r12 Discrete MFG RCD

RELEASE CONTENT DOCUMENT
Release 12
Oracle Discrete Manufacturing
Prepared by Discrete Manufacturing Product Management Team
Last Updated: 8/23/2006

Version: 1.9
Copyright © 2006, Oracle. All rights reserved.

Table of Contents
1. Disclaimer 1
2. Introduction 2
2.1. Purpose of Document 2
2.2. Reference Documents 2
3. Oracle Discrete Manufacturing 3
3.1. Oracle Work in Process - WIP 3
3.1.1. Overview 3
3.1.2. Features 3
3.1.2.1. Discrete Execution Workstation for Shop Floor Operator and Supervisor 3
3.1.2.2. Fixed Component Usage Independent of Build Quantity 5
3.1.2.3. Optional Inclusion or Exclusion of Component Shrinkage in Material Transactions 6
3.1.2.4. Inverse Component Usage 6
3.1.2.5. Reservation of Discrete Job as Source of Supply through Inventory Reservation Form 6
3.1.2.6. Reservation of Completed Serialized Assemblies through Inventory Reservation Form 6
3.1.2.7. Mobile Return of Assembly Reserved to a Sales Order 6
3.1.2.8. Scheduling Workbench Enhancements 7
3.1.2.9. Genealogy Enhancements 7
3.1.2.10. Enhancements to Lot/Serial Entry during Backflush 8
3.2. Oracle Shop Floor Management - OSFM 8
3.2.1. Overview 8
3.2.2. Features 8
3.2.2.1. Support for Lot and Serial Controlled Assemblies 8
3.2.2.2. Enhanced Shop Floor Execution Capabilities 9
3.2.2.3. Sales Order Reservation for Lot-Based Jobs 9
3.2.2.4. Fixed Component Usage Support for Lot-Based Jobs 10
3.2.2.5. Support for Partial Move Transactions 10
3.2.2.6. Enhanced BOM to Capture Inverse Usage 10
3.2.2.7. Planning Enhancements for OSFM 10
3.2.2.9. Component Shrinkage 11
3.2.2.10. Withdrawal of Option I 11
3.2.2.11. Support for Lot Attributes During Inventory Lot Transactions 11
3.2.2.12. Support for RosettaNet Transactions 12
3.3. Oracle Flow Manufacturing - FLM 12
3.3.1. Overview 12
3.3.2. Features 12
3.3.2.1. Enhanced Flow Execution Workstation 12
3.3.2.2. Maintain Schedule Number when Rolling Schedules Forward 12
3.3.2.3. Fixed Component Usage Support 12
3.4. Oracle Configure to Order - CTO 13
3.4.1. Overview 13
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3.4.2. Features 13
3.4.2.1. Autocreate Internal Requisitions 13
3.4.2.2. Autocreate OPM Requisitions 13
3.4.2.3. Enhanced Reservations and Sales Order Statuses for Back to Back Orders 13
3.5. Oracle Project Manufacturing - PJM 14
3.5.1. Overview 14
3.5.2. Features 14
3.5.2.1. Purchasing Summary Lines in Project Manufacturing Inquires 14
3.5.2.2. Transfer Project Invoice Charges 14
3.5.2.3. Multi-Org Access Control 15
3.5.2.4. Other Enhancements 15
3.6. Oracle Quality - QA 15
3.6.1. Overview 15
3.6.2. Features 16
3.6.2.1. ERES support for 21 CFR Part 11 Compliance in Service, Field Service & Quality 16
3.6.2.2. E-Records Usability Enhancement – Redlining of Changes to E-Record 19
3.6.2.4. Quality Integration with Shop Execution Workstations in WIP, FLM and OSFM 20
3.6.2.5. Quality Integration with Depot Repair Tasks 20
3.6.2.6. Quality Integration for OPM Batch Process Nonconformance Management 21
3.6.2.7. Quality Integration with Asset Operational Status 21
3.6.2.8. Quality Enhancements for Process Inventory Convergence with Discrete Inventory 21
3.6.2.9. Quality Enhancements for Multiple Organization Access Control 22
3.6.2.10. Quality Audits Solution 22
3.6.2.11. Output of Quality Charts in HTML UI 23
3.7. Oracle Cost Management - CST 23
3.7.1. Overview 23
3.7.2. Features 23
3.7.2.1. Matching Cost of Goods Sold to Revenue 23
3.7.2.2. SLA - Subledger Accounting 25
3.7.2.3. Accrual Reconciliation and Write-Off Enhancements 25
3.7.2.4. Periodic Costing Enhancements 26
3.7.2.5. Value Reports Enhancements 27
