lot attributes white paper

Inventory Lot Attributes

An Oracle White Paper July 2014

Oracle Corporation Confidential of 26

TABLE OF CONTENTS

1 LOT AND ITS NEED .............................................................................................................. 3

BENEFITS OF LOT TRACKING ......................................................................................................... 3

2 LOT ATTRIBUTES ................................................................................................................ 5

2.1 GRADE................................................................................................................................ 5 2.2 ORIGINATION DATE ........................................................................................................... 5 2.3 EXPIRATION DATE ............................................................................................................. 5 2.4 MATURITY DATE ............................................................................................................... 6 2.5 DATE .................................................................................................................................. 6 2.6 DATE .................................................................................................................................. 6 2.7 EXPIRATION ACTION DATE ................................................................................................ 7 2.8 EXPIRATION ACTION CODE ............................................................................................... 7

3 LOT ATTRIBUTES UPDATION DURING INVENTORY TRANSACTIONS ............... 8

3.1 LOT CREATION USING ITEM LOTS FORM .......................................................................... 8 3.2 MISCELLANEOUS TRANSACTIONS (ISSUE/RECEIPT) .......................................................... 9 3.3 RECEIVING TRANSACTIONS ............................................................................................. 10 3.4 WORK ORDER (WIP) COMPLETION ................................................................................. 11 3.5 LOT APPLICATION PROGRAM INTERFACES (APIS) .......................................................... 12

3.5.1 Create_Inv_lot Procedure ....................................................................................... 12 3.5.2 Update_Inv_lot Procedure ...................................................................................... 13

3.6 OPM TRANSACTIONS....................................................................................................... 14 3.6.1 Pending Lots ............................................................................................................ 14 3.6.2 Transact Lots in Lot Entry ....................................................................................... 15

4 GLOBAL LOT ATTRIBUTES ............................................................................................ 17

4.1.1 Global Lot Attributes Not Enabled .......................................................................... 18

5 MATERIAL STATUS CONTROL ...................................................................................... 22

5.1 GLOBAL LOT ATTRIBUTES ENABLED .............................................................................. 22 5.2 GLOBAL LOT ATTRIBUTES NOT ENABLED ...................................................................... 22

5.2.1 Lot Does Not Exists.................................................................................................. 22 5.2.2 Lot Exists with Zero Onhand ................................................................................... 23 5.2.3 Lot Exists with On Hand .......................................................................................... 24



1 Lot and Its Need What is a Lot?

Lot is a unit used to group quantities of a specific item when inventory quantities have slightly

different characteristics. For example, two lots of item "X" may vary slightly in composition,

quality characteristics or hold alternate characteristics from an inventory perspective that may

influence various business flows. As such the identification, usage and tracking of that inventory

may be a key business issue. Inventory genealogy tracks lot level receipts, movements, issues,

consumption and onward sales of such inventory to enable legally binding requirements. .

The Need to Create and Maintain Lots

Accurately tracking a product through the distribution chain is becoming more and more

important for businesses. The ability to easily track a batch or lot of an item is a day to day

necessity in businesses specially distributors dealing with food and pharmaceutical products

where quality control has a high importance. As a matter of fact, it is important for any distributor

since it has various benefits. It not only allows tracking of an item through the distribution chain

but should also provide cost tracking abilities and help deal with crisis of product recalls as well

as a simple RMA. Furthermore, with growing globalizations, and open trades, businesses need to

be able to comply with various regulations when it comes to traceability.

A lot tracking system is a system where various information related to particular lots or batches of

any product can be recorded. The lot or batch can be for one or many units produced or purchased

on the same or various days, possibly having a production and/or expiry date along with other

possible required information (attributes).

This white paper aims to capture the impact of various inventory transactions on lot and its

attributes and how these attributes should change based on the set up done at the organization or

item level.

Benefits of Lot Tracking

Some of the benefits of tracking lots include –

It provides traceability throughout the distribution chain, inside your company and outside

of it by integrating with the purchase order, inventory control, sales order and invoicing

processes.

