Oracle Cloud Inventory study materials
Oracle Cloud Inventory study resources

Oracle Cloud Inventory: Inventory Structures and Setup

Oracle Cloud Inventory · Work through your exam, one topic at a time.

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Inventory Structures and Setup

Inventory Structures and Setup

This domain tests how Oracle Cloud Inventory models the enterprise: legal entity, business unit, inventory organization, subinventory, and locator. The exam expects you to know which level controls transactions and which level controls accounting.

Core rules

  • An inventory organization is the facility where you receive, store, and ship material. It is defined within a business unit and legal entity context.
  • Subinventories are physical or logical areas inside an inventory organization, such as Receiving, Storage, Quarantine, or Scrap. Their type affects whether they are nettable, included in ATP, or require locators.
  • Locator control can be None, Prespecified, Dynamic, or Deterministic. Locators are optional at the subinventory level and mandatory when locator control is enabled.
  • Organization parameters set default subinventories, default locators, negative inventory rules, and cost organization links.

Worked example

A company has one legal entity, one business unit, and two inventory organizations: WH1 and WH2. WH1 has a Receiving subinventory and a Storage subinventory with locator control set to Dynamic. A PO receipt defaults to Receiving; put away rules then move the material to Storage and require a locator at receipt. The reasoning: the inventory org owns the on-hand balance, the subinventory narrows the physical area, and the locator gives the bin-level position. Accounting follows the legal entity and cost organization, not the locator.

Traps

  • Treating a subinventory as an inventory organization; subinventories do not have their own legal entity or cost method.
  • Changing locator control after transactions exist, which can invalidate existing balances.
  • Assuming negative inventory is always allowed; it is controlled by organization parameters and can be restricted by subinventory.
  • Forgetting that an item must be assigned to the inventory organization before it can transact there.