Schedule: Timing Topic

05 minutes Lecture and Demo

00 minutes Practice
05 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 1 - 2
This slide lists the lessons in part one and part two of this course.

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 3

This slide lists the lessons in part three of this course.

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 4

This slide lists the lesson in parts four and five of this course.

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 5

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 6
Oracle SCM Cloud: Supply Chain Management Foundation 1 - 7
Oracle SCM Cloud: Supply Chain Management Foundation 1 - 8
Oracle Supply Chain Management Cloud documentation is available in the Oracle Help Center:
[Link]
• Getting Started with Your Manufacturing and Supply Chain Materials Management Implementation:
[Link]
[Link]
• Using Functional Setup Manager: [Link]
common/20a/oafsm/[Link]
• Using Inventory Management: [Link]
management/20a/famml/[Link]
• Implementing Common Features for SCM (Chapter 21: External Integration):
[Link]
[Link]
• Oracle Analytics and Reports documentation is available at
[Link]
[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 9

• Cloud Customer Connect ([Link] is Oracle's online cloud
community — specifically designed to promote peer-to-peer collaboration and sharing of best practices,
enable members to keep pace with product strategy, and provide a cloud solution feedback channel directly
to Oracle development. Within this community, members benefit by leveraging the collective knowledge of
Oracle Cloud customers and product experts.
o The Forum ([Link] enables you to
network and collaborate on real-life challenges and solutions with fellow members. Share best
practices as you strive to deliver consistent, personalized customer experiences, and connect
every customer engagement with your brand.
o The Idea Lab ([Link] allows you to
contribute to our product roadmap that is derived from a variety of influences, such as market
changes, compliance and regulatory forces, industry trends, and one of our best sources, our
customers.
o The Events ([Link] tab lists
upcoming and replays of Supply Chain Management events.
• The Supply Chain Management Readiness Material
([Link]
chain-planning-supply-chain-planning-20) allows you to learn about the latest innovations in our Supply
Chain Management products.

Oracle SCM Cloud: Supply Chain Management Foundation 1 – 10

• Product experts schedule Customer Connect training. These sessions provide more information on topics
already discussed in this training or discuss topics relevant to the implementation and use of the product.
The replays of these sessions can be found here: [Link] You can
also select one of the available Event Series. The event series filters the events by training and product
areas.
• The Oracle Supply Chain Management Integration Overview
([Link] discusses core integration capabilities for
Supply Chain Management including external web services, integration with PaaS, business events, file-
based data import, ADFdi and common messaging framework.
• The Oracle Supply Chain Management Security Overview
([Link]
discusses common security topics across Supply Chain Management.
• The Oracle Business Analytics Reporting Overview
([Link] provides an overview of Business Analytics
Reporting. Watch this video replay to learn about the strategy and product coverage of Oracle Business
Analytics as well its components and key features. In addition, you learn how to locate standard reports and
dashboards as well as create and edit reports, analyses, and dashboards.

Oracle SCM Cloud: Supply Chain Management Foundation 1 - 11

Schedule: Timing Topic
10 minutes Lecture and Demo
00 minutes Practice
10 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 2 - 2
This section discusses the capabilities of Oracle SCM Cloud.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 3

This course refers to both Oracle SCM Cloud and Oracle Fusion SCM Applications. When you purchase a
SaaS subscription to an application service in Oracle SCM Cloud, you receive cloud-based access to set up
and use certain Oracle Fusion SCM applications.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 4

This diagram depicts Oracle SCM Cloud product offerings. Oracle SCM Cloud provides comprehensive
solutions for your value chain.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 5

This diagram depicts the following groups of setup tasks:
• Common Applications Setup: Define the configuration of applications that are used across
products.
• Common SCM Setup: Define and maintain setup components for the common SCM configuration,
including items, catalogs, product structures, and calendars.
• Inventory Management Setup: Define and maintain Inventory Management setup, including
subinventories and locators, transaction sources and transaction types, picking rules and picking rule
assignments, material status, as well as shipping and receiving parameters.
• Costing Setup: Define and maintain Costing setup, including cost organizations, cost books, cost
elements, cost components, valuation units, and cost profiles. A high level overview of this is
provided in this course. For detailed information on Costing Set up, see the Cost Management
Implementation course.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 6

Oracle Social Network provides a highly capable set of social tools designed to enhance, capture and
preserve information flowing between people, enterprise applications, and business processes. With Oracle
Social Network, you can collaborate quickly, efficiently and stay connected with important events, all while
leveraging the organization’s collective expertise to make informed decisions and drive business forward.
Social Objects and people are the basic foundation of Oracle Social Network. Conversations regarding a
topic can be initiated or content related to the social object can be shared amongst a group.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 7

This diagram depicts the Oracle Fusion products that have some Oracle Social Network enabled objects.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 8

This topic discusses some basics of navigation.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 9

Administrators can set the default home page layout to Panel or Banner. Once you set a layout, you can
change themes and configure your layout. You set and configure your home page layout by selecting
Appearance from the Configurator group in the Navigator. You can create and edit saved themes and change
the following look and feel aspects of your application pages:
• Logo, background image, panel image and style
• Size and style of the icons on the springboard
• Style of the cards, which appear on a page in a grid view. These cards display a summary of a single
record, with attributes on the front side and optional back side. You can specify whether all cards should
display with a dark-colored or a light-colored finish for users.
• Shape of buttons, menus, and tabs
• Colors for the background, global region, headings, page links, and buttons
Note: For all of our training, we use a predefined theme called Newsfeed. This may look different from the
theme configured in your corporate environment. You can configure the following items on your home page.
• Default layout of the home page.
• Default content to be displayed on the home panel.
• Display photo on the main panel of the home page.
For more information on getting started and navigation, refer to the following link:
[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 10

This screenshot depicts the Global Header. The following elements are highlighted:
• Logo refers to the image adopted by a company to identify itself or its products. When clicked, the
logo takes you to your home experience, which is either the springboard page or an infolet page,
depending on which page you were on before navigating.
• The Home icon takes you to a home experience, which is either the springboard page or an infolet
page, depending on which page you were on before navigating to the current page.
• Global search allows you to search for objects and navigate to objects and pages at any level of the
navigation hierarchy.
• The Favorites and Recent Items menu contains navigation shortcuts to pages that you bookmarked
or recently visited.
• The Watchlist provides a set of prequeried saved search shortcuts to work areas based on items that
you want to monitor. You can click a saved search to open its corresponding work area.
• Notifications are generated by workflow tasks or by using Oracle Fusion Application Toolkit
application programming interfaces. The Notifications menu contains a list of recent notifications.
• The Accessibility icon provides access to accessibility settings that you may want to set or change
according to your needs.
• The Help toggle button reveals or hides help icons in the content area.
• Settings and Actions menu contains link to pages on which you can view or change settings or
perform personalization or administration tasks.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 11

This screenshots depict and highlight the Navigator icon, Navigator menu, and the Supply Chain Execution
work area. The Navigator reflects the contemporary look of the News Feed home page layout. Its content is
displayed to provide a top level group or cluster view for easy navigation or an expanded list view. You can
use Show More and Show Less to toggle between these views. The Outline icon type provides a modern
look to the icons, which complements the news feed layout.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 12

The screenshot depicts the Product Information Management page and highlights the Tasks panel tab and
the Tasks panel drawer on it.
When you click a work area name in the Navigator, you access the work area’s home page. On this page,
you can typically get immediate insight into urgent tasks that need your attention. The work area may also
have some embedded analytics that highlight key performance indicators of which you need to be aware.
Click the Tasks panel tab to open the Tasks panel drawer, where you can launch a range of tasks specific to
that work area.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 13

This screenshot depicts some infolets available on the Inventory Management page.
Infolets let you view and interact with high-level, essential information generated from different sources so
that you can quickly assess where to direct your attention. Infolets have many advantages. They:
• Promote essential, easily consumable information
• Group key information by user role in a way that helps users quickly assess and prioritize their work
• Progressively display essential details and actions
• Provide a visually rich means of displaying essential or summary information

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 14

These screenshots depict the following features of infolets: Contextual Navigation and Context Switcher.
Infolets allow contextual navigation. To encourage quick access to more details about specific visual
elements on an infolet, any element can be defined as a hotspot that you can select to open a work area
page related to that particular element.
In addition, infolet content switching may be applied based on periodicity, geographic locations, product
lines, or any other binding data characteristics. Once selected, the content refreshes within the context of
the specified characteristic.
Note that the Edit option in the Infolets Actions menu (in the Sandbox mode), opens an infolet builder where
the administrator can modify the infolet content.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 15

This screenshot depicts the Edit Item page and highlights that some context sensitive and embedded help
topics are available on this page. On most pages, you have a range of help options available to you if you
need additional information or support:
• You can access various types of embedded help. These include terminology definitions (to explain
what something means) and pop-up bubble text (to explain what something does). On the Edit Item
page, the dotted underline markings under the User Item Type and Pack Type field prompts indicate
that terminology definitions are available to define those terms. Hover your cursor on the underlined
terms to display the corresponding help.
• Many pages have a range of more detailed, context-sensitive help topics available as well. These
topics can provide conceptual background information, explain architecture, support decision-
making, answer FAQs, or show how to perform a task in a self-paced instructional video.
• To access these help topics, first click the Show Help Icons link in the Settings and Actions menu. If
context-sensitive help topics are available for the page or for specific regions on the page, you see
orange Help (question mark) icons embedded on the page. Click the Hide Help Icons link to hide the
orange Help icons. Click this Help icon to open a window that shows you the available help topics,
and then click any help topic to open it. Note that you do not navigate away from the application
page when you open help—the application page is always open and available in the background.
• On any page, you can also directly access the Applications Help site, where you can search for or
browse through all the help topics that are available to support the applications. To access the
Applications Help site, click your username to open the Setting and Actions menu, and then click
Applications Help.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 16

In this practice, you navigate some basic elements in the user interface.

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 17

Oracle SCM Cloud: Supply Chain Management Foundation 2 - 18
Schedule: Timing Topic
45 minutes Lecture and Demo
15 minutes Practice
60 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 3 - 2
This section discusses the key concepts and benefits of Functional Setup Manager.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 3

The Oracle Fusion Functional Setup Manager facilities initial setup and ongoing maintenance. The
Functional Setup Manager guides you through the following ongoing steps depicted in the graphic on the
slide:
• Planning: Identify the offerings you want to implement. Evaluate what functional areas and features
to opt into and prepare accordingly for their setup requirements.
• Opting In: Select the offerings, functional areas, and features that best fit your business requirements
by enabling them.
• Setting up: Use setup tasks to enter setup data necessary for your enabled offerings and functional
areas.
• Deploying: Move your verified setup data from the test environment to a production environment and
deploy to all users to start transaction processing.
• Maintaining: Update setup data or opt into configuration of the functional areas and features as
necessary. Setup Manager.
• The Application Implementation Consultant job role has full access to perform all Functional Setup
Manager-related activities. Other users must include the Functional Setup User role in addition to
other roles or privileges needed to perform specific setup activities.
• For more detailed information about security requirements for Functional Setup Manager, refer to the
Security Reference for Oracle Applications Cloud Common Features guide in the All Books for
Oracle Cloud page of the Oracle Help Center ([Link]).

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 4

The screenshot depicts a wide range of offerings available with Oracle Cloud. All of these offerings use the
Functional Setup Manager, which provides you with many benefits including:
• Centralized Setup: A single interface for all your Oracle Cloud applications.
• Guided Process: The offering task lists guide you through the recommended setup tasks.
• Configurable: An opt in approach to functional areas and features that can be configured to your
business needs.
• Easier Management of Setup Data: The built-in prerequisites and dependencies eliminate
uncertainty and eases the management of setup data.
• Setup Data Migration: The export and import process move setup data smoothly between
environments.
• Reporting: The comprehensive validation reporting exists to help you confirm your setup data is
valid.
Functional Setup Manager also offers the following:
• Standardized application configuration and setup experience.
• Flexible processes for managing setup:
- Setup by functional areas for an adopt-as-you-go approach.
- Implementation projects to manage exception setup situations.
- Upload functionally to enter setup data in bulk.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 5

Navigate to: My Enterprise > Offerings.
The screenshots in the slide depict the following three concepts:
• Offerings: Functional groupings within Oracle Cloud Applications representing enterprise business
processes that are subscribed and administered as a unit.
• Functional Areas: Functional modules such as business sub-processes within an offering.
• Features: Optional or alternative business methods and practices applicable to a functional area.
Depending on the setup requirements for a feature, you can:
- Select if the feature either applies or it does not.
- Select one choice to apply to the feature out of multiple choices.
- Select many choices to apply to the feature out the multi-choices available.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 6

This section discusses how you can browse offerings and review related documents for planning your
implementation.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 7

Before using any Oracle Cloud Applications, you must opt into relevant offerings and their features by
enabling them.
Select an offering by clicking on the icon to see a detailed description. The current status of the offering is
also shown. In the beginning, the offering status shows Not enabled.
The screenshots in the slide highlight Offerings under the My Enterprise group and the Opt In Features
button on the Offerings page.
Use the Opt In Features button to opt into the features that are applicable to your business requirements.
• If you need to change the opt in configuration of the offering, use the same button.
• Before you proceed to opt in, expand the Related Documents section to review details about the
implementation requirements of the offering to help you plan your implementation.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 8

Navigate to: My Enterprise > Offering > select your offering > Opt In button.
The screenshots depict the Opt In page and Edit Features page.
In the Opt In page:
• The first row shows the Offering and the subsequent rows show the offering’s functional areas. If sub
functional areas exist they are shown underneath their parents.
• To opt in, select the Enable checkboxes of the offering and the functional areas.
- If a child is not optional, then the child is enabled and displayed as read-only when the parent
is enabled. For example, when the Supplier Invoice Processing parent is opted into, the
Payables child functional area is enabled. Child functional areas that are not optional, are
enabled or disabled automatically when their parent is enabled or disabled.
- A child cannot be enabled unless its parent is enabled. For example, to enable Collections,
Customer Invoice Processing must be enabled first.
• Click the Edit icon in the Features column to enable and opt into related features.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 9

Navigate to: My Enterprise > New Features.
The screenshots highlight New Features under the My Enterprise group and Learn More icon on the New
Features page. You can refer to the additional help topics from the Learn More icon to better understand the
new features.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 10

In this practice, you view a task list for a functional area.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 11

This section discusses SCM Simplified Setup and its benefits.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 12

This diagram depicts the SCM simplified setup that provides automated setup for mandatory and commonly
used SCM-related business process flows. SCM simplified setup reduces the need for users to access
Functional Setup Manager to perform every setup before being able to transact in the system.
• Setup objects are segmented into two groups—those that are dependent on an inventory
organization, and those that are not dependent on an inventory organization.
• Setup objects that are dependent on an inventory organization are automatically created when the
user creates an inventory organization with simplified setup. For example, when an inventory
organization is created, it automatically creates setup objects such as subinventories, receiving
parameters, and manufacturing plant parameters for that organization, provided it was selected as a
manufacturing organization.
• Seed data is used for setup objects that are not dependent on an inventory organization. For
example, such data is provided for setup objects such as inventory transaction reasons, pick slip
grouping rules, and release sequence rules.
• SCM Simplified Setup also provides auto-querying capabilities for many setup activities. When a
user accesses a setup task in the Setup and Maintenance work area, the existing data is
automatically presented to the user in the manage page search results.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 13

Simplified setup (referred to also as Quick Setup) is used when the implementation team needs to quickly
set up data to demonstrate the applications and business flows. However, it can also be used in
environments where existing application data is present.
• This is done through the use of reference data, which differs from seed data. Although reference
data is a form of seed data, it is used only in simplified setup processes, and only when creating new
business objects. This approach means there are never conflicts with existing customer data. The
reference data is copied over once to serve as a starting set of information for the automated objects
being created.
The goal is to minimize the amount of data needed when manually creating any new business
object.
• Objects created through simplified setup are no different than those you are familiar with creating
manually. Every object constructed with simplified setup may be further edited or updated by using
the existing tasks.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 14

Simplified setup is designed to reduce implementation time by automating key setup process flows. Setup
processes are accelerated by reducing the number of needed setups in Functional Setup Manager before
being able to transact in the system. Automated process flows in Inventory Management and Manufacturing
are triggered based on inventory organization creation. Setup objects are automatically created in Inventory
Management, Receiving, and Shipping. In Manufacturing the automatic creation of resources, work centers
and plant parameters is performed if the organization serves as both a warehouse and a manufacturing
facility.
Search capabilities have also been enhanced through the use of auto-querying in several Inventory
Management user interfaces.
These enhancements simplify the setup process by reducing implementation times and improving usability.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 15

This section discusses the automated setup of SCM Common components.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 16

The icon for Quick Setup in Oracle Fusion Functional Setup Manager for the Facilities functional area
triggers the simplified setup flow for supply chain common components.
• This new task automates several of the most commonly needed business objects in the supply chain
products, and further serves as the trigger mechanism to default many of the Oracle Fusion
Inventory Management, Receiving, and Discrete Manufacturing setup tasks that are necessary for
each new inventory organization.
• The result is a step-by-step guided process flow that enables you to quickly construct multiple
business objects. In a new cloud instance, the expectation of the user is to be complete it in
seconds, not minutes.
• The setup of a Facility Schedule, also referred to as a calendar, is automated. A set of over 30
common units of measure is available as reference data to be copied into the instance. A master
organization can be set up, and one or more inventory organizations can be created with minimal
inputs.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 17

This demonstration shows how you can use Quick Setup for SCM common components.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 18

This section discusses the concept of Time Savings in the SCM Cloud Simplified Setup.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 19

This table depicts exactly how many user inputs and button clicks are eliminated when using simplified
setup. The table has the following:
• Columns: Existing, Quick Setup, and Percentage Skipped
• Rows: Calendar, Units of Measure, Organization, and Totals
Note the following:
• Simplified setup asks very few questions, and attempts to automate as much data as is feasible. The
three pages in the train flow (Calendars, Units of Measure, and Master Inventory Organization)
automate over twenty set up tasks, as well as over 95% of the data entry needed to create these
basic business objects.
• Every object created through simplified setup is available for use in Fusion Applications, and may be
further edited or modified to revise or tailor the intended business behavior, which is the default
setting.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 20

This section discusses the following alternative processes to manage setup data:
• By Functional Areas of an Offering
• Using an Implementation Project
• Bulk entry using CSV files
• Copying setup data

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 21

Navigate to: Others > Setup and Maintenance
The first screenshot depicts the Organization Structures functional area and Manage Business Units task
highlighted. The second screenshot depicts the Manage Business Units page.
Achieve optimal setup results with auto-generated, best-practices task lists.
• Built-in prerequisites and data dependencies minimize overlooked requirements.
• Configurable opt in features prevent wasted effort in unnecessary setup.
• Direct access to setup pages enables managing setup data in the correct sequence.
• List of required tasks expedites transaction readiness.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 22

The screenshots depict the following approaches to manage setup data.
Functional Area Based:
• This setup process is ideal for an enterprise looking for a simpler implementation approach that
follows setup best-practices.
• After you enable an offering and configure the opt-in selection of its functional areas and features,
you can set up the offering by using its functional areas as a guide.
• This adopt-as-you-go approach to functional setup gives you the flexibility to set up different
functional areas of the offering at different times.
• For example, you can begin with setup of the functional areas you require immediately to start
transactions. You can then set up other functional areas as you adopt additional offering functionality
over time.
Implementation Project Based:
• An implementation project is a list of setup tasks you use to implement your Oracle Applications
Cloud.
• With this method, you create an implementation project to generate a list of setup tasks, assign tasks
to various users who are responsible for managing setup data, and monitor progress of the
completion of the setup tasks.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 23

The offerings you enable determine:
• The order of the setup sequence that helps you avoid data dependency errors.
• The content in the Shared link which indicates if more than one enabled offering contains that
functional area.
• If the setup tasks are mandatory. An asterisk indicates if the functional area has mandatory setup
tasks.
The first screenshot highlights the Catalogs functional area and the second screenshot depicts the Shared
Offerings: Catalogs dialog box when you click the Shared link.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 24

Navigate to: Others > Setup and Maintenance.
When a functional area is selected, the related setup tasks are listed in the Task section. This screenshot
depicts the Cost Accounting functional area selected and the related tasks displayed in the Tasks area. The
Manage Cost Elements task is highlighted. The second screenshot depicts the Manage Cost Elements
page.
• If the functional area has mandatory setup tasks then those are shown by default.
• Use the Show drop down list to select All Tasks to display optional tasks.
• If the functional area has NO mandatory tasks, then ALL setup tasks are displayed.
Display order of the tasks reflects the sequence in which they should be performed to address data
dependencies.
To enter setup data, drill down on the task name to open the appropriate page.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 25

Navigate to: Others > Setup and Maintenance.
This screenshot highlights the link in the Scope column in the Setup: Manufacturing and Supply Chain
Material Management page.
Some tasks require a context called Scope before their setup data can be entered. If setup data is
segmented by a specific context or scope, you can perform the setup task iteratively. Use the link in the
Scope column to:
• Select a scope value if not already selected.
• Changed the currently selected scope value.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 26

Navigate to: Others > Setup and Maintenance > Tasks panel tab > Manage Implementation Projects.
This screenshot depicts the links in the Tasks panel tab.
Note: This method is best suited when you have a need to modify the default setup best practices, or
manage setup as a project by assigning responsibility of managing setup data to a broad group of users and
monitor their progress.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 27

Navigate to: Others > Setup and Maintenance > Tasks panel tab > Manage Implementation Projects >
Create icon.
These screenshots depict the three steps involved in creating an implementation project. When you create
an implementation project:
Generate the initial list of tasks by selecting one of your enabled offerings.
• If you plan to use more than one offering, create a separate implementation project for each one of
them.
• Selecting an offering, which automatically selects the offering’s core functional areas, you may also
select none, some, or all of the optional functional areas of the offering that are also enabled.
Use your selection of the offering and the functional areas as a template.
• A task list hierarchy is generated for the implementation project.
• The task list hierarchy includes the tasks that are associated at the time with your selected offering
and functional areas, and their dependent features that are enabled.
• Within the task list hierarchy, the tasks are organized according to prerequisite and dependency
requirements of the setup data.
Note: Oracle recommends that you enter setup data in the same sequence as the tasks to avoid missing
prerequisite data.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 28

Navigate to: Others > Setup and Maintenance > Tasks panel tab > Manage Implementation Project >
Assign Tasks.
This screenshot depicts the Implementation Project: SCM Implementation Project page. You can assign the
tasks of an implementation project to the users who are responsible for managing setup data represented
by those tasks.
• Typically, each setup task is assigned to a single individual.
• However, you may also assign multiple individuals to the same task if your implementation project
requires such assignment.
• Each of the individuals has the flexibility to perform the task and manage setup data independently
of the other users assigned to the same task.
If you specify due dates for completing the assigned tasks, you can monitor the progress of the task
assignments and the progress of the overall implementation project. If you assign multiple people to a task,
you can assign the same due date to each person or you can assign a different due date.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 29

Navigate to: Others > Setup and Maintenance > Tasks panel tab > Manage Implementation Projects.
This screenshot depicts the Assigned Implementation Tasks page. If you are a user to whom setup tasks
from an implementation project have been assigned, then a consolidated list of all of your assigned tasks is
presented to you.
• Use each task from the list to enter setup data that the task represents.
• If you have a long list of assigned tasks, you can filter the list by due date, task status, or
implementation project name to find a task more easily.
• In addition, you can search for a specific task in the list by the task name.
Note: You must have the proper security privileges to perform a task.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 30

Navigate to: Others > Setup and Maintenance > Actions menu on a task.
Note: If the Action menu is not showing, go to View > Columns > check Actions.
This screenshot highlights the Export to CSV File and Import from CSV File options available in the Actions
menu.
Use a CSV file format based setup data export and import by task as an alternative to entering data using
the user interface. Use this method if:
• You have a substantial number of setup data records with few attributes to enter for a setup task.
• Entering this data using the setup page is cumbersome and prone to errors.
• Functional Setup Manager provides you the ability to export and import setup data for a specific task
that meet these requirements using a CSV file.
Messages inform you if CSV child rows are skipped because:
• Parent rows do not exist or are not selected in the import.
• Duplicate rows are found. The remaining rows are processed.
Note: Check with the product documentation to validate if a task supports CSV export or import that you
may require.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 31

These export and import processes can be used outside of the export and import pages in Functional Setup
Manager (FSM) by using the following application programming interfaces (APIs):
• FSM SOAP Service
• FSM REST API
SOAP and REST are two different standards of web services. These APIs are available if you want to utilize
a CSV export and import and invoke the process external to Functional Setup Manager. For example, use
this method if you are moving to Oracle Cloud applications from Oracle E-Business or other systems where
you have setup data such as legal entities, business units, chart of account, so on. You can write your own
web services to extract setup from your existing systems to a CSV file, and then leverage these web service
APIs to import that data into the Oracle Cloud applications.
See the following documents for more details on using these APIs:
- SOAP Web Services for Common Features in Oracle Applications Cloud Guide > Business
Object Services chapter > Setup Data Export and Import topic in the Oracle Help Center.
- FSM: Setup Data Export and Import Service Usage (Doc ID 2156193.1) in My Oracle
Support.
Note: The CSV export option is available for all setup tasks which are enabled for regular XML export,
import. The title for each of the column is same as the corresponding database column attribute name or in
some cases user friendly names. These column name are mostly the table column name without any
underscores. In some cases where the same column, for example effective_start_date, exists in more than
once the process appends numeral like effectiveStartDate1, effectiveStartDate2, which are displayed as
column heading in CSV file.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 32

Navigate to: Others > Setup and Maintenance > Task panel > Copy Configurations.
For example, create a business unit structure and then copy the setup to create a new business unit
structure whose setup data requirements are similar to the original business unit.
• Start the copy process by selecting an existing setup configuration, whose setup data is then copied
to a staging area.
• Modify the setup data in the staging area according to the requirements of the new setup
configuration you want to create.
• Submit an import process which creates the new setup configuration.
• Review your new setup configuration to ensure that the setup meets your requirements.
Note: You can also make additional changes to the imported data, if needed.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 33

This section discusses setting up data migration from test to production, setting up data export and import of
an Offering or a Functional Area, setting up data export and import of an Implementation Project, and using
the Comparison Report to verify the difference between the source and target environments.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 34

Classic Migration
• Migrate all configurations in the source environment.
• Manually download the configuration set from the source and manually upload it into the target.
• Preview configurations in the target environment before applying them.
Unified Migration
• Register the target environment in the source environment.
• Migrate only (optionally) new changes if both environments are synchronized.
• Preview your configurations in this sandbox instance before applying them to the mainline.
• Understand that a migration set is:
- Automatically sent to the target environment for import, if the target is registered and
available at the time.
- Imported into a sandbox instance before it's applied to the target environment.
• For more information, see Oracle Help Center: Oracle Applications Cloud
Configuring and Extending Applications guide ([Link]
common/20a/oaext/[Link]).

