Inventory Organization Structure

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Locations

Locations define information describing the physical locations of Employees and Organizations. Locations are shared between Inventory, Purchasing, and Human Resource Management.

Locations flagged as global locations are available to all Business Groups. Each organization can be associated with only one location. One or more organizations can be associated with the same location.

Subinventories

In Oracle Inventory, all material within an organization is held in a subinventory. An inventory organization 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. 

Therefore, you must define at least one subinventory. Item quantities can be tracked by subinventory. Items can also be restricted to specific subinventories. 

Locators

The subinventories in an inventory organization may be made up of one or more locators such as row, rack, and bin. You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators.

Inventory Organization Attributes

An inventory organization may have the following attributes:

• An inventory organization can have its own location 
• An inventory organization has a ledger; you can tie one accounting ledger to each inventory organization. 
• You choose your costing method, which can be standard, average, LIFO or FIFO at the organizational level.
• An inventory organization has a workday calendar
• A list of items are defined for each organization 
• An inventory organization can share one or more of these characteristics with other organizations.

Organization Parameters

The following parameters must be defined in order to complete the organization definition for inventory purposes.

• You must specify the item master organization. The system defaults this field to the organization for which parameters are being entered. It must be changed for any organization that is not an item master organization.
• The item master organization should be the first inventory organization for which parameters are defined.
• You must define the control options and account defaults for your organization before you can define items or perform any transactions.
• Define receiving parameters if you receive items on purchase orders, internal orders, and in-transit inter-organization shipments.
• You must assign a unique short code to your organization and use this code to identify the organization with which you want to work.
• You must specify shipping parameters to specify whether the move order line allocation is automatic or manual in Oracle Shipping Execution.
• Define the WIP parameters if you are using Oracle Work in Process.
• You must define project parameters if the organization is classified as a project manufacturing organization.
• Define and update default inventory and costing parameters for your organization.