Allows you to use a different lot number than the manufacturer’s and still provides

tracking by either your internal or the manufacturer’s external lot number.

Allows you access to information related to the product in a speedy and efficient way by

allowing you to store various information. Not only you can store the lot number(s), but

also information such as location, bin and shelf, dates, weights, origins etc. This is very

important especially in the cases of a product recall, a customer lot inquiry or/and an

internal inventory count.

Serves as a quality control tool by allowing you to track raw materials and finished goods

Saves labor by eliminating manual data entry prone to errors.



Eliminates the picking of the wrong products, whether you are picking them to be packed

for shipping or for use in another Finished Good item.

Provides reporting ability on your inventory and status by lot number.

Provides cost information by lots to be used for selling or assessing your inventory



2 Lot Attributes

Lot Attributes

In EBS you can create and maintain lots along with its attributes. Following is the list of standard

attributes which can be captured –

2.1 Grade

Grade of an item identifies its specific composition to the business. Grade is used to identify and

manage at a lot level. From inventory receipts and quality analysis, through production usage and

finished goods management grade can have an influence on that specific inventory usage. Grade,

recorded through quality analysis, is used significantly in finished goods pricing and allocation

logic in Order Management.

2.2 Origination Date

While creating the lot in the Lot Creation form or Assigning Lot Numbers within the transactions,

the system date is defaulted as Origination Date. Users are allowed to modify this. Maturity date,

Hold date, Retest Date and Expiration date (if item is shelf life controlled) will be defaulted or

calculated based on the Origination Date. Also all the other date related lot attributes should have

the date set after the origination date.

2.3 Expiration Date

The Lot Expiration control date identifies how long an item in a given lot remains available for

transaction and planning purposes. The Default Expiration Action Date is calculated by adding

Lot Expiration Action Interval with the Lot Expiration Date. Lot Expiration Date + Lot Expiration

Action Interval = Default Expiration Action Date.

If the users specify shelf life of the item (in days) - the system starts counting the shelf life on the

day the system receives the lot into the inventory. After the specified number of days, the system

may advise on usage expiration.

If the item is configured under the user-defined expiration date Lot Expiration Control (shelf life

etc) the user must specify the expiration date for the lot, whilst receiving the items under lot

control.

For a Shelf Life item, if the Lot Expiration Control attribute for the item is set to User-defined

Expiration Date – the system allows the user to identify the expiration date during the lot creation

in the transaction or the Lot Master. If the Lot Expiration Control attribute is set to Item Shelf

Life days, the system adds the shelf life days to the current system date to calculate the expiration

date.

An expired lot:

is not considered as on-hand supply when performing min-max, reorder point, or MRP

planning calculations



cannot be reserved for a date beyond the expiration date. However there is a hook

which the customers can use in case if they want to reserve the lot beyond the lot

expiration date.

can be transacted and is included in on-hand quantities

is included in all inquiries and reports, including inventory valuation reports

is included in a cycle count and count entry and adjustments are allowed

is included in a physical inventory and tag entry and adjustments are allowed

2.4 Maturity Date

Maturity Date is the date when the lot reaches full maturity and is calculated as ‘Lot Creation

Date + Maturity Days = Default Lot Maturity Date’. Maturity Days is the number of days added

to the lot creation date to determine the lot maturity date. If Maturity Days is not mentioned in the

Item master, the system assumes the lot is mature at creation.

While creating a lot in the Lot Master or assigning lot numbers within transactions, the maturity

date defaults automatically based on the lot origination date plus maturity days defined in the Item

Master. Users can optionally modify the defaulted maturity date.

2.5 Hold Date

Hold Date is the date on which the lot can be released for usage in the inventory and is calculated

as ‘Lot Creation Date + Hold Days = Default Hold Release Date. Hold Days is the number of

days added to the lot creation date before the lot can be transacted. If the user does not enter a

Hold Days number, the system assumes the lot is available.

In the ‘Edit Item Lots’ window whilst creating new lots or entering the lot numbers within

transactions, the hold date defaults automatically based on the lot origination date plus hold days

defined in the Item Master. The users can modify the defaulted hold date.