3.7.2.6. Period Close Diagnostics 28
3.7.2.7. Discrete/ OPM Inventory Convergence 28
3.7.2.8. Fixed Component Usage Support 29
3.7.2.9. Component Yield Support 29
3.7.2.10. Period End Accruals Enhancements 29
3.7.2.11. Ledger Architecture/Legal Entity uptake 30
3.7.2.12. Multi-Org Access Control 30
3.7.2.13. Cost Rollup Enhancements 30
3.7.2.14. EAM Enhancements 31
3.7.2.15. Costing Support for Chargeable Subcontracting 31
3.7.2.16. Payables Invoice Lines Architecture 31
3.7.2.17. Bonus During Moves 31
3.7.2.18. Job Close in PL/SQL 32
3.8. Oracle Item Master - ITM 32
3.8.1. Overview 32
3.8.2. Features 32
3.8.2.1. APS - Service Requirements Planning 32
3.8.2.2. APS - Deployment Planning 33
3.8.2.3. JMF – Chargeable Subcontracting 33
3.8.2.4. ITM – OPM-Discrete Item Master Convergence: Attribution 33
3.8.2.5. ITM – OPM-Discrete Item Master Convergence: APIs 35
3.8.2.6. Telco - Recurring Charges 35
3.8.2.7. IP - Procurement Buyer as Contingent Worker 35
3.8.2.8. MLS Enable Item Status and Item templates 35
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3.8.2.9. WMS - RFID, EPC & GTIN Compliance 35
3.8.2.10. CZ – Make Item Attributes Visible for CZ Rules Engine 35
3.8.2.11. FIN - Item Attribute Changes to Support E-Business Tax (ZX) Initiative 35
3.8.2.12. MFG - EAM – Item Attribute Changes to Support Transactable Asset Groups 36
3.9. Oracle Bills of Material - BOM 36
3.9.1. Overview 36
3.9.2. Features 37
3.9.2.1. APS - Sequencing Window on Dept-Resource Entity 37
3.9.2.2. APS - Batchable Resource Validations in Routing Form 37
3.9.2.3. APS - Usability Improvements in Setup Changeovers Screen 37
3.9.2.4. MFG - Enhance BOM to Capture Inverse Usage 37
3.9.2.5. MFG - Expanding OSFM into MES 37
3.9.2.6. MFG – Fixed Component Usage on the BOM for WIP and OSFM 37
3.9.2.7. OPM - Convergence to Discrete Manufacturing Calendar and Validations for Process Organizations 37
3.9.2.8. BOM – Batch Import Capability for Open Interface for Bills of Material 37
3.9.2.9. BOM – Material Control Attribute Updates for Common BOM 38
3.10. Chargeable Subcontracting 38
3.10.1. Overview 38
3.10.2. Features 38
3.10.2.1. Planning at OEM and MP 38
3.10.2.2. Goods Movement between OEM and MP 38
3.10.2.3. Inventory Tracking and Visibility at MP 38
3.10.2.4. Financial Settlement Process 39
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1. Disclaimer
This Release Content Document (RCD) describes product features that are proposed for
the specified release of the Oracle E-Business Suite. This document describes new or
changed functionality only. Existing functionality from prior releases is not described. It
is intended solely to help you assess the business benefits of upgrading to Release 12.
This document in any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle. Your access to and use of this confidential
material is subject to the terms and conditions of your Oracle Software License and
Service Agreement, which has been executed and with which you agree to comply. This
document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This
document is not part of your license agreement nor can it be incorporated into any
contractual agreement with Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in
planning for the implementation and upgrade of the product features described. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described in this document remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all
features described in this document without risking significant destabilization of the code.
R12 Discrete Mfg. Release Content Document, Rev. 01 Purpose of Document 1