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 35

Navigate to: Others > Setup and Maintenance > Actions > Export or Import.
This screenshot highlights the Export options available in the Actions menu on the Setup: Manufacturing
and Supply Chain Materials Management page.
Almost all Oracle Cloud implementations require moving functional setup data from one instance to another
at various points in their life cycle.
• For example, you might first implement in a development or test application instance and then
deploy to a production application instance after testing.
• You can move functional setup configurations of applications from one application instance into
another by exporting and importing setup data.
Note: The instances need to be at the same code level.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 36

This diagram depicts that if Test requires refresh from Production, then use P2T (Production to Test), a
reverse production-to-test process to synchronize the test to production instances before performing
incremental setup in the test instance.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 37

This diagram depicts the following:
• In the next testing cycle, if Test requires a refresh from Production, then use P2T.
• If Gold requires a refresh from Production, then rebuild Gold, export Offerings from Production and
import into Gold. This method brings over setup data from Production into Gold without bringing over
transaction data.
Note: A Gold copy (environment) is an operating standard for many enterprises, particularly large ones. In
this environment, your setup data is maintained as the source of truth or system of record.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 38

This diagram depicts how setup import manages data.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 39

Navigate to: Others > Setup and Maintenance > Actions > Export.
You can export entire offering for initial migration, or export a functional area for incremental maintenance.
During export, appropriate setup data is identified as follows:
• When you export setup data for an offering, the export definition includes setup data for all enabled
functional areas and relevant features in the offering.
• When you export setup data for a single functional area within an offering, the export definition only
includes setup data for that functional area and relevant features.
The export setup data process generates different reports that you can review in the application or
download for offline review.
Navigate to: Setup and Maintenance > Actions > Export > View All > select your export > Actions >
Download to see the following reports:
• Process Results Summary Report: Shows what setup data was exported, appears in order by
business objects, and includes information on any errors encountered during the export process.
• Setup Data Report: Lists all the setup data in the processed configuration package and includes
individual reports for each business object.
• Process Results Report: Is available as a text file showing the status of an export including detailed
information on the errors encountered during the process.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 40

Navigate to: Others > Setup and Maintenance > Actions > Compare Setup Data.
The screenshot depicts a table with the following columns that display the number of discrepancies:
• In Both With Mismatch: Indicates how many records exist in both sources but have some
differences.
• Only in Configuration 1: Indicates how many records only exist in the first source and do not exist in
the second source.
• Only in Configuration 2: Indicates how many records only exist in the second source and do not exist
in the first source.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 41

Navigate to: Others > Setup and Maintenance > Actions > Import.
Use the Import Offering Setup Data page to upload and import previously exported setup data. During
import, a configuration package created by the export process is uploaded.
• All setup data contained in the configuration package is imported into the environment you initiate
the setup data import from.
• The offering and functional area must already be enabled for the implementation before you can
import setup data into the environment.
• In some environments, the feature selection is not selected. Use the feature configuration to ensure
desired features are imported.
• Once you initiate the import process, monitor the progress and check the status from the Import
Offering Data History page.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 42

Navigate to: Others > Setup and Maintenance > Tasks panel > Manage Configuration Packages > Create
icon.
Use an implementation project as the source for exporting setup data when you are required to modify the
list of tasks or of objects.
• The tasks and their associated business objects in the selected implementation project define the
setup export and import definition for the configuration package.
• Depending on your needs, when you create a configuration package based on an implementation
project, you can also modify some additional aspects.
- Exclude some of the business objects from the configuration you selected to export.
- Change the default import sequence of the business objects.
- Filter the setup data to export.
While the export definition remains the same for each version, the setup data can be different if you modified
the data in the time period between the different runs of the export process.
Since each version of the configuration package has a snapshot of the data in the source instance, you can
compare and analyze various versions of the configuration package to see how the setup data changed.
Navigate to: Others > Setup and Maintenance > Tasks panel > Manage Configuration Packages > Upload
button.
All setup data contained in the configuration package is imported into the environment you initiate the setup
data import from.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 43

• In the target application instance, the setup import process:
- Inserts all new data from the source configuration package that does not already exist.
- Updates any existing data with changes from the source.
• Setup data that exists in the target instance but not in source remains unchanged.

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 44

Additional Resources
Listed below are some additional resources.
• SCM Security: To learn about Security for SCM, please refer to the recorded lesson titled “SCM
Security Overview” available at
[Link]
• Documentation: The Using Functional Setup Manager guide is available at
[Link]
[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 45

You can refer to the following YouTube video tutorials:
• Reviewing and Opting Into New Features: [Link]
• Setting Up Offerings: [Link]
• Set up Offerings with Scope: [Link]
• Export/Import Setup Data Using CSV: [Link]
• Exporting Offering Setup: [Link]
• Importing Offering Setup: [Link]
• Comparing Setup Data During Import: [Link]
• Managing Setup using Implementation Projects: [Link]
• Enter data for assigned setup tasks: [Link]
• Exporting Setup Data to Configuration Packages: [Link]
• Comparing Setup Data Using Configuration Packages: [Link]
• Importing Setup Data from Configuration Packages: [Link]
• Generating Setup Data Reports: [Link]

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 45

Oracle SCM Cloud: Supply Chain Management Foundation 3 - 47
Schedule: Timing Topic
75 minutes Lecture and Demo
15 minutes Practice
90 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 4 - 2
This section discusses key inventory objects, subinventories, locators, and item organizations.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 3

This diagram depicts that inventory organizations represent distinct entities in your enterprise and can be
one of the following:
• A physical entity such as a manufacturing facility, warehouse, or distribution center
• A logical entity such as an item master organization, which you use to define items
An inventory organization is a facility where you store and transact items. Before you can use Oracle Fusion
Inventory Management, you must define one or more inventory organizations. An inventory organization
may have the following attributes:
• An inventory organization can have its own location, ledger, costing method, workday calendar, and
items.
• An inventory organization can share one or more of these characteristics with other organizations.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 4

This diagram depicts that an inventory organization, where you store and transact items, consists of:
• Subinventories
• Optional Locators
Subinventories
An inventory organization can have one or more subinventories.
• Subinventories are unique, physical, or logical separations of material inventory.
- Examples: Raw material inventory, finished goods inventory, or defective goods inventory
• In Oracle Inventory, all material within an organization is held in a subinventory.
• You must define at least one subinventory for every organization.
• You can track item quantities by subinventory as well as restrict items to specific subinventories.
Note: You can set up an inventory organization without subinventories; however, you cannot transact items
without a subinventory.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 5

Locators
• The subinventories in an inventory organization may be made up of one or more locators.
• You use locators to identify the physical areas where you store inventory items.
• You can track items by locator and restrict items to a specific locator.
• Locator control is optional in Oracle Fusion Inventory Management.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 6

This diagram depicts that a subinventory is a physical or logical grouping of inventory such as raw material,
finished goods, defective material, or a freezer compartment. A subinventory can be the primary place
where items are physically stocked. You must specify a subinventory for every inventory transaction. You
must define at least one subinventory for each organization.
Defining Subinventories
You define subinventories by organization. Each subinventory must contain the following information:
• Unique alphanumeric name
• Status
• Parameters
• Lead times
• Sourcing information

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 7

This diagram, through an example, depicts that subinventories are used to represent the regions within that
facility designated for specific purposes. Each subinventory can have different attributes that control how
goods are handled within that subinventory. Incoming products, goods and supplies are stored in the
receiving subinventory and then put away by warehouse operators to either the raw materials, finished
goods or inspection subinventory based upon stocking practices. Materials in the Raw Materials sub get
issued to the shop floor (i.e. Manufacturing Sub) based upon production; materials in the Inspection sub get
moved to either the Defective subinventory or the Finished Goods subinventory depending upon the results
of the QA; and goods in Finished Goods might get "picked" and moved to the Shipping Subinventory when
they are ready to be shipped out for sales or transfer orders.
Goods in specific subinventories can also inherit characteristics from the subinventory such as Material
Status, Replenishment characteristics, and the types of storage (i.e. locator structure). For example, goods
in the Receiving, Raw Materials, Manufacturing, Inspection and Defective Subinventories may not be
available for customer orders. Goods in the Defective subinventory might not be visible to Planning or
Global Order Promising.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 8

Subinventories can also be used to represent multiple locations. Consider a warehouse that is next
door to a manufacturing plant. Instead of setting up an Inventory Organization and a Manufacturing
Plant and having to do formal movements between the two, a single Org/Plant could be set-up to
represent both with different subinventories making the sharing of materials easier.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 9

This diagram depicts the following locator controls: row, rack, and bin.
Locators
• Locators are optional third level structures within subinventories, providing more granularity to the
definition of ‘where’ within a facility.
• The subinventories in an inventory organization may be made up of one or more locators.
• Locator control is optional in Oracle Fusion Inventory Management.
• Locators may represent rows, aisles, or bins in warehouses.
• You use locators to identify the physical areas where you store inventory items.
• You can track items by locator, and restrict items to a specific locator.
• You can transact items into and out of locators.
• You can restrict the life of locators.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 10

Dynamic Locators
• Are generated during a transaction
Previously Defined Locators
• Are set up in advance
Note: Both types of locators use key flexfields.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 11

Replenishment count types include Order PAR, Order Quantity, and On-Hand Quantity. The PAR Level
represents the optimal quantity that you want to maintain for the item. The PAR Maximum Quantity represents
the maximum quantity allowed to be replenished in this location. PAR Level UOM represents the unit of
measure associated with the item. Finally, the Count Tolerance Percentage is the percentage that the count
can exceed the PAR maximum quantity.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 12

This diagram depicts the following types of subinventory-locator relationship:
• With locator control: Subinventory Finished Goods
• Without locator control: Subinventory Receiving
You can structure Oracle Fusion Inventory Management in such a way that some of the subinventories and
items have locator control, whereas others do not.
• For example, Finished Goods use locator controls to detail main (or bulk) inventory storage
(Aisle/Row/Shelf). When actual fulfillment of orders occurs, the goods are picked and moved (i.e.
transferred) from a particular locator to a particular aisle in the shipment staging area, the shipping
subinventory.
• As another example, Receiving might not use locator controls because the receiving dock has no
rows or aisles. Goods are removed from the trucks to the dock, then moved to a raw materials
subinventory.
• If locator control is enabled at the item level, you must specify a locator when transacting the item
into or out of a subinventory.
• If locator control is enabled at the subinventory level, you must specify a locator when transacting
any item into or out of that subinventory.
• Each stock locator that you define must belong to a subinventory, and each subinventory can have
multiple stock locators.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 13

• The possible locator control types are:
- None
- Previously Defined
- Dynamic entry
- Item Level

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 14

This section discusses two types of organizations and the differences between them.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 15

Two types of organizations:
• Inventory Organizations
- Setup task: Manage Inventory Organizations
- Financial and accounting setup required
- Usage field: Inventory management
• Item Organizations
- Setup task: Manage Item Organizations
- Financial and accounting setup not required
- Usage field: Item management
Item Organizations
Item organizations contain only definitions of items. Use item organizations in implementations when the
storage or movement of inventory does not need to be physically or financially tracked. For example, you
would use an item organization in a retail scenario, if you need to know the items that are listed by and sold
through each retail outlet even though the inventory and transactions are recorded in another system. In
Oracle Sales Cloud, item organizations are used to define sales catalogs.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 16

 Item organizations can be changed by administrators to an inventory organization by updating the
necessary attributes.
Inventory Organization
Inventory organizations are used to store and transact items. An inventory organization is associated
with a business unit, legal entity, and primary ledger. Use inventory organizations when the storage
or movement of inventory needs to be physically and financially tracked. Inventory organizations can
represent facilities such as manufacturing centers, warehouses, or distribution centers.
You cannot change an inventory organization to an item organization.

Manage Inventory Organizations Using REST Services

A REST API is available to create inventory organizations and the inventory organization parameters. If
the warehouse is also a manufacturing plant or supports maintenance activities, you can define the
plant parameters for the organization. For more information, refer to the following link:
[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 17

This table shows the differences between item and inventory organizations. The table contains the
following:
• Columns: Feature, Item Management, and Inventory Management
• Rows with the following five features: Financial and Accounting Information, Perform Inventory
Transactions, Manage Item Quantities, Lightweight Organization, and Edit Usage of Organization
Inventory Organizations
• Represent warehouse facilities, and gather additional data to indicate how the warehouse operates
and how logistic and financial transactions are performed
Item Organizations
• Are intended for situations where products must be modeled, but inventory management is not used

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 18

In this practice, you create your own subinventory.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 19

This section discusses units of measure and their classes, base units of measure, and unit of measure
conversions.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 20

This diagram depicts the following units of measure and units of measure classes.
Unit of measure
• Dozen
• Litre
Units of measure class:
• Count
• Length
• Time
• Volume
• Mass
• Area
Manage Units of Measure and Unit of Measure Classes Using REST Service
• You can use a REST API to create units of measure with a standard conversion to the base unit of the
parent UOM class. You can also create item specific intraclass conversions between a unit and the base
unit of the shared class.
• In addition, you can use a REST API to create unit of measure classes. You can also create item-specific
interclass conversions between two classes. You can also create item-specific interclass conversions
between two classes.
For more information, refer to the following link: [Link]
management/20a/fasrp/[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 21

You define units of measure for tracking, moving, storing, and counting items. Following are ways
that units of measure are used in different products:
• Oracle Fusion Inventory Management
- Tracking on-hand quantities
- Processing inventory transactions
- Performing cycle and physical inventory counts
Note: UOM conversions enable you to view different units of measure in inventory
transactions.

• Oracle Fusion Product Management (Product Model, Product and Catalog Management,
Product Hub, Product Development)
- Specifying UOMs for each item (each item created requires a UOM)
- Creating item-specific UOMs
- Using UOMs for attributes of items
• Oracle Fusion Order Management
- Viewing the ordered quantity of an item
• Oracle Fusion Global Order Promising
- Reviewing supply availability for items
- Determining availability options for fulfillment lines
Unit of measure classes represent groups of units of measure with similar characteristics.
• A unit of measure class contains a base unit of measure.
• You use the base unit of measure to perform conversions between units of measure in the
class. For this reason, the base unit of measure should represent the other units of measure
in the class, and be the smallest unit.
• For example, Count is a unit of measure class and Unit, Dozen, and Gross are examples of
units of measure within the class. The unit of measure Unit is the base unit of measure for
this class.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 22

This table lists examples of unit of measure classes, the units of measure in each unit of measure class, and
the unit of measure that is assigned as the base unit of measure for each unit of measure class. Note that
each base unit of measure is the smallest unit of measure in its unit of measure class. Each unit of measure
class must have a base unit of measure. It is defined when the class is created.
The table contains the following:
• Columns: UOM Class, UOMs, and Base UOMs
• Rows with the following UOM Classes: Count, Mass, Time, and Volume

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 23

This slide depicts the following three tables:
• UOM Class or Mass
• UOM Interclass Conversion
• UOM Conversion
A unit of measure conversion is a mathematical relationship between two different units of measure. For
example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to transact items in units of measure
that belong to classes other than their primary UOM class, you must define conversions between the base
units of measure in different UOM classes.
In the examples in the slide, the following conversions apply:
• Keyboard: 2 Units = 1 Pound
• Eggs: 12 Units = 1 Container
• Light bulbs: 24 Units = 1 Container
As the conversions between classes are unique for each item, the conversion rate varies for each item.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 24

This table depicts some examples of measure conversion. It has the following:
• Columns: UOM Class, UOM, Base UOM, and Conversion Factor
• Rows: Count, Mass, and Time
A unit of measure standard conversion specifies the conversion factor by which the unit of measure is
equivalent to the base unit of measure.
The table in the slide lists examples of unit of measure classes, one unit of measure included in each class,
the base unit of measure for the unit of measure class, and the conversion factor defined for the unit of
measure.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 25

The feature View Multiple Units of Measure in Inquiries and Transactions enables you to view item UOM
conversions on Inventory Management pages.
You can see Item, Item Description, Transaction Quantity, UOM Name and a listing of non-standard UOMs
with the quantity converted to the transaction quantity.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 26

Default Stocking Unit of Measure allows your organization to store the same item in multiple stocking unit of
measures (UOM). Configurable setup is provided, allowing you to define stocking unit of measures at the
organization level, subinventory level, or both levels. This setup configuration provides the ability to
automatically default the stocking UOM when performing inventory transactions. Inventory transaction
processing allows your organization to store and transact material in the correct UOM. These capabilities
ensure the correct stocking UOM is used when replenishing, storing, counting, reconciling, and issuing
material. Additionally, your organization can comply with specific industry requirements such as those within
the Healthcare industry.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 27

This demonstration shows how to create a unit of measure.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 28

This section discusses how to create calendars.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 29

This diagram depicts the following: Shift, workday patterns, schedule or calendar, and exceptions.
Schedule/Calendar
A calendar is defined by a start date, an end date, and a sequence of workday patterns to be followed
between those dates. A workday pattern consists of one or more shifts, which repeat over a defined number
of days. A calendar can also contain exception dates that override the availability of resources to which the
schedule is assigned. Quarter types such as 4-4-5 and 4-5-4 are supported.
• Components of calendars: Shift, workday patterns, exceptions
• Terminology: Calendar and schedule are used interchangeably
Note: The terms calendar and schedule are synonyms.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 30

Calendars/schedules consist of three components:
• Shifts: A shift is a period of time, typically expressed in hours, and it can be defined by a
start time and an end time, or a duration. A shift can be for a work period or an off period.
You can create time, duration, and elapsed shifts.
• Workday Patterns: A workday pattern is a collection of shifts for a specific number of days.
You can create time, duration, and elapsed workday patterns. The workday pattern describes
how a shift repeats, for example, week = 7 days, working days = 5, schedule (take the pattern
definition and give it a time period).
• Exceptions: An exception is a record of a date and time that indicates a specific block of
either working or non-working time such as a holiday. When the exception is applied to a
calendar it overrides the calendar’s definition of working and non-working time accordingly.
First, calendars are composed of workday patterns and exceptions. Workday patterns are composed
of shifts. You can also create exceptions (non-working days) in calendars. Begin by creating shifts,
and then assigning those shifts to workday patterns. Next, create a calendar that is a collection of
workday patterns and any exception dates.
You can manage the following using REST API:
• Workday Patterns
• Shifts
• Schedules
• Schedule Exceptions
For more information, refer to the following link: [Link]
management/20a/fasrp/[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 31

Calendar Usage
A calendar models the breakdown of working and non-working time and may be used by many other
business objects such as warehouses, organizations, and projects. The calendar does not track which
objects are using it, so when exceptions are made to a calendar/schedule definition, they apply to every
business object that uses it. A holiday modeled as an exception must apply to every business object that
uses the calendar.
Calendar Time and Actual Time
A calendar models time, but because it does not know which business objects are using it, the time being
modeled is independent of any specific time zone. Business objects are expected to treat the time as the
local time. Therefore, a calendar that has a workday beginning at 9:00 AM and is assigned to a warehouse
in California implies that the warehouse opens at 9:00 AM. If the same calendar is applied to a project for a
corporate division in Mumbai, the start time for the resources on that project would also be 9:00 AM there.
You can extend an existing schedule by providing a new end date further in the future. Your existing
schedule detail data for working and non-working time is kept, and the additional information representing
the change of date is appended to this set of data. Note that this is controlled by a temporary FSM opt-in
feature. If you are a new customer, you have it on by default, but if you are an existing customer and have
upgraded, you will have to enable the new functionality.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 32

The diagram in the slide depicts how Oracle SCM Cloud uses calendars for planning, promising, and
inventory purposes. The first part of the diagram lists the following entities and the types of calendars they
use: Manufacturing Plant, Inventory Organization, and Trading Partners. The second part of the diagram
explains the use of calendars in Planning, Promising, and Inventory Management.
Planning and promising collect calendars associated to manufacturing plants and inventory organizations,
as well as supplier shipping calendars and customer receiving calendars. They use these to determine
capacity and constraints and to determine available dates for production, shipping, and receiving.
Similarly, inventory uses calendars when determining dates for counts, as well as dates associated with
supply documents such as movement requests, transfer orders, purchase orders, and work orders.
For example, during Ship Confirm, the application validates the actual departure against the following:
• Shipping calendar associated with the location of the organization: If there is no assignment of
a shipping calendar to the organization location and there is any assignment at the organization level
(shipping calendar), then the application defaults the shipping calendar of the assignment at the
organization level and validates against that.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 33

• Receiving calendar for customer: If there is any receiving calendar assigned at the
customer location, then the application considers it for validation. Otherwise, the application
defaults the calendar at the customer level (if any).
• Carrier calendar: If there are any assignments at the organization location or customer
location, then the application considers these calendars. Otherwise, the application considers
the calendar defined at the organization level (for a particular carrier), and the one defined at
customer level (if any).