Hold Date was introduced for Consumer Packaged Goods (CPG) industries where the inventory

may need some ‘settlement period’. An example of this is pet food where, after packaging, the

product needs a settlement (smell) period.

2.6 Retest Date

Retest Date is the date to retest the lot, if applicable. Retest date is calculated as ‘Lot Creation

Date + Retest Interval = Default Lot Retest Date’. Retest Interval is the number of days after the

creation date before whichthe lot should be retested and is defined in the Inventory Tab in the

Item Master.

Users can use the Edit Item Lots window to create new lots before receiving the material in the

warehouse, or manage existing lot information. While creating a new lot or assigning lot numbers

within transactions, the retest date automatically defaults based on the lot origination date plus

retest interval defined in the Item Master.

This is used in the process industries where the ongoing monitoring of material is a specific

business requirement. Any deterioration or change in inventory characteristics needs to be

managed for consumption/usage/sales etc. e.g. food shelf life.



2.7 Expiration Action Date

Expiration Action date is the date to perform the lot expiration action and is calculated as ‘Lot

Expiration Date + Lot Expiration Action Interval = Default Expiration Action Date’. Lot

Expiration Action Interval can be mentioned in the item setup.

For a item that is ‘Lot Expiration (Shelf Life)’ controlled, the expiration action date is defaulted

in the ‘Lot Master form’ or at the lot creation during the transaction processing. Users can modify

the date in both the cases. Users can query an existing lot and modify the expiration action date

based on the business practices.

2.8 Expiration Action Code

The Expiration Action Code is the default action that the user should perform, if the lot expires,

fails quality inspection or falls within the experimental error results region. The Action Code is

mentioned in the notification sent, the system does not automatically perform any action but

informs the business of required action.

Users can mention a default action code in the Item setup if the item ‘Lot Expiration (Shelf Life)’

control is set to ‘Shelf Life Days’ and ‘Shelf Life Days’ is mentioned.

In the ‘Edit Item Lot’ screen and during transactions, the system defaults the expiration action

mentioned in the Item setup and users are then allowed to modify this action. Even for an

existing lot, the user can query a lot and modify the ‘Expiration Action Code’.



3 Lot Attributes Updation During Inventory Transactions

Lot attributes may get updated when inventory transactions are done for a lot controlled item.

This section tries to capture the impact of various inventory transactions on the lot attributes

based on the item set up defined in the system.

3.1 Lot Creation Using Item Lots Form

A user can create a new lot using the Item Lots form. When a lot is created, its origination date is

defaulted as sysdate. User can also enter a past date as origination date. The expiration date is

calculated by the system if the item is shelf life controlled. If the expiration date is user defined,

then user can enter an expiration date. Similarly all other date related attributes are calculated by

the system as explained in the Lot Attributes section based on the origination date of the lot. If the

origination date is null, then all other date related attributes will also be null. Origination date of a

lot is updateable and in case if the user updates the origination date, then all other date related

attributes will also be recalculated.

Table below summarizes how lot attributes are created or updated based on various actions which

users can take when a lot is created/updated using the Item Lots form –

Lot Number Form

User Action --> Origination

Date:

Entered

Origination

Date: Null

Change

Origination

Date (For New

Lot)

Updateable Nullable

Impact on Attributes

Origination Date Entered Null Updated Date Yes Yes

Expiration Date (Shelf

Life)

Calculated Null Recalculated Yes Yes

Expiration Date (User

Defined)

Calculated User Entry Recalculated Yes No

Maturity Date Calculated Null Recalculated Yes Yes

Hold Date Calculated Null Recalculated Yes Yes

Expiration Action

Date

Calculated Null Recalculated Yes Yes

Retest Date Calculated Null Recalculated Yes Yes

Calculated*: Calculated based on the origination date entered



3.2 Miscellaneous Transactions (Issue/Receipt)

During a Miscellaneous transaction, the user can enter the lot either in the transaction line or in

the lots form on the desktop. If a new lot is entered on the transaction line, then the origination

date is defaulted as transaction date and other lot attributes are calculated based on the formulas

defined in the Lot Attributes section except for the user defined lot expiration date which is

mandatory and has to be entered by the user. If an existing lot is entered on the transaction line,

then existing values for all other date related lot attributes are defaulted.

