Monday, September 5, 2011

Create an Inventory Organization in R12 PO

Create an Inventory Organization

Responsibility = Purchasing, Vision Operations

1. Navigate to the Organizations window:

  • (N) Setup > Organizations > Organizations

2. (B) New

  • Name = XXManufacturing

  • Type = Plant

  • Enter a date in the From field early enough for any historical information that you need to enter. (The default is the current date.)

  • To Date = Leave Blank

  • Location = XXManufacturing

3. Save

Note: Multiple inventory organizations can share the same physical location if the Inventory Organization field associated with the Location was left blank (as in the prior exercise!).

4. For the Name field in the Organization Classifications region, use the list of values to select Inventory Organization.

5. Select the Enabled check box (use the mouse or the space bar).

6. Save

7. (B) Others

8. In the Additional Organization Information window, select Accounting Information.

9. OK, then click in the Accounting Information field.

  • Primary Ledger = Vision Operations

  • Legal Entity = Vision Operations

  • Operating Unit = Vision Operations.

10. OK

11. OK

12. (B) Yes to save changes.

13. Close the Organization Parameters window but do NOT close the Organization window.

Assign the Organization to an Existing Item Master

14. Re-open the Organization Parameters window:

  • (B) Others

15. In the Additional Organization Information window, select Inventory Information.

16. (T) Inventory Parameters

  • Organization Code = XXM

  • Item Master Organization = Vision Operations

  • Calendar = Vision01

  • Demand Class = West US

17. (T) Costing Information

Account Type

Account

Material

01-000-1410-0000-000

Outside Processing

01-000-1450-0000-000

Material Overhead

01-000-1420-0000-000

Overhead

01-000-1430-0000-000

Resource

Leave field blank

Expense

Leave field blank

18. (T) Other Accounts


Account Type

Account

Purchase Price Variance

01-540-5210-0000-000

Invoice Price Variance

01-540-5220-0000-000

Inventory AP Accrual

01-000-2215-0000-000

Sales

01-540-4160-0000-000

Cost of Goods Sold

01-540-5200-0000-000

Deferred COGS Account

01-540-5200-0000-000

19. (I) Save

(Enter 1 for Starting Serial Number and click OK when the pop-up note concerning Organizational Costing Methods appears.)

Note: A huge difference between a Location and an Inventory Organization is that Inventory Organizations determine a lot of accounting that gets sent to the General Ledger! For Purchasing, we are mainly concerned about Purchase Price Variance, Invoice Price Variance and Inventory AP Accrual accounts.

20. Close the Organization Parameters window but do NOT close the Organization window.

Specify Receiving Information

21. Re-open the Organization Parameters window:

  • (B) Others

22. In the Additional Organization Information window, select Receiving Information.

  • Days Early = 5

  • Days Late = 5

  • Receipt Days Exceed-Action = Warning

  • Tolerance = 5%

  • Over Receipt Action = Warning

  • Receipt Routing = Standard

  • Allow Unordered Receipts = Checked

  • Allow Express Transactions = Checked

  • Allow Cascade Transactions = Checked

  • Next Receipt Number = 1000

  • Receiving Inventory Account = 01-000-1410-0000-000

  • Clearing Account = 01-000-2929-0000-000

23. (B) Save and exit window.

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