Oracle SCM Inventory Module

ERP- Enterprise Resource Planning

• Oracle SCM helps to manage the complete flow of goods, from suppliers to customers.
• It covers Inventory, Purchasing, Manufacturing, Order Management, and Logistics.

Decides
Buy materials
Track stock
FG from Rm
manage goods
Handle customers
 Oracle SCM Modules
• Inventory (stores)
• Purchasing
• Manufacturing (process & discrete)
• Sales (fg sales happened here)
 Instances
• Dev (customer req)
• Test
• UAT(User acceptance test)
• Prod (final instance)
 Overview of Oracle Inventory

Stocking, Tracking and maintaining the levels of different items like Raw materials, finished goods
etc.., in an Organization.
 Orginaztion Structure
General ledger( company currency)

Legal entity (company name)

operating unit (company unit)

organization( we can define only in 3 letters)

subinventory

locator (specific location)

lot (Batch number)

 Inventory Capabilites
• Define ITEMS
• Create Sub-inventories & Locators.
• Check On-Hand Quantity & Transactions.
• Define Lot & Serial number control.
• Inter-Org Transfers.
• Create Locations, calender.
• Planning & Replenishment
• Supports end-to-end Supply chain flow
 Inventory Types
Transactions Setup
• Miscellameous Transactions • Organizations
• Inter-org Transfer • parameters
• Subinventory Transfer • Locations
• Calender
• Material Transactions
• SubInventories
• Transaction Summaries • Shipping Network
• Pending Transactions • Organization Access
• Material distributions • Flex fields
• UOM
• Planners
• Account Aliases
Divided in two categories called setup and Transaction. Setup means preparing the system to manage stock properly.
• Create Org (like warehouse),
• Define Subinventories (main stores, finished goods store, etc.),
• Setup Locators (specific racks, bins)
 Setup: Create Organizations

Usecase:
A Factory in Hyderabad (Manufacturing Org)
A Warehouse in Chennai (Inventory Org)
A Sales office in Mumbai (Operating Unit)
Creating separate organizations helps you track stock, cost, and process orders properly from each location.
 Setup: Define org parameters

Inventory parameters
• To connect our inventory organization with OU, LEGAL ENTITY, GL, LOCATION
• Here we define our orgization code.
• Now, when we create a PO or receive stock, Oracle knows where to link transactions, which calendar to
follow.
Conti... Define Org Parameters
• Tab: Revision, Lot, serial and LPN: provide the uniqueness of the name with starting prefix
 Serial control

• Serial Control means assigning a unique serial number to each unit of an item to track it individually

Usecase:
• A medical equipment company tracks serial numbers for every ECG machine to know:
• Who bought it
• When it was serviced
• If it's under warranty

.
 Create Location
• Location is a place where goods are stored, shipped, or received
• To store items (like warehouse or room) & track where items are received or shipped
• To assign items or assets to a place & monitor vendor or subcontractor deliveries
 Create Calender
• Calendar is created to define the working days, holidays, and shifts for an organization or inventory.
• It helps in planning and scheduling activities like inventory counting, material planning, & transaction
processing.
• Can define working vs. non-working days & manage inventory cycles (e.g., cycle counts)
• To help schedule inter-org transfers and receipts & track lead times accurately

Usecase (Steel Factory)

• Monday to Saturday → Working Days
• Sunday → Holiday
• 2 Shifts: Morning & Evening
 Create SubInventory
• Subinventory is a place inside our Org where we store and manage items. It helps to organize items
by type or location like raw materials, finished goods, or rejected items.

Usecase
• RCV is subinventroy
• Status is Active so i can do transactions If it is Inactive Subinventory itself wont show in
miscellaneous transactions.
• I can reject my item at subinventory level, locator level by disable the status.
 Create Locator
locator is a small place inside a subinventory where items are stored.It tells exactly where the item is kept.
• Locator is used to find quickly where an item is physically stored without confusion.

