short notes on Oracle WIP userguide IV

7/22/2019 short notes on Oracle WIP userguide IV

http://slidepdf.com/reader/full/short-notes-on-oracle-wip-userguide-iv 1/31

WIP Transactions

As shown in the below fig. in WIP we mainly do three types of transactions

1. Component Issue - Material transaction2. Move transaction3. Resource transaction4. Shop floor status update

5. WIP job completion - Material transaction

With above transactions in WIP, you can:- Maintain accurate supply and demand information- Track and report inventory accurately- Track activity costs- Value work in process

Basics of Material transaction

1. Component Pick Release2. Replenishment transaction3. Backflush Transaction4. WIP Component Issue5. WIP Component Return6. WIP Negative Component Issue7. WIP Negative Component Return8. WIP Assembly Completion9. WIP Assembly Return

WIP Assembly CompletionThe JOB is completed and the finished good is moved to the finished sub inventoryInv valuation Dr @Cost of FG

WIP Valuation Cr @Cost of FG

Accountin Summar in WIP



1. When component is issued the first transaction takes places and the accountingsareWIP Valuation A/C Dr

Inv Valuation A/C Cr 2. When we do the move transactions - Resources, Overhead and OSPs are chargedWIP Resource Valuation A/C Dr

Resource Absorption A/C Cr WIP Overhead Valuation A/C Dr

Overhead Absorption A/C Cr WIP OSP valuation A/C Dr

Receiving A/C Cr Purchase Price Variance A/C Dr/Cr

Scrap A/C Dr WIP valuation A/C Cr

3. When the JOB is completed all the costs are relived in WIPOrganization Material A/C Dr

WIP Material Valuation A/C Cr Organization Resource A/C Dr

WIP Resource Valuation A/C Cr Organization Overhead A/C Dr

WIP Overhead Valuation A/C Cr

10. 4. Following accounts 'll hit when the WIP job is closedDr Material usage variance A/C

Cr WIP Material Valuation A/C11. Dr Resource effy. variance A/C

Cr WIP Resource Valuation A/C12. Dr Overhead variance A/C

Cr WIP Overhead Valuation A/C

WIP Material Transaction



Definitions

Component Pick Release You can select component requirements to issue to jobs andschedules on the Component Pick Release window. This window generates move orders.You can select items for discrete jobs, lot based jobs, repetitive schedules, and flowschedules. Each manufacturing mode has a distinct and individual window. You can alsouse a rules based system to determine a recommended source location for eachcomponent.

Replenishment transaction (Backflush transfer) is a material transaction to stagecomponents in advance of Backflushing. This ensures that materials are available for backflush transactions.Backflush (op pull/assembly pull) is a material transaction to issue component items frominventory to work in process.Comp. Issue transaction (push) is a material transaction to issue component items frominventory to work in process.Job Completion Completing the WIP job and moving the finished good to the FG subinventory.

Assembly Return Returning the finished good from FG back into the To Move operation onassembly line.Comp. Return transaction is a material transaction to return components from WIP back toinventory. Return transactions increase WIP material requirements, inventory balances,and valuation, and decrease WIP valuation.



Replenishment supply subinventoryReplenishes the supply sub-inventories of Operation Pull or Assembly Pull supply type

components. You can transfer components from a 'source' subinventory/locator to the supplysubinventory/locator associated with the component specified. If you replenish componentsunder lot, serial, or lot and serial number control, you must identify the lots and/or serial numbersthat are used to replenish the supply subinventory/locator.

This transaction is similar to a subinventory transfer in Oracle Inventory.

4.1 – WIP Component IssueWIP valuation Dr @Cost of Raw Mat

Inv valuation Cr @Cost of Raw Mat.Issue components from inventory to jobs to fulfill positive material requirements.(If you issue components under lot, serial, or lot and serial number control, you must identify

which lots and/or serial numbers to issue)

4.2 – WIP Neg Comp IssueIssues components from jobs to inventory to fulfill negative material requirements. When youissue components that have negative requirements, components are returned from the job toinventory. (If you return components under lot, serial, or lot and serial number control, you mustidentify the lots and/or serial numbers to return) Negative material requirements allow you torecover by–products from your manufacturing processes.By–Product RecoveryYou can create negative material requirements to support the recovery of by–products and other reusable or recoverable components. Negative requirements are supplied instead of consumedby jobs. For example, if you add negative material requirements to a non–standard discrete jobthat is tracking the disassembly of a completed assembly, the job supplies component materialsrather than consuming them. Negative requirements are considered supply by the MRP planningprocess. You can define negative requirement usage quantities when you assign components tobills of material in Oracle Bills of Material. Negative requirements can be assigned to lot, serialnumber, and lot and serial number controlled items.

