Defining and Maintaining

Items
Overview

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Defining and Maintaining Items
System References
Oracle Inventory > Master Item

Oracle Inventory > Unit of Measure Conversions

Oracle Inventory > Find Master Items

Oracle Inventory > Categories

Oracle Inventory > Category Sets

Oracle Inventory > Category Assignment

Distribution
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Ownership
The Job Title [[email protected]?Subject=757682667.doc] is responsible for ensuring
that this document is necessary and that it reflects actual practice.

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R12 Defining and Maintaining Items Fundamentals

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Objective

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What is an Item?

What Is an Item?
An item is a part or service you:
• Purchase
• Sell
• Plan
• Manufacture
• Stock
• Distribute
• Prototype
Items can also be containers for items as well as components you build into other items.

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Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items

The following are the steps for creating and maintaining items:
• Define Inventory organization.
• Create the item templates.
• Use the templates or existing items to define items.
• Enter values for additional item attributes.
• Assign a status to the item.
• Enable the item in organizations.
• Update the organizational-level attributes values.
• Assign categories to the item (optional)
• Assign items to catalog groups (optional)
• Define item relationships (optional)
• Delete items (optional)
Instructor Note
Explain to the students that you can use the item templates to assign a status to the item.

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Defining Items

Defining Items
Define only the information you need to maintain the item. You cannot define an item at the
organization level. Oracle Inventory automatically switches to the Master Item window when
you define a new item.

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Defining Items

Refer to Guided Demonstration – Define Item [LAB40A1Y]

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Item Master Organization

Item Master Organization

An item master organization is a logical entity that you use to define items. You use the other
organizations to store and transact inventory. After you define an item in the item master, you
can assign it to any number of other organizations.
There is no functional or technical difference between the item master organization and other
organizations; however, it is recommended that you limit the item master to an item definition
organization.
You should also define one item master organization per implementation. You can use the
same item master for child organizations across different ledgers. Item masters are distinct
entities with no relationship to each other. You cannot associate items in one item master
organization with another item master organization. You cannot copy items across item master
organizations.
Defining the Item Master Organization
You create the item master organization in the same way that you create other inventory
organizations.
• You use the Organization window to create the item master organization
• Use the Organization Parameters window to specify the organization as the Item Master.

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 • You assign child organizations to the item master organization.
- Note that the item master uses itself as its item master.

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Item Master

Item Master
Always define items in the master organization. When you define an item, Oracle
automatically changes your current organization to the master organization. You may enable
your new items in as many child organizations as needed.

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Item Attributes

Item Attributes
Item attributes are the collection of information about an item.

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Item Attribute Groups

Refer to Guided Demonstration – Viewing Item Attributes [LAB40A6Y]

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Item Status

Item Status
You can use statuses to provide default values for certain item attributes to control the
functionality of an item. The Item Status attribute has a defined set of yes or no values for the
status attributes. You apply the values to the status attributes when you choose an item status
code when you define an item. For example, in the beginning of a product development cycle
you set the Item Status attribute to Prototype with all of the status attributes defaulted to yes
except for Customer Orders Enabled. When the item is ready, you change the Item Status
attribute to Active to enable all item functions.
You can assign one or more pending statuses for an item, to be implemented on future dates.
These statuses become effective on their assigned effective dates. You can view the status
history of an item if needed.

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Unit of Measure Attributes

Unit of Measure Attributes

You use the units of measure attributes to track your items in the warehouse. The following are
the unit of measure attributes and their definitions:
• Primary Unit of Measure: This is the stocking and selling unit of measure. Any
necessary conversions are based on this unit of measure. The primary unit of measure is
the default for invoices and credit memos entered in Oracle Receivables.
• Tracking: The system can track the item in either the primary only or the primary and
secondary unit of measure. If the system tracks the item by the primary and secondary unit
of measure this is called dual unit of measure control.
• Pricing: This attribute controls if pricing is based on the primary or secondary unit of
measure
• Defaulting: This attribute controls the behavior of dual unit of measure controlled items.
- Fixed: The system stores inventory in both the primary and secondary units of
measure. You can enter an item quantity in one unit of measure, and the system
converts the quantity to the secondary unit of measure and displays both quantities
- Default: The system stores inventory in both the primary and secondary units of
measure. You can enter an item quantity in one unit of measure, and the system

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 converts the quantity to the second unit of measure and displays both quantities. You
can change the quantity in the secondary unit of measure, without changing the
quantity in the primary unit of measure.
- No Default: The system stores inventory in both the primary and secondary units of
measure. Use this option when the default conversion between the two units of
measure is usually not the same. The system does not automatically display in the
secondary unit of measure when you specify the quantity for the primary unit of
measure. You manually enter the quantity of the secondary unit of measure before
you process a transaction. The secondary quantity can fluctuate from the default
conversion by the factors that you specify in the Deviation + and Deviation -
attributes.