Example:
Subinventory: Raw materials
• Locator: APX.2.4
• 👉 Raw Materials, Shelf 2, Box 4
 Shipping Networks
• Shipping Network connects two inventory organizations so that you can transfer items between them.
• Shipping methods : Direct, Transit

Example:
• Org A: HW1 ; Org B: M1
• I want to transfer 100 units from HW1 to M1.
• Source Org: hw1, Destination Org: hyd_warehouse
• Transfer Type: seattle manifacturing (M1)
• Intransit Lead Time: 2 days
• Transfer Charge: 5%
 Inter-Location Transit times
• Inter-Location Transit Time is the planned number of days (or hours) it takes to move material from one location
to another, either between Organizations or between Locations within an Organization.
• This setup will be done in shipping networks in Transit lead time.

Example:
• From org = hw1 To org = m1
• Transit type = direct/transit.
• FOB- shipment (source) : ownership transfers to destination when the goods are Shipped.
• Receipt (destination) : ownership transfers to destination when the goods are Received.
• Receipt routing (how incoming material is handled when we receive it inventory organization)
• Standard: 2 or 3 methods - (receive - inspect - delivery )
• Direct: 1 step ( receive & delievry at same time)
• Inspection: same as standard but we must inspect before moving to final storage.
• Intransit lead time: 3 days, Define GL accounts.
 Organization access
• Organization Access allows a user or responsibility to view and work with specific inventory organizations in
Oracle. Restrict users from accessing unrelated organizations.
• Keeps data clean and prevents wrong entries across different organizations.
• Use Organization Access Setup to assign orgs to specific Responsibilities.

🧾 Use Case:
• Org HW1 – Bangalore, Org M1– Hyderabad
• User1 (Bangalore Manager) → Access only Org HW1
• User2 (Hyderabad Manager) → Access only Org M1
 UOM
• Standard
• Intra classss
• Inter class
 Account close cycle: Inventory accounting periods
• Account Close Cycle refers to the monthly or periodic financial reconciliation and closing of transactions across
Inventory, Purchasing, WIP, so that the periods can be finalized.
• Ensure all transactions are complete, costed, and transferred to GL (General Ledger) accurately before closing the
financial period.
Example :
company buys and sells Laptops. Open
1. Receive Items: Received 50 laptops from supplier. Close
2. Issue to Customer: Sold 30 laptops. Future
3. Run Costing: System calculates cost for 30 laptops sold.
4. Transfer to GL: Inventory reduces, COGS increases:
Inventory Account → Credit, COGS Account → Debit
5. Ensure inventory value in system matches reports.
6. Close Period
 Miscellaneous Transaction:
• A miscellaneous transaction is a manual way to increase or decrease stock in inventory for reasons like damage,
loss, or internal use.
• Stock adjustments (e.g., theft, damage, surplus)
• Manual corrections for audit or count variances
• Adding items received without a PO

Type What it Does Example

Found 10 unused boxes in
Miscellaneous Receipt Adds items to inventory
warehouse
Removes items from
Miscellaneous Issue 5 bottles leaked and spoiled
inventory

Example:

If 10 laptops are damaged and need to be removed from inventory, we use a Miscellaneous Issue.
If we find 5 extra chairs during physical count, we use a Miscellaneous Receipt.
 Inter-Org Transfer
• An Inter-Organization Transfer is used to move inventory from one organization (or warehouse) to another
organization within the same business unit in Oracle Inventory.
• It helps maintain stock across locations and supports efficient supply chain operations

Example:

• we had two inventory organizations – one was a central warehouse and the other was
a production plant.
• Whenever production needed raw materials, we used Inter-Organization Transfers to
move stock from the warehouse to the plant.
• We used the Intransit transfer method so that we could track the items while they were
in transit.
• Once received at the plant, the receiving team would confirm it in the system, and the
stock would be available for production.
• This helped us maintain accurate inventory records and ensured timely availability of
materials.
 Sub Inventory Transfer
• Subinventory transfer is an internal inventory transaction used to track item movement within an organization,
ensuring proper stock visibility and location control
[Item Exists in Subinventory A]