Lots can also be entered via the Lots Entry form in Miscellaneous Transaction UI (Lot/Serial

button). If a new lot is entered, then the origination date is defaulted as the transaction date and

other date related attributes are calculated by the system. User can also enter a past date as the lot

origination date in which case other date related attributes are recalculated by the system. If an

existing lot is entered, then the date attributes are populated with existing attribute values and

cannot be updated. One can also perform the Miscellaneous Transaction on Mobile (MSCA).

However the behavior would still remain the same based on whether it’s an existing lot or a new

lot.

The table below summarizes the impact on the lot attributes when the material is received into a

new or an existing lot using the Miscellaneous Receipt form –

Enter Lot on Miscellaneous Receipt Transaction Line

User Action --> Enter New Lot Select Existing Lot


Origination Date Transaction date Populated


Life)

Calculated Populated


Defined)

User Entry Populated

Maturity Date Calculated Populated

Hold Date Calculated Populated

Expiration Action Date Calculated Populated

Retest Date Calculated Populated

The table below summarizes the impact on the lot attributes when material is received into a new

or existing lot using the Lot Entry form –



Enter Lot in Lot Entry Form

New Lot Existing Lot

User Action --> Enter Lot Nullable Change

Origination

Date

Select Existing

Lot

Updatable

Impact on

Attributes

Origination Date Transaction date No Recalculated Populated and

non editable

No

Expiration Date

(Shelf Life)

Calculated No Recalculated Populated and

non editable

No

Expiration Date

(User Defined)

User Entry No No Change Populated and

non editable

No

Maturity Date Calculated Yes Recalculated Populated and

non editable

No

Hold Date Calculated Yes Recalculated Populated and

non editable

No

Expiration

Action Date

Calculated Yes Recalculated Populated and

non editable

No

Retest Date Calculated Yes Recalculated Populated and

non editable

No

3.3 Receiving Transactions

When receiving against a document like PO etc. a new lot can be generated during the receipt.

When a new lot is generated then the origination date is defaulted as sysdate or transaction date

and other lot attributes are calculated based on the formulas defined in the Lot Attributes section

except for the user defined lot expiration date which has to be entered by the user. If the

origination date is updated, then all the other date related attributes are recalculated by the system.

If an existing lot is selected during receipt, then existing values for all date related lot attributes

are defaulted and user is not allowed to update them.


or existing lot against a document like purchase order or internal sales order, etc.



Receiving Against Document (PO, ISO etc.)



Origination

Date

Select Existing

Lot

Updatable

Impact on

Attributes


non editable

No

Expiration Date

(Shelf Life)


non editable

No

Expiration Date

(User Defined)


non editable

No


non editable

No


non editable

No

Expiration

Action Date


non editable

No


non editable

No

3.4 Work Order (WIP) Completion

When performing an assembly completion for a lot controlled item, user can either create a new

lot or choose to complete the assembly in an existing lot. If an existing lot is selected, then the

existing values for all the date related lot attributes are defaulted and the user is not allowed to

update them. User can also choose to create a new lot in which case the origination date is

defaulted as transaction date (WIP Completion Date). All other date related attributes are

calculated by the system as explained in the Lot Attributes section based on the origination date

of the lot, except for user defined expiration date which has to be entered manually. If the

origination date is changed, then the date related lot attributes are recalculated by the system.


or existing lot during WIP completion transaction –



WIP Completion



Origination

Date

Select Existing

Lot

Updatable

Impact on

Attributes


non editable

No

Expiration Date

(Shelf Life)


non editable

No

Expiration Date

(User Defined)


non editable

No


non editable

No


non editable

No

Expiration

Action Date


non editable

No


non editable

No

3.5 Lot Application Program Interfaces (APIs)

One can also create or update an existing lot using public APIs. For this there are 2 different APIs

available - Create_Inv_lot to create new lots and Update_inv_lot to update the attributes of an

existing lot.

