Structure for Materials Management and Logistics (Task List)
>>> Define Facilities for Materials Management and Logistics (Task List)
>>>> Manage Inventory Organizations (Task)

 2. Select 'Create New' and Enter the organization details
3. Select Facility Schedule and Item Master Organization
4.4. Enter any other organization parameters as needed and Save
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