2. Introduction
2.1. Purpose of Document

The Release Content Document (RCD), produced as part of Oracle’s Applications
Product Lifecycle (APL), communicates information about new or changed functionality
in the specified release of the Oracle E-Business Suite. Existing functionality from prior
point releases is not described. However, content introduced by Family Packs, Mini-
Packs or Standalone patches since the prior point release has been included in this
document and denoted accordingly.
2.2. Reference Documents

Name Location Completion Date
R12 Discrete Mfg. Release Content Document, Rev. 01 Purpose of Document 2

3. Oracle Discrete Manufacturing
Release 12 of Oracle Discrete Manufacturing consists of the following products:
• Oracle Work in Process (WIP)

• Oracle Shop Floor Management (OSFM)
• Oracle Flow Manufacturing (FLM)
• Oracle Configure to Order (CTO)
• Oracle Project Manufacturing (PJM)
• Oracle Quality (QA)
• Oracle Cost Management (CST)
• Oracle Item Master (ITM)
• Oracle Bills of Material (BOM)
3.1. Oracle Work in Process - WIP

3.1.1. Overview
Oracle Work in Process is a complete production management system that improves

productivity, quality, and responsiveness while maximizing throughput and production.
As a key link in the supply chain, it supports multiple manufacturing modes, allows for
shop floor execution, expands your operational visibility and supports automated
collaboration with your outside processing suppliers. Oracle Work in Process is part of
the Oracle E-Business Suite, an integrated set of applications that are engineered to work
together.
3.1.2. Features
3.1.2.1. Discrete Execution Workstation for Shop Floor Operator and Supervisor
With the new Discrete Execution Workstation, discrete manufacturing users will have
deeper shop floor execution capabilities as well as an improved user experience in
performing and monitoring shop floor activities. Through a simplified user interface, this
workstation provides, all in one place, the information needed for shop floor workers to
perform their work, thus maximizing the value-added manufacturing time and catering to
customers requiring MES (Manufacturing Execution System) like capabilities in Oracle
Work in Process. Shop floor operators and supervisors can see what jobs are assigned to
which work centers, view requirements and instructions for performing work, and
monitor progress and problems. The workstation provides enhancements to current
discrete manufacturing features, an increase in the types and numbers of functions
supported, and a significant improvement to the process flows of accessing and reporting
information related to work in the factory. The major features of the workstation are:
3.1.2.1.1. Configuration preferences
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The workstation is highly configurable with a system of preferences controlling both
overall behavior at the organization level as well as access to information and actions
at the user level based on each user’s role. Based on the user role, predefined security
and preferences control the types of functions and information that each user of this
workstation can access. Configuration preferences related to actions allow actions to
be either configured as “buttons” or “choice lists”.
3.1.2.1.2. Dispatch lists
The workstation supports presentation of a dispatch list -- a listing of all job

operations that are in queue to be worked on for one particular resource, across
multiple resources or departments, or an entire organization. The content of this list is
determined by a parameter setup. The display is modifiable allowing filtering,
ordering, and grouping to improve production efficiencies. Columns in the list
display information about each job operation like scheduled start and end time,
assembly being built, customer, setup required, as well as various indicators of job
readiness, and component and resource availability. Columns in the dispatch list can
be shown or hidden based on preference there by allowing organizations to configure
their lists to show only the information pertinent to their business policies and
practices.
There are a variety of actions and data drilldowns that can be performed in the
context of any single line in a dispatch list. Record work start, clock in and out,
transact completions and scrap, view work requirements and instructions, expedite a
job, and report exceptions are some of the actions that can be initiated from the
dispatch list.
3.1.2.1.3. Transaction Enhancements
In order to simplify transaction data entry for the operator some of the transactions
have been enhanced to allow the user/operator to perform multiple transactions in
one pass. Some of these transaction enhancements are in the area of reporting good
and bad assembly units through an operation – move or completion transaction
combined with an assembly scrap or reject -- all in a single user entry.
Integration with Quality Workbench (html interface) in the Oracle Quality module -
for move and completion transactions - is available through the discrete execution
workstation.
3.1.2.1.4. Streamlined lot and serial capture
When component and assembly lot/serial data need to be entered as part of a

transaction, the workstation provides more efficient ways of doing that than is
available currently through desktop forms. Operators can now be able to scan or
manually enter the necessary data by choosing the screen that supports the desired
method of entry. For manual entry, multiple components, all from the same serial
range or lot can be recorded on a single entry line. Also, an icon is displayed on
every component row indicating whether additional lot/serial input is required from
the operator or all required information has been entered such that the transaction can
be saved.
3.1.2.1.5. Exceptions Reporting and Resolution
Exceptions reporting and resolution is a new feature that is available in the discrete
execution workstation. Exceptions are reported manually to bring attention to events
and occurrences that prevent operators from performing work on a job operation that
otherwise appears to the system as “ready” to be worked. Such events would
typically be a physical lack of material – assembly from a prior operation or
component – that the system had not recognized as a material shortage, a lack of the
proper labor resource or inoperable machine, or an in-process production quality
problem.
There are several types of exceptions that have been made available in the
workstation. The individual reporting the exception can indicate a reason for the
exception and enter a short text description of the occurrence in order to assist future
resolution efforts. A supervisor gets notified when an exception is reported and can
see all relevant information related to that exception such as the reason for the
exception and the immediately impacted job, operation, and resource or assembly or
component depending on the exception type.
In addition to these, mass reporting of exceptions is also supported. For example, if