7.1 – WIP Component ReturnWIP component returns reverse WIP component issues. (If you return components under lot,serial, or serial number control, yu must identify the lots and/or serial numbers to return)

7.2 – WIP Neg Component ReturnWIP negative component returns reverse WIP negative component issues. When you returncomponents that have negative requirements, components are issued from inventory to the job.



(If you issue components that are under lot, serial, or lot and serial number control, you mustidentify the lots and/or serial numbers to issue) Negative material requirements allow you torecover by–products from your manufacturing processes.

Supply Subinventory and Locator Replenishment

You can replenish supply subinventoriesand locators to replace components thatyou have issued to jobs or repetitiveschedules and to insure a source of

material for backflush transactions. You canreplenish components for an entire job or repetitive schedule, or for a specifiednumber of days of repetitive production.Specifically you can do the following:



1.Replenish supply subinventories and locators by transferring components fromany subinventory and locator into thesupply subinventory and locator for the job

or repetitive schedule.This method works well if you stage the pullcomponents one job or repetitive assemblyat a time.

2.For example, if you wanted to replenishthe supply subinventory and locator for allthe operation pull material requirements ona job, you would:

– Generate the Discrete Job Pick List report for pull components. This report identifiesmaterial requirements, subinventories andlocators with available inventory, andsupply subinventories and locators whereyou backflush from. You would then pickthe components using the pick list and

transfer them into the appropriate supplysubinventories and locators. Repetitivereplenishment works the same way exceptyou would replenish for an assembly for anumber of days instead of for a job.

– You can also use the Component Pick Release window to select material usingrules based picking.



3.2. Replenish supply subinventories and locators for higher level assemblies by completing lower level assemblies into thenext level’s supply subinventory and locator.

This method works well if your plant is setup with feeder lines that physically flow toconsuming lines.

For example, assume you build asubassembly on a feeder line that ends at

the consumption point of the subassemblyinto the higher level assembly. You can setthe completion subinventory and locator onthe subassembly to be the supplysubinventory and locator of the

subassembly on the next level bill of material. Then, as you complete thesubassembly into its completionsubinventory and locator using theCompletion Transactions window, Move

Transactions window, or the InventoryTransaction Interface, you automaticallyreplenish the supply subinventory and



locator on the next level bill of material.

4.3. Transfer components from any subinventory and locator into the supply

subinventory and locator in OracleInventory using subinventory transfers toreplenish supply subinventories and locators.

5.

This method works well when you arereplenishing for more than one job or oneassembly on a line.

For example, you can run a Repetitive PickList report for all assemblies on a line toidentify all the operation and assembly pullrequirements for all repetitive schedules onthe line regardless of their parent assembly.

You can then use this consolidated pick listto pick the components. Then you can

transact the transfer of the components intothe supply subinventories and locators. Youcan also use the Component Pick Releasewindow to select material using rules basedpicking.

4. Requisition material automatically to replenish supply subinventories in OracleInventory using internal requisitions.This method works well when you have consistent material flows within your plant and canestimate reasonable floor stock inventory levels.



For example, you can set a minimum quantity for a component item in a supply subinventory. Asyou reduce the balance in the supply subinventory due to push issues or backflushes, OracleInventory automatically generates a requisition when the balance for the component reaches theminimum quantity. Then when you fulfill the internal requisition, you replenish the supplysubinventory.

6. Receive components directly from your supplier into supply subinventories andlocators in Oracle Purchasing.

This method works well if you have a smooth flow of raw materials from your suppliers andhave space on the shop floor to inventory components you receive.

For example, if you purchase a component that is consumed out of a supply subinventory, youcould receive that component directly into that supply subinventory and locator using the Enter Receipts window in Oracle Purchasing. This method avoids a subsequent subinventory transfer of the component thereby saving both time and a transaction.

