May 15, 2012

Oracle Inventory: Shipping Network and Other setups

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Interorganization Shipping Networks

An inter-organization shipping network describes the relationships and accounting information between a shipping organization and a destination organization. You must define a shipping network between two organizations before you can transfer material between organizations. When you set up a shipping network you must select a transfer type: intransit or direct.
        Intransit: Oracle Inventory moves material to an intermediary state before it reaches the destination organization. After the material arrives at the destination organization, you will need a receipt transaction to retrieve it. If intransit is selected, you can define:
o   Shipping Methods
o   GL Accounts to use in transit
o   Material ownership during transfer
o   Planning lead times
o   Transfer Charges
        Direct: Oracle Inventory moves the material directly to the destination organization. However, for both transfer types, you can determine default receipt routing and whether internal orders are required to transfer material.

Shipping Method

Shipping methods are the way you ship material. When you create a shipping method, you must enable it before you can use it in a shipping network. If you disable a shipping method, it cannot be used in a shipping network.

Additional Setup Steps
Entering Employees
Employees who perform cycle and physical inventory counts.
Defining Planners
Identify persons responsible for planning items or groups of items.
Defining Freight Carriers
Enables assignment of a general ledger account to one or more carriers to collect costs associated with their use. You can assign a carrier to each interorganization transfer.

Additional Organizational Setups

Material Shortage Parameters
Define the parameters for the system to determine when unsatisfied demand exceeds available quantity of incoming supply. This condition can be used by the system to trigger shortage alerts and notifications.
Organization Access
This controls access to organizations based on the user responsibility assigned to a user by the system administrator.
When implemented for one user responsibility, it is then required for all other user responsibilities accessing the same organization.

Copying Inventory Organizations

You can create new inventory organizations or copy an existing organization. You must establish a model organization to use as a baseline for new organizations. This model organization must be a transactional organization and not an item master organization. You can copy only organizations within the same operating unit. The system creates the new organizations under the same business group to which the model organization belongs, and assigns the new organizations to the same operating unit, legal entity, and ledger as the model organization.
When you copy organizations you specify which information to copy from the model organization. You can choose to copy the following information from the model organization:
        Organization definition
        Shipping networks
        Hierarchy assignments
        Bills of material and bills of material parameters
        Departments, resources, and routings
        Item information
When you copy a model organization the system automatically copies the following information:
        Work in Process parameters
        Work in Process accounting classes
        Planning parameters
        Shipping parameters
Note: The system does not copy organization-specific data including: cost type, cost subelement, Process Manufacturing Enabled, Oracle Warehouse Management enabled, and cost-sharing entities.
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