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 34

This demonstration shows how to create a calendar.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 35

Calendar Exceptions Are Global
When using calendars, it is important to recognize how your objects use them. Consider whether they
should have a common behavior or if they need to work independently.
• Using a single calendar for all objects implies that all should respect the exception if any are
assigned.
• If objects require independence, then separate calendars for each may be preferable.
• Calendars may take advantage of a common set of shifts and workday patterns, but each calendar
requires separate maintenance if the exceptions assigned to a calendar are unique to an inventory
organization.
In Oracle Supply Chain Management Cloud, the inventory organization requires a calendar as the schedule
to use for working time in the warehouse.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 36

Calendar Types
Because the calendar objects are used across applications, a variety of types exist.
• Duration shifts: Used in situations where the start times and end times are not fixed but
where only the availability of time being worked or not worked on any given day is fixed
• Elapsed shifts: Used where the start or end times vary by the resource (such as a person)
using the calendar
• Time-based calendars: Contains a specific start and end time that are used by these
products. This is the only calendar type used in Oracle Supply Chain Management Cloud
applications.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 37

This section discusses flexfields, flexfield segments, and value sets.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 38

To manage flexfields, use the tasks available in the Define Flexfields task list (in the Setup and Maintenance
work area).
Navigation: Navigator > Setup and Maintenance work area > search for: Define Flexfields.
The tasks contained in the Define Flexfields task list are:
• Manage Descriptive Flexfields
• Manage Extensible Flexfields
• Manage Key Flexfields
• Manage Value Sets

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 39

This table describes Descriptive Flexfield with the help of examples.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 40

This table describes Extensible Flexfield with the help of an example.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 41

This table describes Key Flexfield with the help of examples.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 42

The diagram in the slide shows a few fields added to an order page by defining a Part Number key flexfield
and a descriptive flexfield (in two segments) to capture part type and sales representative information.
Oracle application development decides which business objects are defined with flexfields. Some can
accommodate descriptive flexfields and others can accommodate extensible flexfields or key flexfields.
Flexfield attributes are available across the deployment in Web Services, Oracle Business Intelligence,
desktop integration with Application Development Framework, and in search. Any UI page that presents the
business object includes the flexfield attributes that extend the business object.
A single flexfield can capture multiple attributes which you can display in the user interface as fields.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 43

This diagram depicts some miscellaneous issues in inventory.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 44

Flexfield segments are made available to end users as individual fields in the application user interface.
Segments correspond to the user-defined attributes of an entity.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 45

You can create value sets when you create or edit descriptive and extensible flexfield segments.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 46

The diagram in the slide shows a value set being used for a descriptive flexfield’s segments.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 47

This table shows the following types of validation along with their description:
• Format Only
• Independent
• Dependent
• Subset
• Table

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 48

This section discusses the function of the Account Alias and Locator flexfields.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 49

Oracle SCM Cloud has five predefined key flexfields. The Account Alias and Inventory Locator key flexfields
support inventory management capabilities. The Consigned and Valuation Unit flexfields can be used in
cost accounting functions. The Item Categories flexfield can be used to extend item category details in your
item master. The Item Categories key flexfields are discussed in the Catalog Creation lesson of this course.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 50

Account aliases are user-given names for frequently used account numbers. An account alias substitutes for
a lengthy account number and is easier to remember than a full account number. Aliases help users select
the correct account when performing various transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 51

Use the Inventory Locator key flexfield to capture more information about stock locators in inventory.
If none of your items has locator control, you do not need to set up this flexfield. If, however, you keep track
of specific locators such as aisle, rack, row, and bin indicators for your items, you need to configure the
Inventory Locator flexfield and implement locator control.
Details for this key flexfield are as follows:
• Key Flexfield code = MTLL
• Table Name = INV_ITEM_LOCATIONS
• Unique ID Column = INVENTORY_LOCATION_ID
• Structure Column = ORGANIZATION_ID
This key flexfield supports only one structure.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 52

This screenshot depicts the Setup: Manufacturing and Supply Chain Materials Management page and
highlights a few Inventory Management tasks.
You can manage the Account Alias flexfield and the Inventory Locator flexfield by using the Manage Key
Flexfields task in the Setup and Maintenance work area. Alternatively, you can manage these flexfields by
locating the appropriate task in the Inventory Management functional area of the Manufacturing and Supply
Chain Materials Management offering.
Navigation: Navigator > Setup and Maintenance work area > Manufacturing and Supply Chain Materials
Management offering > Setup button > Inventory Management functional area > Tasks table > Show: All
Tasks > Manage Inventory Account Alias Key Flexfield or Manage Inventory Locator Key Flexfield task.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 53

This screenshot depicts the Manage Account Aliases page and highlights that you can use an alias to
quickly reference an account by entering a few characters.
Using the Manage Account Aliases task, customers can specify an easily recognized name or label to
represent a General Ledger account number.
Navigation: Navigator > Setup and Maintenance work area > search for: Manage Account Aliases >
Manage Account Aliases task.
An account alias defines an account number to which you can charge account transactions. During an
account alias transaction, you can use an account alias instead of an account number to refer to the
account.
Example: When you perform miscellaneous issue or receipt transactions, an account alias is used as a
logical reference to a frequently used account number combination.
Trans Type TXN Description TXN Action
Account alias issues Issue material against account alias Issue From Stores
Account alias receipts Receive material against account alias Receipt into stores

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 54

This screenshot depicts the Manage Key Flexfields page and highlights the following:
• Manage Structures
• Manage Structure Instances
• Deploy Flexfield
If you want to define logical references to frequently used account number combinations and use those
references as transaction source types, you need to configure the Account Alias Flexfield and define
account aliases. You must indicate how many separate segments your flexfield has, how many characters
each segment has, and whether you want to validate the values that you assign to the segments.
Details for this key flexfield are as follows:
• Flexfield Code: MDSP
• Table Name : INV_GENERIC_DISPOSITIONS
• Number of Columns: 20
• Width of Columns: 40
• Dynamic Inserts Possible: No
• Unique ID Column: DISPOSITION_ID
• Structure Column: ORGANIZATION_ID
This key flexfield supports only one structure.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 55

Resources
“Oracle Applications Cloud: Configuring and Extending Applications” is available at
[Link]
[Link].
You can access additional documentation on the Oracle Help Center at: [Link]. For more
information about specific predefined flexfields, open the Setup and Maintenance work area, and use
the tasks in the Define Flexfields task list.

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 56

Oracle SCM Cloud: Supply Chain Management Foundation 4 - 57
Schedule: Timing Topic
45 minutes Lecture and Demo
15 minutes Practice
60 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 5 - 2
Before you can create an item, there are several common configuration steps that you need to perform.
These three steps have already been covered in preceding lessons of the SCM Foundation course.
Note: The steps explained here show how to set up an item in Oracle Fusion Applications. If you are using
a Oracle Fusion Product Hub, then more setup may be necessary. A separate Product Information
Management Implementation course is available for customers implementing other Product Information
Management products.
Prerequisite Steps to Create an Item
1. Create an organization: Already covered in the previous lesson
2. Create a unit of measure: Already covered in the previous lesson
3. Adding Life Cycle Phases: An item may go through multiple stages from Prototype to Obsolete.
We’ll discuss this shortly.
4. Configuring Default Item Class: In Fusion Applications all items must belong to an item class.
Oracle Fusion provides a pre-defined item class called ‘Root Item Class’ . While Product Hub
customers can create addition Item Classes as child item class of ‘Root Item Class , all other Fusion
Applications customers can assign items to ‘Root Item Class’ only. Let us discuss this in detail later
in this lesson.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 3

This section discusses various lifecycle phases of items and how to manage default item class.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 4

This diagram depicts the following four phases of the Item Lifecycle.
• Design
• Prototype
• Production
• Obsolete
Sequential lifecycle phases enable tracking and control the lifecycle phases of items. Each phase
represents a set of tasks and deliverables that are required before promoting an item to the next phase. For
example, for an item that can be used in production, the representative lifecycle phase is Production.
Companies may use different terms to describe the same item lifecycle phase. For example, the phases
named ‘Production’ and ‘In Manufacturing’ both refer to the lifecycle phase during which an item can be
used to build and ship products.
Four lifecycle phase types are predefined in the application: Design, Preproduction or Prototype, Production
and Obsolete. You can use the predefined phase types to create new values for the lifecycle phases.
Fusion Applications provide Production as a pre-defined Item Life Cycle Phase that can be assigned to any
Item Class. If your business needs additional Item Life Cycle phases, you can create your life cycle phases
and associate them to item classes. The life cycle phases associate to an item class restrict the phases to
which an item belonging to the item class can be assigned.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 5

This screenshot depicts the Manage Lifecycle Phases page. Lifecycle phase types are seeded and the
lifecycle phase names that are to be used are created using the lifecycle types. Lifecycle phase is a required
field for the creation of an item.
1. Launch the Manage Lifecycle Phases task in the Functional Setup Manager.
2. Click the Add icon to add a row to the Search results table.
3. Enter the sequence, phase name, phase code and select the phase type. The sequence indicates
the order of the lifecycle phases in a lifecycle process. The name is used in the user interfaces and
the phase code is used storage tables.
4. The Sequence number is provided for display purposes only. It has no functional bearing on Fusion
Applications
5. Lifecycle phases are associated with item classes, and the items in an item class can be assigned to
any of the lifecycle phases associated with that item class.
6. Before you create or import items, you must create lifecycle phases and assign those phases to item
classes. When an item is assigned to a lifecycle phase, that phase is visible as part of the item’s
attributes. In item structures, lifecycle phases are used to control specific processes.
Note: The environment has a predefined lifecycle phase that is used. In this environment, the lifecycle
phase is already associated with the seeded item class (root item class).

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 6

This screenshot depicts the Edit Default Item Class: Root Item Class page. In addition, it highlights that the
root item class is seeded in it. In Fusion Applications all items must belong to an item class. Oracle Fusion
provides a pre-defined item class called ‘Root Item Class’ . While Product Hub customers can create
additional Item Classes as child item classes of ‘Root Item Class , all other Fusion Applications customers
can assign items to ‘Root Item Class’ only.
F you are Oracle Fusion Product Model customers, execute Manage Default Item Class task in used in the
Functional Setup Manager.
The Manage Default Item Class task has three tabs:
• Basic
• Lifecycle Phases
• Item Templates
Note: The Root item class has already been associated with pre-defined lifecycle phase in your
environment. You can make changes as needed.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 7

This section discusses some important item terminology and item attributes.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 8

Items represent products and services that you sell or transact, resources that you maintain, and
components that make up your products and services.
Each item that you create has several standard operational attributes that determine the behavior of the item
with respect to various functions, such as Purchasing and Inventory Management.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 9

• Item Relationships: Enables you to relate an item to another item for various contexts
• Item Associations: Enables you to associate items to different business contexts such as
organization, supplier items, and sites. These are also sometimes referred to as intersections.
• Trading Partner Items: Items that represent products from external parties such as manufacturers,
customers, and competitors
• Item Class: A classification hierarchy to logically group products sharing similar characteristics to
create a product taxonomy
• Item Catalogs: A hierarchy for categorizing products belonging to similar product families
• Product Structure/Bills of Material: A product hierarchy consisting of child items that make up an
end item

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 10

Main Attributes
Main attributes are common to all items, and are part of the item’s data model. They describe essential
aspects of the item.
Examples of main attributes include:
• Item Number
• Description
• Long Description
• Status
• Lifecycle Phase
• User Item Type
• Approval Status
• Revision
• Item Class
• Unit of Measure (a group containing eight attributes)

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 11

Operational Attributes
Operational attributes are part of the item’s data model. They determine the behavior of the item with
respect to various Fusion Applications such as Oracle Fusion Purchasing or Oracle Fusion
Inventory. You choose the control level for operational attributes on the Manage Operational
Attributes Control page. For each listed operational attribute group, you select the control level for
each of the group’s attributes. You can control the operational attributes at the master organization
level or at the organization level. You can define operational attributes as part of a new item request.
Examples of operational attributes, with the attribute groups they belong to, are listed as follows:
• Inventory – Shelf Life Days
• Order Management – Shippable
• Purchasing – Negotiation Required
• Receiving – Allow Substitute Receipts
Additional Information Attributes
You can create additional information attributes, which are based on descriptive flexfields rather than
extensible flexfields. Descriptive flexfields can have only one context available at a single time, while
extensible flexfields can have multiple contexts available. If you need only a single category and
usage, then descriptive flexfields are sufficient. You create descriptive flexfields by using tasks in the
Setup and Maintenance work area. For example, use the Manage Catalog Descriptive Flexfields
task to define descriptive flexfields for catalogs. The Additional Information region on the
Specifications tab of the Edit Items page then displays the flexfield context segments based on the
current value of the context.
Transactional Attributes
Some of the transaction oriented Fusion Applications require to capture values specific to an item in
the transaction context. For example , whenever an Automobile dealer sells a car he needs to
capture the VIN number or the License plate number of the specific car sold as part of the
transaction. However , when the same dealer sells floor mats , he does not record any such detail.
Fusion Applications offers a functionality to capture Transaction specific attribute.
These attributes are defined at the item class and their attribute value is captured at the time of a
transaction by downstream applications. The metadata values of these attributes are maintained at
the item class. Order orchestration and order capture systems are two examples of downstream use.
All transactional attributes must be associated with a value set.
The following metadata values can be defined for an attribute.
• Required: Indicates whether the attribute value is required at the transaction
• Default Value: Indicates the default value of the attribute
• Value Set: Indicates the value set associated with the attribute
• Read Only: Indicates whether the attribute value is read only
• Hidden: Indicates whether the attribute is not shown
• Active: Indicates whether the attribute is active or inactive

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 12

This section discusses how to create and define items.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 13

This screenshot depicts the Manage Items page and highlights the Create Item icon in the Search Results
section.
Defining Items
• Create items and apply predefined templates that provide all the basic information to help you get
started quickly.
• Copy from existing product records to reuse existing data and speed up administration of products.
• Create multiple products through the application user interface or through a spreadsheet-based
interface.
• Perform error checking and validation functions in real time while creating a product to ensure a
complete product definition and eliminating potential rework and downstream errors.
Attachments
• Associate unstructured content in various document and image formats as attachments to a product.
• Categorize attachments in various predefined and user-defined categories to organize and provide
quick access to important documents for the product.
• Associate product attachments at a product level that is applicable to all revisions of the product as
well as at the product revision level for revision-specific documentation of the product.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 14

Templates
A template is a defined set of attribute values used during item creation.
• When you apply a template to an item, you overlay or default-in the set of attribute values to
the item definition. For example, every time users in a particular organization create new
items, the attributes—as defined and approved by the organization—appear in the
appropriate fields. No user guesswork is required, and time is saved during the creation of
items with a similar form, fit, and function.
• Templates are created for each item class.
• Templates are specific to organization.
• Templates are inherited down the item class hierarchy.
• You can define both operational attributes and user-defined attributes for each template.
• If more than one item template is selected, they are applied sequentially. This means that if
the same attribute is defined in more than one template, the value of the attribute as set in a
subsequent template in the sequence overrides the previously set value for that attribute.
Creating Single Items
You can begin creating an item on the Manage Items page. Select the Create action in the Manage
Items search results table.
• Start by providing basic information such as master organization, number of items (in this
case, one item), and item class.
• Then you select the templates to apply to the items, sequentially.
• Next, provide the required attributes. If mandatory attributes were defined in the item class,
then they must be provided. You can also provide unit-of-measure details.
• Use the data-level attributes under the Specifications tab to enter or view different aspects of
the item, such as the base standard operational attributes. You can also view the item pages
associated with the item class and inherited by the item for the grouping of base ERP
attributes.
• You can optionally specify descriptive flexfields at the item or item-revision levels.
• While creating items in the user interface, you can optionally:
- Define an item structure
- Assign to organizations
- Create relationships
- Assign catalog categories
- Add attachments
Note: While creating items based on certain attribute values, automated processes for item category
assignments may be executed. If functional area catalogs are not defined, item assignments for
those functional areas are skipped. Background processes and rules may also execute when
creating items in the user interface or through item import.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 15

This screenshot depicts the Create Multiple Items page and highlights “Item Class” and “Item” in it.
Creating Multiple Items
When creating a new item, you have the option of creating more than one item simultaneously. In situations
where you have to create numerous items that share some common characteristics, it is best to use this
procedure.
Creating multiple items begins the same way as creating a single item.
• Whereas you enter one for the number of items under the single item scenario, for multiple items you
enter a number greater than one.
• You are taken to the Create Multiple Items page where you must specify the details for each of the
items in the table.
Note: While creating items based on certain attribute values, automated processes for item category
assignments may be executed. If functional area catalogs are not defined, item assignments for those
functional areas are skipped. Background processes and rules may also execute when creating items in the
user interface or through item import.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 16

Attributes
Indicate whether you want to copy the attributes and then apply the templates, or apply the templates and
then copy the attributes. On the Specification tab, select the list of attribute groups available for copying
attribute values.
Relationships, Organization Assignments, and Attachments
On the Relationships tab, select the relationships, organization assignments, and attachment categories to
be copied to the new item. Select association attributes and their values to copy to the new item.
Structures
On the Structures tab, select the structure to be copied to the new item. You can also decide to create a
common structure.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 17

In this practice, you create a new item in the Root Item class and associate organizations with it.

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 18

Oracle SCM Cloud: Supply Chain Management Foundation 5 - 19
Schedule: Timing Topic
30 minutes Lecture and Demo
00 minutes Practice
30 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 6 - 2
This section discusses key concepts of catalogs and categories.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 3

Catalogs
Catalogs are a way to classify items that meets a business requirement. For example , you may create a
catalog for E-commerce and another catalog for Winter Sports and a third catalog for Off-Season Sales. An
item can exist in multiple catalogs.
Category
• Instead of grouping all the catalogs items together, categories help sub-divide the catalog. For
example you may break down your e-Commerce catalog into Office Products, Men’s fashion , Health
Care, Gloves etc.
• Categories can be constructed into a hierarchy for easy navigation. For example, Health Care
category can be further subdivided into Diet-and-Nutrition and First Aid care. The First Aid care can
be further subdivided into First Aid Kits and Gloves.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 4

This screenshot depicts an example of Catalogs and Categories. The E-commerce catalog has multiple
categories arranged in a hierarchy. Gloves is one of the categories. Multiple Gloves (items) have been
assigned to the Gloves category.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 5

This slide lists some important terms related to catalogs along with their description.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 6

There are two types of catalogs: Functional catalogs and Product catalogs.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 7

This section discusses how to create and edit catalogs.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 8

This demonstration shows how to create the catalog from the Product Information Management work area.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 9

This slide lists out the steps for creating an item catalog.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 10

This screenshot depicts the Manage Functional Area Catalogs page. Functional Area catalogs are managed
through the Functional Setup Manager Task: Manage Functional Area Catalogs
Below are some of the Fusion Applications that use Item Catalogs for their business flows. So you need to
create and assign catalogs as needed. Please refer to documentation for the relevant applications to ensure
that the catalog meets the applications specifications. For example, some of the applications mandate it’s
functional catalog to be of single level .
• Purchasing
• Inventory
• Planning
• Cost
• Order Entry
• Contracts
• Product Reporting

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 11

To create a functional area catalog:
1. Launch Functional Setup Manager by selecting the Setup and Maintenance link in the
navigator or the icon in the spring board page
2. Enter Manage Functional Area Catalogs in the search box
3. Click the Search icon
4. Select the Manage Functional Area Catalogs link
5. Select the row corresponding to the Functional Area you wish to manage
6. Click the Create icon
The Create Functional Area Catalog window appears for the functional area you selected.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 12

This screenshot depicts how you can create or edit a catalog by selecting the functional area and clicking
the create or edit icon.
• Enter the following information to create catalog for the functional area and assign it to the functional
area.
- Catalog Name: A unique name for your catalog
- Catalog code: Defaults from the catalog name
- Description: The description for the catalog.
- Note: Additional fields maybe displayed for the user to enter data based on the seeded rules
that are defined for the functional area catalog
- Functional Area Parameters and Rules: This region contains the seeded rules in read only
format for the functional area. Each functional area can have a set of rules to define how a
catalog should be configured to support the functional area. When a catalog is created and
assigned to the functional area, it is validated against the functional area rules.
- Default Category: Region: If the functional area requires a default category this region is
displayed. The user enters the category name, description. The default category is created
automatically when the catalog is created.
• Click Save and Continue.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 13

This screenshot depicts how you can create a new category using Action in the Category Hierarchy region.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 14

This screenshot depicts the Edit Functional Area Catalog page.
Edit Catalogs: To edit catalogs, perform the following steps:
1. Launch the Manage Functional Area Catalogs task in FSM.
2. Select the row corresponding to the functional area.
3. Click the Edit icon.
Category Hierarchy Tab
• This region contains the category hierarchy for the catalog
Catalog Detail Tab
• This region contains the catalog name and description, an image, the selection of the default
category and the start and end date for the catalog.
• The start and end date enables to control the catalog lifecycle.
Catalog Attachments Tab
• This region contains attachments for the catalog.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 15

The screenshot in this slide depicts the Category Hierarchy tab in the Edit Catalog: Master Catalog page.
The Category Hierarchy tab contains the category hierarchy region in which the category hierarchy can be
created and maintained. In addition, items can be assigned, the usage of the category in other catalog can
be viewed, and the attributes for the category and catalog category association can be edited.
This tab also provides an action to allow the category hierarchy to be edited in a spreadsheet or a complete
hierarchy to be edited. For example, a customer may be using a UNSPC classification. They can download
the spreadsheet to their desktop and cut and paste the UNSPC classification hierarchy into the spreadsheet
and upload the spreadsheet to the system.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 16

This screenshot shows the two ways in which you can share catalog content:
• Sharing by copying
• Sharing by reference
Sharing Catalog Content
• Category sharing allows the reuse of categories or a category hierarchy across catalogs. For
example spring and fall product catalogs are created, many of the products are in both catalogs. The
products that are in both catalogs can be assigned to one or more categories that can be shared
between the catalogs. The user has the option of how they want to share the categories.
• Sharing by reference allows a category and the assigned items to that category to be added to one
or more catalogs. If the category is a parent category, the complete hierarchy for that category is
shared. The shared categories and assigned items are read only in the catalogs where they are
added.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 17

This section discusses how you can assign catalogs.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 18

Many of the Supply Chain Management applications participate in a process which automatically assigns an
item being created to the default category in a functional catalog. Also, if no catalog is assigned to the
functional area, the functional area is skipped in the automatic assignment process.
The automatic assignment process is triggered when one or more item attributes, owned by the functional
area, are set to a specific value when the item is created. Purchasing is a functional area and has a
functional catalog, during item creation if the value of the attribute is set to the seeded rule value, the item is
assigned to the catalog that is assigned to the functional area.

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 19

Oracle SCM Cloud: Supply Chain Management Foundation 6 - 20
Schedule: Timing Topic
45 minutes Lecture and Demo
00 minutes Practice
45 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 7 - 2
This section discusses Product Structures and what they mean in Fusion applications.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 3

This diagram depicts the product structure of a bicycle. Reference designators notes, or instructions
relevant for the assembly. For example, the seat assembly uses 7 screws. The notes mention the details
that one should be in the front and six should be on the sides.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 4

Example for a structure:
A bicycle is made up of one frame, one handle bar, one set of pedals, and two wheels. Each wheel is made
up of spokes, gears, and tire.
Multiple Structures
You can create a structure for each of your business purpose. For example, while an engineering structure
lists the components from building the item, a planning structure lists the components from planning
perspective.
Primary Structure
Explained later
Validation against Product Life Cycle
Explained later
Structure is Organization specific
For an item, a structure may vary from one organization to another. For example, in one organization some
sub-assembly may be manufactured, but in another organization it may be a bought out item.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 5

The table in this slide provides descriptions for Item Structure Types and Common Structures. The table
contains the following:
• Columns: Term, Description
• Rows: Item Structure Types, Common Structures

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 6

This section lists tasks for setting up structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 7

This table lists the setup tasks for structures along with their description. Note that all these tasks are
optional. The table contains the following:
• Columns: Setup Task, Description
• Rows are as follows:
- Manage Structure Header Descriptive Flexfields: DFFs at the structure header
- Manage Item Structure Type Details: Fusion structures have Primary as seeded structure
types. This task flow allows the user to define add additional item structure type.
- Manage Structure Component Descriptive Flexfields (Application Descriptive Flexfield): DFF
at the component levels
- Manage Structure Substitute Component Descriptive Flexfields (Application Descriptive
Flexfield): DFFs at the substitute component level
- Manage Structure Reference Designator Descriptive Flexfields (Application Descriptive
Flexfield): DFFs at the reference designator level
Note: Flexfield-related tasks are optional.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 8

This section discusses the key setup tasks for setting up structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 9

The setup tasks listed in the slide are all optional and perform the following:
• Manage Structures
• Explained in the next slide
• Manage valid component type rules item rule: This tasks is used to define rule to define valid
component types based on key item attributes.
Below are the Description Flexfields that may be optionally defined. Please refer to Lesson-3 for details
about Descriptive Flexfields
• Manage structure header descriptive flexfields: DFFs at the structure header.
• Manage structure component descriptive flexfields application descriptive flexfield: DFF at
the component levels.
• Manage structure substitute component descriptive flexfields application descriptive
flexfield: DFFs at the substitute component level.
• Manage structure reference designator descriptive flexfields application descriptive flexfield:
DFFs at the reference designator level.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 10

This screenshot depicts the Manage Item Structure Type Details page that has the following two sections:
Structure Names and Item Attachment Categories.
• For each business purpose (ex: Engineering, Planning), you can create a Structure. You can create
it by executing Manage Item Structure Type Details task.
• A structure is identified by it’s name, can be made effective for a period
Enable Lifecycle validation
• Every Item has a life cycle phase (Prototype, Design, Production and Obsolete as explained in
Lesson-5, Item Creation). If an Item (example: Bicycle) is in Design phase, then all the components
in its structure (ex: wheel) should also be in Design Phase or in a later phase, certainly not in the
previous phase.
Use Primary for Expansion
• Let us discuss this with an example. An item, say bicycle may have multiple structures and one of
them may be Planning. The Planning structure may include Wheel as one of the components.
Wheel, being an assembly may have multiple structures including Primary. When we expand Bike by
applying it’s Planning structure, and if the Wheel does not have a matching Planning structure, then
its Primary structure is used for expansion.
• Structures can be made active or inactive
Attachment Categories
• You can assign a restricted number of attachment categories to a Structure. For example, you
restrict attachment of CAD drawings only to Engineering structure

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 11

This section discusses the flow for defining and managing product structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 12

A typical Product Structure flow entails creating, managing, and comparing a product structure.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 13

This section discusses various ways in which you can create product structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 14

Product structures can be created in the following ways:
• Create as New: You can create a new structure by adding the required components and their
information.
• Create from Copy: If the new structure is similar to an existing structure, you may copy and make
necessary changes.
• Create from Common: If you have a need to ensure that multiple organizations share the same
structure, you can make it common with the structure from a source organization. When structures
are common, any change made to the structure in the source organization is automatically available
to the target organizations. Such common structures can not be edited in the target organization.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 15

An item structure exists only in the organization in which it was created. To share the same structure in
another organization, you must common it.
These screenshots depict the Create Item Structure and the Create New Item Structure pages. Product
structures can be created by executing “Create Item Structure”. The same can be performed from within Edit
Item UI as well.
Create as New:
• To create a new structure for an item:
- Specify the organization and the item for which you want to create the structure and click OK
.
- Specify the structure name that you want to create. For example, Production.
- Specify the effectivity control.
Start date is defaulted to the system date but can be edited. End date is entered by the user. The same
component can be added to a structure for different, non-overlapping effective date intervals. The other
options for effectivity control are serial and unit effective.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 16

