Inventory Organization
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An inventory
organization can be a physical entity like a warehouse where inventory is
stored and transacted.
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An inventory
organization can be a logical entity like an item master organization which
only holds items with no transactions An inventory organization can have its
own location with a set of books, a costing method, a workday calendar, and a
list of items.
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An inventory
organization can share one or more of these characteristics with other
organizations.
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An inventory
organization is an inventory location with its own set of books, costing
method, workday calendar and list of items.
An organization can be a company, subsidiary, or warehouse.
Consider the following when you
plan your enterprise structure:
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Sets of Books:
You can tie one Oracle General Ledger set of books to each inventory
organization.
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Costing Methods:
You set your costing method (Standard or Average) at the organizational
level. The item attribute control level
determines the costing organization.
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Item Costs:
Oracle Inventory keeps one cost per item per inventory organization.
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Movement between
Inventory Sites: You can use in-transit inventory for inter-organization
transfers.
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Planning Method:
You can choose how to plan your items.
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Forecasting: You can forecast your items.
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Accuracy
Analysis: You can perform a cycle count,
or a physical inventory
Item validation organization
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Item validation organization is a logical entity listing all the items that an
enterprise sells to customers. Multiple item validation organizations can be
listed that share the same item master organization.
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A minimum of one
item validation organizations is required per set of books.
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A maximum of one
item validation organization per operating unit is allowed to determine the
items that may be sold in each operating unit.
Item Master Organization
Item Master Organization is usually the first Inventory
organization that is set up. Its single
purpose is for entering items. It has no
sub inventories and is not used for inventory transactions. Items are entered
in an item master organization and then assigned to be used in child
organizations.
Child Organization
Child Organization is an inventory organization
with at least one subinventory that is set up for processing inventory
transactions. It is not used to enter
items. It gets a list of items from the
master.
What
is Item Master organization and Child Organization?
Ø Item Master Organization is usually the first Inventory
organization that is set up. Its single
purpose is for entering items. It has no
sub inventories and is not used for inventory transactions. Items are entered
in an item master organization and then assigned to use in child organizations.
Ø Child Organization is an inventory organization with at least one sub
inventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.
What
is the purpose of Organization Assignment?
After defining an Item in the
Item master, it has to be assignment to the Organization and is known as
Organization Assignment. The purpose of the Organization Assignment is to make
the item available for Transactions in particular Organizations.
What
are Organization Assignment and Organization Item?
Item can be
enabled in all child organizations under master organization or child
organizations where the item to be used is chosen. Inventory propagates item to
all organizations in which the item is to be defined.
Organizational
attributes for item attributes which are enabled in that organization, can be
entered or changed which are enabled in that organization. For example, go to an organization to choose
reorder point planning for an item, and then go to another organization and
choose Min-Max planning for the same item.
