December 31, 2012


In business transactions, various players participate in the purchase and sale of product or services. A party refers to an entity involved in such business transactions. It can be an organization, a person or a relationship.
A party is an entity which can enter into business with another party.
A party is defined by its information and not by relationships with other parties. E.g. the name Vision Corporation is part of the definition of a party with the organization party type.
A relationship is defined by the characteristics or terms and condition of that relationship. The definition of a party is independent of its relationship. E.g. a party, named Jeremy Smith, with the party type of Person exists independent of any relationship entered by Jeremy Smith.

Party Site:

A party site is the location linked to a party indicating that the party’s usage of location.
A location is a point in geographical space described by a street address.
A Party Relationship is a binary relationship between two parties such as a partnership.
A contact point is a means of contacting a party. E.g. the contact numbers, email address of a party.



A customer is an organization or a person with whom you have a selling relationship.
This relationship can result from purchasing or products and services or from the negotiation of terms and conditions that provides the basis for future purchases.
A customer account represents the business relationship that a party can enter into with another party.

Customer Account:

This contains the terms and conditions for doing business. E.g. if a division of Vision Distribution is a customer, then you can open a commercial account for purchases to be made for its internal use. You can also open a reseller account for purchases made for sales of your products to end users.
You can create multiple customer accounts for a party to maintain information about categories of business activities. E.g. to track invoices for different types of purchases, you can maintain two accounts, one for purchasing office supplies and another for purchasing furniture.
You can also maintain multiple accounts for a customer that transacts with more than one line of business in your organization. For this, you maintain separate customer profiles, addresses, and contacts for each customer accounts.


A contact communicates for or acts on behalf of a party or a customer account.
A contact can exist for a customer at the account or the address level.
A person usually acts as a contact for an organization but at the same time can also be a contact for another person, e.g. an administrative assistant can be a contact for an executive.

Party Registry:

This stores information about relationships between parties, such as organizational hierarchies, business relationships, personal relationships, and organizational contacts.
This also stores the reciprocal data for the relationships.

Party Model:

In the party model, a single record represents both a prospect and a customer. Till the time, the customer terms are established, the record represents a prospect. After the terms are recorded, the same record represents the entity as your customer. So there are no separate lists to maintain and reconcile.
Each Application uses different features of the party model. For instance, the customer relationship management (CRM) suite application use more details about party relationships and new prospects. The receivables and order management use more of the customer accounts.
The Party model contains a unique set of information about a person, organization or relationship. The tables store information such as parties, addresses and bank accounts. You can interact with the party model through customer forms, party interfaces, or party and customer account merge.
Customer forms are used for online entry and query of customer account information.
Party Interface is used for batch load of party information.
Party and customer account merge is used if a party is entered incorrectly, in duplicate or due to a business consolidation.
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December 26, 2012

Drop Shipments

Drop Shipment allows a supplier to fulfill a sales order where the seller is not required to handle stock or deliver the items. This also helps in meeting urgent customer requirements.

Drop shipment occurs when a customer needs an item urgently and which is generally not stocked by the seller or customer requires large quantity which is not there in the seller’s warehouse. If it is more economical to ship the goods directly from the supplier to customer, then also Drop Shipment process used.
There are 3 types of Drop Shipments:

Full Drop Shipment:

Seller send the purchase orders to the supplier for the items that customer has ordered.

Normal Shipment and Partial Drop Shipment:

If the seller has only part of the quantity order, the seller supplies the available quantity to the customer and creates a purchase order for the rest of the quantity, which supplier can send to the customer.

Normal Shipment and Full Drop Shipment:

Seller ships some goods from the inventory to the customer. The rest of the goods are shipped from the supplier after creating a purchase order.