[Subinventory Transfer Form]

[Enter From & To Subinventory]

[Check Availability & Validity]

[Submit Transfer]

[Item Moved to Subinventory B]

 Transcation
• Material Transactions
• Pending Transactions
• Transaction Summaries
• Miscellaneous Transactions
• Account alias Transactions
(Acc details mandatory before)
 Features of inventory
• On hand quantity
• Item supply/demand
• Reservations
• Lots
• Serial numbers
• Generate serial numbers
• Counting
• Reports
 LOT
• A batch or group of items with the same specifications, produced or received together and it is used for tracking,
expiry, Traceability.

Example:
• 1: Enable Lot Control for the Item
• 2: Assign the Item to Inventory Organization
• 3: Navigate to Miscellaneous Transactions
• 4: Enter Item and Quantity
• 5: Click on Lot/Serial Button
• 6: Enter Lot Number and Quantity
• 7: (Optional) Enter Expiry or Origination Date
• 8: Save the Lot and Transaction
 Item supply/demand
• Future items which is ordered like PO is created and not done the transaction item is not
• delivered will be visible here.
• Item in pending state will visible here
• Item in Approved or allocate state wont appear it will be in view transactions.
 On Hand Quantity
• On-hand quantity is the total physical stock available in inventory at a specific point in time.

Example:
Org: HW1
Item: Item07
Subinvntry: FLOOR
On hand Qty: 10

Explain about this ref image

Transaction Types
 Cycle Count/ Physical Inventory
• It is an inventory auditing procedure where we count a small amount of inventory items on regular/continuous
basis through out the year.
• To keep inventory records accurate.
• To Detect any errors and correct them.
• Eg : suppose my warehouse had 10k items instead of counting the stocks at once we can count them at some
intervals like 100,200 etc on daily basis with accuracy.

• Physical Inventory:
• Eg : suppose my warehouse had 10k items counting the stocks at once / quarterly basis with accuracy.
 Move Order
• It is internal warehouse request to move inventory from one location to another location within the same
inventory organization. within org with / without approval called planner.
• To transfer stocks from stores to production & also between subinventories.
• To control stock withdrawals for maintenance

• Types:
• 1.Repleinshment : Automatic move order generated by min max planning
• 2.Requisition : Manually created by users when we want to move stocks
• 3.Pickwave : Generated during sales order picking.
 Cancel Move order
• Find the move order
• Check the status must be pending/ approved
• If your item is transacted you cannot cancel, item should be in pending state.
• Go to Transact move orders -> item: Requisition -> go to line tab -> tools -> cancel/ close line.
 MIN-MAX Planning method
• If on hand qty is less than MIN qty then it will match with MAX qty
• on-hand = 120
• min = 100
Reorder Quantity = Max Quantity – On-Hand Quantity – On-Order Quantity
• max = 500
• on order Qty = 50

On-Hand (120) + On-Order (50) = 170

Since 170 > Min (100), no reorder is triggered
• Now assume:
On-Hand Qty = 70, On-Order Qty = 20
→ 70 + 20 = 90 < Min (100) → Reorder needed
• Reorder Qty = 500 - 70 - 20 = 410
 Technical components
• Personalizations: Modifications of Existing Forms need
• Customizations: New forms which we need to do as per customer requiremnt.
• Interfaces: Interfaces are predefined data structures (tables and programs) that help import or export data
between Oracle and external systems (like legacy systems, suppliers, customers, third-party tools).
• Integrators: Integrators help connect Oracle SCM with other systems to send or receive data automatically —
without manual entry, like a bridge between Oracle and outside systems (like a supplier, customer, or another
software).
 Issues i faced
• We try to reject options at Item level ❌
• Trying to do miscellaneous Transction when the org period is closed
• creating Item for to give copy from template - purchased.
• Auto Rejection approved if no planner is mentioned and need to mention the timeout period if required approval
• Aftr creating new calender unable to see the year :
financial--accounting calendar-- query with calendar name "Accounting
THANK YOU
Akhila Adulapuram