The screenshot depicts how to specify the quantity of the item or sub-assembly used in this structure. Note
that the components that you add to the structure could be an item or a sub-assembly. For example, the
Bike is made up of a unit of Frame and two units of pedal assembly etc.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 17

This screenshot depicts how, in an assembly, you can substitute one component with the other. In this
example, instead of M1_Screws, you can use M1_Rivets. You can also specify the quantity used by the
substitute item.
Planning bills and model, option class, and planning components cannot have substitute components.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 18

This screenshot depicts that Reference designators notes, or instructions relevant for the assembly. For
example, the seat assembly uses 7 screws. The notes mention the details that one should be in the front
and six should be on the sides. The following are highlighted in the screenshot:
• Seat Assembly
• Reference Designators
• Reference Designator

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 19

This screenshot depicts how you can view details of the structure under the Where Used tab. The following
is highlighted in this screenshot: M1_Screws.
For any of the items, you can view the list of assemblies and sub-assemblies where the component is
consumed. For example M1_screws are used in sub-assemblies Pedal and Seats that go into the item Bike.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 20

The screenshots depict the Edit Item Structure page and highlight the View Summary button.
• An item structure may be made up of unlimited levels of components. For example, Bike is made up
of multiple sub-assemblies, for example, Wheels, Pedals, and Seats. Each sub-assembly may have
its own sub-assemblies. Sometimes it may be convenient to view the assembly in a single level. This
is known as Flat View or Summary View.
• To view the summary view, click View Summary. The system produces a unique list of components
summarized by the quantities used in various sub-assemblies. For example, M1_Screws are listed
as 9 units, where 2 units used in Pedal assembly and 7 units used in Seat assembly.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 21

This screenshot depicts the Edit Item Structure page that allows you to view change orders for an assembly.
The screenshot highlights the Change Orders tab.
An item assembly may have a few components that are being processed through Change Orders. In such
cases, you can view the number of change orders by clicking the Change Orders tab.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 22

This table shows different effectivities along with restrictions across which you can copy structures. You can
create a new structure by copying a nearly identical one and then making necessary changes. The table
contains the following:
• Columns: Structure Effectivity: Source, Structure Effectivity: Target, and Copy Allowed?
• Rows: Date, Serial, and Unit/Lot
The following are the steps to create a structure by copying an existing one:
1. Select an item that you want to copy.
2. Preview the components being copied (select the components to copy).
3. Specify new structure details, such as name, description, and effectivity.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 23

Create from Common: Features
• Common structures are identical to the source structure from which they are made common.
• The target structure is created with the same effectivity as the source structure.
• The structure type of the common structure should be the same as its source structure.
• You can create a common structure within the same organization, as well as across multiple
organizations.
• You can reference structures only from organizations that have the same item master organization
as the current organization.
• Common structures maintain a reference to the source structure from which they are created. Any
changes to source are also reflected in the common structure.
• If two or more organizations must use the same item structure. You can define the structure in one
organization and use it as the source from which to create common structures in other organizations.
• You cannot update any information in a common structure (some exceptions apply that you learn
about in the next few slides).
• Any maintenance, such as removing or adding components, or changing component attribute
values, has to be made against the source (referenced) structure.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 24

This section discusses how to manage and maintain common structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 25

The diagram depicts the following five material control attributes: Supply Type, Subinventory, Locator,
Operation Sequence, and Include in Cost Rollup.
Allow Attribute Updates
• You can enable this option only when you are creating a common structure. You cannot enable this
option once the common structure has been created. Evaluate the business need thoroughly before
creating the common structure.
• Once you enable the Allow Attribute Updates option in a common structure and save the structure,
you cannot disable the attributes. If you must disable the attributes, then delete the structure and
enter a new common structure for the item.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 26

This section discusses how structures and components are validated.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 27

When you create, copy, or change a structure, the following validation rules are applied:
• Lifecycle validation rules, when enabled, ensure that only components in the same lifecycle phase or
higher lifecycle phase than the parent item can be added. The only exception is made for an
obsolete lifecycle phase. Component items in this lifecycle phase cannot be added to an effective
structure.
• For Assemble to Order, Pick to Order, and phantom structures where the parent item has Available
to Promise (ATP) Components set to No, you receive a warning when you add a component that has
either the item attributes Check ATP set to Yes, or ATP Components set to Yes. The warning
displays “Order details for the parent item specify NO for ATP Components,” but you can add the
component.
• You cannot add an optional component to a structure that is neither model nor option class.
• You cannot add a component whose planning percentage is not equal to 100 to a standard structure.
• When adding a component to a structure, the Check ATP component attribute is set to No if the
component quantity is less than or equal to 0.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 28

This demonstration shows you how to create item structures.

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 29

Oracle SCM Cloud: Supply Chain Management Foundation 7 - 30
Schedule: Timing Topic
30 minutes Lecture and Demo
00 minutes Practice
30 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 8 - 2
This section discusses how Inventory fits into Oracle’s SCM Cloud offering.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 3

This diagram depicts Oracle SCM and Manufacturing product offerings, including Product Master Data
Management, Product Lifecycle Management (PLM), Order Management, Logistics and Transportation
Management, Procurement, Inventory and Costing, Value Chain Planning, and Manufacturing applications.
These products are all integrated with country-specific globalization and localization functionality.
Additionally, the applications support social network capabilities, mobile capabilities, analytics, financial
reporting, and integration to other systems.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 4

This section discusses the capabilities of Oracle Inventory Management Cloud.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 5

This diagram depicts that Oracle Inventory Management Cloud Service offers a complete materials
management solution that enables companies to successfully manage the flow of goods: inbound, within the
warehouse or stocking location, and outbound.
Consider the following:
• Inventory is a major asset for many organizations, and effectively managing inventory, including the
related inventory movement transactions, can impact your bottom line.
• Cost Management allows cost professionals to capture, track, and analyze costs associated with
inventory items as they move through the supply chain.
• Supply Chain Financial Orchestration allows companies to automate the financial flow execution for
internal trade between parties independently from the physical movement of goods and fulfillment of
services.
• Supply Chain Orchestration provides a tool to configure, orchestrate and monitor complex supply
flows.
Together, these products form Oracle Inventory Management Cloud Service.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 6

This diagram depicts that Inventory Management Cloud Service builds on its core support of the indirect
materials handling in the Source to Settle process and simple Order-to-Cash flows to include the Plan-to-
Produce business processes for both internal and contract manufacturing scenarios. This is in support of the
new SCM products: Oracle Manufacturing Cloud Service and Planning Cloud Services.
Across the supply chain, Oracle Inventory Cloud Service has been enhanced to support advanced fulfillment
methods such as drop ship, back-to-back and configured to order flows.
Transfers of goods between locations is also enhanced via a new document called Internal Material
Transfer. This new Transfer Order is a single document controlling the fulfillment, in-transit and receipt of
interunit, intraunit or intercompany transfer (AND RETURNS) allowing for better visibility and change
management.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 7

This diagram depicts the high-level tasks for the following roles in Receiving:
Receiving Agent
• Purchase Inventory
• Receive load
• Manage invoices
• Inspect material
• Disposition returns
• Manage supplier returns
Warehouse Operator
• Put away
• Manage cost accounting

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 8

Requester, Preparer, On Behalf
• Manage receipts
• Manage receipt accounting
Receiving supports the following:
• Supplier ASNs/ASBNs support from Supplier Portal, B2B
• 1, 2 or 3 step receiving
• Corrections and returns
• Supplier consigned
• Web Services and spreadsheet uploads

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 9

This diagram depicts the high-level tasks for the following roles in Inventory:
Warehouse Manager:
• Review inventory balances
• Analyze materials management
Inventory Manager:
• Define ABC classifications
• Min-max replenishment
• Manage consigned goods
• Purchasing inventory manufacturing and maintenance
Warehouse Operator:
• Manage inventory transactions
• Perform counts
• Execute movement requests
• Manage cost accounting

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 10

Inventory supports the following:
• New Transfer Order document
• Visibility and management of consigned materials from supplier including transfer of
ownership
• Manufacturing for issues/returns of components and completions/returns of assemblies
• Min-Max support of Transfer Order and Work Order replenishment types
• Lots, serials and Material Status
• Movement requests and Transfer Orders
• Miscellaneous transactions and transfers
• Cycle count and physical inventory
• Min-Max replenishment (buy or transfer)
• Supplier consigned goods visibility and management
• Web-Services and spreadsheet uploads

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 11

This diagram depicts the high-level tasks for the following roles in Shipping:
Warehouse Manager:
• Reserve inventory
• Manage pick waves
Warehouse Operator
• Pick loads
Shipping Agent:
• Process and confirm shipments
• Communicate with trading partners
• Capture shipping costs
• Manage cost accounting
Note that Shipping supports the following:
• Transfer Orders and Movement Request Fulfillment
• Reservations, Pick Waves, Pick Confirmation as well as Web-services for Shipping Requests, Pick
Confirmations, ASNs and Manifesting
• Manage and Confirm Shipments
• Supplier Consigned

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 12

This diagram depicts Advanced Fulfillment Support that includes the following:
• Configured or Standard Products
• Planned and Promised
• Executed and Changed Real Time
One of the strengths of our cloud suite compared to other clouds is the integrated, end to end orchestrated
processes that can be planned in advanced, and promised via GOP, and executed directly to customer
order.
Once promised, our orchestration engine picks it up and automatically creates and reserves the supply to
the customer order line. Any changes to supply or demand are automatically synchronized. All are
supported for standard and configured products. For configured products: details are passed onto the
supplier via the purchase order details, to manufacturing via a configured work definition/job.
Let’s discuss some differentiators:
• We can plan for and promise drop ships in the SCM cloud, allowing you to more accurately serve
your customers
• Procurement natively understands when it is buying a configuration. It holds the model and option,
and calculates a price for the configured item based on the prices of the model and options. Model
and option information are communicated to the supplier through all communication methods – print,
email, supplier portal, etc.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 13

The Configure to Order (CTO) process is designed so that the configured BOM and Routing are
generated dynamically, when you need them for planning or manufacturing, ensuring you always
have the most up to date set of mandatory components and routing steps. Transactional Item
Attributes are also eligible for use in the matching process.
Back to back orders also have automatic change management – so that if a customer cancels an
order pushes it out before the supplier has shipped, we automatically push out the purchase order.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 14

This diagram depicts that Cost Management includes Cost Planning, Transaction Capture, Cost Processing,
Accounting, and Reporting.
• Simplified Standard Cost updates: All standard cost entry tasks are consolidated and are now
performed directly in the Manage Cost Scenario page.
• Define retroactive Standard Cost effectivities
• Preview Standard Cost impact on inventory valuation
• Use mapping sets to simplify setups in subledger accounting: This release adds predefined mapping
sets for each of the more than 60 accounting line types that Cost Accounting and Receipt
Accounting support.
• Easily analyze on-hand inventory valuation: To facilitate the monitoring of your investment in
inventory you can now query and view on-hand inventory valuation on the Review Inventory
Valuation page. The on-hand costed quantities, unit costs and valuations may be viewed and
analyzed as of a current or past date.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 15

This diagram depicts the physical movement (including shipment, receipt, etc.) and financial ownership
(including orders, invoices, payments, etc.) of Supply Chain Financial Orchestration.
• Calculate transfer price using pricing strategy: You can now choose to use the advanced pricing
capabilities of Oracle Fusion Pricing to calculate the transfer prices on any financial route.
• Define enhanced financial orchestration qualifiers: Item Number, Item Class, User Item Type,
Destination Type (Expense/Inventory)
• Dual view of Supply Chain Financial Orchestration: This feature provides a simplified, more intuitive
view of the financial orchestration flow for simple implementations where the financial orchestration
flows do not have multiple financial routes.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 16

This diagram depicts that Supply Chain Orchestration automatically selects the correct process based on
user-defined rules when a supply creation is initiated.
• Contract Manufacturing requires Procurement and Manufacturing. It may require Order Management
if customer orders are to be shipped directly from the contract manufacturer.
• Configure-to-Order requires Order Management. In addition, it may require Configurator (unless
orders are coming in already configured), Manufacturing (if the configurations are done), and/or
Procurement (if the configurations are bought).
• Min-Max Planning may need licenses to Procurement and Manufacturing if min/max requests are
sourced to a supplier or sourced to manufacturing.
• Planning requests require a license to Planning Central. Additionally, Order Management,
Manufacturing, and Procurement licenses may be required, if planning is to make or buy and look at
customer demand.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 17

In this practice, you review some infolets to get more detail about the KPI and flip or expand others to see
the information in different contexts.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 18

This section discusses how to capture E-Signatures and E-Records for Inventory, and how Inventory
integrates with external systems.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 19

You can use the Oracle E-Signatures and E-Records Cloud to securely capture, store, retrieve, and print e-
records and e-signatures.
Critical transactions governed by US Food and Drug Administration's (FDA) good manufacturing practices
(GMPs) requirements have inbuilt validations that necessitate the use of e-signatures and e-records. In E-
Signatures and E-Records, the validations are available for critical supply chain management business events
for Oracle Manufacturing Cloud, Oracle Inventory Management Cloud, and Oracle Quality Inspection
Management Cloud.
Using E-Signatures and E-Records, you can search for, view, and download e-records that contain information
about transactions and signers or approvers. You can also specify the supply chain management transactions
types for which e-signatures are required, and set up the approval process flows that must be followed. In
addition, you can include e-signatures and comments from reviewers at the end of an electronic record report.
You can access the e-signature history from the Electronic Signatures work area.
Oracle E-Signatures and E-Records Cloud facilitates secure transactions for business events in Oracle
Manufacturing Cloud, Oracle Inventory Management Cloud, and Oracle Quality Inspection Management
Cloud. The e-signatures and e-records approval processes can be of the following types:
• Inline approval process: In this process, the approvals must be obtained before a transaction is saved. You
cannot save a transaction if the record is rejected.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 20

• Deferred approval process: In this process, transactions are saved in a pending approval status
before initiating the e-signature process. The transaction is updated to an approved status after the
approvals are obtained.
During the signing process, you are required to enter the user name along with the password while
generating e-signature for inline and deferred transactions. In addition, you can review electronic
record and electronic signature details for both inline and deferred approvals in a PDF file on the E-
Signature page.
Inventory Management has enabled key inventory transactions to support electronic signatures,
ensuring that the appropriate personnel have reviewed and approved them. Specifically, receiving
transactions such as receipt, put away, and correction have been enabled for electronic signature.
Miscellaneous inventory transactions and ship confirmation transactions have also been enabled for
electronic signatures. For example, you can capture electronic signatures inline while performing
receipt transactions. For these transactions, e-records are automatically created and then managed
through the electronic records work area.
The Supply Chain Application administrator can configure electronic signature preferences by
transaction type and inventory organization. This allows the user to configure selected transactions for
electronic signature capture and electronic record keeping. Additionally, users can configure the
supported transaction types by inventory organization.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 21

Oracle Fusion Inventory Management supports a central integration framework for working with third-party
logistics (3PL) providers and warehouse management systems (WMS). The inventory management suite of
products include Oracle Fusion Receiving, Oracle Fusion Inventory Management, and Oracle Fusion Shipping.
This diagram depicts the new Inventory Balance Reconciliation providing a method for synchronizing inventory
balances from a 3PL or WMS:
• Accept inventory balances from 3PL/WMS
• Provide a web service for an external system to post inventory balance messages
• Support importing inventory balance messages in bulk (SaaS) spreadsheet
• Allow users to resolve any processing exceptions
• Purge inventory balance messages periodically
You can also manage the following using the REST API:
• Inventory transactions
• PAR replenishments
• Physical inventory
• Pick confirmations
• Inventory on-hand balances and Inventory consumption advice
• Packing units
• Receiving transaction history
For more information, please refer to the following link: [Link]
management/20a/fasrp/[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 22

A transportation management system helps manage tendering and scheduling shipments in a more optimized
and efficient manner.
A trade management system helps ensure material shipped adheres to the various compliance policies such
as party, region, and product restrictions.
Trade Management integration enables order managers to perform compliance screening directly from both
Order Management and Shipping. Order Managers can request compliance screening for order lines.
Additionally, shipping users can check trade compliance for shipment lines.
Transportation Management integration enables order managers to send order lines to a transportation
management system for planning. Once the order lines have been planned the transportation details are sent
back to Shipping for further processing.
This diagram depicts outbound integration of Inventory Cloud to Transportation and Trade Management
Systems.

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 23

Oracle SCM Cloud: Supply Chain Management Foundation 8 - 24
Schedule: Timing Topic
30 minutes Lecture and Demo
00 minutes Practice
30 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 9 - 2
This section discusses the uses of inventory transaction.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 3

This diagram depicts various inventory transactions. These include:
• Receiving items into the organization (Purchase Order Receipt)
• Transferring items between two organization (Interogranization Transfer)
• Transfer or move items within the organization (Subinventory Transfer)
• Issue items out of the organization (Sales Order Issue)
A transaction refers to an item’s movement into, within, or out of inventory.
• A transaction changes the quantity, location, planning responsibility, or cost of an item.
• Oracle Fusion Inventory Management supports a number of predefined and user-defined transaction
types.
Every material movement has a corresponding set of accounting transactions that Oracle Fusion Inventory
Management automatically generates. All transactions validate the various controls (revision, locator, lot,
dual unit of measure, and serial number) that you enable for your items.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 4

This section discusses sources, actions, and types of inventory transaction.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 5

Inventory transaction types classify and categorize the movement of material into and within your
organization, and the issuing of material out of your organization.
Here are some examples of how inventory transaction types are used:
• Receive items into your organization.
• Issue items out of your organization.
• Transfer items from one subinventory in your organization to another.
• Transfer items between organizations.
• Ship or confirm a customer sales order.
The diagram depicts several examples of inventory transaction types.
Example 1
The first example is an interorganization transfer. On the left is the source organization, and on the right is
the destination organization. In this example, inventory is being transferred from the source organization M1
to the destination organization M2.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 6

Example 2
The second example depicts a subinventory transfer. Subinventory transfers enable you to transfer
items from one subinventory to another within the same inventory organization. In the example,
inventory is being transferred from the FGI subinventory to the Stores subinventory.
Example 3
The final example depicts a sales order issue. A sales order issue is used to issue material to a
customer against a sales order document. For example, a sales order issue is used to ship inventory
from Organization M1 to customer Computer Service and Rentals.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 7

This screenshot depicts the Manage Inventory Transaction Sources and Types page and highlights the
following:
• Transaction Source Name
• Transaction Type Name
• Transaction Action Name
Transaction Type
A transaction type is used to classify transactions.
Examples of transaction types are:
• Purchase Order Receipt
• Sales Order Issue
• Subinventory Transfer
A transaction type is a combination of a transaction source and a transaction action.
Transaction Source
A transaction source is the type of entity against which a transaction is charged. Along with a transaction
action, a transaction source uniquely identifies a transaction type.
Examples of transaction sources are:
• Account Alias
• Cycle Count
• Physical Inventory

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 8

 • Movement Request
• Inventory
• Purchase Order
• Sales Order
Transaction Action
A transaction action is a system-defined type of material movement or cost update.
Examples of transaction actions are:
• Receipt into stores
• Issue from stores
• Cycle count adjustment
• Physical inventory adjustment
• In-transit receipt
• In-transit shipment
• Direct organization transfer
• Subinventory transfer
You can define additional inventory transaction sources in the Manage Inventory Transactions
Sources and Types user interface. You can use user-defined transaction sources and predefined
transaction actions to define new transaction types. User-defined transaction types enable you to
track transactions to group and sort transactions by type. When you perform a transaction, you
specify a transaction type and a source. For example, for a purchase order receipt transaction, the
transaction type is Purchase Order and the actual purchase order number is the source.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 9

This section discusses system and user-defined inventory transaction types.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 10

This table depicts several commonly used predefined inventory transaction types. The table contains the
following:
• Columns: Transaction Type, Transaction Source, and Transaction Action
• Rows: Purchase Order Receipt, Cycle Count Adjustment, Account Alias Issue, Direct Organization
Transfer, Movement Request Transfer, Miscellaneous Receipt, Physical Inventory Adjustment, and
Sales Order Issue
The Manage Inventory Transaction Sources and Types user interface enables you to search for user- or
system-defined transaction types.
A user-defined transaction type is a combination of a user-defined transaction source and a predefined
transaction action.
• For example, if you frequently donate items to charity, you might want to define a transaction source
called Charity and a transaction type called Issue to Charity.
• In this case, the transaction action would be Issue from Stores.
• You would then use the Miscellaneous Transactions window to actually issue an item to charity by
using the Issue to Charity transaction type.
• You would also specify the actual charity to which you are issuing, such as Goodwill, and the
expense account that specifies the source (Goodwill).

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 11

This section discusses various types of inventory transaction setup user interfaces.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 12

This table shows additional inventory transaction setup tasks along with their description. The table contains
the following:
• Columns: Setup Task, Description
• Rows are as follows:
Manage Account Aliases
The Manage Account Aliases user interface is used to define easily recognized names or labels
representing a general ledger account number. You can view, report, and reserve against an account alias.
During a transaction, you can use the account alias instead of an account number to refer to the account.
Manage Interorganization Parameters
The Manage Interorganization Parameters user interface allows you to define relationships that exist
between shipping and destination organizations. You can specify whether an organization is a shipping
organization, a destination organization, or both. For each organization relationship you create, you must
indicate what type of shipments to use. If you choose to use in-transit inventory, Oracle Fusion Inventory
Management moves material to an in-transit inventory before it reaches the destination organization when
you perform an interorganization transfer. Typically, you transfer material through in-transit inventory when
transportation time is significant. If you do not choose in-transit inventory, Oracle Fusion Inventory
Management moves your material directly to the destination organization when you perform an
interorganization transfer.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 13

Manage Item Transaction Defaults
The Manage Item Transaction Defaults user interface is used to define a default subinventory and/or
locator for an item for shipping, receiving, and movement request transactions. Oracle Fusion
Shipping displays the default shipping information when you ship an item. Oracle Fusion Receiving
displays the default receiving information when you receive an item. For movement requests, Oracle
Fusion Receiving derives the default put-away locator when you transact an item into a locator
controlled subinventory if no locator was specified by the creator of the movement request.
Manage Inventory Transaction Reasons
The Manage Inventory Transaction Reasons user interface enables you to define transaction
reasons. Transaction reasons are used as a standard means of classifying or explaining the reason
for a transaction. Transaction reasons can be used in all transaction forms. You can use these
standard transaction reasons with any type of material transaction. Oracle Fusion Inventory
Management provides transaction reporting and inquiring capabilities by transaction reason.
Manage Lot Grades
The Manage Lot Grades user interface enables you to define grades that can be associated with a
lot. For example, you can define a lot grade such as excellent. When lot controlled material is
received and the material is in excellent condition, you can associate the lot grade of Excellent with
the material.
Manage Lot Expiration Actions
The Manage Lot Expiration Actions user interface enables you to define action codes to determine
the action that you perform on a lot when it expires. You can assign a lot action to an item if you set
the item under shelf life control on the item master. You can determine a default expiration action on
the item master, or assign expiration actions on the lot master, or when you transact the item.
Manage Lot and Serial Attributes Mapping
The Manage Lot and Serial Attributes Mapping user interface enables you to assign lot and serial
number attribute descriptive flexfield context to an item or item category.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 14

This section discusses how to set up inventory transaction profile options.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 15

This slide shows Inventory Profile Options along with their descriptions and profile value options. The table
contains the following:
• Columns: Profile Option, Description, and Profile Value
• Rows: Miscellaneous Issue and Receipt Processing Mode, Inventory Transaction Batch Size,
Expense to Asset Transfer Allowed, and Interogranization Transaction Processing Mode
Here are the definitions of background and concurrent processing:
• Background Processing: Upon commit, control returns immediately to you, allowing you to
continue working. The miscellaneous issue and receipt transactions are executed on a periodic
basis.
• Concurrent Processing: Upon commit, Inventory Management spawns the concurrent process and
returns control immediately to you, allowing you to continue working. Displays the concurrent request
number representing the concurrent process executing the miscellaneous issue and receipt
transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 16

This slide shows additional Inventory Transaction Profile Options along with their descriptions and profile
value options. The table contains the following:
• Columns: Profile Option, Description, and Profile Value
• Rows: Subinventory Transfer Processing Mode, Transaction Date Validation Enabled, and
Transaction Processing Mode

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 17

In this practice, you create a user-defined Inventory Transaction Source and Inventory Transaction Type.

