Fusion Inventory Basics Lesson Final

Slide 1
Slide 2
Inventory Management Cloud Service

Overview
Copyright 2015 Oracle and/or its affiliates. All rights reserved. 2

Slide 3
Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.

Slide 4
Oracle Cloud
Application Families
Transportation
Accounting Product Value
Financials & Global Trade
Hub Reporting Chain
Management
Project Revenue Inventory and

Management Management Costing
Project
Financial Procurement
Management
Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Slide 5
SCM Cloud Services Roadmap
Prior: R8
Inventory (with Procurement), Product Hub
Current: R9
Innovation Management, Product Development, OTM & GTM
Next: R10 (This Calendar Year)

Quote to Cash (CPQ Cloud & DOO/Inventory)
Future: R11 (Late This Calendar Year)

Manufacturing, Planning, Order Management
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should notbe
Copyright 2015relied uponitsinaffiliates.
Oracle and/or making All purchasing
rights reserved. decisions. The development, release, and timing of any
features or functionality described for Oracles products remains at the sole discretion of Oracle.
R11 includes:
Manufacturing support
Discrete
Contract Manufacturing
Planning Central support
Advanced fulfillment
Drop Ship, Back to Back, Internal Material Transfers
Landed Cost Management
Slide 6
Oracle ERP Cloud Service

Procure Expensed Goods and Services
Casual users or Buyers buy goods by item - OR -
Stock levels for certain goods are automatically
replenished
Casual users or Buyers Receive goods - OR -
Receiving Agent receives goods into stocking location
Goods are managed and distributed by stock /
warehouse personnel
Solution:
Purchasing and Self-service Procurement
Self-service / Desktop Receiving
Inventory Management & Supply Chain Managerial
Accounting

Slide 7
Inventory Key Objects

Slide 8
Inventory Organizations
Distribution
Center
Company Warehouse
Inventory Organizations
An inventory organization is a facility where you store and transact items. Before you can use Oracle
Inventory, you must define one or more inventory organizations. 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 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.
Slide 9
Inventory Organization Structure
Organization
Subinventories
Locators
Inventory Organization Structure

An inventory organization, where you store and transact items can have one or more subinventories.
Subinventories are unique physical or logical separations of material inventory, such as 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.
The subinventories in an inventory organization may be made up of one or more locators. You use locators to
identify 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 Inventory.
Instructor Note
Mention that you can set up an inventory organization without subinventories; however, you cannot
transact items without a subinventory.
Slide 10
What is a Subinventory?
Finished goods
Raw materials
Defective items
What Is a Subinventory?
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.
Subinventory
Physical or logical separation of material
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
Slide 11
Sample Inventory Organization

Receiving Raw materials Manufacturing
sub sub sub
Inbound
Finished goods Inspection Defective
sub goods
sub
sub
Shipping sub
Outbound Outbound
Here are some examples of a sample inventory organiation, starting with the receiving subinventory for
inbound goods and ending with a shipping subinventory for outbound goods.
Slide 12
Locator Control
Rack
Row
Bin
Locator Control
Locators are structures within subinventories. Locators are the third level in the enterprise structuring scheme
of Oracle Inventory. Locators may represent rows, aisles, or bins in warehouses. You can transact items into
and out of locators. You can restrict the life of locators.
Slide 13
Dynamic and Previously Defined Locators

Dynamic Locators Previously Defined Locators
Generate during a transaction as Predetermined
needed
Dynamic locators are generated during a transaction. Previously Defined locators are setup in advance.
Both use Key flexfields.
Slide 14
Subinventory-Locator Relationship
With locator control Without locator control

Subinventory: BULK Subinventory: FROZEN
Subinventory-Locator Relationship
You can structure Oracle Inventory in such a way that some of the subinventories and items have locator
control while others do not. If locator control is turned on at the item level, you must specify a locator when
transacting the item into or out of a subinventory. If locator control is turned on at the subinventory level, you
must specify a locator when transacting any item into or out of that subinventory. Each stock locator you
define must belong to a subinventory, and each subinventory can have multiple stock locators. The possible
locator control types are:
None
Previously Defined
Dynamic entry
Item Level
You cannot use the same locator names within any two subinventories within the same organization.
Slide 15
Define Items

