I wanted to share with you the R12 changes to item attributes and inventory organization parameters because I feel these configurations are at the heart of all Supply Chain modules. These configurations will determine how items are planned, purchased, built, costed, ordered, and shipped. The R12 changes to the item attributes and inventory organization parameters are mainly the result of new integrations with Process Manufacturing and Chargeable Subcontract Manufacturing. Before R12, Process Manufacturing was more of a stand-alone module with its own inventory organization setups. Now Discrete Manufacturing and Process Manufacturing share the same inventory module. Chargeable Subcontract Manufacturing is new functionality that allows you to support outsourcing the manufacturing of subassemblies and finished goods. This type of manufacturing is common in Japan, Korea, and Taiwan. In Japan, this is referred as Shikyu. So let’s look at the R12 changes.
R12 Changes to Item Attributes
Here’s my tab by tab analysis for item attributes:
Main Tab – No Changes
To support the integration of Process Manufacturing, Oracle added additional Lot attributes and new grade control attributes. There is also a new material status field. Material status allows you to control what transactions can occur for a specific status. For example, you can have a material status of called “QC Hold” that will not allow you to pick or ship. Material status can be assigned to a subinventory, a locator, a lot, or an on-hand balance.
Bill of Materials Tab – No Changes
Costing Tab – No Changes
To support Chargeable Subcontract Manufacturing, Oracle added an outsourced assembly field. Also the tax field is now integrated with the E-Business Tax module.
Receiving Tab – No Changes
Physical Attributes Tab – No Changes
General Planning Tab
To support Chargeable Subcontract Manufacturing, Oracle added a subcontracting component field.
MPS/MRP Planning Tab
There are new repair attributes to integrate the Depot Repair module with planning.
Lead Times Tab – No Changes
Work in Process Tab – No Changes
Order Management Tab
To support recurring charges in Order Management, Oracle added the periodicity field.
Invoicing Tab – No Changes
Process Manufacturing Tab
All of these fields were added to support the integration of Process Manufacturing into the Inventory module
Service Tab – No Changes
Web Option Tab – No Changes
R12 Changes to Inventory Organization Parameters
Like the item attributes, the changes to inventory organization parameters was the result of integration Process Manufacturing, Landed Cost Management module, and new functionality. Here’s my tab by tab analysis of these changes.
Inventory Parameters Tab
Four new fields were added to this tab. The Default On-hand Material Status was added to support the new material status functionality. The Manufacturing Partner Organization flag was added to support the Chargeable Subcontract Manufacturing functionality and the Landed Cost Management flag was added to support the new Landed Cost Management module. There was also a Locator Alias Uniqueness flag added.
Costing Tab – No Change
Revision, Lot, Serial, LPN Tab
A new region for Child Lot Control fields and the Auto Create Lot UOM Conversion field were added to support Process Manufacturing. The Allow Different Material Status field was added to support controlling transactions by material status (for example, not ship items with a status of “QC Hold”). Material status can be assigned to a subinventory, a locator, a lot, or an on-hand balance. Lastly, there is a new region for LPN Generating Option fields. These fields are used to support Warehouse Management (WMS) enabled organizations.
ATP, Pick, Item-Sourcing Tab
A new “Enable Rules Override for Lot-Level Reservations” flag was added to this tab. Since Process Manufacturing required more functionality around lots, this flag is most likely used by Process Manufacturing.
Inter-Org Information Tab – No Change
Other Accounts Tab
Two new accounts were added to this tab. The first one is the Deferred COGS Account field. This account is used by the Sales Order Issue transaction type to deferred COGS until AR recognizes revenue. The second account is the Landed Cost Management (LCM) variance account. This account is used by the new Landed Cost Management module.