Component Pick Release

Component picking, obtaining requirements for specific jobs and schedules, is the process of moving items from source locations and issuing them to work orders. In previous versions of Oracle Work in Process, items were issued from locations specified for each component on thebill of material. Now you can also use a rules based system to determine a recommended sourcelocation for each component. The features for component picking include:

Discrete>component pick release

The Component Pick Release window is used to select requirements and create moveorders for discrete jobs, lot based jobs, repetitive schedules, and flow schedules.Move orders are created for picked items. Move orders are requests for the movement of

material within an organization. They enable the replenishment of material within awarehouse or manufacturing shop floor.The source for material picked is based on Oracle Inventory allocation rules entered on thePicking Rules window. Or, if Oracle Warehouse Management is installed, rules basedpicking recommendations.Rules based picking uses the Warehouse Management Rules engine. This employs user defined rules to recommend locations to pick from, and specific items to pick.The destination for picked material depends on the supply type. It can be a staging area, or directly to a job or schedule.You have the option to release picking tasks at the time of the pick release. Or you can

choose another time to release.



Job and Schedule Values for PickingDepending on the job or schedule type, specific values control which records display on theComponent Pick window, and how material issues are transacted:

Discrete Jobs

Status must be Released or Complete – Charges AllowedMaterial is defined at the operation and autocharge is enabled

Item status attribute in Oracle Inventory is Transactable

Lot Based Jobs

Status must be Released or Complete – Charges AllowedComponents are picked based on the network routingItem status attribute in Oracle Inventory is TransactableMove order quantities are calculated as assemblies per operation multiplied bycomponents per assembly, or: The sum of all the quantities in each intraoperation step(Queue, Run, To Move, Reject and Scrap) Multiplied by the component’s quantity per assembly

Flow Schedules

Material must be defined at a valid line operationStatus must be OpenItem status attribute in Oracle Inventory is TransactableMove orders are generated when all quantities for the flow schedule components can befilledComponents must be a supply type of Push

Note: In flow schedules, material and resources are specified in the events associated with the

line operation. If components are not assigned to specific events, or events are not assigned toline operations – the value in the Line Operation field is 1. This indicates an unassigned lineoperation for that material requirement.

Repetitive Schedules



Status must be Released or Complete – Charges AllowedMaterial is defined at the operation and autocharge is enabledItem status attribute in Oracle Inventory is TransactableThe Days of Supply value is used to calculate the quantity of components to pick.

SetupIndicate if operation pull and assembly pull supply type components are included in picking.Mark the Release Backflush Components check box on the WIP Parameter window . This check

box is located on the Backflush Defaults tabbed region.

Material DestinationMaterial destination is automated with move orders in the component picking process; it dependson the supply type:Operation Pull and Assembly PullComponents are moved from the supply subinventory to a specific staging area. The stagingarea location is defined on the Bills of Material window, the Subinventory field (and applicableLocator) in the Material Control tabbed region.If not defined, the default value on the Backflush Defaults tab of the WIP Parameters window isused.

PushPush transactions are performed automatically by the system.Components are moved directly to the job or schedule. Specifically, the destination is defined asthe department, job, and operation combination. The source of the material is the subinventory(and locator, if applicable) recommended by the sourcing rules. You can override thisrecommendation and enter another location as the source of the material.

Push items with predefined staging subinventory You can define a staging subinventory on thebill of material if you do not want the push transaction automatically generated. If the stagingsubinventory is defined on the bil l of material, the components are considered the same way as

pull items – they are moved to that staging area. However, another step must be performed: youwill have to manually move the parts to the job or schedule.

Component Issues and Returns

You can issue components from inventory to jobs and repetitive schedules and return issuedcomponents from jobs and schedules to inventory using the WIP Material Transactions window.There are two issue and return options available from this window: All Material and SpecificComponent.



Push and Pull ComponentsYou can issue and return both push and pull components. You can ’push’ components frominventory to specific job and repetitive schedule operations. A component’s supply typedetermines how it is supplied to a job or schedule.

Negative Component Issues and Returns

You can issue components to satisfy negative job and schedule requirements. When you issuenegative requirement components, the components are returned from the job or schedule toinventory. You can reverse negative component issues with negative component returns. Whenyou return components that have negative requirements, the components are issued frominventory to the job or repetitive schedule.

Negative Inventory BalancesYou can set the Allow Negative Balances Parameter in Oracle Inventory so that the inventorybalances of items can be driven negative. If this parameter is set, a warning message isdisplayed to notify you that balances are about to be driven negative. You can continue with thetransaction or stop it and fix the condition.

