Inventory - Physical Counting

 PHYSICAL COUNTING

• It is used to verify the On-hand System Quantity and Actual Quantity of the item based on Sub inventory or Organization and perform the adjustments.
•  Normally we will perform this counting yearly once or twice.
• During Physical Counting, the Total Inventory will freeze and can't do any Transactions.
• Basically we perform Physical counting in six steps
• Physical Inventory
• Snapshot
• Tag Generation
• Tag Count
• Approve Adjustments
• Launch Adjustments

Now Let's Perform Physical Inventory 

Go to 

Inventory -> Counting -> Physical Inventory -> Physical Inventories - take as  new

Here we have three types of  Approvals 

• Always - It asks approval for every single item
• If Out of Tolerance - If the Qty Limit Exceeds then it asks for Approval
• Never - It won't asks for Approval

Here we can Perform Counting for Entire Organization or Specific Sub-inv

Now Click on Snapshot and Re-Open the screen

Now we can see Snapshot as Completed

Now let's Perform Tag Generation

Go to
Inventory -> Counting -> Physical Inventory -> Tag Generation

select Tag type as Blank and enter the tag and click on Generate

Up to now it is System stock now we give Physical stock

Here we Perform Tag Count

Go to

Inventory -> Counting -> Physical Inventory -> Tag Count

enter the Item and give the Physical Stock for all the tags and Click on Void All and save

Now we need t Approve the Adjustment

Go to 

Inventory -> Counting -> Physical Inventory -> Approve Adjustments

Click on Approve all and save

Now we need to Launch  Adjustment

Go to

Inventory -> Counting -> Physical Inventory ->  Physical Inventory

Go to Tools - Launch Adjustments

Now we can se status as Adjustments Posted

PO with Controls

 

Purchase Order With Inventory Controls

Let’s create a PO with controls

Go to Org parameters define Lot, Serial and Locator controls

Locator:

Lot & Serial:

Create a item and generate Serial number

Now create a Purchase Order and enter the details then send for Approve

Now do Receiving

Here we need to enter LOT, Locator and Serial Number

Save the Receipt and check concurrent program is completed or not

Now check Receiving Transaction Summary

Now check the on-hand qty for the item

 

Inventory Costing - AVERAGE COSTING

 Inventory Costing

AVERAGE COSTING

• Under average costing, all asset purchased items in inventory are valued based on their purchase order cost. 
• This results in item unit costs that reflect the weighted average of the purchase order unit costs for all quantity on-hand. 
• There is only one average unit cost for each item in an organization.

Now Let's Define Costing,

Go to Org Parameter in Costing tab define Costing Method as Average

• Here when the Retailer Purchase material from supplier price will get Updated
• When the Retailer sells the product to customer price will not get Updated.

Now Create a Item and Perform Transaction

In Transaction select type as Receipt then give item, sub-inv, qty, unit cost

 

Save the Transaction and Check the Cost of the Item

Inv->Cost->Item Cost

search with the item

Now add some more stock to the item and give Unit Cost

now check the cost of the Item

Now Issue some stock for that Item 

now check the cost of the item

Here cost should not update whenever we perform Transaction Issue

Inventory Costing -Standard Costing

 

Inventory Costing

STANDARD COSTING

• Oracle Cost Management is a full absorption, perpetual and periodic cost system that automatically costs and values all inventory, work in process, and purchasing transactions.
•  It supports all perpetual costing methods including 
• Standard costing,
• Average costing, 
• FIFO costing, 
• And LIFO costing.

Standard costing:

• Under standard costing, the value of inventory is determined using the material and material overhead standard costs of each inventory item. If you use Bills of Material, Inventory maintains the standard cost by cost element (material, material overhead, resource, outside processing, and overhead).

Now Let's Define Costing,

Go to Org Parameter in Costing tab define Costing Method as Standard

 

Check whether Cost Manger is Active or not

Go to Inv->Setup->Transaction->Interface Managers

To define Standard Cost we should have Sub-Elements

• Overhead
• Material Overhead
• Material Cost
• Resource Cost

Let's define them go to

Inv->Setup->Costs->Sub-Elements->Material

Define Material Overhead 

Define Overhead in the same Screen

• Standard Cost is not defined directly initially we define it as Pending to make changes 
• We take that Pending Cost and Freeze it Once it is Freeze than we can't make changes to it and that is Final Cost

 

Now create item and In costing tab enable Costing and  Inventory Asset Value

Save the Item and add some stock to it

Now give cost to the Item

Inv->Cost->Item Cost take new

             Enter the item, select cost type as Pending then click on Cost and give the Sub-elements and enter the cost for item

Now we need to run the program called Update Standard Cost

Now check the Cost of the item

Inv->Cost->Item Cost search with the item

 

Transaction with all Controls

Transaction By Using All Inventory Controls

Now let’s perform a Transaction by using all the Controls

Setup all the controls

Locator:

At org level Set Locator control as Determined at Sub-inv

Now at Sub-Inv set it as Prespecified

Let’s define some Locators

LOT:

At org parameter level set Lot generation as User Defined

At Item level enable Self Life days and give them

 

Serial:

At org parameter set Serial control generation as AT Org level and give prefix, Serial num

Now create item and assign it to child org, At child level in Inv tab set Serial Control as Prespecified

Now run a Program “Generate Serial Number”

 

Revision:

At org parameter set Revision num

At item Master level enable Revision check box

Grade:

Define your own Grade and at Org Specific Item level enable Grade and give the Grade

Restrictions:

At Org specific Item level enable Restrict Sub-inv and Locator

Now Define Specific Sub-Inv and Locator

Save the Item

Now Perform Transaction for that Item

Save the Item and Check On-Hand Qty enable Detailed Check box and search with Item