Oracle Apps Tutorial: R12 Changes to Inventory Item Attributes and InventoryOrganization Parameters

wanted to share with you the R12 changes to item attributes and inventory organizationparameters because I feel these configurations are at the heart of all Supply Chain modules. These configurations will determine how items are planned, purchased, built, costed, ordered,and shipped. The R12 changes to the item attributes and inventory organization parameters aremainly the result of new integrations with Process Manufacturing and Chargeable SubcontractManufacturing. Before R12, Process Manufacturing was more of a stand-alone module with itsown inventory organization setups. Now Discrete Manufacturing and Process Manufacturingshare the same inventory module. Chargeable Subcontract Manufacturing is new functionalitythat allows you to support outsourcing the manufacturing of subassemblies and finished goods. This type of manufacturing is common in Japan, Korea, and Taiwan. In Japan, this is referred asShikyu. So let’s look at the R12 changes.

R12 Changes to Item AttributesHere’s my tab by tab analysis for item attributes:

Main Tab – No Changes

Inventory Tab

To support the integration of Process Manufacturing, Oracle added additional Lot attributes andnew grade control attributes. There is also a new material status field. Material status allows youto control what transactions can occur for a specific status. For example, you can have a materialstatus of called “QC Hold” that will not allow you to pick or ship. Material status can be assignedto a subinventory, a locator, a lot, or an on-hand balance.

R12 Changes Item Attributes - Inventory Tab

R12 Changes Item Attributes - Inventory Tab (part 2)

Bill of Materials Tab – No Changes

Costing Tab – No Changes

Purchasing Tab

To support Chargeable Subcontract Manufacturing, Oracle added an outsourced assembly field. Also the tax field is now integrated with the E-Business Tax module.

R12 Changes Item Attributes - Purchasing Tab

Receiving Tab – No Changes

Physical Attributes Tab – No Changes

General Planning Tab

To support Chargeable Subcontract Manufacturing, Oracle added a subcontracting componentfield.

R12 Changes Item Attributes - General Planning Tab

MPS/MRP Planning Tab

There are new repair attributes to integrate the Depot Repair module with planning.

R12 Changes Item Attributes - MPS MRP Planning Tab

Lead Times Tab – No Changes

Work in Process Tab – No Changes

Order Management Tab

To support recurring charges in Order Management, Oracle added the periodicity field.

R12 Changes Item Attributes - Order Management Tab

Invoicing Tab – No Changes

Process Manufacturing Tab

All of these fields were added to support the integration of Process Manufacturing into theInventory module

R12 Changes Item Attributes - Process Manufacturing Tab

Service Tab – No Changes

Web Option Tab – No Changes

R12 Changes to Inventory Organization ParametersLike the item attributes, the changes to inventory organization parameters was the result ofintegration Process Manufacturing, Landed Cost Management module, and new functionality. Here’s my tab by tab analysis of these changes.

Inventory Parameters Tab

Four new fields were added to this tab. The Default On-hand Material Status was added tosupport the new material status functionality. The Manufacturing Partner Organization flag wasadded to support the Chargeable Subcontract Manufacturing functionality and the Landed CostManagement flag was added to support the new Landed Cost Management module. There wasalso a Locator Alias Uniqueness flag added.

R12 Changes Org Parameters - Inventory Parameters

Costing Tab – No Change

Revision, Lot, Serial, LPN Tab

A new region for Child Lot Control fields and the Auto Create Lot UOM Conversion field wereadded to support Process Manufacturing. The Allow Different Material Status field was added tosupport controlling transactions by material status (for example, not ship items with a status of“QC Hold”). Material status can be assigned to a subinventory, a locator, a lot, or an on-handbalance. Lastly, there is a new region for LPN Generating Option fields. These fields are used tosupport Warehouse Management (WMS) enabled organizations.

R12 Changes Org Parameters - Revision Lot Serial and LPN

ATP, Pick, Item-Sourcing Tab

A new “Enable Rules Override for Lot-Level Reservations” flag was added to this tab. SinceProcess Manufacturing required more functionality around lots, this flag is most likely used byProcess Manufacturing.

R12 Changes Org Parameters - ATP Pick Item Sourcing

Inter-Org Information Tab – No Change

Other Accounts Tab

Two new accounts were added to this tab. The first one is the Deferred COGS Account field. This account is used by the Sales Order Issue transaction type to deferred COGS until ARrecognizes revenue. The second account is the Landed Cost Management (LCM) varianceaccount. This account is used by the new Landed Cost Management module.

R12 Changes Org Parameters - Other Accounts