3.5.1 Create_Inv_lot Procedure

You can use this procedure to create a new lot and insert the same into MTL_LOT_NUMBERS

table. Using this procedure, users can have 2 different levels of validations while the lots are

created. The default is full validation where the system auto calculates other date related attributes

based on the formulas defined in the Lot Attributes section provided the origination date is passed

or defaults the origination date as systdate. If origination date is null, then all other dates will

remain null or will be populated with the values passed in the procedure except for user defined

expiration date which should be passed. Another option is to have no validation at all in which

case the system will populate the lot attributes with whatever value is passed. The procedure

Returns success if it is able to insert the lot.



The table below summarizes the lot attributes behavior when a new lot is created using the Create

Inv Lot procedure –

Create Inv Lot Procedure

Full Validation Basic Validation

User Action --> Origination

Date Passed

Nullable Value Passed

Impact on

Attributes

Origination Date Value Passed or

Sysdate

Yes Value Passed

Expiration Date

(Shelf Life)

Value Passed or

Calculated

Yes Value Passed

Expiration Date

(User Defined)

Value Passed and

is Required

No, Errors out if

null

Value Passed

Maturity Date Value Passed or

Calculated

Yes Value Passed

Hold Date Value Passed or

Calculated

Yes Value Passed

Expiration

Action Date

Value Passed or

Calculated

Yes Value Passed

Retest Date Value Passed or

Calculated

Yes Value Passed

3.5.2 Update_Inv_lot Procedure

You can use this procedure to update the attributes of an existing lot. If the origination date is

passed, then the system will re-calculate all other date related attributes based on the new

origination date. You can also update or null out other lot attributes except for user defined

expiration date which is mandatory.

The table below summarizes the lot attributes behavior when a existing lot is updated using the

Update Inv Lot procedure –



Update Inv Lot Procedure

User Action --> Origination Date Passed Nullable


Origination Date Value Passed else existing date retained Yes


Life)

Value Passed else existing date retained Yes


Defined)

Value Passed else existing date retained

(required)

No, Errors

out if null

Maturity Date Value Passed else existing date retained Yes

Hold Date Value Passed else existing date retained Yes

Expiration Action Date Value Passed else existing date retained Yes

Retest Date Value Passed else existing date retained Yes

3.6 OPM Transactions

3.6.1 Pending Lots

Users can create a lot in advance in OPM using the Pending Lots form. The actual batch may be

completed in the lot at a later point of time. When a new lot is entered in the Pending lots form

then all the date related attributes are null except for the user defined expiration date which is a

required field and needs to be entered by the user. If the lot is an already existing lot, then all the

date related attributes are populated based on the existing values and user cannot update them.

The table below summarizes the impact on lot attributes when a new or existing lot is created

using the Pending Lots form –

Pending Lots


User Action --> Enter New Lot Select Existing Lot


Origination Date Null Populated and non editable

Expiration Date (Shelf Life) Null Populated and non editable

Expiration Date (User Defined) Required Populated and non editable



Maturity Date Null Populated and non editable

Hold Date Null Populated and non editable

Expiration Action Date Null Populated and non editable

Retest Date Null Populated and non editable

3.6.2 Transact Lots in Lot Entry

The Lot Entry window lets you choose lot numbers for the line item quantity to issue or return.

You can view the Lot Entry window only for items that are lot-controlled. If the lot generated in

the Lot entry window is a new lot then the origination date is defaulted as transaction date

(current date). All the other date related attributes are calculated based on the formulas defined in

the Lot Attributes section except for the user defined lot expiration date which is mandatory and

has to be entered by the user. If the origination date is updated then all other date related lot

attributes are recalculated by the system except for user defined lot expiration date. Also all other

lot attributes can be made null except for the lot expiration date.

If the lot entered in an already existing lot, then existing values for all date related lot attributes

are defaulted and user is not allowed to update them.

