Fundamentals of Direct Item Functionality

Prepared by

Oracle Support

March 5, 2013
 Table of Contents

Introduction ……………….………….………………………………. 1

Direct Procurement Accounting ….….……………………………… 2

Setup and Pre-requisites ……………….…………………………….. 3

Troubleshooting ……………………………………………………….. 9

Important Fixes and Notes ..………..……………….……………….. 10

Introduction
This paper describes the fundamentals of Direct Item functionality within Oracle Enterprise
Asset Management (eAM). Direct Item functionality was introduced in Release 11.5.10. It
requires much less setup than OSP (Outside Processing) and has additional benefits, such as the
user can add these types of items on the work order on the fly.  Direct item is recommended since
OSP process is more laborious.

 What is Direct Item ?

Items with infrequent use or criticality; they are not included in the internal
catalog as stocked items. These items are contrived as "one off", bought directly from a
vendor for a specific Work Order and Operation.

 Material requirements for a Work Order may include stocked, non-stocked direct items, services,
and direct items (description-based items).

 These items are not transactable, not stockable, but you can procure them.

 Direct items are either non-stock or description-based.

 Non-Stock Direct Items can represent items that are not stocked in inventory, or services that need to
be purchased from a supplier.

 Non-Stock Direct Items are not stocked in inventory but are defined in the Item Master as an inventory
item, purchaseable, and purchase but not stockable.

 Direct Items are contrived as "one-off", bought directly from a vendor for a specific Work Order and
Operation.

 They are delivered directly to the Shop Floor from maintenance Work Order execution. You can add
Planned Direct Items to a Work Order's Bill of Material (BOM) or an Activity BOM.

 Planned Direct Items must first be created in the Item Master as Non-Stockable and Purchasable
inventory items.

 Direct Item Procurement for eAM Work Orders Process:

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Direct Procurement Accounting
 Relevant Tables
Costs for direct item transactions are stored in the following tables:
WIP_PERIOD_BALANCES
WIP_EAM_PERIOD_BALANCES
CST_EAM_ASSET_PER_BALANCES

 Direct Item Cost Estimation Logic

EAM considers the List Price of the non-stock direct item while computing the cost estimate contributed by the
direct item. You can invoke cost estimation of work order at any point of the work order cycle and the latest
available price as per below list (highest seq number as per below list) will be used:
1. List price defined for direct item
2. Price specified for direct item in the Work order
3. Purchase Requisition price of direct item
4. Purchase Order price of direct item.
If work order price is not specified and neither is the Purchase Requisition created, the work order cost estimator
program will pick the list price of the non-stock direct item defined in the Organization Item master. EAM does not
look at item costs, because direct items are never stocked in inventory and hence there is no point in looking at the
inventory costing method for cost estimation.

 Direct Purchase Accounts

The cost of direct items goes into the WIP Material Account. This is the expected behavior.
If you want to change this behavior, you can set up category defaults which will send costs to
another account based on the purchasing category used. The logic behind this is that if you buy
or issue material, it is still material. If you are buying services, you should typically set these
purchasing categories to point to the OSP account if you desire a separate account code.

Navigation: Enterprise Asset Management -> Setup -> Category Associations

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Setup and Pre-requisites
The following setup steps are required to ensure proper direct item processing (i.e., from releasing work
order to creating requisition).

 Enable Auto Request Material

For non-stock direct items and Description direct items, Auto Request
Material flag needs to be checked to trigger the requisition automatically.

Navigation: Setup -> Parameters

Note:
In the case of Stocked (Inventory) items, to request the material automatically, these
three flags/parameters have to be set.

1) 'Enable Material Issue Requests' in EAM parameters form

2) 'Enable Material Issue Request' in Additional details region of Create/Update work
order page
3) 'Auto Request Material' at the item level in the Material Requirements region of
Create update work order page

In this case, you should use inventory planning or MRP process for creating requisitions,
which are supported for EAM work order demand.

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 Set Profile Option ‘PO: Enable Direct Delivery’

Navigation: System Administrator -> Profile -> System

To enable direct item (both supplier catalog and non-catalog items) procurement for eAM Work Orders
directly from an eAM Work Order, set the 'PO: Enable Direct Delivery To Shop Floor' profile option to
Yes. When this value is set to Yes, you can create an eAM-related requisition or purchase order. You
can enter eAM specific information, such as Work Order and operation reference numbers, as well as
identify a requisition line as having a Shop Floor destination. Requisitions are created automatically for
Direct Items (Non-Stock and Description-based), after a Work Order with those Direct Items on its
material requirements listing is released.