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 18

Oracle SCM Cloud: Supply Chain Management Foundation 9 - 19
Schedule: Timing Topic
25 minutes Lecture and Demo
15 minutes Practice
40 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 10 - 2
This section discusses the concept of lot control.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 3

The diagram depicts the difference between lot-controlled and non-lot controlled items through an example.
• A lot can represent a quantity of an item that shares the same specifications, one or more receipts
from the same supplier, or whatever you choose.
• You can divide each lot into child lots that can reflect whatever characteristics you choose for items
within the lot. For example, you may divide a lot of items from a supplier into child lots to reflect
differences in quality specifications.
• When you allocate stock for production, you can allocate specific lots to a production batch based on
the potency, age, or other item characteristics. Oracle Fusion Inventory Management provides
complete lot number support for inventory transactions.
• You can enable lot control for specific items in your inventory. For items under lot control, you assign
lot numbers to each receipt and thereafter reference the same lots each time you perform material
transactions. This enables you to have tight control over lot-controlled items in your inventory.
• All the material produced in a manufacturing batch may be assigned a lot number. For example, you
can create a manufacturing batch of penicillin and assign it a parent lot number A100. You can then
use parent lot A100 to create child lot A100_01 to make pills, child lot A100_02 to create emulsion,
and child lot A100_03 to create capsules. Each child lot has the same ingredients as the original
parent lot A100, but they are in a different form.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 4

This section discusses how you can define Lot control attributes when creating an inventory organization.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 5

This screenshots highlights the following on the Lot, Serial Number, and Packing Unit tab:
• Lot Control attributes
• Lot Generation parameters
• Child Lot Control parameters
Specifying Lot Number Uniqueness
You use the Inventory Organization Parameters window to specify whether lot numbers should be unique
for an item.
• If you do not establish lot number uniqueness, you can assign the same lot number to multiple items
in the same organization and across organizations.
• If you control lot number uniqueness at the item level, you can assign a specific lot number only to
one item in the same organization and across organizations.
When you perform transactions, Oracle Fusion Inventory Management checks the lot number uniqueness
control to generate lot number defaults.
Specifying How to Generate Lot Number Defaults
You use the Organization Parameters window to specify how to generate lot number defaults.
• You can generate sequential lot numbers based on an alphanumeric prefix that you specify when
you define an item.
• Oracle Fusion Inventory Management can also generate lot number defaults for the entire
organization. In this case, you must define a lot number prefix at the organization level in the
Organization Parameters window.
Note: If you do not want Oracle Fusion Inventory Management to automatically generate lot number
defaults for you, you can enter your own lot numbers when you receive items. You can always
override lot number defaults.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 6

This section discusses lot control item attributes, such as grade and serial number control.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 7

This screenshot highlights Lot as well as Lot Expiration attributes. In the Control drop-down menu, you can
either select Full lot control or No lot control.
Item Attributes
You can establish lot control for an item when you define it.
• You can select either No lot control or Full lot control. If you choose Full control, then you must
assign lot numbers when you receive the item into inventory. Thereafter, when you transact the item,
you must provide a lot number that you specified when you received the item.
• You can update lot control options for an item if it has zero on-hand quantity.
• You cannot change lot control when open internal orders or interorganization in-transit shipments
exist.
• A lot number is a combination of an alphanumeric prefix and a numeric suffix.
• When you define an item, you can specify the starting lot prefix and the starting lot number. Oracle
Fusion Inventory Management uses this information to generate defaults during transaction entry.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 8

Shelf Life Days
Shelf life is the amount of time that an item can reside in inventory before it expires. When defining
items under lot control, you can choose no control, a certain number of item shelf life days from the
date that you receive the item, or a user-defined expiration date for each lot. The system does not
consider the expired lot as on-hand supply when it performs min/max planning.
Note: You cannot reserve an expired lot.
Grade Control
A grade is a rating that you assign to an item lot for quality control purposes. Grades are usually
based on criteria such as color, size, or quality of the lot. For example, the grade of a lot of paint
could be excellent, average, or poor. A grade is a characteristic of an item lot and never a lot
location.
Lot grades are used for informational purposes within Oracle Fusion Inventory Management to help
the warehouse operators pick certain grades for orders. They can also be used by Oracle Fusion
Cost Management to account for different grades separately.
Expiration Action
Expiration actions are used for informational purposes to tell users what to do when lots for an item
are expired. Examples may include Destroy or Retest.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 9

This section discusses how to manage new and existing lots.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 10

The diagram depicts a high-level overview of the process of Lot Management. It includes assigning new lots
and maintain existing lots. You can manage new lots and existing lots.
• You have the ability to pre-assign lots or assign lots while performing material transactions. For
example, when performing a receipt transaction, you can assign a lot to an inventory item or group of
inventory items. Additionally, a single receipt can be split into multiple lots.
• The Manage Lots user interface enables the warehouse manager and warehouse operator to view,
create, and edit lots. Lot attributes such as origination date, parent lot, material status, and
origination type can be viewed by the user. Users can also view the on-hand quantity associated
with a lot by selecting the View On-Hand Balances action.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 11

This section discusses serial numbers and the process of generating them.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 12

This diagram depicts the concept of serial number controlled items through an example.
• A serial number is an alphanumeric piece of information that you assign to an individual unit of an
item.
• You use serial numbers to track individual item units.
• Serial number control is a system technique for enforcing the use of serial numbers during material
transactions.
• You can use serial numbers to track items over which you want to maintain very tight control.
• One serial number is assigned to an individual unit of an item.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 13

This diagram depicts how you set up serial number control at the master item level determines serial
number generation:
• If you specify No Serial Number Control as the serial number generation option, then the system
does not enforce serial number control.
• If you specify Predefined Serial Number as the serial number generation option, then you must
predefine serial numbers for the item.
• If you select Entry at sales order, transfer order, or work order issue as the serial number generation
option, then you can enter the serial number when performing a sales order, transfer order, or work
order issue transaction.
• If you specify Entry at inventory pick as the serial generation option, then you can enter the serial
number at the time of picking.
• If you select Dynamic entry at inventory receipt as the serial number generation option, then you can
dynamically enter serial numbers when performing a receipt transaction.
Oracle Fusion Inventory Management uses the starting serial number prefix and the starting serial number
that you specify in the Item window to load the number of predefined serial numbers you request. You can
load as many serial numbers as you want for any item under serial number control.
The process of generating serial numbers is done through a scheduled process. This process does not
assign numbers to units in inventory. It simply reserves specific serial numbers for an item for later use.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 14

The Capture Serial Numbers at Pick feature enables you to enter serial numbers further upstream in
the fulfillment process, providing the ability to capture serial numbers at the time of picking. Since serial
numbers are entered at pick confirmation, the Shipping Agent does not need to scan or enter serial
numbers during the ship confirm process. This alleviates work on shipping personnel and results in the
efficient processing of outbound shipments.
The Confirm Pick Slips, Manage Shipment Lines, and Review Completed Transactions pages support
serial number entry at pick. The SOAP and REST-based web services support serial number entry at
pick.
Add Multiple Serial Numbers
When recording serial numbers for inventory, receiving, and shipping transactions, you have the option
to enter a single serial number, a range of multiple serial numbers, or a multiple serial numbers that are
not in a range. On the Record Serials page, select the Select Serial Numbers button. This takes you
to the Select: Serials page where you can select and add multiple serial numbers even when they are
not in a range.
Note. This action is not available when generating serial numbers.

E-Record and E-Signature for Lot and Serial Attribute Changes: This feature provides you with the
ability to capture an e-record and e-signature when updates are made to lot or serial number attributes
on either the Manage Lots or Manage Serial Number pages. This feature also includes an in-line e-
record pdf report that includes an electronic signature history and formatting rules consistent with other
inventory management e-record reports. The in-line report also captures the user name and password
of the approver.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 15

This diagram depicts the concept of serial uniqueness within items, within organization, and across
organizations through three examples.
Unique Within Items
You cannot assign the same serial number to the same item, regardless of whether that item exists in the
same or a different inventory organization.
For example, if you assign serial number SN100 to item A, you cannot assign serial number SN100 to any
other instance of that item in any inventory organization. You could, however, receive a different item with
serial number SN100 in any inventory organization.
Unique Within Organization
The same serial number uniqueness rules apply as when you set serial number uniqueness control to be
within items. Additionally, setting serial number uniqueness control to be within an organization prevents the
same serial number from existing multiple times within the same inventory organization.
For example, if you assign SN100 to item A in a particular inventory organization, you cannot receive item B
with serial number SN100 in the same inventory organization. You can, however, receive item B with serial
number SN100 in any other inventory organization.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 16

Unique Across Organizations
The same serial number uniqueness rules apply as when you set serial number uniqueness rules to
be within an organization. Additionally, setting serial number uniqueness control to be across
organizations prevents the same serial number from being assigned to more than one item,
regardless of the inventory organization.
For example, if you assign SN100 to item A, you cannot receive item B with the serial number
SN100 in any inventory organization. In this example, SN101 and SN100 belong to different
inventory organizations.
When you assign a particular inventory organization’s serial number uniqueness control to be across
organizations, serial number uniqueness is similarly restricted for all inventory organizations.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 17

This section discusses lot and serial tracking as well as lot and serial number control profile options.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 18

This diagram depicts the concept of Product Genealogy that includes the following:
• Backward traceability: Materials, Receipt, and Supplier
• Forward traceability: Assembly, Shipment, and Customer
Product Genealogy, or what is often called Lot/Serial Tracking, keeps track of all inventory transactions
starting from the receipt of the lot /serial from the supplier through the manufacturing process, and to which
customers received shipments of items and when they were received. Using Product Genealogy, you can
search for a lot or serial number across organizations as well as identify and view complete global history at
your facilities. Lot and Serial tracking is a core component in achieving FDA/ISO/CFIA compliance for many
businesses.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 19

This diagram depicts how selecting Genealogy Details displays a graphic that enables you to visually
navigate from raw materials to delivery. Source tracking allows you to see the details of the raw materials of
the course component. Tracing forward to final assembly enables you to review where materials were
received, the products in which they were used and the customer who received it.
The Genealogy Details page includes 3 panels:
• On the left, the dependency graph displays the focused genealogy instance. The immediate parent
and child are displayed by default. You can expand the dependency graph two levels.
• On the bottom right, the dependency map provides an overview of the completed component
relationship.
• On the top right is the search panel. Search results are highlighted in the dependency graph,
dependency map and in the results panel.
By navigating to the dependency graph and map, you can zero in on a particular lot or serial number at any
level in the component hierarchy. At any time, you can go back to the lot or serial number where you started
the Genealogy tracking. From a selected lot or serial number, you can drill down for additional information or
drill to the transaction history timeline.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 20

 This table displays the following two lot and serial control profile options.
• Receive Shipped Lot Quantity: Specify whether receiving can be done in lot quantities.
• Receipt of Issued Serial Numbers Restricted: Specify whether serial numbers that were previously
issued are restricted from being received again.

Manage Serial Numbers and Lot Numbers Using REST Services

• A REST service is available to create lot numbers for your items and edit the details on a lot such as
the origination date, the maturity date, and the hold until date. You can use the same service to
search for lot numbers for your items and review the corresponding details. This service also
enables you to capture descriptive flexfield information for your lots.
• A REST service is available to review the details of an item serial number and the descriptive
flexfields. Use the same service to create item serial numbers and update serial number details such
as supplier, supplier serial number, and descriptive flexfield information.
For more information, refer to the following link:[Link]
management/20a/fasrp/[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 21

In this practice, you review the Lot and Serial Number Generation attributes for a given inventory
organization.

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 22

Oracle SCM Cloud: Supply Chain Management Foundation 10 - 23
Schedule: Timing Topic
30 minutes Lecture and Demo
00 minutes Practice
30 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 11 - 2
This section discusses on-hand quantity and availability.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 3

On-hand quantity refers to inventory that you have on hand within your organization.
Subinventory
• On-hand quantity is the physical quantity that resides in your subinventory.
• A subinventory is a physical or logical grouping of inventory, such as raw material or finished goods.
For example, the Bulk subinventory has an on-hand quantity of 15 items.
Stock Locator Level
• On-hand quantity can also be stored at the stock locator level.
• Stock locators are used to identify physical areas within the warehouse where you store inventory
items.
• For example, locator 1.1.1 under subinventory FGI contains an on-hand quantity of 19 items.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 4

This section discusses how to perform transactions in the Manage Item Quantities user interface (UI).

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 5

This screenshot depicts the Manage Item Quantities page.
• The Manage Item Quantities user interface is presented in a tree table format.
• You can drill down from the organization into specific subinventories and locators.
• There are three columns presented in the tree table for On Hand, Receiving, and Inbound
Quantities.
• In the Detail section, you can view Item, Lot, Serial Number, Inbound, and Consigned Details.
Uses of the Manage Item Quantities User Interface
• Is used to search and view item quantities within the organization
• Provides both a regional search and advanced search region
• Provides a variety of attributes to filter your search, such as Organization, Item, Item Description,
Subinventory, Locator, Lot, and Serial Number
• Is the landing page in the Inventory Work Area
• Can be accessed by the job roles of Warehouse Operator, Warehouse Manager, and Inventory
Manager

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 6

 • The Item Details tab presents information about the item such as item description and item
category.
• The Lot Details tab presents information about the lot such as grade, status, origination date,
and lot expiration date.
• The Serial Number Details tab presents information about serial numbers such as serial
number status and context.
• The Consigned Details tab presents information about consigned inventory such as owning
party, owning party site, and consigned on-hand quantity.
View Item Availability Link
• Displays the availability dialog box
• This dialog box provides additional availability details such as Available to Transact and
Available to Reserve quantities.
- Available to Transact represents the available quantity of an item that you can
transact across an organization.
- Available to Reserve represents the available quantity of an item that you can reserve
across an organization.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 7

The following actions are available from the Manage Item Quantities user interface:
• Request Movement Request Transfer: Ability to transfer material from a source subinventory to a
destination subinventory
• Request Movement Request Issue: Ability to transfer material to a destination account
• Request Miscellaneous Transaction: Ability to create miscellaneous transactions directly from the
Manage Item Quantities page
• Request Cycle Count: Ability to initiate a cycle count by entering count name and schedule date
• Manage Material Status: Ability to manage material status at Subinventory, Locator, and Lot levels
• Edit Lot Grade: Ability to edit the lot grade for a selected lot

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 8

This diagram depicts that the Manage Item Quantities user interface enables you to view inventory balances
by material location. There are three separate material locations: On Hand, Inbound, and Receiving.
• On-hand inventory balances refer to material residing in storage locations within the warehouse.
• Inbound inventory balances refer to material yet to be received by the warehouse (material in transit
to the warehouse).
- Inbound material is typically on an inbound document such as a purchase order or advance
shipment notice.
- In the Detail section of the Manage Item Quantities page, the Inbound tab shows detailed
information about the inbound document, such as document number, document type,
supplier, and supplier site.
- You can view item quantity for a specific document and document line. Additionally, you can
view lot and serial number details for inbound item quantities by selecting View Lot and Serial
Information from the actions menu.
• Receiving inventory balances refer to material residing in designated receiving subinventories.
Viewing Available Items
You can use the Manage Item Quantities user interface to view item availability. The system can display
item availability for a given item at the organization, subinventory, and locator levels. You can view items
that are available to reserve as well as available to transact. The system shows the information in both the
primary and secondary quantities if applicable.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 9

In this practice, you view item on-hand quantity using the Manage Item Quantities page.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 10

This section discusses reservations, its types, and reservation supply and demand types.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 11

This diagram depicts that a reservation is a link between a supply document and a demand document.
• A reservation creates a permanent data link between a supply document and a demand document
and represents a guaranteed allotment of material to a specified demand document.
• Item reservations prevent picking material you previously set aside for a sales order, account,
account alias, or user-defined demand.
• You can also create reservations for different types of supplies such as on-hand inventory or
purchase orders.
Reservation Types
For on-hand inventory supply, there are two types of reservations:
• High level reservations: Contain information about the item and the organization
• Low level reservations: Contain more detailed information about the item such as revision, lot,
subinventory, serial, and locator
You use the Manage Reservations user interface to create, view, update, transfer, and delete reservations.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 12

This diagram depicts that a reservation is the association between a supply document and a demand
document. For example, you can create a reservation for a demand document type of sales order against a
supply document type of purchase order. The reservation creates the association between these two
documents.
Demand Document Types
• Account
• Account Alias
• Cycle Count
• Movement Request
• Sales Order
• Shipment Request
• User Defined
• Transfer Order

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 13

Supply Document Types
• On Hand
• Purchase Order
• Requisition
• Transfer Order
• Work Order

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 14

This feature, for reviewing the supply and demand picture, considers various types of supplies and demands
that are listed on this slide. The Available Quantity column reflects the running total based on the supply and
demand type on that row. The ‘++’ and ‘—’ next to the supply and demand types mentioned here indicates if
the available quantity is incremented or decremented for that supply and demand type. As reservations are
already reflected in the on-hand quantity, there is no impact on the available quantity for such demand
types.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 15

This screenshot depicts the Review Item Supply and Demand page that allows you to plan for the resources
such as storage space and labor and also take more informed decisions for maintaining the inventory
positions to meet the demand appropriately.

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 16

In this practice, you create an inventory reservation against Demand Document Type ‘User Defined’ using
the Manage Reservations and Picks page

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 17

Oracle SCM Cloud: Supply Chain Management Foundation 11 - 18
Schedule: Timing Topic
45 minutes Lecture and Demo
30 minutes Practice
75 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 12 - 2
This section discusses the various types of inventory transactions and differences between document and
non-document-based inventory transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 3

This diagram depicts how Inventory Transactions works. There are two types of flows: Material flow and
Business flow.
Inventory Transactions
• A transaction is an item movement into, within, or out of inventory.
• A transaction changes the quantity, location, planning responsibility, or cost of an item.
• Oracle Fusion Inventory Management supports several predefined and user-defined transaction
types. Every material movement has a corresponding set of accounting transactions that Oracle
Fusion Cost Management automatically generates. All transactions validate the various controls
(revision, locator, lot number, serial number and secondary unit of measure) that you enable for
items.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 4

This diagram depicts how you can perform the following inventory transactions:
• Receive items into your organization from a general ledger account number.
• Issue items from your organization to a general ledger account number.
• Transfer items from a subinventory in your organization to another subinventory in the same
organization.
• Transfer items directly between organizations.
• Transfer items between organizations by way of in-transit shipments.
• Reserve items for a specific account to temporarily prevent the use of items.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 5

Inventory Transactions Without Documents and Requisitions
• You can use interorganization transfers without using a requisition or transfer order.
• You can use miscellaneous receipts to receive material without a purchase order number.
• Use miscellaneous issues to issue material without approvals or a document number.
• Use subinventory transfers to transfer the location of material without a document number.
Inventory Transactions with Documents and Requisitions
• You can use requisitions and purchase orders to provide an approval mechanism to authorize and
track purchased material coming into the warehouse.
• You can use requisitions and transfer orders to provide a document to track when you transport
material across inventory organizations or within an inventory organization:
- Use movement requests with a Movement Request Issue transaction type to provide a
document to track the issue of the material.
- Use movement requests with a Subinventory Transfer transaction type to approve a transfer
and to provide a document to track the transfer of the material.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 6

This slide discusses control options and restrictions.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 7

This section discusses the process of creating a miscellaneous transaction.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 8

This diagram depicts how miscellaneous transactions enable you to issue material to individuals or projects
that are not in inventory, receiving, or manufacturing. These could include a research and development
group or an accounting department. You can also make manual adjustments to the general ledger by
receiving material from one account to inventory and then issuing that material from inventory to another
account.
Miscellaneous Transactions Applications
With miscellaneous transactions you can:
• Load items when you implement Oracle Fusion Inventory Management
• Scrap items by issuing them to scrap accounts
• Issue items to individuals, departments, or projects
• Receive items that were acquired without purchase orders
• Enter adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life
expiration, or inaccurate record keeping
• Search for the subinventories where on-hand quantity is currently available when creating a
miscellaneous transaction. This allows you to see which subinventories have on-hand balances, the
available quantity, and other pertinent data about the subinventory.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 9

You can use the Default Stocking Unit of Measure for Material Transactions feature across Inventory
Management activities to default the stocking UOM when processing inventory transactions. For example,
when creating a miscellaneous receipt transaction, the UOM Name is automatically defaulted once you select
the subinventory on the transaction line. This feature ensures the miscellaneous receipt is transacted and
stored in the correct stocking UOM.
Additionally, you can create inventory replenishment requests in the source organization’s stocking UOM. For
example, if the source organization stores material in the stocking UOM ‘Case of 100’, the ordering UOM
associated with the replenishment request document is also in the stocking UOM ‘Case of 100’. This capability
reduces user error and ensures replenishment requests are created in the correct UOM. In addition to
processing inventory transactions and replenishing inventory, you can use this feature for other inventory
functional activities such as reserving inventory, picking inventory, cycle counting and physical counting.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 10

In this practice, you create a miscellaneous inventory transaction.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 11

This section discusses the process of creating a subinventory transfer.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 12

The table in the slide presents a summary of transactions used to transfer materials. The table contains the
following:
• Columns: Transaction, Type, Fulfillment, Receiving, and Creation
• Rows: Subinventory Transfers, Movement Requests, Interorganization Transfers, and Transfer
Orders
• Subinventory transfer transactions are used to transfer material within an organization between two
subinventories, or between two locators within the same subinventory.
• Some of the uses of subinventory transfers include:
- Replenishing from bulk storage subinventories to front-loading picking locations
- Rebalancing inventory locations for space management
- Transferring between asset and expense subinventories
- Transferring between tracked and non-tracked subinventories

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 13

The table in this slide is a cheat sheet for Transferring Materials. For more information, you can refer to the
following link: [Link]

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 14

The diagram depicts how subinventory transfer transactions are used to transfer material between two
subinventories within an organization or between two locators within the same subinventory. Some of the
uses of subinventory transfers include:
• Replenishing from bulk storage subinventories to front-loading picking locations
• Rebalancing inventory locations for space management
• Transferring between asset and expense subinventories
• Transferring between tracked and non-tracked subinventories

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 15

This section discusses how to create and process an inventory movement request.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 16

This diagram depicts the steps that the process of Inventory Movement requests include. These steps are
as follows:
1. Create movement request
2. Run movement request pick slip report
3. Physically move material
4. Confirm pick slips
Movement requests are requests for the movement of material within a single organization.
• A movement request document formalizes the process to request movement of material within a
warehouse or facility for purposes like replenishment, material storage relocations, and quality
handling.
• Movement requests are generated manually or automatically depending on the source type used.
• Movement requests are restricted to transactions within an organization. Transfers between
organizations require an interorganization transfer or a transfer order.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 17

This diagram depicts the movement request process flow. It includes the creation of a movement request,
pick release (assigning picks and printing movement request pick slip report), and pick confirm (physically
picking material and confirming pick slips).
Movement Request
Movement requests are manually or automatically generated, depending on the source of the transaction.
Movement requests can be one of the following three types:
• Requisition Movement Requests: Manually created using the Manage Movement Requests page
as necessary to relocate material or adjust perpetual inventory records.
• Replenishment Movement Requests: Min-Max processing automatically creates them to refill
depleted inventory locations.
• Pick Wave Movement Requests: Shipping automatically creates them to support the staging of
picking waves.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 18

Pick Release
• Movement requests must be assigned detailed source and destination locations or used to
identify shortages for further action. The process of designating a pick assignment is part of
the pick release process that must occur for all movement requests. This allocates the
quantity to the movement request making it unavailable to any other transactions. Move
instructions can then be issued for available quantities by printing the pick slip.
• If the material could not be fully sourced because of a lack of available quantity, the
movement request is backordered and the unsourced balance can be re-released at a later
time.
• Pick release processing can be fully automated. Assign the pick quantity and printing the pick
slip in a single step by selecting the Release Approved Lines option when running the Print
Movement Request Pick Slip report. This is usually run as a scheduled process,
automatically generating the pick slips for movement requests ready to be released.
• To manually assign a pick and create a pick slip for a movement request, use the Manage
Reservations and Picks user interface.
Pick Confirm
After material is physically issued and delivered to the destination location, the material movement is
recorded with a Pick Confirm transaction.

Manage Inventory Movement Requests Using REST Service

The Inventory Movement Requests REST service allows you to manage inventory movement
requests and provides an alternative to using the web-based user interface. In addition, it helps to
automate the process related to managing inventory movement request integration scenarios. With
this service, you can search for all movement requests, create and update movement requests of
requisition type, as well as update the movement request status. For more information, refer to the
following link: [Link]

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 19

This table shows three types of movement requests that Oracle Inventory Management provides, along with
their source and process. The table has the following:
• Columns: Movement Request Type, Source/Purpose, and Process
• Rows: Requisition Movement Requests, Replenishment Movement Requests, and Pick Wave
Movement Requests
The movement request type refers to the entity that created the movement request. For all movement
requests, the final result is one of the two supported transactions: subinventory transfer or movement
request issue.
Requisition Movement Requests
The requisition movement request is manually generated using the Manage Movement Requests page. You
can generate requests for subinventory transfers or movement request issues.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 20

Replenishment Move Order
These movement requests are generated automatically for min/max planned items where the item’s
replenishment source (set at the item-subinventory level) is another subinventory. In this case, the
min/max process automatically generates a move order.
Note: The source subinventory must be set up at the item subinventory level. For the min/max report
to generate a movement request, the report must be generated at the subinventory level.
Pick Wave Move Order
The pick release process generates move orders to bring the material from its source location in
stores to a staging location, which you define as a subinventory in Inventory Management. This
transaction is a subinventory transfer. These movement requests are generated automatically by the
Shipping Pick Waves process.