The table below summarizes the impact on the lot attributes when a new lot is created or an

existing lot is selected using the Lot Entry form –

Transact Lot in Lot Entry Form



Origination

Date

Select Existing

Lot

Updatable

Impact on

Attributes

Origination Date Transaction date Yes Recalculated Populated and

non editable

No

Expiration Date

(Shelf Life)


non editable

No

Expiration Date

(User Defined)

User Entry &

Required

No No Change Populated and

non editable

No


non editable

No


non editable

No



Expiration

Action Date


non editable

No


non editable

No



4 Global Lot Attributes

In EBS Release 12.2 we introduced Global Lot Attributes functionality which allows you to

define the lots as Global through a site level profile option. Global lots will have the same

attribute values across organizations i.e. any change on the lot attributes is universal and would

apply to all the organizations where the lot exists. This section captures the lot attributes behavior

when lots are enabled as Global.

If you enable the lot attributes as global and perform inventory transactions like Receiving, WIP

Completion, Inter Organization Transfer etc. and the lot already exists in the system, then the lot

attributes will inherit the existing attributes values and they cannot be updated.

If the lot attributes are enabled as Global and the lot created during the inventory transaction is a

new lot, then the origination date is defaulted as transaction date or the date entered by the user

and all other date related lot attributes are calculated by the system.

The table below summarizes how the lot attributes are defaulted, copied or calculated based on

whether the lot is new or if it already exists and Global Lot Attributes are enabled –

Global Lot Attributes Enabled

Lot Exists

Inventory

Transaction -->

Misc Receiving WIP

Completion

PO

Receiving

Org Transfer

Impact on

Attributes

Grade Copy Copy Copy Copy

Origination Date Copy Copy Copy Copy

Expiration Date

(Shelf Life)

Copy Copy Copy Copy

Expiration Date

(User Defined)

Copy Copy Copy Copy

Maturity Date Copy Copy Copy Copy

Hold Date Copy Copy Copy Copy

Retest Date Copy Copy Copy Copy

Expiration

Action Date

Copy Copy Copy Copy

Expiration

Action Code

Copy Copy Copy Copy

Copy = Copy Lot Attributes from Source Org.



Global Lot Attributes Enabled

Lot Does Not Exists

Inventory

Transaction -->

Misc Receiving WIP Completion PO Receiving

Impact on

Attributes

Grade Txn Entry/ Default Txn Entry/ Default Txn Entry/

Default

Origination Date Txn Entry Txn Entry Txn Entry

Expiration Date

(Shelf Life)

Calculated Calculated Calculated

Expiration Date

(User Defined)

Txn Entry Txn Entry Txn Entry

Maturity Date Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry else

Calculated

Hold Date Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry else

Calculated

Retest Date Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry else

Calculated

Expiration

Action Date

Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry else

Calculated

Expiration

Action Code

Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry else

Calculated

Txn Entry = From Transaction Entry

4.1.1 Global Lot Attributes Not Enabled

If the lot attributes are not enabled as Global, then lot attributes can have different values across

different locations or organizations. The lot attribute values will be determined based on the fact

if the lot created is a new lot or an existing lot.

4.1.1.1 New Lot (Lot Does not Exists)

When an inventory transaction like Receiving or WIP completion is performed and the lot created

is not already existing (i.e. it’s a new lot) then the origination date is stamped with the date

entered by the user or is defaulted as sysdate (transaction date). All the other date related



attributes are populated based on the data entered by the user or calculated by the system as

explained in the Lot Attributes section.

The material may also be moved from one organization to another and the lot may not exist in the

destination organization. If it is a direct inter organization transfer or a transfer using Internal

Sales Order with Direct Receipt in the destination organization, then the lot attributes will be

copied from the source organization.

If the Transfer type is Intransit for inter org transfer or receipt routing is not ‘Direct’ for an

Internal Sales Order, then the lot attributes are copied from the source organization. However the

users can update the lot attributes while receiving.