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Item Statuses and Attributes

Item Statuses and Attributes

You define an item status by selecting the value check boxes for the status attribute. You can
control status attributes and item status at the item level or organization level.

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Status Attributes and Functionality

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Status Attributes and Functionality

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Status Attributes and Functionality

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Status Attribute Interdependencies

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Status Attribute Interdependencies

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Status Attribute Interdependencies

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Item Attribute Relationships

Item Attribute Relationships

• Required Attributes
You must enter a value for the attribute based on the settings for other related attributes.
• Interdependent Attributes
You can only enter certain values depending on other attribute values.
• Updateable Attributes
You can update values under certain conditions.
• Control Level Dependencies
You can update the control level of some attributes only under special conditions and with
certain consequences.
Refer to Practice – Viewing Item Attributes [LAB40A5Y]

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Item Templates

Item Templates
Oracle Inventory has several predefined templates that you can use to define and update items
or you can create your own templates.
If you regularly define many items that share the same values for a number of attributes, you
may want to define item templates. You can only use copy once when you define an item. You
can predefine templates with relatively few attributes enabled because you can apply more than
one template to define one item.
Attributes in Templates
You can enable attributes and assign them values in each template that you create. When you
apply a template to an item, Oracle Inventory updates only the attributes that are enabled for
the template. The order in which templates are applied is extremely important.
Further Item Templates Help
For more information about item templates see Item Templates, Oracle Inventory User’s
Guide.

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Creating Item Templates

Instructor Note
The instructor might mention the predefined templates that Inventory provides:
 ATO Model

 ATO Option Class

 ATO Item

 Finished Good

 Kit

 Outside Processing Item

 PTO Model

 PTO Option Class

 Phantom Item

 Planning Item

 Purchased

 Reference Item

 Subassembly

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  Supply Item
 Freight
 Product Family

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Enabling Attributes in a Template

Refer to Guided Demonstration – Creating Item Templates [LAB40A4Y]

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Organization Assignment and Organization Items

Organization Assignment and Organization Items

You can enable an item in all child organizations under your master organization or choose
child organizations where you use the item. Oracle Inventory propagates the item to all
organizations in which you want to enable it. You can enter or change organization-controlled
item attributes. For example, you can choose reorder point planning in one organization and
min-max planning in another organization for the same item.

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Control Levels

Master-Level Control
An attribute you maintain at the master level has identical values across all organizations that
use the item.
Organization-Level Control
An attribute you maintain at the organization level may have different values for each
organization that uses it.
Attribute Control
Some attributes can be maintained at only the master level or the organizational Level. Units of
measure are controlled at the master level. If you are using multiple organizations, then you
should maintain min-max planning at the organization level.
Technical Note
Master-Level Control
For example, suppose you want to ensure that items defined in two organizations are
transactable at the same time in both organizations. If you make the item not transactable in
one organization, you want the same item to become not transactable in the other organization.
Organization-Level Control

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 Suppose only one of the two organizations in your Oracle Inventory implementation performs
manufacturing operations, while the other organization is strictly a distribution warehouse.
For a finished good item used in both organizations, you would want the flexibility to select the
Build in WIP status attribute check box in the manufacturing organization, and clear the Build
in WIP status attribute check box in the distribution organization.

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Revision Control

Revision Control
A revision is a particular version of an item, bill of material, or routing. Use the revision
control to track item quantities by item revision and specify a revision for each material
transaction.
Enable revision control for items you must track version changes or changes that are
significant enough to track but do not affect the function and feature of the item.
You cannot change the revision control item attribute when an item has quantity on hand. If
revision control is controlled at the Master Item level, the check for on-hand quantity is against
the sum of on-hand quantity in all child organizations. If revision control is controlled at the
organizational level, the check for on-hand quantity is against the sum of on-hand quantity in
that organization.
Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers.
Letters are always in upper case and numbers may include decimals. To ensure revisions sort
properly, decimals should always be followed by a number. Revisions are sorted according to
ASCII rules, therefore each revision must be greater than the previous revision. For example,
you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.