Manage Pick Waves Using a REST Service

This REST service allows you to manage pick wave creation and execution. It provides an
alternative to using the Create Pick Wave page for managing pick waves and is an efficient method
of delivering pick wave information to a third party. In addition, this service supports descriptive
flexfield attributes. For more information, refer to the following link:
[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 21

This diagram depicts how you can create picking rules that enable you to determine which material to pick
and the order in which material is picked for movement requests. Fusion Inventory Management reviews the
picking criteria order and the options for each criterion. You can create rules based on the following
restrictions:
• Lot shelf life days
• Single lot: Controls whether the system can allocate multiple lots for a particular request
• Partial Picking: Controls whether the system can allocate quantities to the order where the full order
quantity is not available.
You can also create sort criteria that determine which material is picked first:
• Lot
• Revision
• Subinventory
• Locator

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 22

After you create a rule, you assign it by using the Manage Picking Rule Assignments page. Select
the Create action and assign a sequence number. This defines the sequence in which the rule
should be applied for the given organization.
You can assign your rule to any combination of criteria that the Manage Picking Rule Assignments
page displays. For example, if you create a picking rule that allocates material by lot number in
ascending order followed by locator in ascending order, you can assign it to an item on the Manage
Picking Rule Assignments page. This means that for picking, the system allocates the lowest lot
number of the item in the lowest locator number where the item resides.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 23

This table depicts a description for the Print Movement Request Pick Slip report.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 24

This demonstration shows how to create, pick, and pick confirm a movement request requesting an item to
be issued out of inventory.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 25

In this practice, you create, pick, and pick confirm a movement request requesting an item to be moved from
one storage location to another.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 26

This section discusses the difference between a direct and in-transit interorganization transfer.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 27

This diagram depicts that direct interorganization transfers move inventory directly from a shipping
organization to a destination organization. The destination organization receives the material immediately
when you submit the transaction. Unlike an in-transit interorganization transfer, a direct interorganization
transfer does not require a receipt at the destination organization.
Unit of Measure Conversions
When you transfer items under dual UOM control between organizations, the system honors the UOM
conversion of the destination organization. Consequently, the system could potentially recalculate the
secondary quantity for the item if the conversions differ between the shipping organization and the
destination organization. The system always processes transaction quantities in the primary UOM. You
must define UOM conversions in both the shipping and destination organization before the system can
process the transaction.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 28

This diagram depicts that you usually transfer material to in-transit inventory when transportation time is
significant.
• When you perform the transfer transaction, you do not need to specify the delivery location.
• You need to enter only the subinventory you are shipping from, shipment number, and the freight
information.
• At the time of shipment, you must define your receiving parameters for the destination organization.
• You can receive and deliver your shipment in a single transaction or you can receive and store your
shipment at the receiving dock.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 29

This diagram depicts that Internal Material Transfer includes the following:
• Rule-based execution of transfers
• End-to-end visibility
• Transfer Pricing / Mark-up
• Transfer Returns
• Transfer of Consigned
• Transfer to expense destinations. Transfer materials to an expense destination and perform
associated costing.
• Create and update internal material transfers using Open Interface. On-premise users can request
the creation and update of internal material transfers in the Cloud.
• Additional Transfer costs. Support additional transfer costs or charges at the transfer order line level.
Mass Cancel Transfer Orders: Automated replenishment is often used to improve the efficiency of your
warehouse and supply locations, especially for high volume, low cost items like nuts, bolts, and
bandages. Automated internal transfer orders can be triggered by Oracle Supply Chain Planning, minimum
(min-max) replenishment settings, or PAR inventory processing.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 30

When there is insufficient quantity to fulfill these transfer requests, a backorder or shortage condition
results, and you may not want to manage the backordered transfer requests for some items and
locations.
You can use this new process to strategically select and cancel (kill) remaining quantity on partially
fulfilled transfer requests.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 32

This diagram depicts how Internal Material Transfers are created from Requisition Lines. Internal material
transfers originate in Self Service Procurement when a user manually creates requisition lines for items
going to either an expense or an inventory destination. When the items come from a subinventory within the
destination inventory organization, the type of transfer is called an intra-organization transfer. Items may
also come from a different organization than the destination organization, and this type of transfer is called
an inter-organization transfer.
Internal material transfer requisition lines can have a different approval routing from purchasing requisition
lines. Companies are able to determine whether internal material transfer requisition lines should be routed
for approvals, and who should be added to the approval chain.
Once the requisition is approved, requisition lines for internal material transfers are submitted to Oracle
Fusion Supply Chain Orchestration for orchestration and fulfillment.
Similar to purchase orders associated to requisition lines, users have full visibility of the transfer order,
shipments, and receipts directly from the Manage Requisitions task. They can also perform some minor
updates and request cancellation of transfer order lines.
The internal material transfers for expense destination can be subject to budgetary control and
encumbrance accounting just like the purchase requisitions.
Upon shipping the transfer order, an actual receipt at the destination may or may not be required. If a receipt
is required, the self-service user may record the receipt directly in self-service receiving UIs, similar to the
way this is done for self-service purchase order receipts. For more advanced users, warehouse receiving
UIs are also available when receipts require additional control.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 32

Upon shipment or upon delivery, depending on whether or not a receipt is required, costing is
performed. New enhancements were provided in Cost Management to support the new features that
allow multiple accounting distributions, as well as for budgetary control and encumbrance accounting
functionality for requisition sourced internal material transfers.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 33

This diagram depicts how you can create Internal Material Transfers from Inventory. If you are a warehouse
personnel with appropriate privileges, you can create internal material transfers directly from the Manage
Item Quantities page. The Actions menu has an option to create transfer orders.
When this action is selected, the Create Supply Request page is initiated allowing entry of transfer order
details that are fed directly into Fusion Supply Chain Orchestration. This provides a simple method for
creating ad-hoc internal material transfers outside of the normal planning cycle.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 34

This demonstration shows how to create an Interorganization Transfer to transfer material between two
inventory organizations.

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 35

Oracle SCM Cloud: Supply Chain Management Foundation 12 - 36
Schedule: Timing Topic
45 minutes Lecture and Demo
15 minutes Practice
60 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 13 - 2
This section discusses the process of Receiving.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 3

The diagram depicts the process of Receiving. It is a process that signals that the goods ordered on a
purchase order, transfer order, customer return, and so forth, have arrived. Oracle Fusion Receiving
enables you to control the items you order through receiving, inspections, and put-away. You can:
• Define receiving tolerances and rules at the organization, supplier, item, and order level, with the
lowest level overriding previous levels
• Record receipt of unordered items, research receipt, and match the receipt to an existing purchase
order
• Put away items from receiving or inspection locations to their final destination
• Define which items require inspection. You can accept or reject items and provide detailed
information about your inspection results.
• Record returns to suppliers
• Correct receiving transaction errors
• Review receiving transaction history

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 4

This diagram depicts how you record inspections, deliveries, and material movements within receiving and
inspection by entering receiving transactions. The transactions provide a history, enabling you to track an
item from its source to its destination.
Receiving transactions allow you to:
• Stage material in Receiving before delivering to put-away locations
• Document inspection results
• Deliver goods to their required destination
The destination type indicates if the material is going to be received in a receiving location or its final
destination.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 5

This section discusses the three receipt routing options and how they impact the Receiving process.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 6

Direct Delivery
One step:
• Goods are received and delivered in one step.
Standard Receipt
Two steps:
• Goods are received in one step.
• Put-away is performed in the second step.
- This allows for the time it takes goods to move though your facility from the receiving dock.
- The quantity on hand in subinventories is not updated until the delivery is complete.
- The quantity and cost are maintained in the inventory organization’s inventory receiving
account until the delivery is made.
Inspection Required
Three steps (used for goods that require a more skilled user to do a careful review):
• Goods are received.
• Inspection either accepts or rejects the goods. Quality results can be entered at this time.
• Goods that are accepted are put away in the third step, whereas goods that are rejected are returned
to the supplier, or scrapped.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 7

This section discusses how receipts are processed based on receipt routing.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 8

• Standard receipt: Use the Receive Expected Shipments user interface to enter receipt of items from
the Receipts work area.
• ASNs or ASBNs – supplier portal: You can give your suppliers carefully limited access to allow
them to enter ASNs or ASBNs. ASNs created by the Supplier are sent to Logfire/WMS systems. This
enables the WMS systems to receive against the ASN if the ASN is available. Else, the receipt can
be made against the PO.
• ASNs or ASBNs – from Receipts work area: Allows the warehouse manager to manually load
ASNs or ASBNS directly from the Receipts work area in cases where the supplier has informally
communicated that a shipment has taken place through voice or email communications.
• ASNs or ASBNs – from EDI/XML interface: Load ASNs or ASBNs through EDI/XML.
• Self-service receipts: You can give your employees limited ability to receive expensed purchased
items using self-service receiving.
• Web services and spreadsheet upload (SaaS control file import) for ASNs, receipts,
inspections, put-aways, corrections, and returns: Provides a way to import receipts, inspections,
put-aways, corrections, and returns collected from external sources into the receiving system.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 9

This section discusses the process of entering receipts.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 10

This slide lists the steps for entering receipts. These steps are as follows:
1. Choose the organization.
• When you first access the Receive Expected Shipments user interface, you are required to
choose an inventory organization from the list of values if you can process receipts for more
than one.
• You can change the organization manually by selecting the Change Organization control if
you have access to multiple organizations.
• Although it is not always the case, you can think of an inventory organization as a
warehouse.
• When you create purchase orders, for example, you specify goods to be shipped to specific
inventory organizations.
• You can view only expected receipts (scheduled shipments for a purchase order line item) for
the inventory organization you choose.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 11

2. Find expected receipts.
• Expected receipts can and do come from different sources because they are based
on source documents like purchase orders, interorganization in-transit orders, transfer
orders, and customer returns.
• When a source document cannot be found, the order can be processed as an
unordered receipt, provided the Allow Unordered Receipts receiving parameter is
enabled for the receiving organization.
• Use the Receipts work area to view your expected receipts in a variety of formats.
Alternatively, you can use the regional search or advanced search areas to find
source documents. You can enter as many criteria as desired to search for expected
receipts. The more information you include, the more restrictive your search.
• Select the lines that are to be added to the receipt and click the Receive action.
Note: The regional search can also be used to perform the search without going into
the task from the task list. Just select the type of order or shipment and search on the
order number.
3. Input receipt details.
• Input receipt details like quantity, unit of measure, location, and subinventory (if
necessary).
• The method of receipt routing determines if the destination defaults to Receiving or a
final destination like Inventory or Expense.
• You can override the receipt routing option only if the Allow Routing Override
receiving parameter is enabled for the organization. For example, when using
Standard Delivery, the destination defaults to Receiving, but you can override it to a
final destination.
4. Input receipt header.
• Select Create Receipt to create a new receipt header for the receipt lines just entered.
• Input receipt header details like freight carrier, comments, and packing slip.
• If adding lines to an existing receipt, select Add to Receipt, and enter the receipt
number to which the new receipt lines are added.
5. Submit.
• Submit the receipt to complete the process.
• Depending on the setting of the Receiving Transaction Processing Mode profile
option, the receipt is processed immediately or submitted as a batch or deferred
process.
• You can obtain printed documentation of your receiving transactions automatically by
setting the Print Receipt Traveler Receiving parameter.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 12

This section discusses how receipts are created including receipt header and receipt line information.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 13

This diagram depicts the receipt structure and three steps, including Receipt, Inspection, and Put Away.
Headers
• The receipt header contains details relating to the overall purchase receipt.
• There can be only one header per receipt.
• Common information about the source of the receipt or expected receipt is stored at the header
level.
• You group your receipts by source type and the source of the receipt.
• Oracle Fusion Receiving does not allow you to group receipts from different sources under one
receipt header.
Lines
• The receipt line contains details about the specific goods or services you received.
• For receipts against purchase orders, the receipt line is tracked at the purchase order schedule level.
• For receipts against transfer orders, the receipt line is tracked at the transfer order line level.
Transactions
• Each transaction made against an individual receipt line is stored in the system as a receiving
transaction.
• These transactions can be viewed as historical information to review the history of a receipt.
• They contain the history of the initial receipt, inspection, put-away, correction, or return-to-supplier
activity made against a specific receipt.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 14

• Receipt Number: Enter a unique receipt number. If automatic receipt number generation is active,
the system assigns the next available receipt number. Numbering options are set one time for each
inventory organization. You can also add receiving transactions existing receipts.
• Received By: The receiver name appears by default from the user ID. You can override the default
with the name of another receiver.
• Receipt Date: Today’s date appears by default from the system date. You can backdate a receipt if
necessary, but the accounting period that the receipt date falls into must be open to do so.
• Shipping Method: You may enter the carrier who delivered the goods using the list of values. This
information defaults if an advanced shipment notice (ASN) was sent.
• Document References: You may enter the packing slip or waybill number that the goods came in
on. This information defaults if an ASN was sent.
• Number of Supplier Packing Units: You may enter the total number of packing units that made up
this shipment.
• Notes: The receiver may enter any comments here. An example might be: “Container damaged.”

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 15

• Quantity: Enter the quantity actually received. If you have allowed blind receiving in the inventory
organization’s receiving options, this field is going to be blank.
• Unit of Measure: The unit of measure for the receipt defaults here.
• Item: The system item number (if one exists) appears here.
• Description: The description for the item appears here.
• Destination Type: The final destination of the receipt (Expense, Inventory) or Receiving is
displayed. For a direct receipt, the destination is either: Inventory or Expense. A standard or
inspection receipt has a destination type of Receiving.
• Order Number: The order number defaults (purchase order number or transfer order number).
• Routing: The receipt routing for this order defaults here. Either direct, standard, or inspection.
• Requester: If the destination type is Expense or Inventory, and the order was created from a
purchase requisition, the name of the requester defaults.
• Subinventory: If the destination type is Inventory, this field is required. If the subinventory was
specified on the requisition or purchase order, it defaults here. If no value defaults, the receiver has
to fill in the subinventory to which the goods are to be delivered.
• Note to Receiver: If a note to the receiver was entered on either the requisition or the purchase
order, it appears here.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 16

This section discusses returns and corrections.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 17

The diagram on this slide depicts how the process of returns and corrections works.
Returns
You can return delivered items to receiving and return received or delivered externally sourced items to the
supplier if the purchase order has neither been canceled nor finally closed. You can also return to the
supplier unordered receipts that have not been matched. Optionally, specify additional return information
such as a Reason Code and RMA (Return Material Authorization) number.
Corrections
Oracle Fusion Receiving provides the capability to correct any receiving transaction against a purchase
order, except another correction and a return to a receiving transaction. Each transaction is done
individually by correcting the previous transactions until all applicable transactions are corrected.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 18

This section discusses some additional features in the process of Receiving.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 19

This table lists some additional features of Receiving along with their description. The table contains the
following:
• Columns: Feature, Description
• Rows: Receiving Tolerances, Unordered Receipts, Substitute Receipts, and Pay on Receipt
Receiving Tolerances
You can define receiving tolerances at the organization, item, and/or order level. These checks include:
• Over-Receipt Tolerance: The maximum acceptable percentage of quantity that can be received in
excess of the order quantity. Your organization indicates the over-receipt tolerance and whether to
prohibit the transaction, display a warning message while permitting the transaction, or permit the
transaction without a warning.
• Early and late receipt tolerance: The number of calendar days before and after the shipment delivery
date that you allow receipt. Your organization indicates the early and late receipt tolerances and
whether to:
- Prohibit the transaction
- Display a warning message while permitting the transaction
- Permit the transaction without a warning

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 20

Unordered Receipts
You can receive items from a supplier when you do not have or do not know a corresponding
purchase order number. These items are tracked on the system while you wait for a buyer to specify
which purchase order should be used, or if the items are to be returned to the supplier. You must
match unordered receipts to a valid document before you can inspect or put away the receipt lines.
Substitute Receipts
When entering items in the Item Master, you have the ability to identify parts that can be substituted
for each other. You can receive predefined substitute items when you allow suppliers to ship
alternatives to the item you order.
Pay on Receipt
Purchasing works in conjunction with the Accounts Payable system to streamline the procurement
process by generating invoices to suppliers based on receipt transactions.
• Negotiate with key suppliers to use Pay on Receipt.
• Every invoice created by the Pay on Receipt process is one less receipt that needs to be
manually keyed into Accounts Payable. Suppliers can still send the hard copy of the invoice if
a physical copy is necessary for archiving.
• Pay on Receipt enables you to automatically create standard, unapproved invoices for
payment of goods based on receipt transactions.
• Invoices are created by using a combination of receipt and purchase order information,
eliminating duplicate manual data entry and ensuring accurate and timely data processing.
• Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) or Self Billing.
You can set up your suppliers so the invoice can be based on receipt of goods, or delivery of goods
to their final destination. The Invoice Summary Level attribute, set at the Supplier Site, controls the
number of invoices generated.
• Packing Slip: One invoice generates per packing slip (highest number of invoices).
• Receipt: One invoice generates per receipt.
• Pay Site: One invoice generates per supplier site (fewest invoices).
After receipt or delivery transactions are created, you must run the Send Pay on Receipt process to
create invoices and automatically match them to their corresponding purchase orders. The Send Pay
on Receipt process can be set up to run automatically. The number is created based on the Invoice
Summary Level.
• Packing Slip: The packing slip number is used as a basis to generate the invoice number.
• Receipt: The receipt number is used as a basis to generate the invoice number.
• Pay Site: The date is used as a basis to generate the invoice number.
Set the “RCV: Aging Period” profile to a number of days after the receipt to actually create the
invoice when the Send Pay on Receipt process runs. A delay gives you time to enter corrections,
adjustments, and returns (if any) and results in more accurate invoices being created.
You can indicate your own prefix for Pay on Receipt invoices by setting the “RCV: ERS Prefix”
profile. In addition, the invoice number can include a self billing identifier, which is set up on the
supplier site.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 21

• Receipt Close Point: Select Receipt Close Point, which is when the shipment is closed for
receiving. Options include Accepted (passed inspection), Delivered, or Received. Note that you need
to set the receipt close tolerance percentage in the Default Options window.
• Receipt Close Tolerance Percent: Enter the Receipt Close tolerance percentage for your
shipments. Oracle Fusion Purchasing automatically closes a shipment for receiving if it is within the
receiving close tolerance at the receiving close point. Set the receiving close point in the Control
Options window. You can override this option for specific items and orders.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 22

This section discusses the Receiving parameter setup.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 23

The Manage Receiving Parameters user interface is accessed through the Set Up and Maintenance work
area.
Ship-to Exception Action
• None, Reject, or Warning
• Default is Reject
ASN Control Action
• None, Reject, or Warning
• Default is Warning
Receipt Date
• Early Receipt Tolerance in Days – Default is 0 (zero)
• Late Receipt Tolerance in Days – Default is 0 (zero)
• Receipt Days Exceed Action
- None, Reject, or Warning – Default is Warning
Over-Receipt Control
• Over-Receipt Tolerance - Default is 0 (zero)
• Over-Receipt Action
- None, Reject, or Warning – Default is Reject
Receipt Routing
• Direct Delivery, Standard Receipt, or Inspection – Default is Standard Receipt

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 24

The Manage Receiving Parameters user interface is accessed through Functional Setup Manager.
• Allow substitute receipts (Yes or No) – Default: No
• Allow unordered receipt (check box) – Default is selected
• Allow blind receiving (check box) – Default is selected
• Print receipt traveler (check box) – Default is selected
• Include closed purchase order for receipts (check box) – Default is deselected
• Allow Routing Override (check box) – Default is deselected
• Process all lines together (check box) – Default is deselected
• Print shipping documents for returns to suppliers (check box) – Default is deselected

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 25

Receipt Number
• Generation
- Automatic and Manual – Default is Automatic
• Type
- Alphanumeric and Numeric – Default is Numeric
• Next Number
- Default is 0 (zero)
Return Material Authorization (RMA)
• Receipt Routing
- Standard Receipt, Inspection Required, and Direct Delivery – Default is Standard
Receipt
• RMA Validate Lots
- Restricted, Restricted with Warning, and Unrestricted – Default is Unrestricted
• Validate Serial Numbers (check box)
- Default is deselected

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 26

This section discusses the Receiving profile options as well as integration of Receiving with quality
inspections.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 27

The table shows various Receiving profile options along with their description. The table contains the
following:
• Columns: Profile Option, Description
• Rows are as follows:
Aging Period for Extended Receipt Settlement
The value in this profile option indicates the number of days between the receipt date and the Payment on
Receipt automatic invoice creation date. For example, a value of 2 means that Payment on Receipt creates
invoices only for receipts that are 2 or more days old. Any corrections or returns you make against a receipt
during that 2-day period are included on the Payment on Receipt invoice.
Prefix for Extended Receipt Settlement Invoice Numbers
“ERS-” is the prefix that appears before all invoices that you create automatically using Payment on Receipt.
This profile option allows you to change this prefix. For example, shortening this prefix allows extra spaces
for longer packing slip or receipt numbers.
Rate Type for User Override at Receipt Allowed
Yes or No indicates whether the rate for the currency can be changed when entering a receipt. Even if the
Rate Type is User, you cannot change the rate if this profile option is set to No. This profile option affects the
rate on the receipt only, not on the purchase order.
Receiving Transaction Processing Mode
Indicates the processing mode used after you submit your work for receiving transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 28

This diagram depicts the integration of Receiving with Quality Inspections. Quality Inspection allows you to
collect all quality inspection results at receipt to provide visibility and collaboration. You can do the following:
• Enter Quality Inspection results
• Process material based upon inspection results – quarantine or stock
• View Quality Inspection results
To support this objective, Receiving is enhanced to:
• Allow receiving agents, based on an organization parameter, to collect all quality inspection results
directly in Quality Inspection by using, quality inspection plan and sampling functionality
• Check against Quality Inspection when a quality inspection plan is missing
• Check against Quality Inspection when a quality inspection skip lot is reaching
• Return, via the Receiving Transaction Manager background process, the appropriate receiving
transaction reference to Quality Inspection
• Clean up the quality data in Quality Inspection if the receiving transaction fails during the receiving
transaction manager process, and
• Allow users to drill down to quality inspection results from Receiving

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 29

In this practice, you create an Interorganization Transfer transferring material between two different
warehouses in separate inventory organizations. This practice combines the creation of an interorganization
in-transit transfer and standard receipt activities into a single practice.

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 30

Oracle SCM Cloud: Supply Chain Management Foundation 13 - 31
Schedule: Timing Topic
30 minutes Lecture and Demo
00 minutes Practice
30 minutes Total
Oracle SCM Cloud: Supply Chain Management Foundation 14 - 2
This section discusses material status usage levels.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 3

This diagram depicts how material status control restricts the movement and usage of portions of on-hand
inventory. You assign material statuses at four levels:
• Subinventory
• Locator
• Lot
• Serial number
Consider the following:
• Using material status control enables you to control whether you can pick or ship an internal order or
sales order, or issue material.
• You can also specify whether material needs to be quarantined until you inspect it.
• In addition, you can determine whether products with a particular status can be reserved, included in
available-to-promise calculations, or netted in production planning. These controls (reserved, atp,
netted) are not available if the material status is enabled at the serial number because of
performance implications.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 4

Assigning Material Statuses
• You assign subinventory and locator statuses in the subinventory and locator windows. The
location status applies to the material in the location and not the location itself.
• To assign a material status to a lot or serial number, you must first enable the Lot Status
Enabled and Serial Number Status Enabled item attributes on the item in the Item Master.
• You can also optionally assign a default lot or serial status to an item on the Item Master.
• When you receive the item, the system automatically assigns the default lot or serial status to
the item. The lot or serial status remains the same through all inventory transactions
including organization transfers.
• If necessary, you can change the material status at receipt or use the Manage Item
Quantities user interface.
• You can track material status at the subinventory, locator, lot, or serial number level by using
the Manage Item Quantities user interface.
• When a material status is assigned to a subinventory or locator, the material is not assigned
the material status of the subinventory or locator; rather, it takes on the behavior indicated by
the material status at the subinventory or locator level.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 5

This section discusses allowed and disallowed material status transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 6

This diagram depicts that a material status is a combination of transactions and planning actions that you
choose to disallow in a particular circumstance. Material Status includes
• Allowed Transaction Types
• Disallowed Transaction Types
Disallowed transactions and planning actions are cumulative. When you set up transaction types, you
determine whether some transactions can be restricted by material status. The transactions for which you
enable status control in the Transactions Types window appear in the Manage Material Statuses user
interface.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 7

This section discusses the setup for material status.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 8

This screenshot depicts the setup for material status. The Manage Material Statuses task can be accessed
from the Setup and Maintenance work area. The screenshot highlights the following in the Create Material
Status page:
• Availability
• Allowed Transactions
• Material Status Usage
• Disallowed Transactions
Material Status Setup: Use Case
• In this use case, the organization stores all defective material in a subinventory called “Defect.” The
organization does not want defective material to be commingled in subinventories that have non-
defective material. In order to prevent such occurrences, the organization is going to use material
status to disallow all inventory transactions of type subinventory transfer for the subinventory
“Defect.” The organization has also designated that this material status is used only at the
Subinventory level.
• When the organization defines their subinventory, they can enter the material status for the
subinventory. In this example, the organization enters the material status “Prohibit Subinventory
Transfer for Subinventory Defect” when defining the Defect subinventory.
• When the organization attempts to create a subinventory transfer, the Defect subinventory is
restricted from the Subinventory list of values. A user cannot create a subinventory transfer for the
Defect subinventory.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 9

Only transaction types for which you have enabled status control on the Manage Inventory
Transaction Sources and Types user interface appears in the Manage Material Statuses user
interface. If you do not enable status control for a transaction type, then the transaction type is
always allowed.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 10

This section discusses the profile option and report option provided by the Material Status Control
functionality.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 11

This table shows a description for the Material Status Enforced profile option that determines if material
status is enforced.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 12

This table shows a description for the Material Status Where Used report that provides information for
reviewing material status usage at the subinventory, locator, lot, and serial number level.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 13

In this practice, you set up material status control by using the Manage Material Statuses user interface. In
addition, you disallow a subinventory transfer transaction from being created.