Requirement QuantitiesYou can issue partial requirement quantities. You can also over–issue requirements. Materialthat is required, but not issued, is considered an open requirement.

Ad Hoc RequirementsYou can issue and return components that do not appear as job or schedule materialrequirements using the ’Specific Component’ option. When you issue or return componentsusing this option, the system determines if the item is a material requirement for the job or schedule. If the item is not a material requirement, is a backflush component, or is not required atthe operation sequence a warning message is displayed, but you can continue with the

transaction. Components added in this manner are commonly referred to as ’ad hoc’components.

Bulk, Supplier, and Phantom ComponentsYou can issue Bulk, Supplier, and Phantom supply type items, which do not normally appear as



requirements in the WIP Material Transactions window, using the ’Specific Component’ option.

Serial Number ValidationsYou can issue and return component items that are under lot, serial number, or both lot and serialnumber control. Available serial number records are restricted for use when issuing a serializeditem, returning it to stock, and then to a different job. At the time of completion, serializedcomponents are available from stock if they have the following values set in the Serial Numberswindow in Oracle Inventory:

Component Issues and Negative Component Returns - State value: Resides in stores.Component Returns and Negative Component Issue - State value: Defined but not used.

This is restricted to serial numbers that were previously issued or negative returns–for the same job or schedule that you are performing the component return or negative component issue.

Component Issues/Backflush Transactions

An issue transaction is a material transaction to issue component items from inventory to work inprocess.

Issue transactions:- Fulfill WIP material requirements on jobs- Reduces inventory balances and valuation- Incur WIP costs and increase WIP valuation- Can be manual or automatic

An example of an automatic issue is a backflush transaction generated from an assemblycompletion. It automatically issues component items into work in process from inventory. In thissection you will see how to do a manual issue transaction, also known as ‘Pushing’ material to a job. Manual issue transactions are required to relieve inventory for items with a WIP supply typeof Push.



Create a JOB in released status with 5 components with 5 different supply type1. Assembly pull2. Operation Pull3. Push4. Bulk5. Supplier

CASE I:

Navigate to WIP issueThe component WIP Supply type PUSH would be available for transaction(Only components with Supply type PUSH are avialable in WIP issue form for transaction)



If sufficient on Hand is not available for WIP material issue, following error 'll be show

Now we can verify the Material issued in material requirements form



CASE II:Navigate to Move transaction form and move the JOB from OP10 Queue to Run.Verify theissued quantity in material requirement form.The components with Supply type Operational pullare issued.

CASE III (Replenishment supply subinventory)In case II we have seen that operation pull components are automatically backflushed when wedo a move transaction in an operation. Similarly when we complete an assembly the componentswith supply type Assembly pull are backflushed.

If there is not sufficient quantities in backflush sub inventory (The subinventory from whichbackflush automatically happens, most of the time such sub inventories are given name like WIP,RIP or Stock floor)



CASE IIIIn case II we have seen that operation pull components are automatically backflushed when wedo a move transaction in an operation. Similarly when we complete an assembly the componentswith supply type Assembly pull are backflushed.Complete few quantities the JOB and verify the material requirement changes

CASE 4:Complete the JOB and see the final material requirement



The components with supply type supplier and bulk are not issued and needs to be manuallytransacted.

Completing the PROCESSCheck the WIP value summary

and Finally Close the JOB.



and Verify the WIP Summary Value once again.Notice that there is not net activity and the difference between costs incurred and costs relievedis taken care by variance a/c.

Lets consider the Material cost incurred and relived.Item Mat.Cost Qty WIP Supply TypePUR001 - 40 50 Assembly Pull

PUR002 - 10 100 Supplier Rest of the items has mat cost zero.



As the item PUR002 has an WIP Supply type of supplier, it is not backflushed or pushed so itwont add any value to the cost of the finished good and a misc issue needs to be done to issueout these materials and that 'll hit the exepense account.

Assembly Completions and Returns

You can complete assemblies from Discrete jobs and Repetitive schedules into inventory, andyou can return completed assemblies from inventory to jobs and repetitive schedules. You alsocan complete a greater quantity than the job or schedule start quantity (over–complete) intoinventory, as long as it is within the tolerance level set. Further, on Repetitive schedules andnon–standard Discrete jobs, you also can return more assemblies than were completed.

Assemblies can be completed and returned using the Completion Transactions and the MoveTransactions windows. You can also import assembly completion and return transactionsthrough the Inventory Transaction Interface in Oracle Inventory.



