Professional Documents
Culture Documents
Logistics
Release 12.1 (through 12.1.3)
1. Disclaimer 1
2. Introduction 2
2.1. Purpose of Document 2
3. New and Changed Features in Logistics 3
3.1. Oracle Inventory Management 3
3.1.1. Overview 3
3.1.2. Release 12.1.1 3
3.1.2.1. On Hand Balance Material Status 3
3.1.2.2. Extensibility Enhancements 3
3.1.2.3. Lot Genealogy Enhancements 3
3.1.2.4. Purchasing by Revision Enhancements 4
3.1.3. Release 12.1.2 4
3.1.3.1. Supply Chain Web Services for Items and Inventory 4
3.2. Oracle Landed Cost Management – New Product 4
3.2.1. Overview 5
3.2.2. Release 12.1.1 5
3.2.2.1. Charge Management 5
3.2.2.2. Advanced Pricing for Charge Templates 5
3.2.2.3. Landed Cost Calculation 6
3.2.2.4. Product Cost Dashboard 6
3.2.2.5. Tax Recovery 6
3.2.2.6. Integration to EBS Supply Chain and Backoffice 6
3.2.3. Release 12.1.2 8
3.2.3.1. Oracle Landed Cost Management Support for Process Cost Management 8
3.2.3.2. Visibility into Matched Invoice Amounts 8
3.2.3.3. Landed Cost Calculation History 8
3.2.3.4. Landed Cost Visualization by PO 9
3.2.4. Release 12.1.3 9
3.2.4.1. Landed Cost Simulation for Purchase Orders 9
3.3. Oracle Mobile Supply Chain Applications 9
3.3.1. Overview 9
3.3.2. Release 12.1.1 10
3.3.2.1. Mobile User Interface Personalization 10
3.4. Oracle Warehouse Management 10
3.4.1. Overview 10
3.4.2. Release 12.1.1 10
3.4.2.1. Forward Pick Replenishment 10
3.4.2.2. Mobile User Interface Personalization 11
3.4.2.3. Extensibility Enhancements 11
3.4.2.4. Dock Scheduling and Load Sequencing 11
3.4.2.5. LPN Status 12
3.4.2.6. UCC-128 and Case Picking Enhancements 12
3.4.2.7. Over-Allocation Using WMS Rules 12
Oracle E-Business Suite Release 12.1 Release Content Document Purpose of Document 1
2. Introduction
Oracle E-Business Suite Release 12.1 Release Content Document Purpose of Document 2
3. New and Changed Features in Logistics
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Inventory Management 3
• View more levels of detail in the left-side navigator window where lot branches
are expanded before they are forced to scroll horizontally.
1) Lot Number : Create Lot Number, Query Lot Number, Update Lot Number
3) Serial Number : Create Serial Number, Query Serial Number, Update Serial Number
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Landed Cost Management – New Product 4
would help organizations better evaluate new product plans, price their products, and
negotiate contracts with both suppliers and customers.
Additionally, some industries and regions require that product specific landed costs be
tracked and included on documentation even for domestic trade. These are often driven
by a federal wide mandate in the case of countries like Brazil and India. However, they
can also be driven by industries like process manufacturing where it is difficult to track
the individual acquisition components against the resulting products that get stored and
sold further downstream.
A landed cost management solution itemizes all the merchandise and nonmerchandise
related costs associated with an organization’s supply chain. It apportions these costs
back to the individual merchandise item providing traceability throughout the item’s
lifecycle. The result is overall visibility that drives strategic decisions around sourcing,
product pricing, contract negotiation, and product planning initiatives. It also provides
the evidence and data to support accurate fiscal reporting and compliant trade
documentation.
3.2.1. Overview
Oracle’s Landed Cost Management application is a new product released on EBS r.12.1.
Landed Cost Management enables organizations to gain insight into all of the “real” costs
associated with acquiring products including broker, terminal, insurance, and
transportation fees as well as duties and taxes. These costs are initially estimated and
updated with actual amounts as they become known allocating them to shipments, orders,
and products. Cost methods and inventory valuations are accurately maintained
providing better visibility into an individual product’s profitability and an organization’s
outstanding exposure. This data provides better insight for product forecasting and
budgeting and provides clear evidence of the detailed accumulation of expenses for
regulatory requirements and reporting.