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 14

Oracle SCM Cloud: Supply Chain Management Foundation 14 - 15
Schedule: Timing Topic
45 minutes Lecture and Demo
15 minutes Practice
60 minutes Total
This slide lists the objectives of this lesson.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 2

This section discusses the min-max method of inventory planning.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 3

The diagram depicts the Min-max planning method of inventory planning that determines how much to order
based on user-defined minimum and maximum inventory levels. Consider the following:
• With Oracle Fusion Inventory Management, you can perform min-max planning at both the
organization and the subinventory levels.
• To perform organization-level min-max planning for an item, you must specify organization-level
minimum and maximum quantities.
• Min-max planning is typically used to control low-value inventory items that do not need great
control.
• To perform subinventory-level min-max planning for an item, you must specify item subinventory-
level minimum and maximum quantities.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 4

This diagram depicts the following sources of supply and demand for min-max replenishment:
• Inventory
• Order Management
• Purchasing
• Manufacturing
In addition, consider the following:
• Min-max replenishment processing uses current on-hand balances in inventory in addition to
optional features that allow a view into current “on-order” balances that affect supply and demand.
On-order balances can be impacted by orders in inventory, purchasing, order management, and
manufacturing.
• You should order when the following is true: (on-hand quantity – demand) + (quantity on order) <
minimum quantity.
• Quantity on order is the sum of purchase order quantities, requisition quantities, and in- transit
shipments. It also includes work orders as supply at the organization level. Quantity on order
represents supplies that you have not yet received in your organization.
• The system calculates demand quantity by using information from the following sources: Sales
orders and Transfer orders

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 5

 • You can include only reserved sales orders/transfer orders as a source of demand or also
include unreserved sales orders/transfer orders as a source of demand when netting against
on-hand quantity.
• You can include work order component requirements as a source of demand as well.
• Cutoff dates are entered as runtime parameters when the min-max process is initiated.
These cutoff dates determine how far into the future “on-order” and “demand” information
coming from the different order types is to be used.
Inventory Sources of Supply and Demand
Inventory on-hand balances are always used in replenishment calculations. In addition, inbound and
outbound transfer order supply and demand can also optionally be included as available supply
(inbound) and as existing demand (outbound) in replenishment calculations. When performing min-
max processing at the subinventory level, movement requests for sub-inventory transfers and
account issues are also included in min-max supply and demand calculations.
Purchasing Sources of Supply and Demand
Current on-order supply on purchase orders and requisitions can optionally be included as available
supply in min-max calculations.
Order Management Sources of Supply and Demand
Current demand on sales order can optionally be included as available supply in min-max
calculations.
Manufacturing Sources of Supply and Demand
Current on-order supply on work orders can optionally be included as available supply in min-max
calculations. In addition, component demand on these work orders can optionally be included as
demand in min-max calculations having the effect of reducing the available balance in the
organization.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 6

This section discusses what min-max replenishment calculation includes.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 7

This diagram depicts how to calculate min-max replenishment. Order Quantity is the difference between
Maximum Quantity and Total Available Quantity. The min-max planning calculation is as follows: Order
Quantity = Maximum Quantity – (Total Available Quantity).
Min-max planning calculates whether the total available quantity is less than the minimum quantity. Total
Available Quantity would be on-hand inventory plus any supply that comes in prior to the supply cutoff date
minus any demand that goes out prior to the demand cut off date.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 8

You can calculate min and max values based on the specified rules. This feature allows the policy
parameters to be defined at an aggregate ‘classification’ level. To achieve this, it aggregates Item
Categories into Classifications. It enables a set of input Policy parameters to be defined under Policy
Profiles. You can define as many different policy profiles as required. It enables Policy Profiles to be
associated with Classifications. The parameters are applied from aggregate levels to Item-Locations. Min
Max values are then calculated and published. These calculated min, max values serve as inputs to the
existing Min-Max planning process.
This feature allows you to automate the maintenance of thresholds and improve customer service levels by
dynamically updating the amount of inventory to keep on-hand. In addition, it helps you to reduce costs by
calculating the economic order quantity for replenishment when appropriate.
Item Subinventory Level
At the item level, you identify individual items that are to use min-max planning for reporting and generation
of new replenishment requests. You identify the source type in addition to min-max quantities that is used
when determining when to place replenishment orders. Additional reorder policy parameters are provided to
determine minimum, maximum, and a fixed lot size multiplier to use when determining the actual reorder
quantity on new replenishment requests.
Lead time options may also optionally be set at the item subinventory level. The preprocessing days and
processing days are used to set the need by date on purchase order requests. The postprocessing days is
used during min-max processing when determining the supply date cutoff for purchase orders. The
purchase order supply is included as a source of supply when calculating the total available quantity if the
due date plus the postprocessing days is less than the supply cutoff date run-time parameter entered when
initiating min-max processing.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 9

This section discusses the steps for generating a Min-Max Planning report and setting up min-max planning
attributes.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 10

This diagram depicts the following steps to generate a Min-Max Planning report:
• Set up item planning attributes
• Set up subinventory and item subinventory attributes (optional)
• Run Print Min-Max Planning report
To run the min-max planning report, you must first set up planning attributes at the inventory organization
and item level.
• You identify item sourcing details at the inventory organization level.
• You identify individual items as min-max planned items at the item level.
• If you are also using min-max planning at the subinventory level, you can optionally set up
subinventory planning attributes for individual items at that level.
To run the report and optionally generate supply requests, you submit the Print Min-Max Planning Report
scheduled process.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 11

You set up min-max planning attributes at the inventory organization, item, and subinventory levels.
Inventory Organization Level
At the inventory organization level, you set up the default sourcing rule for the organization. You can set the
default sourcing rule to Supplier. You also identify a default rounding rule to be used when generating
reorder quantity for new replenishment requests.
Item Level
At the item level, you identify individual items that are to use min-max planning for reporting and generation
of new replenishment requests. You identify the planning method, and whether to make or buy the item, in
addition to min-max quantities that are used when determining when to place replenishment orders.
Additional reorder policy parameters are provided to determine minimum, maximum, and a fixed lot size
multiplier to use when determining the actual reorder quantity on new replenishment requests. If the item is
a make item and work order requests are to be generated then the Build in WIP option must be set to yes.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 12

Source type is set to identify the type of source document that should be generated. These values
are used when running min-max planning at the organization level in a situation where the item is not
set up to generate a work order request (Build in WIP flag is No). If running at the subinventory level
then these values are used only as a default when the sourcing type is not entered at either the item
subinventory or subinventory levels. Options are as follows:
• Organization: Always generates a transfer order request. Prompts for source organization
code. Always generates a transfer order using the entered organization as the source
organization.
• Subinventory: Always generates a movement request. This option is only used as a default
if the source type is not entered at the item subinventory or subinventory levels when running
min-max planning at the subinventory.
• Supplier: Always generates a request for a purchase requisition.
Lead time options may also optionally be set at the item level. The preprocessing days and
processing days are used to set the need by date on purchase order requests. The postprocessing
days is used during min-max processing when determining the supply date cutoff for purchase
orders. The purchase order supply is included as a source of supply when calculating the total
available quantity if the due date plus the postprocessing days is less than the supply cutoff date
run-time parameter entered when initiating min-max processing.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 13

You set up min-max planning attributes at the subinventory and item subinventory levels.
Subinventory Level
Sourcing type is set to identify the type of source document that should be generated. This value is the
default value used if the source type is not entered at the item subinventory level. If the source type is not
entered at either the subinventory or item subinventory levels then min-max processing defaults up to the
item level to get this value. Options are as follows:
• Organization: Always generates a transfer order request. Prompts for source organization code.
Always generates a transfer order using the entered organization as the source organization. If the
source organization is the same as that for the subinventory then a subinventory transfer order is
generated (intra-organization transfer). A subinventory can also be entered. If entered, then this is
the default source subinventory on the transfer order supply order.
• Subinventory: Always generates a movement request. Prompts for a subinventory but it is not
required. If entered, then this is the default source subinventory on the movement request supply
order.
• Supplier: Always generates a request for a purchase requisition.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 14

This section discusses how to run min-max planning and generate supply requests.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 15

This diagram depicts how min-max replenishment processing optionally generates supply requests. It
includes Inventory, Purchasing, and Manufacturing.
Submitting the Min-Max Planning Requests
In addition to setting up planning attributes, min-max planning involves submitting a scheduled process that
generates the min-max planning report. You can also perform exception reporting with the min-max
planning reporting feature. When you submit the min-max planning request, you must specify a number of
parameters including parameters that address the following:
• Nettable subinventories
• Demand quantities
• On-order quantity information
• Requisitions, transfer orders, replenishment move orders, and work order requests
• Exception reporting
You can submit the planning process for all items under min-max planning. You can also submit the
planning process for only those items under their minimum quantities, and for only those items over the
maximum quantities.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 16

Using Nettable Subinventories
Oracle Inventory Management enables you to use on-hand quantities that exist in either nettable or
non-nettable subinventories, or both.
Demand Quantity
Oracle Inventory Management displays the sum of unfulfilled demand created before the demand
cutoff date. The system calculates demand quantity by using information from existing sales orders,
transfer orders, work orders and movement requests.
You can net unfulfilled sales orders and transfer orders demand against on-hand quantity. This
optionally includes all demand or just that demand that that has inventory reservations assigned.
You can include WIP job component requirements as a source of demand as well.
On-Order Quantity
Oracle Inventory Management displays the sum of on-order quantity expected to be in on-hand
inventory by the supply cutoff date. The system calculates on-order quantity by using information
from existing transfer orders, work orders, purchase requisitions, purchase orders, movement
requests and unprocessed supply order requests in the supply order request interface table.
Creating Requisitions, Transfer Orders, Replenishment Movement Requests, and Work Order
requests
If you request a restock, Oracle Fusion Inventory Management creates supply requests for all items
that meet the following condition:
(on-hand quantity – demand qty) + (quantity on order) < minimum quantity
When running min-max processing at the organization level Oracle Fusion Inventory Management
creates purchase requisitions (if the source is Supplier) and transfer orders (if the source is
Organization) for all Buy items, and WIP unreleased jobs for all Make items with the Build in WIP
option set to yes for the item.
When running min-max processing at the subinventory level Oracle Fusion Inventory Management
creates purchase requisitions (if the source is Supplier), transfer orders (if the source is
Organization) and movement requests (if the source is Subinventory).
The order quantity is constrained by the following attributes:
• Fixed-lot size multiplier
• Minimum order quantity
• Maximum order quantity
Supply order requests for purchase requisitions, transfer orders, and work orders go into the Supply
Chain Orchestration Interface table if you have Oracle Fusion Manufacturing and Supply Chain
Materials Management installed. You must run the Process Supply Chain Orchestration Interface
process in Oracle Fusion Supply Chain Orchestration to create the actual supply orders in the
destination systems. If you do not have Oracle Fusion Manufacturing and Supply Chain Materials
Management installed, you must run the Requisition Import process to create purchase requisitions.
Movement requests are always created directly by the min-max process so there are no additional
steps required.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 17

This section discusses the Min-Max Planning report and the Profile option.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 18

This table describes the Print Min-Max Planning report that calculates min-max planning replenishment
quantities for items and optionally generates restock supply order requests.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 19

The table shows the Min-Max Replenishment Reorder Approval profile option along with its description and
profile value.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 20

This section discusses PAR replenishment.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 21

While Min/Max Planning supports use cases where goods in a warehouse, stockroom or manufacturing plant
need simple replenishment as they fall below the minimum are utilized as part of fulfillment or manufacturing
processes, certain types of organizations require support for PAR Locations. Examples include Hospital
procedure areas or near nurse stations or, in the hospitality industry, remote Bars. PAR Locations have a static
list of items and the quantity to be maintained there (i.e. PAR Quantity). These items are often consumables or
expensed. They are typically not quantity tracked meaning that they are consumed throughout the day (i.e.
grabbed off of the shelf as needed), counted periodically and replenished based upon what was used. A
subinventory can be set-up as a PAR Location and the list of items can be assigned to that subinventory along
with their PAR Quantity, Minimum and Replenishment Method. It can be further refined by setting up item
locators that represent a specific shelf or bin location.
PAR locations are counted using custom or third party application. Once complete, these counts are sent to
Oracle Inventory Management Cloud's via web-services (Replenishment Request REST Service). PAR
Location Replenishment is then run (similar to Min-Max Replenishment) to generate replenishment requests
based upon a combination of the PAR Count request and the PAR settings of the items on the Subinventory or
Locator.

PAR Location Replenishment provide you with the ability to configure PAR location replenishment sources.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 22

The replenishment source types include the following:
• Purchase requisition/Purchase order
• Interorganization internal material transfer
• Intraorganization internal material transfer
• Movement request

Using the sourcing setup, you can determine the type of replenishment document to generate from the
PAR replenishment request. For example, a purchase requisition or purchase order can be generated if
the business requirement is to replenish from a supplier. The ship-to location associated with the PAR
location is used to deliver the material to the final destination. In some cases, the business requirement
is to replenish material from a main storeroom. For example, a hospital may a central storeroom that is
used to replenish various PAR locations. In this use case, the business process requires an internal
material transfer to move material from the central storeroom to the individual PAR locations. The
sourcing type can be setup at various levels including inventory organization, item, subinventory, and
item subinventory.

Replenishment Request REST Service: You can use it to record counts in Inventory Management
Cloud. You can configure the PAR replenishment count method at the item PAR location level. For
example, one item may have a Two Bin count method and another item may have a count method of
Request. This provides you with the flexibility to configure your replenishment counting practices based
on item. The scheduled process, Create Inventory Replenishment Request Process, then automatically
submits the count and creates the associated replenishment request.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 23

For more information, refer to the following link: [Link]
management/20a/fasrp/[Link]

<Course Title> 1 - 23
15-1: In this practice, you run min-max for a specific item at the organization level.
15-2: In this practice, you run min-max for a specific item at the subinventory level.

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 24

Oracle SCM Cloud: Supply Chain Management Foundation 15 - 25
Schedule: Timing Topic
45 minutes Lecture and Demo
15 minutes Practice
60 minutes Total
This slide lists the objectives of this lesson.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 2

This section discusses inventory accuracy and how it helps in avoiding frequent disruptions in production
operations.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 3

The diagram depicts the following components of Inventory Accuracy:
• ABC Analysis
• Physical Inventory
• Cycle Count
Cycle counting is an inventory practice followed to ensure inventory accuracy in operations. Inventory
accuracy helps in avoiding frequent disruptions in production operations due to missing items and, at a high
level, ensures higher level of customer satisfaction by delivering orders as planned. The frequency with
which you count your items depends on criticality of item, cost of the item, lead time of the item, and also
past stock movements of the item. Usually, ABC classification of your items becomes the basis for deciding
the count frequency with A class items being counted more frequently compared to B or C class items. The
recommended practice is to plan your cycle count program in such a way that you count certain items or
locations daily without disrupting your normal operations.
The Functional Setup Manager serves as the central location for all setup tasks. All setup is performed with
the Manufacturing and Supply Chain Materials Management offering. The Define Warehouse Administration
activity supports the necessary setup for the Perform Cycle Counting activity.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 4

In Fusion, you can manage all your cycle counting‒related tasks from a single Counts work area. By
accessing the Counts work area, users can view the count sequences that need to be recorded and
the count sequences awaiting approval.
The ABC analysis is used to drive the contents of the cycle count and is performed in Setup and
Maintenance tasks.
Cycle count interface records can be uploaded by using File-Based Data Import (FBDI) by way of a
SaaS template. You can enter all of the data for the respective attributes and then upload the data to
the interface tables by using the control files. This loaded data can be processed later by using the
Import Count Sequence scheduled process.
The Manage Cycle Counts Interface Application Development Framework Desktop Integration
(ADFDI) is a corrections user interface. When an error occurs while importing and processing the
records, use the ADFDI to view and correct errors. You can either resubmit for processing, (using the
Save > Submit action), or the next run of the Import Count Sequences ESS job picks up these
corrected records. The ADFDI cannot be used to enter or create new rows in the cycle count
interface.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 5

This section discusses ABC analysis in detail.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 6

This diagram depicts how ABC analysis provides a mechanism for identifying the following:
• Items that have a significant impact on overall inventory cost in the organization
• Different categories of stock that require different management and controls
ABC Analysis Details
• ABC Classification is an inventory categorization technique in the purview of inventory management.
• The inventory items are selected (based on various parameters) constituting an ABC Classification
Set.
• These items are valued (cost of the item multiplied by quantity) with the results then ranked in
decreasing order of their dollar value. Items can also be ranked by quantity or historical order value.
• The results are then grouped (called ABC Assignment Group) typically into three Classes: Class A,
Class B, Class C.
• However, Oracle Fusion Inventory Management also provides the flexibility to the Warehouse
Managers to maintain more or less number of classes, depending on the business requirements.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 7

This section discusses the process of defining a cycle count.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 8

This diagram depicts the process of Cycle Counting. It includes the following:
• Periodic counting of individual items throughout the course of the year.
• Counting a certain number of items every workday with each item counted at a prescribed
frequency.
• Using cycle counting along with ABC analysis to count items of greater importance more frequently
than those of less importance.
• Identifying patterns in count errors found over time and making improvements to increase the level of
inventory accuracy.
Note: It is important that, when creating items in the item master, the Cycle Count Enabled flag is selected
for the item. If this flag is not enabled (even if you have defined the item in your cycle count) the cycle count
does not recognize the item as available for cycle count, and it is not considered when count schedules and
count sequences are generated.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 9

The diagram in the slide shows the process of Create Cycle Count is an integrated flow of count definition in
a step-by-step train flow. This flow includes the following:
• ABC Classes
• ABC Classificiation Set
• ABC Assignment Group
• Define Cycle Count
Enter Primary Details
In the first step, enter the unique name of the cycle count definition and a description. You can enter these
additional details:
• Subinventories to Count region: Under the Subinventories to Count region, select the
subinventories for which the cycle count is being created.
• ABC Assignment Group: You can assign an ABC Assignment Group to the cycle count, which is
the basis for the cycle count program. ABC classes and items assigned to this ABC group are
included in the cycle count program.
• Synchronization mode: Controls how the ABC classes and items included in the cycle count are
synchronized with the ABC group. When the mode is complete, ABC classes and items included in
the cycle count are completely synchronized with the ABC classes and items included in the ABC
group. When the mode is Append Changes, then only the net changes are applied.
• Synchronize ABC association option: Is applicable only when the synchronization mode is
Append Changes. When enabled, it updates the current ABC class associated with an item as per
the ABC Assignment group name.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 10

 • Delete additional items: Indicates whether items associated with the cycle count but not
included in the ABC group name should be deleted from the cycle count.
Define Classes and Items
In this step, you add the ABC classes and the underlying items to be included in the cycle count
program. If you have associated an ABC group in the previous step, then the ABC classes and items
included in the ABC group are loaded into the cycle count, and you can make further changes or
additions to the loaded data.
• Counting frequency: You can specify the counting frequency at the ABC class level.
• Adjustment value and quantity variance tolerances: You can specify the adjustment
value and quantity variance tolerances at both ABC class and item level. Item level
tolerances are given preference.
• Hit and miss percentage: Is used as the basis for evaluating the inventory accuracy. If the
deviation between the recorded quantity and system quantity is within the range specified,
then the count sequence is classified as a hit. A higher number of hits indicates that the
inventory accuracy is good.
• Include in schedule: Check the “Include in schedule” option to include the item for auto-
scheduling. The Generate Count Schedules program considers the items marked for auto-
schedule and creates count schedules if they are due for counting as per the count frequency
defined. When you mark something to be included in a schedule, it means that you want that
item to be scheduled always, irrespective of the counts per year. This is used in the business
case where an important item is counted repeatedly for short periods of time.
Define Schedules and Approvals
In this step, you define the auto-scheduling setup and approval setup.
• Frequency of Scheduling: Specify the frequency of scheduling. Frequency determines how
frequently a count schedule should be generated. If the frequency is weekly, then a count
schedule is generated including all items that are due for counting in the next one week. If the
frequency is a day, then one count schedule is generated for every day and the schedule
includes only those items that are due for counting on that day.
- The formula to get the number of items to be scheduled on a given day is: (Number of
items assigned to the class X Number of counts per year)/Number of working days in
a year. This value is then rounded to next integer.
Example
The following example shows how many items are scheduled to count when:
• There are 131 Class A items to be counted 52 times a year, and there are 258 working days
in the year. The number of items to be schedule is 27.
• A items = (131*52)/258 = 26.4

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 11

 • There are 127 Class B items to be counted 26 times a year, and there are 258 working days
in the year. The number of items to be scheduled is 13.
• B items = (127*26)/258 = 12.8
• There are 254 Class C items to be counted 13 times a year, and there are 258 working days
in the year. The number of items to be scheduled is 13.
C items = (254*13)/258 = 12.8
• TOTAL = 53
This logic is applied only when items are not included to be scheduled always (Include in schedule is
not selected).
• Calendar: Enter the calendar that is used for scheduling.
• Last Schedule Date and Next Schedule Date: Are updated by the scheduling program.
You can modify the next schedule date.
• Approvals region: Under the Approvals region, enter the approval controls. If approval is
applicable, you can indicate whether every count sequence needs an approval or if an
approval is required only when the recorded quantities differ from system quantities beyond
the tolerances stipulated.
• Tolerances: Enter tolerances applicable for the entire cycle count. These tolerances are
applied when more specific tolerances at item or ABC class are not available.
Define Parameters
In this step, you define parameters for serialized counts, blind counts, zero quantity counts, and
manual counts.
• Maximum Days Before Late: Specify the maximum suggested days late. This is the days
window from count creation date by when the count should be recorded. Count sequences
not recorded within this window are marked as late counts in the work area and the
Warehouse Operations dashboard.
• Maximum Auto Recounts: Enter the maximum auto recounts applicable for the cycle count.
When the recorded quantity exceeds the system quantity beyond the stipulated tolerance,
then the count is automatically sent for recount without intervention of the inventory manager.
If the number of recounts exceeds the number specified here, but the deviation still exceeds
the tolerance, then the count is routed for approval.
• Start and End Dates: Start and end dates define the validity of the cycle counting program.
• Manual counts allowed: Select the Manual counts allowed check box if unscheduled counts
can be entered by users.
• Count zero quantity: Select the “Count zero quantity” check box to indicate whether blank
count sequences should be generated for items with zero on-hand quantities.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 12

• Display suggested quantity: Deselect the “Display suggested quantity” option to enforce
blind counting. Blind counting ensures that the actual physical verification exercise is done.
• Serialized items allowed: Select the “Serialized items” check box if count sequences should
be generated for serial controlled items.
• Serial Options region: Enter parameters for serialized counts. You can enter these
parameters only when you enable serialized counts.
- Indicate whether multiple serial numbers can be included in one count sequence or a
separate count sequence should be generated for each serial number.
- Define whether the system can process serial adjustments when possible, or if all
serial adjustments should be sent for approval. This is applicable only when multiple
serials are included in a count sequence.
- Indicate whether serial numbers should also be counted if the actual and system
quantities tally with each other. This is applicable only when multiple serials are
included in a count sequence.
- Indicate whether a discrepancy is allowed in the actual location of a serial number. If
the discrepancy is allowed, then the system transfers the serial number to the
recorded location.
• Count Accuracy: Enter the deviation percentage range to evaluate a count as a hit or a
miss.
• Additional information can be recorded as per the cycle count flexfield setup.

