Inventory Organization in Oracle Applications.
In this Article we will see the importance, setup steps,
Prerequisites of Inventory organization in Oracle Applications R12.
An Inventory Organization represents a business entity which
can Store and Transact Item. Setting up Inventory organization is a Preliminary
step for defining and using Oracle Inventory module.
In real world an inventory organization represents a
physical entity like a manufacturing facility, warehouse, distribution center
or a branch office where inventory is stored and transacted or it can also
represent a Logical Entity such as Master Inventory Organization which can be
used for Defining Items..
Some of the applications which secure information by
inventory organization are: Oracle Inventory, Bills of Material, WIP, MRP, and
Purchasing receiving functions. Hence to use such applications for
transactions, it is required to select an organization that has been classified
as an inventory organization.
Below Mentioned is a Sample Structure which shows how
Inventory Organization fits in th Oracle applications Multi-Organization
Structure.
An Inventory
Organization has one or more Sub-inventories which in turn can have one or more
Locators.
Sub-Inventory:
Subinventory is a business Entity which represents a
Physical or Logical Separation Of Inventory, For Eg. Finished Goods Inventory,
Raw material Inventory. the Inventory Transactions can be Tracked or Restricted
as per Subinventories. It is required to define at least one Subinventory for
every Inventory Organization.
Locators:
Locators are physical places where an Inventory Item is
stored with in a Subinventory or Inventory. Locator Control is an Optional
feature in Oracle Inventory Module.
It is also required to define below mentioned Multi
organization Entities before defining an Inventory organization.
- · Ledger
- · Location
- · Legal Entity
- · Operating Unit (Optional)