The table below summarizes how lot attributes are calculated/copied or defaulted when global lot

attributes are not enabled and lot created is a new lot –

Global Lot Attributes Not Enabled

New Lot (Lot Does Not Exists)

Inventory

Transaction

-->

Misc

Receiving

WIP

Completion

PO

Receiving

Direct Org or

ISO Transfer

Intransit Org or

ISO Transfer

Impact on

Attributes

Grade Txn Entry/

Default

Txn Entry/

Default

Txn Entry/

Default

Copy Copy/Txn Entry

Origination

Date

Txn Entry Txn Entry Txn Entry Copy Copy/Txn Entry

Expiration

Date (Shelf

Life)

Calculated Calculated Calculated Copy Copy

Expiration

Date (User

Defined)


Maturity

Date

Txn Entry /

Calculated

Txn Entry /

Calculated

Txn Entry /

Calculated

Copy Copy/Txn Entry

Hold Date Txn Entry /

Calculated

Txn Entry /

Calculated

Txn Entry /

Calculated

Copy Copy/Txn Entry

Retest Date Txn Entry /

Calculated

Txn Entry /

Calculated

Txn Entry /

Calculated

Copy Copy/Txn Entry

Expiration

Action Date

Txn Entry /

Calculated

Txn Entry /

Calculated

Txn Entry /

Calculated

Copy Copy/Txn Entry



Expiration

Action Code


4.1.1.2 Lot Exists (with Zero On Hand)

A lot may exist in an organization but may not have any existing on hand at the time of the

transaction. When an inventory transaction like Receiving or WIP completion etc. is performed

on such a lot, then the existing values of lot attributes are retained for such lots. Similarly when

such a lot is transferred from one organization to another, then the existing values of the lot

attributes in the destination organization are retained.

4.1.1.3 Lot Exists (with On Hand)

If a lot already exists in an organization and inventory transactions like Receiving or WIP

completion etc. is performed on such a lot, then the existing values of lot attributes are retained

for such lots. Similarly when such a lot is transferred from one organization to another, then

existing values of the lot attributes in the destination organization are retained.

Table below summarizes impact on lot attributes when global lot attributes are not enabled and

inventory transaction is done for a lot existing with zero or some on hand –


Lot Exists (with Zero or Some On Hand)

Inventory

Transaction

-->

Misc

Receiving

WIP

Completion

PO

Receiving

Direct Org or

ISO Transfer

Intransit Org or

ISO Transfer

Impact on

Attributes

Grade Retain Retain Retain Retain Retain

Origination

Date

Retain Retain Retain Retain Retain

Expiration

Date (Shelf

Life)


Expiration

Date (User

Defined)


Maturity

Date




Hold Date Retain Retain Retain Retain Retain

Retest Date Retain Retain Retain Retain Retain

Expiration

Action Date


Expiration

Action Code


Retain: Destination Organization Lot Attribute Value Retained



5 Material Status Control

Material Status control restricts the movement and usage of portions of on-hand inventory. You

can determine whether products with a particular status can be reserved, included in available to

promise calculations, or netted in production planning. Material status can be assigned at five

levels: Subinventory, Locator, Lot, Serial and On-Hand (LPN). You can specify which levels a

given status is applicable to. The material status is also used to dictate which transactions are

allowed when a material has the specified status assigned to it.

‘Allow Different Material Status’ Inventory Organization Parameter

The “Allow Different Material Status” parameter determines if the material can be moved from

one location to another if the same material (lot) already exists in the “To or Destination”

location.

Set “Allow Different Material Status” in Inventory Organization Parameters -

No – will disallow a material transfer if it would result in co-mingling the same material

(i.e. the same lot) in the same locator with different statuses.

Yes – will allow a material transfer by updating the material status with the status of the

material in the destination locator

With Exception - will allow the transfer of material only if there is no onhand balance of

that material in the destination location and will use the current status of the material in

the source locator. If there is an onhand balance in the destination location with a

different status, the transfer will be prevented.

5.1 Global Lot Attributes Enabled

When inventory transactions like PO/Miscellaneous Receipts or WIP Completion is done, the

material status for lot is defaulted based on the set up irrespective of the value for Allow Different

Material Status parameter. The priority for defaulting the material status is as follows – Lot Level,

Item Level (for non lot controlled items), locator level, subinventory level and organization level.

