Material Status :

https://docs.oracle.com/cd/E18727_01/doc.121/e13450/T291651T439508.htm

Material status definition window :

Material status can be used at Subinventory , Locator , Lot , Serial or On-hand

level

Example : If sub-inventory is selected , then the system enables you to assign

the material status at the subinventory level.
If On-hand is selected , then it enables checking of material status
at on-hand level.

Use of Material status Control :

Enables you to control whether to pick or ship an internal order , or issue

material for a work order and like wise.

Important Note :

Material status is not assigned to the Material, but is assigned to a

subinventory/locator/lot/serial. Then the material is assigned to the
subinventory/locator/lot/serial.

Cummulative effective status :

When you transact an item, the system checks all of the material statuses. If the
system finds a status that disallows the transaction, whether at
serial/lot/locator/subinventory level , then that particular transaction fails.

Example :
If you have a locator whose status disallows WIP Issue and that locator is in a
subinventory whose status disallows Sales Order Issue , neither of those
transactions will be allowed for material that is in the locator.

Profile Option :

INV: Material Status Support - Yes

Process :

1. Enable 'Status Control' for the transaction type :

While defining a Transaction Type ,

If 'Status Control' is not enabled in the transaction Types form , then that
transaction type is always allowed.
2. Define a Material Status Code.

3. Attach Material Status Code to Subinv / Locator / Lot / Serial

Important Scenario :

Material Status : XYZ ---- Disallows Sub-inv transfers (Transaction)

The Transaction Type used for the Sub-inv Transfer is not set for 'Status
Control'

Then , the transaction which has the above transaction type is allowed
everywhere , even though the Status Code disallows the Transaction.

Reason: If 'Status Control' is not enabled in the transaction Types form , then
that transaction type is always allowed.