Slide 16
Item Terminology
Item Attributes
Item Creation Methods

Slide 17
Item Terminology
Item: An entity that represents products/services that a business

manufacturers, stocks or sells.
Item Revision: Allows tracking changes to an item or its data
over a period of time and generally represents a form/fit/function
of the item at a given point in time.
Item Attributes: Attributes describe a product or a service in
terms of its characteristics, features or properties.
Operational Attributes (pre-defined attributes)
Transactional Item Attributes
Extended or User Defined Attributes
Item Terminology
Items are used to represent product and services you sell or transact, resources 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. In addition
to these operational attributes, the item has several user-defined attributes defined by its item class.
These user-defined attributes capture item specifications and other information relevant to the product
definition.
Item Relationships: Allows you to relate an item to another item for various contexts.
Item Associations: Allows you to associate items to different business contexts i.e. organization, supplier
items, sites. These are also sometimes referred to as intersections.
Trading Partner Items: Items that represent products from external parties such as manufacturers,
customers, competitors.
Item Class: A classification hierarchy to logical 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 a end
item.
New Item Request: A formal workflow that allows orchestration of the definition and approval of an
item.
Change Order: A formal workflow to define, manage, approve and implement product related changes.
Packs: Manage packaging information using a hierarchical representation of items representing the
logical structure of the product packaging needs. Each packaging level is modeled as an item so you can
easily track inventory and orders against them.
Structures: Contains information on the parent item, components, attachments, and descriptive
elements using descriptive flexfields.
Slide 18
Item Attributes
Attributes are named entities whose values describe various

qualities of a product item.
The following types of attributes are available:

Main attributes
Operational attributes
User-defined attribute groups and attributes
Additional information attributes
Transactional attributes
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 are:
Item Number
Description
Long Description
Status
Lifecycle Phase
User Item Type
Approval Status
Revision
Pack Type
Item Class
Unit of Measure (a group containing eight attributes)
Operational Attributes
Operational attributes are part of the item's data model. They determine the behavior of the item
with respect to various applications outside Oracle Fusion Product Hub, 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 below:
Inventory - Shelf Life Days
Order Management - Shippable
Purchasing - Negotiation Required
Receiving - Allow Substitute Receipts
User-Defined Attribute Groups and Attributes

You can define attribute groups and attributes to capture item specifications and other
information relevant to a product's definition that you want to add to the item's data model.
Values for such user-defined attributes are defined when you create the item, but can be
changed over the life cycle of the item.
Oracle Fusion uses the structure of extensible flexfields to support attribute groups (by using
flexfield contexts) and attributes (by using flexfield segments).
You create attribute groups and attributes on the Manage Attribute Groups page, where you
create an attribute group for a set of one or more attributes and then create the attributes in the
context of the attribute group.
You select the behavior for the attribute group as multiple-row or single-row, which affects the
later display and use of the attributes, as described elsewhere in this topic. If the behavior you
chose for the attribute group is multiple-row, then the attribute has multiple values each
represented by a row in a table whose columns are context-based segments (attributes).
For each attribute, you select the data type and related validation and display options. The
attribute groups are then accessed as sections listed on the Specifications tab of the Edit Item
page. You also map the attribute to a column in a dedicated database table.
After you have created attribute groups and attributes, you associate user-defined attributes
with items by adding attribute groups to item classes, on the Pages and Attribute Groups tab of
the Edit Item Class page. When an item is created, it inherits the attributes from the attribute
groups associated with the item class on which the item was based.
Multiple-Row Attribute Groups

Attribute groups can be either single-row or multiple-row. The selected behavior determines how
the attributes will be displayed in the user interface as well as how they are used. When you
create an attribute group on the Manage Attribute Groups page, you select its Behavior as being
Multiple Rows or Single Row.
A single-row attribute group contains a collection of attributes that will be displayed as separate
fields in region named for the attribute group. For example, a single-row attribute group named
Home Address contains the attributes appropriate for a home address. Another single-row
attribute group named Work Address contains similar attributes appropriate for an office
address. When these attribute groups are displayed in the user interface, the attribute fields for
each group are arranged compactly within a region titled with the name of the attribute group.
In a multiple-row attribute group, the attributes are displayed as columns in a table that
represents the attribute group. Each row of the table is considered to be an attribute in the
attribute group. The collective set of values contained in a row is considered the meaning of the
attribute. The table is displayed in the user interface within a region titled with the attribute group
name. No other fields are displayed in the table. For example, a multiple-row attribute group
named Payments contains the attributes Date, Invoice No., and Amount. Each row of the table
describes a payment, and is a value of the Payments attribute group.
Additional Information Attributes