Manage Cycle Counts Using REST Service:

You can use the Cycle Count REST service to define a cycle count, record count entries, and
validate cycle count inventory adjustments. In addition, you can use it to provide additional
descriptive flexfield information during cycle counting. This service defines, updates, corrects, or
deletes the cycle count interface records in online or background modes. For more information,
refer to the following link: [Link]
management/20a/fasrp/[Link]

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 13

Instructor Note: Demonstrate this practice to the students.
In this practice, you define a cycle count, record count sequences, and approve count sequences using the
Manage Cycle Counts page and the Counts Work Area.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 14

This section discusses the process of Physical Inventory.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 15

This diagram depicts the Physical inventory process. It’s a process in which a business physically counts its
entire inventory. This process includes the following:
• Inventory Organization
• All On-Hand items in inventory
• Entering counts
Consider the following:
• A physical inventory may be mandated by financial accounting rules or tax regulations to place an
accurate value on the inventory. A physical inventory is performed on a periodic basis to evaluate
and reconcile inventory quantities and values.
• The physical inventory process requires the inventory organization to suspend incoming and order
fulfillment activities for the time it takes to conduct the physical inventory.
• As revenue-generating processes are halted for the duration of the physical inventory, it is important
to perform the required process steps sequentially and efficiently to complete the process in a timely
manner. As important as it is to complete the process quickly and efficiently, it is equally important to
provide thorough and accurate counts so the company’s financial picture is represented correctly.
• Physical inventory allows you to get an accurate count of stock and identify count variances. It also
lets you determine an accounting value for the entire on-hand inventory. It is a periodic reconciliation
of system on-hand balances with physical counts in inventory. You can perform a physical inventory
for an entire organization or subinventories within an organization.
• A physical inventory is typically performed once every six months or once a year depending on the
organization requirements.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 16

This section discusses some of the key Inventory Accuracy reports.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 17

The table in the slide lists various Inventory Accuracy reports along with their description. The table contains
the following:
• Columns: Report Name
• Rows are as follows:
Cycle Count Listing Report
The Cycle Count Listing report is an indication for the warehouse operator to manually count the specified
items at specified locations at the specified times. The warehouse operators update the count quantity for
each entry in the Cycle Count Listing report. The user can print important details of all the recounts done for
this count sequences in the Cycle Count Listing report. The Cycle Count Listing report can be used to print
the history for a count sequence. The user can print the Cycle Count Listing report from the Action Menu on
the Count Sequences to Record table. The user can select a count and launch the request.
Physical Inventory Tags Report
These are the actual default and blank tags that are generated using the Generate Physical Inventory Tags
action. This is what the physical counters use to record count details.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 18

Physical Inventory Tag Listing Report
This report lists all the default and blank tags that you generated and all the dynamic tags that you
entered. The report shows the tag number, item, revision, subinventory, locator, lot, and serial
number for each tag used in your physical inventory. You can use this report as the document you
give to the employees performing the counts. You can also use this report as a complete count
history after all counts have been completed.
Physical Inventory Missing Tag Listing Report
This report lists the tags that are missing from a user-specified range of tag numbers. The report also
shows what information was printed on the tag, if any, to aid in the search. Oracle Fusion Inventory
Management considers as missing those tags for which you have not entered counts. Void tags are
not considered to be missing. Use this report before initiating physical adjustments to verify that you
have accounted for all tags generated by the system. Otherwise, if you have not entered a count for
a tag and approvals are not required, Oracle Fusion Inventory Management adjusts your on-hand
balances down to zero quantity.

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 19

Oracle SCM Cloud: Supply Chain Management Foundation 16 - 20
Schedule: Timing Topic
45 minutes Lecture
00 minutes Practice
45 minutes Total
This slide lists the objectives of this lesson.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 2

This section discusses the incoming costs of purchases: Supplies, Services, Projects, Inventory. In addition,
it discusses how Receipt Accounting performs accrual accounting for purchases that are received.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 3

Receipt Accounting is the application that performs the accrual accounting for all types of receipts. This
includes purchase order receipts of services, supplies, project materials, inventory, and inventory transfers.
The key accounting policy decision that you need to make with the receipt accounting flow is whether or not
you want to accrue at receipt.
• If you do not accrue at receipt, then the accounts payable account is credited when the supplier
invoice is processed in accounts payable. Receipt accounting has a function to accrue un-invoiced
receipts at period end.
• If you do accrue at receipt, an accrued liability account is credited when the goods are received. In
historical business practices, the receipt date can be well before the day the invoice arrives, which
may inspire a need to accrue at receipt. However, the timing difference between the receipt and the
accounts payable invoice may diminish with modern business practices such as automated billing
systems. The receipt accounting application provides tools to help reconcile the accrued liability
clearing account when using an accrue-at-receipt business flow.
Receipt accounting can be implemented separately and independently from cost accounting. That is, if you
do not expect to manage inventory (service industries, for example), then you can implement receipt
accounting without implementing cost accounting.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 4

This diagram depicts a high-level flow of the Receipt Accounting process. It includes the following:
• Purchase Order Receipts
• Receipt Accounting
• Distributions
• Subledger Accounting
The Receipt Accounting process creates accounting distributions and posts those to Subledger Accounting
(SLA) for processing and then into the General Ledger (GL).

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 5

The screenshot highlights where you can specify the Accrue at Receipt flag on the purchase order – line –
schedule. This is a pivotal policy decision that affects the implementation of Receipt Accounting.
• If you select Accrue at Receipt, then receipt accounting takes on the accrue-on-receipt pattern.
• If you deselect Accrue at Receipt, then the accounts payable account is credited when the supplier
invoice is processed in accounts payable. Receipt accounting accrues un-invoiced receipts at period
end.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 6

Business advantages:
• Easier to manage, fewer tasks in receipt accounting
• Less accounting, less reconciliation
Business disadvantage:
• Accounting may not be as timely (but is accrued by month end).

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 7

Business advantage:
• More timely accrual accounting
Business disadvantages:
• More things to do in receipt accounting
• More accounting, more reconciliation

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 8

This section discusses how Standard Cost Planning helps you estimate the cost of purchased and
manufactured items.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 9

This slide lists out the key capabilities of Standard Cost Planning.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 10

This diagram depicts the Standard Cost Planning solution. It includes Manufacturing Work Definitions, Cost
Planning Scenario and Cost Accounting. The cost planning solution is designed to be auditable and
interactive.
Work Definitions
This process typically starts with manufacturing engineers who define what are called “work definitions”.
• A work definition defines, at each operation, the required materials, labor, and machine resource
time.
• The work definition also specifies the output item, the typical batch size quantity to be assumed for
purposes of calculating the total cost of a typical work order, and it defines whether or not the inputs
at an operation are a fixed quantity or variable.
- A fixed quantity operation is for situations where you consume a fixed quantity of input
materials and resource time regardless of the batch size quantity. For example, you may
have machine setup operations that require a set amount of time to perform, along with a set
quantity of material that is consumed during test runs to verify the machine is set up correctly.
- A variable operation, such as a machine run operation requires an amount of input material
and resource time that varies with the output quantity. These parameters on the work
definition affect the calculated costs.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 11

Selecting Work Definitions
There may be more than one work definition for a given manufactured item to reflect alternative input
materials, alternative routings, and so forth. For the purpose of a costing scenario, you choose one
work definition per manufactured item as the one to use for establishing your standard costs.
• There are tools to help you make this choice efficiently by using values that already exist on
the work definition for other purposes.
• You can simply select the work definition for each item that has the top production priority, or
you can walk down the structure by using “name”. For example, you could put “Plan A” in the
name of your preferred work definitions and the system selects those work definitions.
• You can also set a costing priority on your work definitions and have the system select the
work definition with the top costing priority for each item. And you can prioritize these
choices. For example, you can have the system find the work definitions for items named
“Plan A”, then top production priority. That way, if an item does not have a work definition
named “Plan A”, the system looks for the work definition with the top production priority and
selects that one.
Scenarios
A cost accountant creates records of purchased material cost estimates, resource rates, and
overhead rates. A scenario is a container for these cost estimates, and you can use different
scenarios for different cost assumptions if you wish to compare alternatives and contingencies. The
user interface is designed to be interactive so you can run the cost rollup calculations, see results,
modify assumptions, correct missing information, and rerun cost rollup to see the new results. After
the cost accountant is satisfied with the results, the standard costs can be published to be used for
cost accounting purposes. You can publish standard costs for future effective dates. The cost
accounting system automatically implements those new standards when the effective date arrives.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 12

This section discusses how to perform the accounting for inventory and manufacturing transactions,
including accounting for inventory, transfers, and manufacturing cost accounting.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 13

The Fusion Cost Accounting solution strives to be flexible with ease of implementation.
Cost Methods
Cost accounting methods include:
• Actual Cost, also known as “FIFO”
• Perpetual Average Cost
• Frozen Standard Cost
Cost method can be defined granularly down to individual items if necessary, but you can define default cost
methods at the organization level and at the item category level. This ability to use different cost methods
within an organization gives you the flexibility to use a cost profile as appropriate for different types of items
within your warehouse.
For example, you may have a category of items that you buy and resell, for which you want to use an Actual
FIFO cost method, and you may have standard manufactured items where a standard cost method is
appropriate. The cost accounting methods you want to use throughout your enterprise can be defined at the
setID level and shared across all of your organizations. Not only does this save redundant setup, it also
enables you to control and standardize your cost accounting policies.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 14

A key point to note is that all cost methods are supported for manufactured items as well.
• A manufactured item can use any cost method: Actual (FIFO), Average, or Standard.
• When manufactured items use an Actual cost method, the system calculates the total cost of
production for a work order and that total cost is divided across the completed units that are
put away into inventory to determine the actual unit cost for those layers.
• Different work orders of the same item may have slightly different actual costs and those
layers are tracked in inventory at those actual costs.
• Similarly for Average cost, the actual cost of the work order is determined and then rolled into
the current perpetual average cost for the completed units.
• Manufactured items that use the Standard cost method go into finished goods inventory at
the predefined standard cost.
• The work order may have actual costs that differ from the predefined standard cost and those
cost differences are cleared out of work in process as variances.
• Manufactured items can even use different cost methods than the component items and
different component items can use different cost methods as well. For example, your
manufactured item may use an Actual cost method and it may contain some expensive
serialized component items that you want to track at actual cost, and may also contain other
less expensive component items where a Standard cost or Average cost method is your
preferred policy. This is supported in Fusion Cost Accounting.
User-Defined Cost Element Granularity
You can also define the granularity at which you want to track costs and perform accounting entries
in the Cost Accounting solution. You can group atomic level costs into user-defined cost elements for
accounting purposes. For example, the estimated material purchase price on the purchase order
along with Accounts Payable price variances are interfaced to Cost Accounting at their most granular
level. But if you want, you can configure your system to consolidate those atomic level costs into a
single “material” cost element.
Cost Layer Granularity
You can define the granularity at which you want to track the flow of quantities, and their costs
through inventory.
• For example, if you have items that are not lot or serial controlled, you can decide to track
your quantities at the item level, and FIFO at that level. If you are using an Actual cost
method, each FIFO layer has a cost specific to that layer.
• To cite another cost layer granularity example: If you have items that are lot controlled,
actual, average, or standard costs are tracked at the lot ID level. More specifically, depending
on your cost method, there is an average cost for that lot. In the actual cost method, FIFO
layers are tracked within the lot.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 15

Tracking Actual Costs and Internal Profits Through the Supply Chain
Another powerful capability is a special cost element that tracks internal markups as items transfer
between business units. For example, if the cost of an item at organization A was $10, and there is a
$1 markup when the item is transferred to organization B, the cost details in B can show that the true
cost of the item is made up of a $10 cost, plus a $1 “profit in inventory”. This is especially useful if
you use an Actual cost method across your supply chain. It allows you to understand your true
margins on your products. For example, if the item is sold for $25, you know that the cost to the
enterprise was $10, the total gross margin is $15, and org A received $1 as their value-add portion of
the margin, and org B received $14 as their value-add portion of the margin.
The other benefit of tracking “profit in inventory” is that it helps stratify the amounts that need to be
eliminated in the consolidated financial statements. Using the preceding example, if the item is still
on-hand in inventory in Org B at the end of a period, the inventory value of the item for the enterprise
to be reported on the consolidated balance sheet is truly $10 (the $11 total value shown in B less $1
profit in inventory).
Tracking Costs in Primary or Secondary UOM
Inventory transactions can be created in terms of two units of measure that do not have a standard
conversion. For example, chicken breast meat may be purchased by the pound and each piece has
a different weight (there is no standard conversion between pieces and weight). A sandwich may use
1 piece of chicken (and the weight may vary). In cost accounting you can decide to track costs by the
piece or by weight.
Multiple Books
You can define multiple books. Multiple books allows you to account for transactions in multiple
ways simultaneously. Each book posts accounting entries into a different ledger. One book always
posts into the legal entity’s primary ledger, and the other books post accounting entries into
secondary ledgers. You can also define a secondary book that is “ledgerless.” This means that you
want to see reports in terms of that book’s accounting methods within the Cost Accounting domain,
but you do not need to see financial reports in the Financials applications domains.
• One use case for multiple books is when you have multiple currencies that you need to track,
such as a local currency and a corporate currency. You can create two books to track
inventory value and margins in terms of each currency.
• Another related use case is when you have local regulatory or tax financial reporting
purposes that differ from your corporate accounting policies for financial reporting to
shareholders. You can use the multiple books feature to meet those competing objectives.
• Another use case is you may have an accounting policy that you use for financial reporting
purposes and you would need to go through a difficult process to change that policy so you’d
rather stay with that for financial reporting, but for internal reporting you want to use different
accounting policies that help you make better business decisions.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 16

Rapid Implementation
There are a number of tools to help you go live quickly.
One tool is the rapid implementation process. In this process, you answer just a few simple
questions and then the system automatically creates your setup entities so you can start running the
system quickly. This is useful for pilot tests of the application, demonstrations, and for customers
who do not need to use all the power and flexibility offered by the solution. These users have simple
needs and want to be up and running quickly.
If you do need to take advantage of the flexibility of the system, the rapid implementation process
described here may not be right for you. Nevertheless, there are still more tools to streamline your
setups and get the system running quickly. The functional setup manager guides you through the
setup tasks you need to perform. It also enables you to upload setup data from a spreadsheet, and
you can establish beginning inventory balances through upload as well. Many of the cost accounting
setups are at the setID level, which means you need to create those definitions only once, and then
you can share those common definitions across all the organizations in your enterprise.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 17

This diagram depicts how Fusion Cost Accounting integrates with several supply chain and financial
applications through a set of well-defined interfaces.
• Shipping, receiving, and inventory transactions from manufacturing are interfaced to Costing through
the Inventory-Costing interface.
• Resource transactions are interfaced directly from Manufacturing.
• Payable invoices are interfaced from Fusion Payables.
• Invoices and revenue are interfaced from Fusion Receivables.
The transactions from source systems are interfaced to cost accounting and picked up by the cost processor
for cost accounting, based on the cost method and other cost policies. Subsequently, the distributions are
created and sent to subledger accounting (SLA) for posting. SLA applies the appropriate account rule and
posts accounting entries into the GL.
• Supply Chain Financial Orchestration: This is where inter-BU transfer pricing agreements are defined and
where inter-BU transfer events are orchestrated. This functionality generates events for inter-BU AP, AR,
and Cost Accounting transactions.
• Project Costing: It is a solution that lets you manage and review expenditures for a project. SCM Costing
sends cost accounting event information (project expenditures) to the Project Costing solution when
material is purchased for a project or issued out of inventory to a project. More information on Project
Costing can be found here: [Link]
management/20a/oapfm/[Link].
• Other Fusion Apps: SCM Costing provides cost information to other functional areas such as Pricing and
Planning.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 18

This section discusses how Supply Chain Financial Orchestration supports inventory transfers and inter-
business unit trade parameters and transfer pricing.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 19

In this slide, the diagram (example) depicts how Vision Operations sources supplies from a manufacturing
facility in China for electronic components. The goods are shipped directly from China to the warehouse in
the US. Upon receipt of goods, the ownership transfer is documented and accounted through China-
Singapore-US. The financial flow is independent of the physical movement of goods.
Supply Chain Financial Orchestration is a configurable application that manages all the trade relationships
between internal parties belonging to a large corporation, typically spread across geographies. The supply
chain business flows supported are customer shipment (between internal parties), global procurement, and
internal transfers.
Supply Chain Financial Orchestration supports:
• Infrastructure and framework to define the financial trade and physical flows independently
• Configuration to define cost-based, document-based support for third-party transfer pricing rules
• Configuration that supports compliance with legal and internal control requirements for creating the
appropriate transactions and documents in the financial trade route
• Ability to define various supply chain execution events to trigger financial orchestration
You can monitor the execution of the financial flow between the entities. The user interface gives you the
status of the financial orchestration transactions.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 20

This diagram depicts the following flows supported by Financial Orchestration.
• Global Procurement (Where the procuring affiliate procures for one or more internal organizations)
• Internal Transfers (Both flavors of internal transfers: interorganization and transfer order)
• Internal Drop Shipment (Where Internal drop shipment flow where selling and shipping business
units are different)
• Customer Drop Shipment
In addition, support for configure-to-order items and supplier-consigned flows are also available. As the
architecture is de-coupled from core Fusion Execution Systems, Supply Chain Financial Orchestration owns
the financial flow configuration, pricing rules, accounting policy, and so forth.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 21

This section discusses how to plan and account for additional costs incurred while acquiring materials such
as freight, import taxes, and other fees.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 22

This diagram depicts how Fusion Landed Cost Management (LCM) gives organizations financial visibility
into their extended supply chain costs, including transportation and handling fees, insurance, duties, and
taxes. As these types of charges can compose a significant portion of an items’ cost, it is important to
accurately incorporate them into overall financial processes and decision making activities. Fusion LCM
initially estimates these costs, and later updates them with actual amounts as they become known,
allocating them to purchase order receipts. The landed cost eventually becomes a part of item cost and gets
absorbed into inventory.
Benefits of Fusion Landed Cost Management
• Maximize Product Profitability: Automatically capture and itemize extended costs and charges
such as freight, insurance, and brokerage fees, as well as duties and taxes to illuminate the hidden
costs associated with complex supply chains.
• Enhance Competitiveness: Strategically source products and components from lower-cost foreign
locations by identifying and measuring all of the extended supply chain costs—charges, fees, duties,
and taxes—optimizing supply networks.
• Increase Financial Visibility into the Supply Chain: Tracking estimated costs as soon as they are
known gives product line managers, as well as financial professionals, more insight into their
exposure for budgeting and reporting.
• Ensure Compliance: Itemizing and tracking all landed costs as they apply to a product is a global
best practice for industries with complex supply chains.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 23

This diagram depicts various touch points of Fusion Landed Cost management (LCM). In addition, it depicts
how it uses them to get various information from these applications and processes them:
• Fusion Purchasing: Fusion LCM gets all the material purchase order information, and trade
operation charges are associated to purchase order schedules. This way, the LCM charges are
allocated proportionately to purchase order schedules and consequently receipts.
• Fusion Receipt Accounting: All the receipt information flows from Fusion Receipt Accounting into
Fusion Landed Cost Management. Accrual for the service purchase orders is booked in Fusion
Receipt Accounting when the details flow from Fusion LCM. Tax information about the material
purchase order/receipt information also flows from Fusion Receipt Accounting to Fusion LCM.
• Fusion Cost Management: Charges from Fusion LCM are absorbed as part of item cost in Fusion
Cost Management. After the goods are delivered to inventory, the landed cost charges are absorbed
into inventory valuation.
• Fusion Tax: It is possible that taxes are applicable on the service charges coming from Fusion
Landed Cost. After the services or charges are defined in LCM, taxes are automatically calculated
(wherever applicable) by calling Fusion Tax.
• Fusion Payables: Suppliers, in most cases, send invoices for the services provided (like freight).
These invoices are for landed cost charges defined in Fusion LCM. In Fusion Payables, on the
invoice, users can provide a reference number and, based on the reference, these invoices are
automatically matched to landed cost charges. These become the actual charges. The difference
between the actual and estimated charges are shown as variance in Fusion LCM.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 24

This section discusses some of the analytics provided by Cost Accounting solutions.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 25

Fusion Cost Accounting features the reports listed in the slide, which can be viewed for a variety of
parameters. There are multiple options of viewing the same data using the report formats. These reports are
built using the BI Publisher tool and can be modified to meet your requirements.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 26

The Fusion Costing solutions take advantage of the Oracle Transactional Business Intelligence (OTBI).
OTBI allows you to build user-driven analytics against view objects over real time transaction data. You can
view these analytics online or you can download the analytics to file formats compatible with Excel or CVS
for use in other client applications. We have designed the OTBI view objects to give you user friendly
access to critical transaction level business information you can view in detail or summary for your audit and
decision making needs.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 27

This section discusses how you can model your enterprise business and accounting structure.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 28

This diagram depicts how cost accounting solutions fit into your Organization Hierarchy model. How you
want to model your enterprise business and accounting structure is a key implementation consideration. Let
us learn about some important components and concepts.
Ledgers, Legal Entities, and Profit Center Business Units
A legal entity can have one or more than one profit center business unit (a business unit defined as below
legal entity in the business unit definition page). Legal entities also use one or more ledgers, but one and
only one ledger is the primary ledger, and the others are secondary ledgers. Secondary ledgers can be
used to account for the same transactions by using different accounting methods, currencies, and so forth.
Receipt Accounting business units post accounting entries into the primary ledger. Cost Accounting cost
organizations also post accounting entries into the ledgers. Cost accounting organizations can also have
multiple books (not shown here for simplicity), which each post into different ledgers by using different
accounting methods and currencies.
Shared Service Business Unit
There is also a concept of a shared service business unit (a business unit defined as above legal entity in
the business unit definition page). Shared service business units can perform business tasks on behalf of
multiple profit center business units such as centralized procurement and accounts payable.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 29

Cost and Inventory Organizations
Profit center business units can have one or more cost organizations and inventory organizations. A
cost organization can have one or more inventory organizations, but the rule is that the inventory
organizations all need to be within the same business unit. Plants do manufacturing and are linked
with inventory organizations.
Transfers
Transfers of material between inventory organizations within the same business unit do not have
transfer prices. Transfers across business units do have transfer pricing agreements, so you can
define how you want to identify the value add of products as they move through your supply chain.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 30

Oracle Fusion Managerial Accounting offers several benefits:
• Automatic routine receipt accounting and cost accounting tasks
• Enables business flows for global enterprises
• Core financial reporting compliance for global enterprises
• Accurately captures costs and gain insight for improving product profitability.

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 31

Oracle SCM Cloud: Supply Chain Management Foundation 17 - 32
Schedule: Timing Topic
10 minutes Lecture and Demo
00 minutes Practice
10 minutes Total
Project driven supply chain, or PDSC, integrates several products of Oracle supply chain and financial clouds
to give you an end to end solution for executing supply chain activities in context of projects.
This solution is flexible enough to support diverse business processes of manufacturing and asset intensive
companies.
You can use the enhanced file based data integration templates and rest services to extend the solution to
processes that are outside of the delivered solution. For example, you could import sales orders from a project
specific quote in a quote management system, such as configure price and quote, or CPQ.

Oracle SCM Cloud: Manufacturing Foundation 9 - 2

You can adapt the project driven supply chain solution to suit your business needs. For example, if you are a
contract manufacturer, you can support multiple manufacturing contracts from one plant and segregate the
inventory and production operations by customer, without having to create separate inventory organizations. If
you are an original equipment manufacturer, you could bundle design and post sales services with your
product on a project to track your costs and revenue. If you are an asset intensive company, you can build and
maintain assets on projects to ensure accurate budget and cost tracking.
These are only a few examples of the processes that could be supported using this solution. This solution
supports most processes related to inventory management, procurement, sales, manufacturing, and
maintenance on project.

Oracle SCM Cloud: Manufacturing Foundation 9 - 3

The project driven supply chain solution is comprised of eleven features, nine in supply chain and two in
project management. This lesson introduces you to the nine supply chain features. Each of these nine features
have their own readiness training recordings.

Oracle SCM Cloud: Manufacturing Foundation 9 - 4

You enable project driven supply chain by opting in to the feature of the offering Manufacturing and Supply
Chain Materials Management.
After you have opted in, you will have to use the Manage Inventory Organizations task to enable inventory
organizations for project. Then you should use the Manage Default Expenditure Types task to assign a default
value for the four supply chain transactions and objects which gather project data.

For each inventory organization, you must independently enable project driven supply chain for transactions.
In addition, the task Manage Default Expenditure Types must be performed to identify which existing
expenditure type to use as the default for four transactional purposes as individual default expenditure types
can be applied for the work order header, labor resources, non-labor resources and material.

And lastly, each inventory organization that is enabled for project driven supply chain, must be classified as a
Project Expenditure Organization using the Manage Project Organization Classifications task

Oracle SCM Cloud: Manufacturing Foundation 9 - 5

As mentioned before, details of this solution are in feature-specific release training modules. The list of those
modules is:
• Segregate and Manage Project-Specific Inventory at
[Link]
c_Inventory/[Link]

• Receive Project-Specific Supply at

[Link]
[Link]

• Pick Project-Specific Inventory at

[Link]
ml

• Ship Project-Specific Inventory at

[Link]
ml

• Transfer Project-Specific Inventory at

[Link]
[Link]

• Purchase Project-Specific Inventory

• Execute Project-Specific Manufacturing at
[Link]
/[Link]

Oracle SCM Cloud: Manufacturing Foundation 9 - 6

• Perform Project-Specific Maintenance

Oracle SCM Cloud: Manufacturing Foundation 9 - 7

This slide lists the additional resources that you can reference to learn about Oracle Supply Chain products.

Oracle SCM Cloud: Manufacturing Foundation 9 - 7