Completion QuantitiesCompleting assemblies from a job or schedule with a routing reduces the assembly quantity inthe To move intraoperation step of the last operation sequence and increases the job or schedulecompleted quantity.

Return Quantities

Returning assemblies to a job or schedule with a routing, increases the assembly quantity in theTo move intraoperation step of the last operation sequence and decreases the job or schedulecomplete quantity.

Alternate Units of MeasureYou can complete and return assemblies in their alternate unit of measure. If you enter analternate unit of measure for the item, the transaction quantity is converted using the conversioninformation you specified when you defined the unit of measure in Oracle Inventory.You can change this quantity if desired.

Lot and Serial Number Control

You must assign a lot or serial number if the assembly is under lot, serial number, or lot andserial number control. For discrete jobs, the lot number you specified when you defined the jobas the default displays.

If you are completing assemblies that have lot controlled Assembly Pull components and the WIPBackflush Lot Selection parameter is set to Manual, you must manually select which lots tobackflush. If you are completing assemblies that have serial controlled or lot and serial controlledcomponents, you must manually select which lots and/or serial numbers to backflush.

Revision ControlWhen you complete assemblies under revision control, the revision defaults based on the

assembly revision of the job or repetitive schedule. For assemblies under revision control, the billrevision is completed from the job or the earliest released repetitive schedule. If there is no billrevision on the job or repetitive schedule, but the assembly is under revision control, theassemblies’ current revision is completed as defined in Oracle Inventory.



Completion Subinventory and Locator When you complete assemblies, the completion subinventory defaults from the job or repetitiveline/assembly association. For subassemblies, the completion subinventory can be the supplysubinventory for higher level assemblies, for final assemblies or finished goods the completionsubinventory can be finished goods inventory. You can change the default completionsubinventory as you complete assemblies.

If you have set your organization, subinventory, or item controls to require locators, you must also

enter locator as you complete assemblies.

Final Assembly Orders CompletionReservations are automatically transferred from the job to the subinventory and locator as youcomplete assemblies from final assembly orders. Reservations are automatically transferredbased on sales order line delivery due dates. You can override the automatic transfer. Whenassemblies are returned to a final assembly order, you must enter the sales order line anddelivery information so that the system knows which specific reservations to transfer back frominventory.

Completions into License Plate Numbers

If Oracle Warehouse Management is installed, you can use License Plate Number functionalityfor tracking completions. License plate numbers are unique identifiers for containers in the supplychain. You can perform assembly completions and work order–less completions into licenseplate numbers. Multi–level nesting enables containers to be packed within another container..The container’s genealogy provides content and transaction history for each license plate.Note: LPN completions are supported only in standard cost organizations

Label Printing at CompletionLabel printing capabilities are available at the time of completion in the Completion Transactionsand Work Order–less Completions windows.This functionality enables you to create labels for shipping, order management, manufacturing,

and other types of information. Labels are created by selecting a format type and setup in OracleInventory – and using a third–party label printing system. If Oracle Warehouse Management isinstalled, you can set up compliance labeling using bar code specifications and symbol content.This creates customer specific labels to comply with your customer’s requirements.

If collection plans exist for the line operation, you can enter quality data within the FlowWorkstation, and print labels for the quality plan at the first operation or subsequent operations.

Backflush Transactions

Backflush transactions ’pull’ components with Operation Pull and Assembly Pull supply typesfrom inventory onto jobs and repetitive schedules. Backflush transactions can be launched by:

Completing assemblies at operations using the Move Transactions windowMoving and completing assemblies into inventory using the Move Transactions windowCompleting assemblies into inventory using the Completion Transactions windowReceiving assemblies from an outside processing operation using the Oracle Purchasing,Enter Receipts window.

Move transactions imported through the Open Move Transaction Interface can also createbackflush transactions. Transactions imported through the Oracle Inventory, InventoryTransactions Interface can also create backflush transactions.

Additional Information: Backflushing reduces the number of manual material transactionsrequired to process the discrete jobs and repetitive schedules.



Reverse Backflush TransactionsYou can reverse backflush transactions and automatically return backflushed components backto inventory. For example, pull components that are backflushed as you move assemblies to thenext intraoperation step in a routing are automatically returned to inventory if you moveassemblies to a previous step in the routing. Reverse backflush transactions can be created asyou do the following:

reverse operation completion transactions using the Move Transactions window

return completed assemblies from inventory to jobs and schedules using the CompletionTransactionsmove and return assemblies from inventory to jobs and schedules using the MoveTransactions windowreturn or correct transaction receipts in the Enter Returns or Enter Corrections windows inOracle Purchasing.