3.2.2. Release 12.1.1
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Landed Cost Management – New Product 5
with complex supply chains and minimizes error prone steps of manually entering
charges during a transaction. Once these estimated costs are applied by Advanced
Pricing, users have the ability to verify and update them via Oracle Landed Cost
Management’s Charge Management functionality. Ultimately, Oracle Landed Cost
Management uses these components to calculate the estimated landed cost.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Landed Cost Management – New Product 6
Management module. Once actual costs are obtained and shared with Accounts Payable,
variances are effectively communicated to E-Business Suite Cost Management module.
3.2.2.6.1. Procurement Integration
Procurement Information is often the baseline information used to itemize expected
shipment or receiving lines on which extended supply chain charges will be applied.
Landed Cost Management provides visibility into E-Business Suite Procurement data
in order to build expected shipments for charge application and subsequent landed
cost estimation calculations. When manually entering expected shipments the
reference information provided by Procurement saves time and decreases errors that
might occur without automated access to this information. Once available in Landed
Cost Management, expected values received from procurement such as quantity and
price can be edited for estimated cost calculation purposes. Furthermore, all the
necessary data is provided to help arrive at an accurate three way match once an
invoice for a PO line or charge is entered into Accounts Payable.
3.2.2.6.2. Receiving Integration
It is difficult to gain insight into charges associated with the acquisition of items
through an extended supply chain. Often, organizations are not aware of them until
an invoice is received. Companies need better visibility into these charges.
Additionally, many regions require that all expenses be accounted for at an
item/product level upon receipt. In order to comply with these requirements and
provide an accurate calculation of product related expenses, these extended costs
need to be estimated and applied to an item at the time of receipt.
Oracle’s Landed Cost Management’s integration with EBS Inventory’s Receiving
module enables Receiving to view LCM’s estimated shipments and receive against
them. It further calls LCM for a total cost estimation calculation for all receipts
whether they originate in LCM or in Receiving itself. These estimations are then
forwarded to E-Business Suite Cost Management module in order to update
inventory valuations and accounting.
3.2.2.6.3. Cost Management Integration
When organizations are able to estimate landed costs, they often do not communicate
those estimates to their backoffice system. This is because they lack an automated
method to update these estimates with actual values once they are received. This
prevents them from fully utilizing the estimated information in their reporting and
decision making processes.
After actual values are received and the true landed cost is calculated in Landed Cost
Management, any variances between the actual and the estimate are determined.
Those variances are updated to E-Business Suite Cost Management module which in
turn updates the proper accounts and valuation.
3.2.2.6.4. Accounts Payable Integration
Few Accounts Payable applications provide a mechanism to apply and match an
unlimited number of charges to a particular procured item line or group of lines. This
means that accurate actual landed cost calculations might be difficult to automatically
calculate. Additionally, this prevents tying an actual charge back to any record of an
earlier estimated landed cost calculation.
Oracle Accounts Payable allows for unlimited numbers of charges to be entered and
applied to procured line items and allows line items to be applied and associate to
recovered line items. This information is forwarded to Landed Cost Management
which in turn calculates the Actual Landed Cost. These values are compared with
earlier estimates to determine if a variance should be communicated to Costing and
ultimately to the General Ledger.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Landed Cost Management – New Product 7
3.2.3. Release 12.1.2
3.2.3.1. Oracle Landed Cost Management Support for Process Cost Management
In a global environment, extended supply chain and logistical costs can account for as
much as 30, 40 or 50% of the overall cost to obtain an item. Process industries are
particularly sensitive to these additional costs especially when the goods being acquired
are commodities with narrower margins. Oracle Landed Cost Management is being
enhanced to support Oracle Process Manufacturing. Most of the enhancements are
designed to allow Oracle Process Manufacturing Cost Management to consume the
landed cost calculations and adjustments. Please see the 12.1.2 Release Content
Document for Manufacturing for more information on the bulk of the enhancements
made to Oracle Process Manufacturing Cost Management to support this flow.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Landed Cost Management – New Product 8
3.2.3.4. Landed Cost Visualization by PO
In purchasing organizations where material is coming from overseas or cross borders,
extended costs are a big portion of the overall acquisition cost. In these instances, it is
often helpful for procurement professionals to see the estimated landed cost of a PO
before submitting it.
With 12.1.2, Oracle Landed Cost Management will update the current “Display
Acquisition Cost” page in Oracle Purchasing to display landed cost information by
Purchase Order.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Mobile Supply Chain Applications 9
3.3.2. Release 12.1.1
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 10
dispatched only when replenishment has been completed. Similarly a
replenishment task will be dispatched only when a forward pick area has enough
capacity to receive the replenished material.
