Skip to main content

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
Labels:

Comments

Post a Comment

Popular posts from this blog

General Ledger FAQ

1.  What responsibility should I use when doing the set up for General Ledger? Use a seeded responsibility like 'Oracle General Ledger Super User'. You may also need to use the System Administrator responsibility. 2.  What are the pre-requisites required to define a new calendar? According to your business needs you need to decide the calendar type required i.e. monthly, weekly or biweekly, the number of periods, adjusting periods and the maximum number of periods within a fiscal year. 3. What are the pre-requisites required to define a new Ledger? Define a Calendar, Chart of Accounts and enable the functional Currency  and convention of subledger accounting method. 4. Why must I check the calendar definition before assigning to a Ledger? The calendar definition cannot be changed once it is assigned to a set of books so it is very important to check that the calendar definition is suitable to the specific business needs, has been d
Post a Comment
Read more

Difference Between MTS, ATO, MTO ,PTO ,CTO and ETO.

 Make-to-stock (MTS) In MTS environments, products are created before receipt of a customer order. Customer orders are then filled from existing stock, and then those stocks are replenished through production orders. MTS environments have the advantage of decoupling manufacturing processes from customer orders. Theoretically, this enables customer orders to be filled immediately from readily available stock. It also allows the manufacturer to organize production in ways that minimize costly changeovers and other disruptions. However, there are risks associated with placing finished goods into inventory without having a firm customer order or an established need. These risks tend to limit MTS environments to simple, low-variety, or commodity products whose demand can be forecasted readily.  Assemble-to-order (ATO) In ATO environments, products are assembled from components after the receipt of a customer order. The key components in the assembly or finishing process are pla
Post a Comment
Read more

Accounting entries in Oracle Purchasing and Payables

This document gives in detail different accounts used and the accounting impact of various transactions that take place in Oracle Purchasing and Oracle Payables. Both Standard costing and Average costing methods are considered. The accounts are Oracle Applications specific and might differ from the conventional accounting names. Examples are given wherever required for better understanding of the concept. The sources of these accounts are given. PURCHASING:  Receiving – For Accrual Process for perpetual Accruals Receipts for inventory purchases are always accrued upon receipt. And also use perpetual accruals for expense purchases you want to record uninvoiced purchase liabilities immediately upon the receipt of the expense goods. Receiving Account (Receiving Account) To record the current balance of the material in receiving and inspection. Where to define in Apps: Define Organization                                          Define Receiving Options
Post a Comment
Read more