See more in page 7-3 Oracle Enterprise Asset Management User's Guide (E13670-05)

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 Set Profile Option 'MO: Operating Unit'

The profile option 'MO: Operating Unit' for EAM responsibility needs to be set to the same value
as for the purchasing responsibility. Requisition Import concurrent program picks the records
from the 'po_requistions_interface_all' based on the value of the profile 'MO: Operating Unit'.

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 Use Template '@Non-Stocked Item'

This template creates non-stock direct item quickly with the following item attributes set:

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 Link Employee to User

Ensure that the employee is linked to user in System Administrator -> Security -> Users -> Define.

 Process Work Order

• Once above setup is done, create work order (via Forms or OAF).
• Include Direct Item (Description Based / Non-stock) in the Materials Requirement
under Operations zone.
• Release Work Order.
• After releasing work order, concurrent request Requisition Import will be fired automatically and a
requisition will be created.

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 Manual Creation of Requisition/PO

Requisition/PO can be entered manually for direct items via Oracle Purchasing or Iprocurement.
Direct items and the requisition and purchase order info can be displayed
 in the Material Requirements region of the Work Order Detail page in EAM.  

I. Iprocurement                                                  
    Create requisition for a non-stock direct item and associate it to a Workorder and verify in
Work Order Material Requirements page.               
      
II. Purchasing -> Requisitions                                       
    Create requisition for a non-stock direct item and associate   
      it to a Workorder and verify in Work Order Material Requirements page.              
      
 III. Purchasing -> Purchase orders                                  
       Create Purchase order for a non-stock direct item and associate  
       it to a Workorder and verify in Work Order Material Requirements page.            

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Troubleshooting
In Release 12 onward, requisition import will run at the time of work order release and whenever there is a
change in quantity or addition of new direct or non-stock items. When requisition is not triggered,
additional debugging and troubleshooting steps are needed to identify the culprit.

Note:
For Direct Item functionality, system does not check WIP Parameters under Outside Processing tab,
as it does for OSP items.

 Turn on the EAM logging profiles and provide the EAM logs generated in order to examine
if the requisition process is even being kicked-off. Steps to generate debug log are as follows:
• Set EAM:Debug Profile Option to 'Yes'
• Recreate the scenario in EAM Work Order form
• Execute this query to find the directory where the log file will reside
SELECT value
INTO l_full_path
FROM v$parameter
WHERE name = 'utl_file_dir';
• There will be files with name 'createwo.log' or 'updatewo.log'.
• Examine these files further for potential culprit (e.g., missing expense accounts)

 Review Requisition Import Exceptions Report which contains possible causes for the
requisition not to be triggered or processed correctly.

 Review results of the following queries

Check if data was inserted from EAM into PO table via the Requisition Import process:
select * from po_requisitions_interface_all
where wip_entity_id in (select wip_entity_id from wip_entities where
wip_entity_name='&work order #');

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Important Fixes and Notes
The following shows important fixes that were delivered as one-off patches. Also, a list of notes contains
important setup changes to allow the Direct Item functionality to work correctly.

Issue Description DOC ID Patch # ER # Remarks

Requisition Import is not 13638082:R12.EAM.B Code issue that was fixed. Patch is
triggered for the direct items released.
added in workorder is approved
from the Notifications region of
the Oracle Applications Home
page
How to See Descriptions on 316260.1 Intended functionality described in
Requisitions Created from EAM the note.
Work Order for Direct Item
Requisitions
Direct Item Not Allowed For 1439952.1  Setup issue described in the note.
Line Type In Eam Requisition
Requisition Is Getting Triggered 1523463.1 15976290:R12.EAM.B Code issue that was fixed. Patch is
For Direct Item With The User released.
Who Created The WO, Not
Who Released.

Direct Item Disappears From 12665646:R12.EAM.B Code issue that was fixed. Patch is
Work Order After Receiving. released.

Requisition Created From 329630.1 Intended functionality is described in

Direct Item Won't Import the note.
'Invalid Deliver To'

Duplicate requisitions created 11877887:R12.EAM.B

when changing work order
status from On-hold to
Released.
ADDING ATTRIBUTES TO 8598178 This ER has been implemented.
DIRECT ITEMS VIA DFF

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