Overview on Inventory Organization

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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.