Supply Chain Management
The Supply Chain Management domain tests how Oracle Cloud SCM models a supply chain end to end: enterprise structures, product information, planning, manufacturing, and cost collection. Expect questions on which organizational unit owns a transaction, how an item becomes transactable, and how a plan turns demand into supply.
Enterprise structure
- A legal entity owns statutory reporting; a business unit is the management and transactional unit.
- An inventory organization holds on-hand balances and belongs to a business unit and a cost organization.
- Items are defined in the item master, then assigned to each inventory organization before any transaction.
Planning and execution
Planning Central combines demand and supply plans. A supply plan proposes planned orders; releasing them creates execution documents such as transfer orders or work orders. Supply Chain Orchestration coordinates fulfillment when supply is not simply on hand, such as drop shipment or back-to-back.
Costing
Cost organizations group inventory organizations for cost accounting. Cost profiles carry the cost method - standard, average, FIFO, or LIFO - and drive valuation entries.
Worked example: A company has legal entity LE1, business unit BU1, inventory organization INV1, and cost organization CO1. An item is defined but not assigned to INV1. A user creates a receipt into INV1 and the receipt fails. The missing item-organization assignment is the cause; after assignment and an open accounting period, the receipt can post and the cost processor can value it. A second inventory organization would need its own assignment, which is the point exam questions test.
Traps: treating a business unit as an inventory organization; assuming a plan creates a purchase order directly; forgetting that cost organization and inventory organization are separate; confusing item definition with item assignment.