Oracle Inventory - Steps to define Subinventory

This tutorial explains the steps to define subinventories in an inventory organization which will help in classification of items.

 

Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material. All material within an organization is held in a subinventory therefore, one must define at least one subinventory for an organization.

The Subinventories window consists of the following tabs where you can define parameters for the selected subinventory:

• Main tab  - Need to define as per business requirement
  
• Accounts tab - Defaulted from Inventory Organization
  
• Warehouse tab - Available only if Oracle Warehouse Management is enabled for the organization

Switch to Inventory Super User Responsibility

Navigate to Setup-->Organization-->Subinventories 

Click on the open button

Select the required inventory organization
Click the OK button
Subinventory form will get opened up

Click on the New button as we are going to create new subinventory for the inventory organization

Enter the Name of subinventory as per the business requirement
Ex. Domestic/Export/Trade/Store/WIP etc....

Note - The header region and parameters to be setup correctly as per business requirement


Header Region

Status - Indicate the material status of this subinventory. The material status controls the enabled transactions for all material in this subinventory. The status is not overridden by the status of any locator, lot or serial, within this subinventory. The material status also determines whether reservations are allowed for this subinventory, whether the material in the subinventory is included in ATP, or whether the material is nettable. The Status Attributes region indicates if the ATPable, reservable, and nettable attributes apply to the material status that you select for the subinventory. You cannot make changes to this region.

Default Cost Group - Select the default cost group for this subinventory. If the cost group assignment rules fail to identify a cost group for newly received material, this cost group will be assigned. This cost group will remain with the material, even through subinventory transfers, until you perform a cost group change transaction.
Note: This feature is available if you have Oracle Warehouse Management installed, and you are working with a Warehouse Management enabled organization.

Type - Select a subinventory type:

• Storage: Designates the subinventory as a Storage subinventory.
•  Receiving: Designates the subinventory as a receiving subinventory, and links it to a receiving location. This subinventory type is used only for receiving material. Material in this type of subinventory cannot be on-hand, or reserved.
• Null: No subinventory designation

Parameter Region

Quantity Tracked - Indicate whether each transaction for this subinventory updates the quantity on hand for the subinventory. If deselected, on-hand balances are not maintained and you cannot select or update the Asset Subinventory option.
Note: You can update this value only if there is no on-hand quantity, no pending transaction, or no uncosted transaction for the subinventory.

 Asset Subinventory  - Select this option to maintain the value of this subinventory on the balance sheet.
Note: You can update this value only if there is no on-hand quantity for the subinventory.



Enable Locator Alias - Indicate whether you can create locator aliases for locators within this subinventory. If you enable this parameter, you must create locator aliases for locators within this subinventory. 

Enforce Alias Uniqueness - Indicate if the locator aliases are unique across the subinventory.
Note: You can also set this parameter at the organization level. If set at the organization level, and you click Enable Locator Alias, you cannot update this parameter.

Locator Control  - Select a type of locator control: 

• None: Inventory transactions within this subinventory do not require locator information.
• Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined locator for each item.  
• Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item. You may choose a valid predefined locator, or define a locator dynamically at the time of transaction.
• Item level: Inventory transactions use locator control information that you define at the item level.  

Important: You can select an option only if you selected locator control as Determined at subinventory level in the Locator Control field in the Organization Parameters window. You can update this option only if there is no on-hand quantity for the subinventory.

Default Locator Status - Indicates the default locator status of the locators in this subinventory. 

Picking Order  - Enter a picking order value for use by Oracle Warehouse Management to sequence picking tasks.
This value indicates the priority with which you pick items from this subinventory, relative to another subinventory, where a given item resides. If you have Oracle Warehouse Management installed, this field determines the picking path through the warehouse and not the order in which material is allocated for a sales order.
Important: A picking order of 1 means that order management pick items from that subinventory or locator before others with a higher number (such as 2).

Dropping Order  - Enter a dropping order value for use by Oracle Warehouse Management to sequence material drops. 

Inactive On  - Optionally, enter an inactive date on which the subinventory becomes inactive. As of this date, you can no longer assign the subinventory to any function within Oracle Applications. In addition, you cannot receive items into or issue items from the subinventory. The subinventory remains inactive until you change the inactive date to a future date, or remove the inactive date.
Important: Before you disable a subinventory, you must make certain that no open jobs or schedules in Oracle Work in Process use it as the backflush subinventory and that no active bills in Oracle Bills of Material use it as the supply subinventory for pull requirements.

Location  - Enter a location for the subinventory. If the Subinventory type is Receiving, this field is mandatory. 

Picking UOM  - Select the picking unit of measure used to store material in this subinventory. It is used by the WMS rules engine to divide picks across subinventories in the warehouse. 

Default Replenishment Count Type  - Select the appropriate Default Replenishment Count Type. This field defaults the default count type on the Replenishment Lines window. It does not affect existing Default Count Type headers. 

Lead Times region (Pre-Processing, Processing, Post-Processing)  - Optionally, enter pre-processing, processing, and post-processing lead times for items in this subinventory. These lead times are used when you use min-max planning at the subinventory level.

Sourcing Criteria -
Type: Select a source type for item replenishment. 

• Inventory: Replenish items internally, from another organization.
• Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
• Subinventory: Replenish items internally, from another subinventory in the same inventory organization. You must enter a value in this field if you entered Inventory in the Type field. The organization you select must have a shipping network defined.

Organization - Select the organization used to replenish items in this subinventory. You must enter a value in this field if you entered your current organization in the Organization field.

Subinventory - Select the subinventory for replenishing items.