Move transactions imported through the Oracle Work in Process Open Move TransactionInterface can also reverse backflush transactions as can return transactions imported through theInventory Transaction Interface.Note: You can, if necessary, issue and return pull components to and from jobs and schedules to

inventory using the ’Specific Component’ option in WIP Material Transactions window

Revision Control For component items under revision control, the system always defaults therevision based on the item’s current revision as of the date of the transaction

Backflush Transaction RulesThe following rules are enforced when performing backflush transactions:

an enabled default supply subinventory and, if required by the subinventory, locator mustbe defined for the component.routing references must be specified for non–standard discrete jobs.

the component item must be transactable.the subinventory you are Backflushing from must be an asset subinventory if the OracleInventory Allow Expense to AssetTransfer profile option is set to No.backflush quantities that are calculated as decimal values, must be at least five decimalplaces in order to create the backflush transactionyield calculations are based on exact requirements, rather than rounded values

Backflush Supply Subinventories and LocatorsSupply subinventories and locators can be defined at the item or bill of material component level.If they are not defined, the system uses the supply subinventory and locator specified by the WIP

Backflush Supply Subinventory and Locator Parameters when components are backflushed.To ensure adequate supply for backflush transactions, you can replenish supply subinventoriesand locators as required

Negative Inventory Balances during BackflushingYou can use the following two Oracle Inventory settings to determine whether or not inventorybalances can be negative:

Allow Negative Balances parameter: you use this parameter to specify whether or notnegative inventory balances are allowed.Override Negative for Backflush profile option: you use this profile option to override a No

setting on the Allow Negative Balances parameter during backflush transactions. Thisallows backflush transactions to drive the inventory negative even though the organizationdoes not allow negative balances on any other types of transactions.

The only exception is when the component that you are Backflushing is under lot, serial, or lot



and serial number control. In this case, you will not be able to complete the backflush transactionunless you select a subinventory and locator that contains a sufficient quantity of valid lot and/or serial numbered items.

OSP Cycle

1. Create an OSP Item

Inventory Tab: Non Inventory, Non stockable, Non transactable, ReservableCosting: Not eanbled, Non AssetPurchasing: Purchased, Purchasable, OSP Item Enabled and Unit Type given. ListPrice should be Non Zero value.





3.1 Create a WIP Job for the above item

4.1 Req import process is automatically started.

4.2 Create a PO against the Requisition and receive it

Notes:1. Run 'Requisition Import Exceptions Report' to find out the errors caused in requisition import.2. Verify the financial options item validation org. System check the item attributes in thatorganization.3. Item should be attached to a valid Inv and purchasing category.4. The department should be associated with a location (PO shipment location)5. Purchasing option should have the ship to & bill to (defaults to the PO)6. Req import option in purchasing should not be blank,7.The accounting entries in OSP arePO ReceivingReceiving Valuation A/C Dr

AP Accrual A/C Cr

Res ChargeWIP Resource A/C Dr

OSP Resource Absorption A/C Cr When you create an OSP resource, System defaults the receiving valuation account as the OSP

Resource Absorption. Don’t change the value else your receiving valuation account will have anincorrect balance.

Material Control



You can control and monitor which materials are used and how they flow from inventory todiscrete jobs and repetitive schedules and from jobs and schedules to inventory.

When you create jobs and repetitive schedules that have bil ls of material, routings, or both,material requirements for the appropriate components are automatically created. Theserequirements (demands) are considered ’open’ until they are fulfilled.The MRP planning process and available to promise calculations include open requirements asdemand but do not formally allocate them to their parent jobs and repetitive schedules.

Open material requirements are satisfied when components are issued and backflushed.Material shortages occur when insufficient inventory exists to cover open requirements. The MRP

planning process reports current and projected material shortages and develops a plan to satisfythose shortages.

Negative Requirements/By–Product RecoveryYou can use negative material requirements to recover by–products or other reusablecomponents. Negative requirements are supplied instead of consumed by jobs and schedules.For example, if you add negative material requirements to a non–standard discrete job that istracking the disassembly of a completed part, the job supplies component materials rather thanconsuming them. Negative requirements are considered supply by the MRP planning process.