These features provide tremendous productivity benefits to a warehouse engaged in
distribution activity. Replenishment to forward pick area will allow distribution center to
reap the benefits of bulk procurement and optimized storage in a reserve area as well as
optimized picking for order profiles with smaller quantities.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 11
door appointments and sequence of loads into a trailer can be synchronized with WMS.
WMS will use this additional information to plan outbound activities such as:
• Release of shipments for pick execution based on dock door schedule
• Sequencing of drops in the staging area for a multi-stop shipping itinerary
• Sequencing of tasks for picking when a multi-stop shipping itinerary is being
used
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 12
3.4.2.8. LPN Over Allocation during Pick Release
Certain industries and business situation require that an Order cannot be fulfilled in the
exact quantity. A good example is primary metal where an order for an item such as steel
sheets cannot be exactly fulfilled because it’s expensive to cut a steel sheet to match the
exact order quantity. In such situations, over allocation or under allocation is a normal
business practice. This feature in Oracle WMS facilitates over allocation of an entire LPN
provided it’s within over shipment tolerance defined on the Order Line.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 13
The feature also ships with an integration framework based on Oracle Data Integration
(ODI) tool
The other advanced wave planning feature is task planning. The task planning criteria can
be used to configure the conditions under which tasks will be released automatically for
execution.
3.4.3. Release 12.1.2
3.4.3.1. Advanced Wave Planning Enhancements
In a distribution center, a wave is a grouping of orders governed by user defined criteria
for release to the warehouse floor. Wave Planning is particularly useful for warehouses
that fulfill a high volume of small order lines. It makes managing large order volume
easier by grouping orders into waves and subsequently releasing them for execution and
monitoring.
With further enhancement as part of release 12.1.2, Advanced Wave Planning now
provides detailed labor requirements planning for the wave. Advanced wave planning
also offers additional travel time modeling criteria to provide more precise labor
requirement for pick execution based on item category, operation plan and pick zones.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 14
Pick Rules and Crossdocking
Wave planning now considers the impact of crossdocking criteria on fill rate estimation.
The scope and visibility provided in Wave Management user interfaces has also been
enhanced to provide visibility to inventory in receiving area and in-transit material for
high speed warehousing and visibility to cross docking tasks. In addition wave planning
also offers the ability to compute fill rate based on pick rules constraints a. The fill rate
computation based on pick rules and crossdocking allows warehouse managers increased
visibility to material and labor availability and ensure that only waves feasible for
execution are released to the warehouse.
Advanced Wave Planning in release 12.1 offered flexible order grouping, wave creation
and release using advanced filters and dashboards to monitor wave progress along with
configurable proactive exception handling.
Advanced Wave Planning now has the ability to add and respond to exceptions such as
managing emergency orders in an active wave and canceling tasks.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 15
3.4.3.2. Task Cancellation
Cancellation of tasks is often required in a warehouse environment. Cancellation of tasks
may be needed when material allocation or warehouse task planning needs to be revoked.
Cancelling tasks feature gives warehouse managers the flexibility to stop execution of
certain tasks without the need to backorder sales order lines and gives them the
opportunity to release lines with new allocated material and task assignment at a later
time.
Release 12.1.2 now also offers the capability to load and drop the tasks only after the last
task for an order is dispatched to the user. This provides further visual cues to the user
that their current set of work has ended and allows them to prepare for a run to a staging
area. This capability is enabled for discrete picking, order picking and manifest picking
to streamline the traveling path when orders are grouped for dispatch to a single user.
Opportunistic cycle count achieves this goal by interleaving a cycle count task with
picking. In addition, the count threshold can be configured in WMS to trigger a cycle
count task when it’s most convenient to do so. The threshold can be set to “0” i.e. the
operator will be asked to count after a pick activity only if the pick results in driving the
locator empty.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 16
suggested lot. WMS will continue to direct the picker to a location and a lot; however the
picker can pick a different lot by entering an exception. Lot substitution provides
tremendous amount of flexibility and convenience to warehouses that stock lot controlled
products and often commingle them in the same locator.
Activity based billing is a critical requirement for The LSPs perform material handling on
behalf of their clients. These warehouses managed by LSPs receive, store and ship
product on behalf of their clients. Activity based billing provides a complete solution that
refers a service level contract, pricing of logistics services and relies on activity data in
WMS to produce an itemized bill based on the actual services performed by the
warehouse on behalf of the clients. Using activity based billing LSPs can invoice their
clients accurately with minimal overheads.
Oracle E-Business Suite Release 12.1 Release Content Document Oracle Warehouse Management 17