Inventory setup in oracle R12

 Setting up inventory in Oracle R12 involves several steps to configure the inventory module properly. Below is a general guide to help you with the setup:

1. Define Inventory Organization

  • Navigation: Inventory → Setup → Organizations → Organizations
  • Steps:
    1. Create an inventory organization by defining the organization's details, such as name, location, and parameters.
    2. Assign a legal entity, operating unit, and ledger to the inventory organization.

2. Define Inventory Parameters

  • Navigation: Inventory → Setup → Organizations → Parameters
  • Steps:
    1. Select the inventory organization you created.
    2. Define parameters such as costing method, accounting information, and intercompany relations.

3. Define Subinventories

  • Navigation: Inventory → Setup → Organizations → Subinventories
  • Steps:
    1. Create subinventories, which are logical or physical separations within the inventory organization.
    2. Set up subinventory attributes, including locator control, picking order, and reservable options.

4. Define Locators (If Locator Control is Enabled)

  • Navigation: Inventory → Setup → Organizations → Locators
  • Steps:
    1. Define locators within subinventories to manage the location of inventory items.
    2. Set up locator control at different levels (None, Prespecified, Dynamic Entry, or Item Level).

5. Define Items

  • Navigation: Inventory → Items → Master Items
  • Steps:
    1. Create items in the master organization and assign them to the relevant inventory organization.
    2. Define item attributes, categories, templates, and costing methods.
    3. Set up item relationships, such as cross-references, substitutes, and revisions.

6. Define Categories and Category Sets

  • Navigation: Inventory → Setup → Items → Categories → Category Sets
  • Steps:
    1. Define item categories and category sets.
    2. Assign items to categories for better organization and reporting.

7. Define Units of Measure (UOM)

  • Navigation: Inventory → Setup → UOM → Units of Measure
  • Steps:
    1. Define units of measure and UOM classes.
    2. Set up conversion between different units of measure.

8. Define Item Transaction Defaults

  • Navigation: Inventory → Setup → Transactions → Transaction Defaults
  • Steps:
    1. Set up default transaction sources, transaction types, and other related parameters.

9. Define Inventory Transactions

  • Navigation: Inventory → Transactions → Define Transactions
  • Steps:
    1. Configure transaction types such as miscellaneous receipt, issue, transfer, and cycle count.
    2. Set up transaction sources, reasons, and cost elements.

10. Define Account Aliases

  • Navigation: Inventory → Setup → Transactions → Account Aliases
  • Steps:
    1. Create account aliases for commonly used accounts to simplify transaction entry.

11. Define Picking Rules

  • Navigation: Inventory → Setup → Rules → Picking Rules
  • Steps:
    1. Set up picking rules to determine the sequence of picking items during sales order shipments.

12. Set Up Costing

  • Navigation: Cost Management → Setup → Costing → Cost Types
  • Steps:
    1. Define cost types, cost elements, and cost update methods.
    2. Assign cost types to inventory organizations.

13. Set Up Cycle Counting

  • Navigation: Inventory → Counting → Cycle Counting
  • Steps:
    1. Define cycle count classes and schedules.
    2. Set up approval tolerances and recount options.

14. Define Serial and Lot Controls (If Applicable)

  • Navigation: Inventory → Setup → Serial/lot control → Serial/lot Control
  • Steps:
    1. Set up serial and lot control at the item level if applicable.

15. Set Up Planning Parameters

  • Navigation: Inventory → Setup → Planning → MRP/MPS Planning Parameters
  • Steps:
    1. Define planning parameters such as lead times, safety stock levels, and reorder point.

16. Set Up Inventory Security

  • Navigation: Inventory → Setup → Security → Security Rules
  • Steps:
    1. Define security rules and assign them to users to control access to inventory data.

After setting up the above configurations, you can begin processing inventory transactions, generating reports, and managing your inventory effectively in Oracle R12.

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