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 For more information about setting up Revision Control, see Defining Item Revisions, Oracle
Inventory User’s Guide
Refer to Practice – Defining Items [LAB40A0Y]

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Restricting Items to Subinventories

Restricting Items to Subinventories

You can assign items to a given subinventory. Assigning items to a subinventory does not
restrict the subinventory to that list of items. Rather, the items are restricted to that
subinventory. Thus, you can always issue and receive unrestricted items to any subinventory,
but you can only issue and receive restricted items to those particular subinventories. You
activate the list of subinventories for a restricted item when you set the Restrict Subinventories
attribute. You also use the item-subinventory relationship to specify valid subinventories for
zero quantity cycle counts for an item, and to specify items for an ABC analysis performed at
the subinventory level. In these cases you do not have to set the Restrict Subinventories
attribute, only establish the relationship between the item and subinventory.
Refer to Guided Demonstration – Restricting Items to Subinventories
[LAB40A3Y]

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Item Relationships

Item Relationships
You can define relationships between items. This allows you to search for items through these
relationships. Except in Oracle Purchasing, these relationships are for inquiry and reporting
purposes only. For example, you can create an item relationship for substitute items or items
for which you can up-sell.
Refer to Guided Demonstration – Establishing Item Relationships [LAB40A2Y]

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Categories and Category Sets

Categories and Category Sets

A category is a logical classification of items that have similar characteristics. A category set
is a distinct grouping scheme and consists of categories. You can define an unlimited number
of categories and group subsets of your categories into category sets. A category can belong to
multiple category sets. You can assign a category to a category set either at the time you
define a category set or at the time you assign an item to the category.
Default Category Sets
When you install Oracle Inventory, you must assign a default category set to each of the
following functional areas functional areas: Inventory, Purchasing, Order Management,
Costing, Engineering, and Planning. Product Line Accounting is seeded with the Inventory
category set. Oracle Inventory makes the default category set mandatory for all items defined
for use by a functional area. If your item is enabled for a particular functional area you cannot
delete the item's corresponding default category set assignment. Default category sets are
required so that each functional area has at least one category set that contains all items in that
functional area.

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Assigning Items to Categories

Assigning Items to Categories

When you enable an item in a functional area, the item is assigned to the default (mandatory)
category set and default category of the functional area. You can override the category set's
default category. In addition, you can manually assign your item to an unlimited number of
category sets. You may optionally assign an item to more than one category within a category
set based on the category set definition.
Refer to Practice – Defining Categories [LAB409FY]

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Item Catalogs

Item Catalogs
To define your catalog, you set up as many distinct item catalog groups as you need to partition
your Item Master. Each group has unique characteristics (called a descriptive element) that
completely describe items belonging to the group. When you assign an item to an item catalog
group, you define values for the descriptive elements that apply to your item. For example, an
item catalog group called mug could have a descriptive element called material. Possible
values for material might be glass or ceramic.
Descriptive Elements
You can define any number of descriptive elements for an item catalog group. You can also
describe whether the descriptive element is required at item definition, and whether the
descriptive element value is included by default in the item catalog description. Descriptive
element values can be concatenated and used to create an item's description. You turn this
feature off or on for each descriptive element in a catalog group. Turn Description Default on
for any element you want included in a concatenated description. You create a concatenated
description when assign an item to an item catalog group.
Refer to Guided Demonstration – Setting up Catalog Groups [LAB409EY]

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Deletion Constraints and Deletion Groups

Deletions Constraints and Deletion Groups

You cannot delete an item if you have on-hand quantity or have performed any type of action
on the item.

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Deletion Constraints

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Deletion Constraints (Cont)

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Item Reports

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Item Reports (Cont)

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Item Reports (Cont)

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Profile Options

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Profile Options (Cont)

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Profile Options (Cont)

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Profile Options (Cont)

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Profile Options (Cont)

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Profile Options (Cont)

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Implementation Considerations

Implementation Considerations
You should set all costing attributes at the organizational level because costing is most
commonly done at organizational level. WIP requires costing at org level to set up WIP
accounting classes. Costing of individual items is specific to individual organizations because
of location and other considerations.
Costing Method
Costing method is chosen and set at the inventory organization level. Within a set of books, an
enterprise can have multiple cost methods specified at each organization level. For example, a
company may have one average cost org and one standard cost org. Available costing methods
are as follows:
• Standard
• Weighted
• Average
• FIFO
• LIFO

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Implementation Considerations (Cont)

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Summary

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