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Thursday, June 27, 2013

Overview on Inventory Organization

Posted by at 11:53 PM Read our previous post

Inventory Organization
An inventory  organization is an inventory location with its own set of books, costing method, workday calendar, and list of items. An organization can be a company, subsidiary, or a warehouse.
Consider the following when you plan your enterprise structure:
              Sets of Books: You can tie one Oracle General Ledger set of books to each inventory  organization.
              Costing Methods: You set your costing method (Standard or Average) at the organizational level. The item attribute control level determines the costing organization.
              Item Costs: Oracle Inventory keeps one cost per item per inventory organization.
              Movement Between Inventory Sites: You can use in transit inventory for inter-organization transfers.
              Planning Method: You can choose how to plan your items.
              Forecasting: You can forecast your items.
              Accuracy Analysis: You can perform a cycle count or a physical inventory.

Defining Organizations



Classify the Organization
          Choose an organization classification to describe the general purpose of your organization.
          Examples of organization classifications are inventory organization, legal company, and HR organization. 
          Choose inventory organization as your organization classification to use your organization for inventory management.
Set of Books
          Tie each inventory organization to an operating unit. Each operating unit is associated to a legal entity and a general ledger set of books.
Inventory Parameters
          Use the Organization Parameters window to complete your organization definition for inventory purposes.
          Define receiving parameters if you receive items on purchase orders, internal orders, and in transit inter-organization shipments.



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