production components expected to be available on a certain date suddenly become
unavailable due to, say, a delayed delivery from a supplier or a rejection in receiving
inspection, a material planner would be able to enter a material exception for jobs
requiring the affected component. This provides an indication to operators that such
jobs are not ready to be worked.
3.1.2.1.6. Shop Floor Supervisor Activities
The supervisor’s home page is a screen that contains a variety of information related
to current shop status and issues requiring resolution. Visibility to problem parts,
problem machines, and problem jobs can all be viewed in one place. Specifically, this
includes information on resource shortages, exceptions, and shop floor progress
status. The coverage area (entire organization, or single department or resource) of
this page is determined by the way in which the supervisor logs in to the workstation.
Open exceptions requiring resolution can be viewed and updated. Various actions are
available to the resolving party including assigning a shop floor status to the
operation to prevent assembly moves, rescheduling a job or putting it on hold,
assigning work to an alternate resource and opening the job or resource workbench.
Information to support resolution of each exception will be presented along with a
list of other jobs that are, or may be, impacted. The same exception can be created for
any or all of these impacted jobs, whatever the supervisor deems appropriate.
Current information about problem jobs and machines is presented in a separate

portion of the supervisor home page. The information displayed here are the
information on problem resources, at-risk job operations for which projected
completion time exceeds shift end or scheduled completion time. An alternate view
provides a current status of current jobs running and the machine on which they are
running, operator’s name, and projected completion time.
Various workbenches throughout the application can be accessed directly from the
supervisor’s home page. Some of those are the Job Workbench, Resource
Workbench, and the Manufacturing Intelligence home page.
3.1.2.2. Fixed Component Usage Independent of Build Quantity

Users can now define fixed component usage regardless of the number of assemblies that
are manufactured through a Discrete Job or a Work Orderless transaction. This is
achieved by defining components with a basis as “Lot” in an assembly’s bill of material.
The treatment of lot based component transactions is similar to the way lot based
resources are currently handled in Oracle Work In Process.
With this enhancement, customers can define and use components whose consumption
quantity does not directly vary with the assembly quantity produced. This can be
deployed in situations where a fixed amount of a component is expended either to
facilitate production start up, or as a part of production setup, or during the course of
production.
This feature is available for Discrete Jobs, Work Orderless and Flow Transactions.
3.1.2.3. Optional Inclusion or Exclusion of Component Shrinkage in Material

Transactions
An added flexibility has been provided to specify whether to include or exclude
component shrinkage in material transactions. This control has been introduced through a
new organization parameter which when enabled, factors component yield in the
component quantities during material transactions (current behavior). Alternatively, users
can disable this parameter to prohibit component yield from being factored into material
transactions, should they want to avoid transaction quantities getting inflated to an
amount greater than actual use.
3.1.2.4. Inverse Component Usage

Users now have a way to enter inverse component usage through the new inverse usage
field on the bill of material. The resulting quantity per assembly is stored unrounded for
accurately determining the total required quantity of a component for a job. Moreover,
storing the raw fractional quantity per assembly prevents any undesirable component
usage variances to occur particularly in discrete jobs with large build quantities.
3.1.2.5. Reservation of Discrete Job as Source of Supply through Inventory

Reservation Form
In addition to the currently available modes to reserve supplies from a Discrete Job, users
can manually reserve the output of jobs through Inventory reservation forms by selecting
a Discrete Job as a source of supply while establishing reservations against a source of
demand.
3.1.2.6. Reservation of Completed Serialized Assemblies through Inventory

Reservation Form
From this release, users can reserve completed serialized assemblies against sources of
demand through Inventory reservations forms. A reservation record can be created by
selecting and reserving specific serialized assemblies against a sales order line or other
sources of demand.
3.1.2.7. Mobile Return of Assembly Reserved to a Sales Order