·         Drop shipments are created as Sales Order but it can be identified when the source type is External.
·         The Purchase Release concurrent program or workflow in Order Management creates records in the Requisition import tables in the purchasing module. This creates requisitions and once these are approved, it generates the purchase order to supplier where the source type is Supplier.
·         This Purchase Order sent to the supplier who will arrange the delivery of the item to the customer via an Invoice, EDI document or an ASN (Advanced Shipment Notice). Then Seller will generate the invoice to customer.
·         In addition to this, when the seller receives the confirmation of the drop shipment or receives the invoice from the supplier, it creates a receipt. It creates the inbound and outbound transactions for the accounting purpose.
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December 6, 2012

Defining an Item (Item Master):

Navigate to the Inventory Super User responsibility
Items à Master Items window
Choose the Org (master)

This is the window where you need to enter all attributes of the item.
Enter the Item and Description field and Save your work.

You can manually assign the attributes navigating to all the tabs like Main, Inventory, Bills of Materials, etc.
Also you can apply a predefined item template on this item as per your business need.
So for copying the attribute
Go to, Tools à Copy From

In this case, I am copying the attributes from the Finished Good template.
Then click on Apply and then Done.
Now the new Item acquired all attributes as per the Finished Good template.
You can go to individual tabs and check and modify the attributes as per your need.




Check whether following attributes are checked or not
Inventory Item, Stockable, Transactable, Reservable


Bill of Materials:


Asset Management:








Physical Attribute:


General Planning:


MPS/MRP Planning:


Lead Time:


Work in Process:


Order Management:




Process Manufacturing:




Web Option:

Check and modify the attributes and Save your work.
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November 28, 2012

Below are the setups need to be done before defining Items

Container Type:
Setup à Items à Container Type

Item Status:
Setup à Items à Item Status


Defining Picking Rule:

Move to Setup à Rules à Picking

Defining Item Types:

Setup à Items à Item types


Item Templates:

Setup à Items à Templates
Then select New


Overview of Item Categories:

·         Item Categories defined to group items logically according to different characters and this is used for different reports and programs.
·         Define Item Flexfields
·         Define Categories
·         Define Category sets
·         Assign default category sets to functional areas
·         Assign items to categories.

Define Flexfield Structure for Categories:

Setup à Flexfields à Key à Segments

Define Categories:

Setup à Items à Categories à Category Codes
Then select New

Define Category Sets:

Setup à Items à Categories à Category Sets

Item Catalogs:

Item Catalog is used to add descriptive information to items and to partition the item master into different groups of items which share common characteristics.
Once the process of defining and cataloging items is complete, you can:
·         Provide standard language in referring to items, enabling companies in the same industry to communicate effectively without needing to name their items identically.
·         Store a detailed description of what an item is without having to embed that meaning in the item number.
·         Use descriptive elements as search criteria for items.
·         Update the item description with a concatenated value of the item catalog group information.
·         Find common existing parts when developing an engineering prototype.
Setup à Items à Catalog Groups

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November 27, 2012

Item Setups and Controls before defining Item

Certain set of Setups and controls need to be defined before defining an Item. These controls enable to maintain, group, query, reference and delete items.
1.       Create an Item Master organization to define all of your items. This enables you to assign items to other organizations without re-creating all of the item information.
2.       Set attribute control levels. Choose between centralized and decentralized control of item attributes. For each item attribute, you can determine whether the value of the attribute should be the same for an item in every organization in which you define the item.
3.       Define container types for the physical attribute group.
4.       Set status controls to use attributes, such as Purchasable and Transactable, to control the functionality of each item. You can set them for any type of item status.
5.       Define picking rules for the Order Entry attribute group.
6.       Define item types to use when defining items. These values appear in the list of values for the User Item Type item attribute.
7.       Define templates to assign major attributes that are the same for a group of items. Apply the template when you create an item, and fill in only the item attributes not already defined by the template.
8.       Define cross-references to establish relationships between items and entities such as old item numbers or supplier item numbers.
9.       Define commodity codes for use in customer items.
10.   Define customer items and customer item cross-references.
11.   Defining kanban cards and pull sequences.
12.   Define categories and category sets to group items for various reports and programs. A category is a grouping of items with similar characteristics. A category set is a grouping of categories.
13.   Define item catalogs to group items that share similar descriptive elements. Use the catalogs to search for items by descriptive elements instead of by part number.
14.   Optionally, define delete constraints that are verified before you can delete an item.
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Defining Locators

Inventory Super User à Setup à Organization à Stock Locators

Select New
There are 4 tabs: Parameters, Capacity, Dimensions, and Coordinates.


