Why do we need Oracle Inventory?


Oracle Inventory meets the following business needs of an organization:

  • Building the enterprise structure
  • Creating item numbers
  • Monitoring inventory on an ongoing basis
  • Maintaining accurate on-hand balances
  • Planning material replenishments
  • Forecating demand
  • Building the Enterprise Structure

    Before you use Oracle Inventory, you need to setup one or more organizations. Organizations represent distinct entities in your company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.


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    How the blocks come together in 11i

    In Release 11i, an organization structure would essentially consist of the following building blocks.

    Set of Books

    This entity is defined in Oracle General Ledger. The Set of Books is defined by the three Cs – Currency, Calendar and Chart of Accounts.

    Legal Entity

    This is defined as an organization of type GRE/Legal Entity using the Inventory Responsibility. This is a legal company for which you prepare fiscal or tax reports.

    The Legal Entity has to be assigned a predefined Location. It must then be associated to an existing Set of Books. So the Set of Books has to be defined before a Legal Entity.

    Operating Unit

    This is defined as an organization of type Operating Unit using the Inventory Responsibility. The Operating Unit is an organization that uses Oracle, Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing and Oracle Receivables.

    The operating unit may be a sales office, a division or a department. The Operating Unit has to be assigned to a Legal Entity and a Set of Books.

    Inventory Organization

    This is defined as an organization of type Inventory Organization using the Inventory Responsibility. An inventory organization can be a physical entity like a warehouse where inventory is stored and transacted or it can be an organization that manufactures and distributes products or both. An inventory organization can also be a logical entity like an item master organization which only holds items with no transactions.

    The Inventory Organization has a costing method, a workday calendar, and a list of items. It stores information from Oracle Inventory, Bills of Material, Work in Process, Supply Chain Planning and Purchasing receiving functions.

    The Inventory Organization has to be assigned to an Operating Unit, a Legal Entity and a Set of Books. The inventory organization would have subinventories and locations defined underneath it.

    Surprises in Release 12

    There is no Set of Books!

    Instead there are Ledgers and Ledger Sets. Discussions on these are beyond the scope of Inventory. However, an understanding of how Ledgers relate to Legal Entities and Operating Units would definitely help. Because, as an upcoming Inventory module expert you would want to know how the building blocks in the organization structure come together! So, let’s look it up in the pages that follow.


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    Next: Setting Up the Oracle Inventory Organization Structure **(Demo included)** 

    Creating the Operating Unit **(Demo included)** 

    Defining the Inventory Organization Calendar **(Demo included)** 

    Creating the Item Master Organization **(Demo included)**

    Building the Inventory Organization **(Demo included)** 

    OSS Creates Some Categories **(Demo included)** 

    Subinventories for OSS

    About a Unit of Measure **(Demo included)** 

    Building a Shipping Network **(Demo included)** 

    Inventory Accounting Periods 

    Miscellaneous Transactions in Oracle Inventory 

    Customizing Transactions in Oracle Inventory 

    A New Transaction Type for Travis 

    Subinventory Transfer Transactions 

    The Move Order 

    The Requisition Move Order 

    The Replenishment Move Order **(Demo included)** 

    The Pick Wave Move Order 

    Min-Max Planning and Move Orders **(Demo included)** 

    Periodic Automatic Replenishment **(Demo included)** 

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