An Inventory Organization is a facility where we can store and transact items. Before we can use Oracle Inventory, we must define one or more Inventory Organizations. Inventory Organizations represent distinct entities in your enterprise and can be one of the following.
- A Physical entity such as a Manufacturing facility, warehouse, or distribution centre.
- A logical entity such as an item master organization, which we use to define items.
An Inventory Organization may have the following attributes.
- An Inventory Organization can have its own location, ledger, costing method, workday calendar and items.
- An Inventory Organization can share one or more of these characteristics with other organizations.
Inventory Organization Structure
An Inventory Organization, where we store and transact items can have one or more sub-inventories. Sub-Inventories are unique physical or logical separations of material inventory, such as raw material, finished goods and defective goods inventories. We must define at least one sub-inventory for every inventory organization. We can track item quantities by sub-inventory as well as we can restrict items to specific sub-inventories. Sub-Inventories in an Inventory Organization may be made up of one or more locators. We use locators to identify the physical areas where we store the inventory items. We can track the item by locators as well as we can restrict items to specific locators. Locator control is optional in Oracle Inventory. Before we start defining an Inventory Organization 1st we should define Location.
Define Location
Navigation: Inventory > Setup > Organizations > Locations
Define Inventory Organization
Navigation: Inventory > Setup > Organizations > Organizations > New (B)
