Monday, February 2, 2015

Define Inventory Organization

Inventory Organization – Inventory organizations are physical or logical entity in the organization hierarchy which tracks the inventory transactions and transaction accounting. These is the place you manages your inventory and perform planning on it. A typical example is a plant or a distribution location.
Let quickly remind our self the structure of the our structure.
Business Group - OAF
Now we have to create multiple Inventory organizations (2 in each operating unit). But there is no restriction, you can create n number of inventory organization. We also have to create a Master Inventory organization before creating a transactional inventory organization.

Master Inventory Organization : The Master Inventory organization also called as ‘Item Master’ organization is and organization used to item repository, maintenance and validation that stores items and item attributes, master level category and category sets. We always create items in Master Inventory organization and then assign to child organization. This is logical organization and not used for any transactions. Its recommended that only one Master Inventory organization should be defined even we have multiple operating units and ledgers are implemented.

Inventory Organization / Child Inventory Organization : This is also inventory organization but refers to an Master Inventory organization for items. These are transactional inventory organization and can be a physical location under an implementation. They have sub inventories and locators to further organize the items.

Lets move and start creating Inventory Organization. First we will create Master Inventory Organization and then create Child Inventory organization.
Before we create the inventory organization we have to create the location and inventory calendar.

Navigate to : XX Inventory –> Setup –> Organizations –> Organization
Click on ‘New
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Enter the Name and Location for the Master Inventory Organization and save the details.
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Now add the organizational classifications, this actually identifies that this organization is going to Inventory Organization / Business Group / Operating Unit etc… Save the record and click on other to enter more details.
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Choose Accounting Option to associate it with Primary Ledger, Legal Entity and Operating Unit..
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Click OK and Save the record.
Now we will update the Inventory Information. This section will determine Inventory organization configuration and accounting.
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Navigate to all the tabs and enter required details. To make sure the organization that we are creating is Master Organization enter the same name of the organization in Item Master Organization field.
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Save the record. Now again click on others and choose Receiving Information.
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Choose required option and save the record.
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Child / Transactional Inventory Organization

Now create the child inventory organization same as we created Master Inventory organization.
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While you enter details for child inventory organization make sure to enter the Item Master Organization as ‘OracleAppsnFusion Master Inventory’ which we created earlier. This will make it as Child Inventory organization.
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Similarly crate the other inventory organization as we layout the structure earlier.


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