You can create additional information attributes, which are based on descriptive flexfields rather
than extensible flexfields . Descriptive flexfields can only have one context available at a single
time, while extensible flexfields can have multiple contexts available. If you only need a single
category and usage, then descriptive flexfields are sufficient. You create descriptive flexfields
using tasks in the Setup and Maintenance work area. For example, use the task Manage
Catalog Descriptive Flexfields 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
Transactional attributes capture values that are generated during transaction flows involving an
item, rather than when the item is created. Create transactional attributes on the Transactional
Attributes tab of the Edit Item Class page. For each attribute, specify its effective dates. Based
on these effective dates, choose the downstream applications where the attribute is effective,
associate the attribute with a predefined set of allowed values, and specify an optional default
value and unit of measure. You can also set the attribute to be inactive, required, read-only, or
hidden during the effective dates. The transactional attributes of an item class are inherited by
its item class descendants. You can overwrite the metadata for a transactional attribute in a
child item class, but doing so breaks the inheritance. Transactional attributes can be defined on
all types of items.
Attributes that exist for each instance of an item and the values for the attributes can be
different.
For example:
The number of megabytes (MB) or gigabytes (GB) of e-mail storage on a digital subscriber line
(DSL) account.
The monogram text on a shirt pocket.
The color of a music player.
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.
Transactional attributes are inherited across the item class hierarchy. The metadata is data-
effective. Changes in the metadata will be reflected immediately at the item level.
For example:
Any of the metadata of a transactional item attribute belonging to a specific domain, if modified
in the child item class would break the inheritance. Any changes done at the parent item class
for this
transactional item attribute would not get inherited. Multiple records with same date range can
exist if they belong to different domains. For example, the transactional item attribute Memory is
associated with
a Domain and order capture. Each of the domains may use a different set of metadata for its
own purpose. Hence, for the same date range, two different records can exist. Only Start Dates
for a transactional item attribute would be entered by a user. End date would be calculated
automatically based on the next Date Effective record.
Users can modify (either Start Date and metadata) of a future effective record. Records with
Starting date as Past cannot be modify or edited.
Only start dates can be set to permit updating by a user, and the end date of a record will
automatically be pulled from the next record.
Any changes performed in the parent item class would be inherited by the child item class. If the
corresponding record is modified in the child, then these changes will not be inherited.
Item pages provide a mechanism with which to customize the user interface.
Slide 19
Item Attributes UOM Related

Slide 20
Item Attributes Inventory Related

Slide 21
Item Attributes Min-Max Related

Slide 22
Item Attributes Receiving Related

Slide 23
Item Creation Methods
Create item manually Script 01

Copy from existing item Script 02
Create item using SAAS controlled spreadsheet

Slide 24
Traditional Challenges of ERP-based Inventory
1 Designed for Transaction Reporting not WORK EXECUTION
2 Fixed financial events tied to Inventory Movement
3 Fragmented reporting and Business Intelligence Solutions
Traditional ERP Inventory Systems have evolved into more after-the-fact reporting repositories and
dont lend themselves to showing the current state of warehouse operations and require users to
know what needs to be done. Fusion Inventory was designed to show management and users the
current state of operations for the warehouse and guide users to problem areas and work to be
done in fulfillment, receiving and inventory
Fusion Inventory and Cost Management continues to decouple physical and financial flows allowing
users to focus on their role of materials management and let the Financial systems determine
financial events and charging of those events to the proper place.
Oracle Fusion Inventory allows you to decouple the typical fixed financial events that are tied to inventory movement.
New concepts such as:

Cost Organizations allows flexibility in cost accounting and apply it to one or many Inventory Organizations
Accounts have largely been removed from things like Items and Inventory. This set-up has moved to a combination of
Costing and SLA
Profit Center BUs allow more flexible modeling of things like share service centers and profit centers from a
management reporting perspective
Internal trade between parties can easily operate independently from the physical movement of goods and fulfillment
of services with Oracle Supply Chain Financial Orchestration. This configurable application manages all the financial
relationships resulting from trade between internal parties. The framework provides modeling of flexible financial
flows that define the parties involved, the nature of trade relationships and business rules for documentation and
accounting.
Across Fusion, reporting has been standardized to enable business users to create, modify and
publish reports easily
The same toolset is used for both transactional reporting as well as deeper analytical types of
reporting
Internal and External facing transactional documents use familiar applications such as pdf and Word
to allow easy customization to those reports
Slide 25
Fusion Inventory Management Cloud Service

Consign
Overview Replenish
Put Away
Cycle Count
Inspect
Purchases
Transfers Move
Receive
Returns
Transfers Physical
Supply Pick Inventory
Consume Transfer
Report
SOA-based Integration
Supply Chain
Procurement Financials
Managerial Acctg
Have full functionality for inventory. Can do receiving, inspection, etc.
The Oracle Fusion Inventory Management Cloud Service enables companies to effectively manage the
inbound flow of goods, inventory storage, and outbound order fulfillment.
Oracle Inventory Management Cloud offers an integrated inventory, cost and financial trade management suite that is
designed to automate, streamline, and control inventory, cost processes and internal trade end-to-end without expensive
hardware and system management overhead costs.
The Oracle Cloud offers self-service business applications delivered on an integrated development and deployment
platform with tools to rapidly extend and create new services. The Oracle Cloud is ideal for customers seeking
subscription-based access to leading Oracle applications, middleware and database services, all hosted and expertly
managed by Oracle. The application services are designed for ease-of-use, enabling business users to manage the
solution directly with no IT involvement.
Slide 26
Receiving

Slide 27
Receiving
Key Features
Supplier ASNs/ASBNs support from Supplier Portal
1, 2 or 3 step receiving
Inspection
Put Away
Unordered Receipts
Correction
Supplier Returns
ASN/ASBN, Receiving, Inspection, Put Away, Correct and Return spreadsheet and web-
service capabilities

Slide 28
Procure and Manage Inventoried Goods

Receipts Work Area
Drill into Receiving,
Inspection
Inspectionor or
Putaway
Put
Awaypages
pages
directly
directly

Slide 29

Receipts Work Area Expected, Received and
Outstanding Work
Summary
Hover and drill into

tasks

Slide 30

Receiving
Contextual Action to
Drill into Source
get details of items
Document

Slide 31

Receiving
Receive one or multiple
lines

Slide 32

Receiving
Enter Receipt Details in
summary form
Enter Receipt Details in

detailed form

Slide 33

Receiving
Enter Receipt
Information

Slide 34
Fusion Receiving User Roles and Objectives
Process inbound receipts

in a timely manner
Properly stock inventory
Return unacceptable
items to the vendor
Inspect and receive

customer returns back
into the appropriate stock
location
This slide depicts the user job roles and associated business process model activities that can be
performed. The Receiving Agent is responsible for performing receiving related activities within the
warehouse. Additionally, the Receiving Agent can also inspect, disposition, and return receipts. The
Warehouse Operator is responsible for performing the put away of received material into inventory. The
Procurement Requester is responsible for receiving, correcting, and returning self-service receipts
Slide 35
Inventory

Slide 36
Inventory
Key Features
Manage Item Quantities
Movement Requests
Miscellaneous Transactions and Transfers
Inter-org Transfer
Cycle Count / Physical Inventory
Min/Max Replenishment
Miscellaneous Transaction and Cycle Count spreadsheet and web-service capabilities
Manage Item Quantities

Location Transfers, Material Status Updates, Lot and
Serial Management
Movement Requests
Miscellaneous Transactions and Transfers
Issue, Receive and Adjust
Sub-to-sub and locator to locator transfers
Inter-org Transfer
Cycle Count / Physical Inventory
Min/Max Replenishment
Purchase Request and Movement Request
replenishment
Miscellaneous Transaction and Cycle Count
spreadsheet and web-service capabilities
Slide 37

