Core Inventory business (Inventory Management Inventory Transaction Processing)

The core of inventory management is the management of goods and the management of goods quantity and related attributes. The purpose is to ensure reasonable inventory for sales and procurement services, process the inventory classification accounts and the inbound and outbound flow accounts, basically covering various warehouse import and export services in the form of documents.

Inventory Organization Structure

An organization is a business unit, such as a company, a factory, a warehouse, a branch, or a department. An organization can be divided into multiple levels based on its actual business, such as a legal entity or business unit, inventory organization. The inventory organization is built under the business unit and can be subdivided into different sub-inventories. Specifically, the project owner organization is set up to uniformly define inventory items. It can be a virtual organization that does not exist and corresponds to the actual warehouse. Sub-inventory is a unique physical or logical inventory separated from the stock of materials, such as the Independent stock location of raw materials, finished products or defective products, and the customer's virtual warehouse, A slot is the actual area of the sub-stock for storing materials, such as rows, channels, storage bins or shelves. All materials in the Organization are kept in the sub-inventory, so at least one sub-inventory must be defined. One OU can have multiple IO, and one IO can have multiple sub-databases. Each sub-database can have multiple buckets.

Oracle products perform security control at different organizational layers. The general ledger shields data based on the set of books, while the sales/receivables/procurement/payables are typically managed by the business unit. The inventory/material list/workshop is managed separately according to the inventory organization.

The inventory organization is used to shield various types of manufacturing data. Items, BOM, and Routing are defined in the inventory organization, while WIP and MRP are run in the inventory organization. The inventory transaction processing is centered on sub-inventory, either from a sub-inventory or from a sub-database. You can enable or disable the sub-inventory. If yes, you must select a location for transaction processing. The sub-database code can be repeated in different inventory; the sub-database code can also be repeated in different sub-databases. That is to say, Oracle only provides such a model. As for how to use it with actual services, it is very flexible. For example, inventory is a concept of an organizational unit. It is relatively "virtual" and can be referred to as an entity such as a factory or an independent office or branch. The sub-database usually represents a real physical warehouse, it can also be an area of a warehouse or workshop. It can also be a virtual space. A space can represent a space or shelf of a warehouse, or a block area of a workshop.

To maintain the consistency of the entire item code and information, there is a concept of a material main organization in the inventory organization. This organization defines the attributes of the item and assigns it to the inventory organization of the main organization, the attributes of corresponding items can also be divided into main-Layer Control and organization-layer control. The attributes controlled by the main-layer can only be modified in the main organization, and the attributes controlled by the Organization layer can be maintained in each inventory organization. Oracle strongly recommends that there be only one inventory master organization under one set of books, and do not perform any transactions in the inventory master organization.

Inventory Transaction Processing

Inventory transaction processing is the core of the inventory business and the source of data processing in the ERP inventory module and related modules, including the receipt and return of purchase orders, WIP return and completion warehouse receiving, and inter-database transfer, miscellaneous transactions, sales and delivery, and RMA.
Transaction Processing refers to the entry, exit, or movement of items in the warehouse or between organizations, that is, the daily sending and receiving of the warehouse. The transaction processing department handles a variety of inventory transactions due to changes in the number of items, location, or cost, A system is provided. You can also define the financial records generated by the system for each item transaction based on your actual needs, including the version number, batch number, and serial number, the transaction processing for tracking and controlling items for related projects can be associated with related projects.
Transaction Processing reflects business information, and transaction allocation reflects accounting information. The transaction processing distribution is based on the inventory organization and the number of transferred transactions. The accounting information of all transaction processing types is summarized based on the accounting subject, and the lending amount is imported into the general ledger system. The transaction processing in the cost module mainly includes three categories: receiving, inventory, and WIP. The types in the System Journal reports reflect the transaction processing categories. Material Transaction allocation and WIP transaction allocation reflect the accounting information of inventory and WIP categories respectively, and import the accounting information to the general ledger system by category Source.

Transaction Processing type. The source and corresponding accounting subjects are as follows, where transaction type = Transaction source + transaction action.

Purchase receipt

Procurement receipt is a bridge between inventory and procurement. It is also a link between invoice payable and purchase orders and inventory Receipt.
There are generally three methods for receiving procurement, one is to direct the Supplier delivery to the database; the other is to receive the goods first by the supplier delivery, and then arrange the warehouse receiving; the other is to receive the goods first and then send the goods for inspection, after the quality check is passed, the database is retained. The sources of procurement receipt include receipt of procurement orders, receipt of inter-organizational transfers, and receipt of sales return.

Purchase receipt and inventory transaction processing tables
Procurement receipt header table: rcv_shipment_headers (receipt number, supplier, order number)
Purchase receiving Row Table: rcv_shipment_lines (material information, receiving organization information, receiving sub-database, receiving quantity)
Purchase receipt transaction table: rcv_transactions (transaction type, Order Distribution Line Information)
Material Transaction Processing: inv. mtl_material_transactions (sub-database, transaction type, quantity, transaction processing time)
Inventory quantity: inv. mtl_onhand_quantities
Inventory transaction interface table: MTL_TRANSACTIONS_INTERFACE
Purchase receiving interface table: rcv_transactions_interface

Inter-database transfer
Transfers materials in the current organization between sub-inventories or between two sub-stores in the same sub-stock. You can move materials from asset sub-inventory to expense sub-inventory or from tracked sub-inventory to untracked sub-inventory. If a project has a sub-stock limit list, the item can only be transferred between sub-inventories listed in this list.

Miscellaneous transactions
It mainly refers to the inventory sending and receiving transactions for non-purchased receiving, returning, non-production picking, return, non-sales delivery, and return items that are directly received from the account or sent to the account. The following are miscellaneous transactions processed in the system: the inventory system is implemented as the initial loading of the existing inventory of the project, which is used by the Department, such as stock return, stock transfer, and inventory check.

The account alias is the common name of the general ledger account defined to facilitate the inventory management personnel to accurately process miscellaneous transactions. The account alias is a key-elastic domain, and each account alias uniquely corresponds to a general ledger account.

Inventory Control
Inventory control includes space control, batch control, serial number control, and version control.

The space control can use the space to identify the actual area of the storage stock item. You can track the number of projects by space. The project can also be restricted to a specific location. Space control is implemented to facilitate the control of storage locations and storage capabilities. Batch control can be enabled for specific items in stock. batch numbers are especially suitable for materials with shelf life control. For projects under Batch control, you can specify a batch number for each receipt of goods transferred to the inventory. You can refer to the same batch for each receipt of material transactions. In version control, the actual control prefers the material version, which is distinguished by the version number. You can query the number of parts, materials, and semi-finished products of each version, and you must enter the version number to process the transaction.
Inventory check
In the ERP system, the accuracy of the warehouse data directly affects the operation of the entire system plan. Inventory check is a necessary means to ensure the accuracy of inventory records. Through inventory check, you can find the cause of the error, adjust the difference between the system and the actual inventory, and timely maintain the accuracy of inventory data. Inventory check includes actual and periodic check, for example, inventory check at the end of each month.

ABC classification is a prerequisite for periodic inventory check. It divides inventory materials into appropriate levels based on certain standards to determine the inventory frequency of different materials during periodic inventory check. It can be based on inventory value, inventory quantity, usage frequency, and so on are used as criteria for division.

The difference between the periodic check and the actual check is that the periodic check is scheduled. Based on the ABC classification results, the set periodic check frequency regularly checks the materials, which requires higher inventory control and accuracy.