Locator: Enter the Locator with specific segments as defined for your business.
Description: Enter a proper description to identify.
Subinventory: Enter the subinventory name where the locator resides.
Type: Select the type, how you want to use the locator.


Choose the Capacity alternative region.
Enter a value for the maximum number of items you can store in this locator.
Enter unit of measure and maximum volume values describing the volume of inventory that can be stored in this locator.
Enter unit of measure and maximum weight values describing the weight of inventory that can be stored in this locator.
Similarly enter the details for Dimensions and Coordinates.
Save your Jobs once done.
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Defining Subinventory

Go to Inventory Super User responsibility
Setup à Organization à Subinventories

Click on New
Name: Should be a unique alphanumeric name
Description: Short description of the subineventory
Status: By default it takes as Active
Default Cost Group: Attach the Cost group here.
Type: Storage or Receiving, as per the requirement

Main Alternative Region:

Include in ATP: Indicate whether to include items in this subinventory in ATP calculations
Allow Reservation: Indicate whether to include this subinventory when you perform available-to-reserve calculations.
Nettable: Indicate whether the planning process uses the on-hand balance of these subinventory items as available inventory.
Quantity Tracked: Indicate whether each transaction for this subinventory updates the quantity on hand for the subinventory.
Note: If you leave this option unchecked, on-hand balances are not maintained and you cannot check or update the Asset Inventory, Include in ATP, Reservable, or Nettable options.
You can update this value only if there is no on-hand quantity for the subinventory.
Asset Subinventory: Indicate whether to maintain the value of this subinventory on the balance sheet.
Locator Control:
You can select an option only if you selected locator control as Determined at subinventory level in the Locator Control field in the Organization Parameters window. You can only update this option if there is no on-hand quantity for the subinventory.
None: Inventory transactions within this subinventory do not require locator information.
Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined locator for each item.
Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item. You may choose a valid predefined locator, or define a locator dynamically at the time of transaction.
Item level: Inventory transactions use locator control information that you define at the item level.
Picking Order: This value indicates the priority with which items can be picked from this subinventory, relative to another subinventory, where a given item resides.
Dropping Order: This value indicates the priority with which items can be dropped to this subinventory, relative to another subinventory at the time of receipt.
Inactive On: Enter the date, if you want this subinventory to inactivate.

Lead Times:

Optionally, enter pre-processing, processing, and post-processing lead times for items in this subinventory.
These lead times are used when you use min-max planning at the subinventory level.


Select a source type for item replenishment
Inventory: Replenish items internally, from another subinventory in the same organization or another organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
Subinventory: Replenish items internally from this subinventory.


Enter all General Ledger accounts as defined in the system as per the business requirement.
Save your job. This will create a subinventory.

GL Accounts Used in Subinventories
Enter a general ledger account to accumulate material costs for items received into this subinventory. This is usually an asset account used for the value of goods stored in this subinventory.
For asset items, you use this account as a default when you generate purchase requisitions from MRP, min-max organization level planning, or reorder point planning. However, when you receive the purchase order, you use the appropriate valuation or expense account.
Outside Processing
Enter a general ledger account to accumulate outside processing costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you receive items for a job or schedule in Oracle Purchasing. Oracle Work in Process relieves this account at standard cost when you issue components to a job or schedule.
Material Overhead
Enter a general ledger account to accumulate material overhead or burden costs for this subinventory. This is usually an asset account.
Enter a general ledger account to accumulate resource or department overhead costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you complete assemblies from a job or schedule. Oracle Work in Process relieves this account at standard when you issue components to a job or schedule.
Enter a general ledger account to accumulate resource costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you complete assemblies from a job or schedule. Oracle Work in Process relieves this account at standard cost when you issue components to a job or schedule.
Enter a general ledger account to accumulate expenses for this subinventory. For expense subinventories, this account is charged when you receive any item. For asset subinventories, this account is charged when you receive an expense item.
Enter a general ledger account to hold the value of encumbrances against items in this subinventory. This account is used for purchase order receipts and returns.
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