Warehouse Operations
Click Metrics to
view/manage work
load

Slide 38

Inventory Work Area
Launch Pad for Role-

based Tasks
Tree-table view of
Inventory Balances
Easy access to reports

and analytics

Slide 39
Fusion Inventory User Roles and Objectives

Comprehensive
Inventory Visibility
Ensure Inventory
Accuracy
Minimize
Inventory Levels
performed. The Warehouse Manager is responsible for reviewing inventory balances. The Inventory
Manager defines ABC classifications and plans inventory replenishment. The Warehouse Operator is
responsible for performing transactional tasks in the warehouse such as movement of material between
subinventories and organizations. Additionally, the Warehouse Operator performs cycle and physical
inventory counting activities.
Slide 40
Shipping

Slide 41
Shipping*
Key Features
Manage Reservations
Manage and Release Pick Waves
Confirm Picks
Manage Shipments / Shipment Lines
Communicate Shipments to Trading Partners
* Private Cloud or On-premise

Slide 42
Proactive Warehouse Work Management

Shipping Work Area
Work Summary in
Different Views
Contextual Actions
Work by Status

Slide 43
Fusion Shipping User Roles and Objectives

Flexibility and ease in
editing, creating or
transferring demand or
supply for a reservation
Minimize costs by
proactively and
effectively managing
the pick-pack-ship
cycle
Process shipments
quickly and accurately
to satisfy customer
demand
performed. The Warehouse Manager is responsible for managing inventory reservations and releasing
pick waves. The Warehouse Operator performs picking related tasks such as generating pick slip reports
and confirming pick slips. The Shipping Agent is responsible for processing and confirming shipments.
Additionally, the Shipping Agent communicates shipping message and updates with trading partners and
captures related shipping costs.
Slide 44
Business Intelligence

Slide 45
Complete Inventory Intelligence Portfolio

Configurable Document
Generation
Configurable
Dashboards, KPIs &
Trend Analysis
Real time, Embedded

Analytics

Slide 46
BI in Fusion Applications
Consistent, Timely, Complete
Oracle Real time, self service reporting

Transactional directly off transactional data
Business Subject Areas covering all areas
Intelligence (OTBI) Easy to create and share reports
Subject Areas
Inventory Receiving
Balances All Receipts

Supply Receipts by Type
Transactions Intransit by Type
Organization Receipt Transactions
Slide 47
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Slide 1

Inventory Management Cloud Service

Copyright 2015 Oracle and/or its affiliates. All rights reserved. 2

Safe Harbor Statement

Copyright 2015 Oracle and/or its affiliates. All rights reserved. 3

Project Revenue Inventory and

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

SCM Cloud Services Roadmap

Next: R10 (This Calendar Year)

Future: R11 (Late This Calendar Year)

Oracle ERP Cloud Service

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Inventory Key Objects

Copyright 2015 Oracle and/or its affiliates. All rights reserved. 7

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Inventory Organization Structure

Inventory Organization Structure

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Sample Inventory Organization

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Dynamic and Previously Defined Locators

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

With locator control Without locator control

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Copyright 2015 Oracle and/or its affiliates. All rights reserved. 15

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Item: An entity that represents products/services that a business

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Attributes are named entities whose values describe various

The following types of attributes are available:

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

User-Defined Attribute Groups and Attributes

Multiple-Row Attribute Groups

Additional Information Attributes

The following metadata values can be defined for an attribute.

Item Attributes UOM Related

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Item Attributes Inventory Related

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Item Attributes Min-Max Related

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Item Attributes Receiving Related

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Item Creation Methods

Create item manually Script 01

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Traditional Challenges of ERP-based Inventory

1 Designed for Transaction Reporting not WORK EXECUTION

2 Fixed financial events tied to Inventory Movement

3 Fragmented reporting and Business Intelligence Solutions

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

New concepts such as:

Fusion Inventory Management Cloud Service

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Have full functionality for inventory. Can do receiving, inspection, etc.

Copyright 2015 Oracle and/or its affiliates. All rights reserved. 26

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Procure and Manage Inventoried Goods

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Procure and Manage Inventoried Goods

Hover and drill into

Copyright 2015 Oracle and/or its affiliates. All rights reserved.

Procure and Manage Inventoried Goods