You can define negative requirement usage quantities when you assign components to bills of material in Oracle Bills of Material. Negative requirements can be assigned to lot, serial number,and lot and serial number controlled items.

Available–to–Promise MaterialsYou can view available–to–promise (ATP) status of components as you define, simulate, andview discrete jobs and as you view repetitive schedules.

WIP Shortage ReportingThe Discrete Job Shortage and Repetitive Schedule Shortage Reports list shortages or openrequirements for jobs and repetitive schedules based on requirement date. You can optionally

include quantities in non–nettable subinventories in the on–hand quantities displayed on thesereports. You can also use these report to view bulk and supplier component requirements.The View Material Requirements window can be used to view the requirements for a componentacross jobs and schedules. You can view quantities required and issued for each component.



Addingand Updating Material Requirements

You can add material requirements to discrete jobs and repetitive schedules with statuses of Unreleased, Released, On Hold, and Complete.Note: You can also add material requirements to jobs and schedules by issuing components notrequired by the job or schedule.

To add or update material requirements Navigate to the Material Requirements window.



1.1 Select the Job or repetitive Line and Assembly.You can only select a discrete job or a repetitive line and assembly for a repetitive schedule if the

job or schedule has a status of Unreleased, Released, On Hold, or Complete.

1.2. From the Main tabbed region of the Material Requirements region, select the Component toupdate or add.

You can add items with Push, Assembly Pull, Operation Pull, Bulk, Phantom, and Supplier supply types. If you add Phantom items, their supply types are changed to Push. Supply typesare also changed to Push if you add Assembly Pull items to jobs or schedules without bills of material. Similarly, if you add Operation Pull items to jobs or schedules without routings, their supply types are changed to Assembly Pull.

In the case of non–standard discrete jobs, you can add the primary assembly as a component. Inother words, the job assembly requires itself. This is useful when you use non–standard jobs tomanage rework or disassembly.

2.1. If adding a component, select the Operation Sequence number.

You can only add components at existing operations. The operation sequence identifies wherethe material is required.If you add a requirement to a job or schedule without a routing, the system displays 1 as thedefault operation sequence. This value cannot be updated.

2.2. In the Quantities tabbed region, enter the Per Assembly Quantity or the Required Quantity for the component.If you are adding a component, the per assembly quantity defaults to 1 and the required quantityis derived from the job or schedule quantity and displayed in the component’s primary UOM. Itcan be updated. If you update the per assembly quantity, the required quantity is automaticallycalculated. Conversely if you update the required quantity, the per assembly quantity calculated.

You can enter a decimal value, such as 1.25, for both the per assembly and the required quantity.You can also enter a required or per assembly quantity of zero.

2.3. In the Supply tabbed region, select the Supply Type.When you add components, the supply type specified for the item in Oracle Inventory is normallydefaulted. If the item does not have a supply type, the supply type defaults to Push. Supply type



selection is restricted based on the type and makeup of the job or schedule. You cannot, for example, change the supply type of a Push component to Assembly Pull if the job or schedulehas no routing.

2.4. If the component’s supply type is Assembly Pull or Operation Pull, you must select theSupply Subinventory, and if required by the supply subinventory, the supply Locator.

2.5. Check the MRP Net check box to include material requirements as demand in thecalculation of net requirements.If a negative quantity for a standard discrete job or repetitive schedule is entered, this check boxis disabled. For non standard–jobs with a negative quantity, the MRP check box is enabled.However, Oracle planning nets the negativerequirement as supply rather than demand.

When initial ly creating non–standard discrete jobs, this flag is unchecked. You must manuallymark the check box for components to be considered as demand by Oracle planningapplications.

Deleting Material RequirementsYou can delete material requirements from Unreleased discrete jobs and repetitive schedules.You cannot delete material requirements that have been issued even if their due quantity is 0.You cannot delete material requirements if any transactions gave been made for a particular component.

To delete material requirements:



1. Navigate to the Material Requirements window.2. Select the Job or Line and Assembly.3. If you select a l ine and assembly, choose the repetitive schedule by selecting the first unit startdate of that schedule. If you have selected a discrete job, the system displays the scheduled startdate of the job.4. Choose the Find button to populate the Material Requirements region.5. In the Material Requirements region, select the Component.6. Choose Delete Record from the Edit Menu.

7. Save your work.

Documents

short notes on Oracle WIP userguide IV