When performing an inter org transfer, then if the lot does not exists in the destination

organization then the lot status will be copied from the source organization.

5.2 Global Lot Attributes Not Enabled

5.2.1 Lot Does Not Exists

When global lot attributes are not enabled and inventory transactions like PO/Miscellaneous

Receipts or WIP Completion are performed and the lot does not exist then the lot status will be

defaulted based on the set up and defaulting order (as explained above).

When material is moved from one organization to another via Inter org transfer or Internal Sales

Order (Both for direct transfers as well as intransit) and the lot does not exist in the destination



organization, then the lot status is defaulted from the Receiving organization parameters when

Allow Different Material Status parameter is set to Yes. If this parameter is set to No or With

Exception, then the lot status is copied from the source organization.

Below table summarizes the impact on Material Status when a new lot is created or moved to

another organization –


Lot Does Not Exist

Material Status

Profile -->

Misc

Receiving

WIP

Completion

PO

Receiving

Direct Org or

ISO Transfer

Intransit Org or

ISO Transfer

Allow Different

Material Status

Yes Default Default Default Default from

Receiving Org

Default from

Receiving Org

No Default Default Default Copy Copy

With Exception Default Default Default Copy Copy

Default: Default from Item master

5.2.2 Lot Exists with Zero Onhand


Receipts or WIP Completion are performed and the lot exists but with a zero on hand, then the

existing status of the lot will be retained.

When the material is moved from one organization to another via Inter org transfer or Internal

Sales Order (Both for direct transfers as well as intransit) and the lot does exist in the destination

organization but with a zero on hand, then the existing lot status is retained in the Receiving

organization when Allow Different Material Status parameter is set to Yes. If this parameter is set

to With Exception, then the lot status is copied from the source organization. If this parameter is

set to NO and the existing status of the lot in the destination organization is different than the

transfer transaction is not allowed.

Below table summarizes the impact on Material Status when inventory transactions are performed

for a lot which exists with zero on hand –




Lot Exists with Zero On Hand

Material Status

Profile -->

Misc

Receiving

WIP

Completion

PO

Receiving

Direct or

Intransit Org

Transfer

Direct or

Intransit ISO

Transfer

Allow Different

Material Status

Yes Retain Retain Retain Retain Retain

No Retain Retain Retain Not Allowed Shipment Fails

With Exception Retain Retain Retain Copy Copy

5.2.3 Lot Exists with On Hand


Receipts or WIP Completion are performed and the lot exists but with some on hand, then the

existing status of the lot will be retained.

When the material is moved from one organization to another via Inter org transfer or Internal

Sales Order (Both for direct transfers as well as intransit) and the lot does exist in the destination

organization but with some on hand, then the existing lot status is retained in the Receiving

organization when Allow Different Material Status parameter is set to Yes. If this parameter is set

to No or With Exception and the existing status of the lot in the destination organization is

different than the transfer transaction is not allowed.

Below table summarizes the impact on Material Status when inventory transactions are performed

for a lot which exists with some on hand –


Lot Exists with Zero On Hand

Material Status

Profile -->

Misc

Receiving

WIP

Completion

PO

Receiving

Direct or

Intransit Org

Transfer

Direct or

Intransit ISO

Transfer

Allow Different

Material Status

Yes Retain Retain Retain Retain Retain

No Retain Retain Retain Not Allowed Shipment Fails

With Exception Retain Retain Retain Not Allowed Shipment Fails



Conclusion

Managing lot and its attributes is one of the most important aspects of the supply chain and is

lifeline of certain industries like Pharma, Food etc. Therefore it is important that the system

accurately manages the lot information and impact of various inventory transactions on the lot

attributes. This white paper attempts to capture the behavior and changes in the lot and its

attributes based on various inventory transactions done in the system.



Inventory Lot Attributes July 2014 Author: Rahul Mehta ([email protected])

Contributing Author:Kathleen Dong ([email protected])

Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 www.oracle.com

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Oracle is a registered trademark of Oracle Corporation. Various product and service names referenced herein may be trademarks of Oracle Corporation. All other product and service names mentioned may be trademarks of their respective owners.

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