Mobile Assembly Return screens have been enhanced to provide greater flexibility in
referencing Sales Order details while performing assembly return transactions. When
such a transaction is performed, assembly quantity reserved against the referenced sales
order is reduced by the appropriate amount.
3.1.2.8. Scheduling Workbench Enhancements
Job & Resource workbenches have been enhanced through the support of the following
features:
3.1.2.8.1. Print Gantt Charts
Users now have the ability to print Gantt charts, often used as referable hard copies in
a production shop floor. Apart from generating the print preview, this feature
supports customizing the printout content such as printing the Gantt chart by:
• Specifying the date and time range for the printout
• Specifying the level of details in the Gantt Print (Jobs only, Jobs scaled
down to Operation level, Jobs with operations scaled down to the resource
level, Resource only, Resources scaled down to the Resource instance level,
etc)
• Printing the snapshot of the “as is” Gantt view
• Printing Gantt for a chosen timeline bucket
• Limiting the number of jobs or resources to avoid a cluttered display
In addition to the above features, users will be able to specify page setup options and
revert back to the original Gantt view after printing.
3.1.2.8.2. Restore last-worked customized views
When users of the job and resource workbenches create a preferred view through
pane sizing, time bucket selection, row height adjustment, etc., it is possible for that
view to be saved and recreated in subsequent launches of the workbenches. This
eliminates the tedious task of readjusting the view each time a workbench is opened.
3.1.2.8.3. Additional tool tip for Resource and Job Workbench
With the new “Bar Inspector” as a tool tip, users are guided with necessary
information (such as, start and end times) while performing a drag & drop to achieve
greater scheduling accuracy. This is available for Job bars, Operation bars and
Resource Bars in the Job Workbench and for Job Operations bars for Resource and
Resource Instance in the Resource Workbenches.
3.1.2.8.4. Schedule over long time ranges in the Resource Workbench
Users are also provided with an ‘Edit Schedule’ option in the Resource Workbench,
for an easy way to schedule over a long time range, instead of dragging a bar object.
3.1.2.9. Genealogy Enhancements

In many industries because of complex manufacturing, predominant outsourcing, and
rigid traceability requirements as in medical devices, it is necessary to identify and build
genealogy for each end assembly by linking it to the various lot and/or serialized
components manufactured or procured from suppliers. To support this critical need, users
now have a combined view of lot and serial genealogy in one inquiry. In addition,
operators performing completion transactions can tie component lot and/ or serial
numbers directly to the parent assembly eliminating the intervening callout to a job.
These enhancements enable stricter controls in material movement such as validation of
lot number for component returns from a job back to inventory.
For more information, please refer to the Inventory section of the Oracle Logistics
Release Content Document and Oracle Quality section of this document.
3.1.2.10. Enhancements to Lot/Serial Entry during Backflush

In the desktop forms application, single lot information can be entered in the backflush
window, for one or more components, when the transaction quantity for a component
comes from a single lot. When there are multiple backflush transactions for the same
component for the same job, you can set the system to automatically default lot numbers
used in the previous transactions. Usability features have been added including visual
indicators for data entry and labeling on the Lot and Serial button corresponding to the
information needed.
3.2. Oracle Shop Floor Management - OSFM

3.2.1. Overview
OSFM is a comprehensive web based solution which manages complex shop floor lot
transactions, enables dynamic routings, provides ‘end to end’ genealogy of products, and
models/ tracks operation yield costs. As a part of Oracle E-Business suite, OSFM bridges
the gap between Oracle Manufacturing and third party MES systems by leveraging
critical shop floor information for enterprise wide activities. It enables comprehensive
flexibility in manufacturing execution and visibility for each lot job on the shop floor
combining manufacturing excellence with customer responsiveness. Vertically integrated
industries and virtual factories, characterized by product liability issues, high value added
manufacturing cycles, manufacturing yield and profitability focus, can benefit
significantly from OSFM.
3.2.2. Features
3.2.2.1. Support for Lot and Serial Controlled Assemblies
The OSFM solution has been enhanced to support shop floor manufacturing with the
ability to work with Lot and Serial controlled assemblies. Lot-based jobs can now be
associated with serial numbers. This feature greatly helps the users to track and trace the
individual lot/serialized items during the shop floor transactions as well as post-
manufacturing and beyond.
The solution supports:

• Definition/Association of serial number for a lot based item
• Point of association (operation in the network routing) of serial numbers to the

lot based item during manufacturing execution
• Generation of serial numbers by the system
• Genealogy with Lot/Serial details
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This functionality can be used in advanced manufacturing processes requiring granular
traceability as it supports splitting, merging of Lot & Serial controlled assemblies. Any
issue/return of serialized components for the assemblies is possible and the user can
capture attributes for each lot/serial item. The core functionality of genealogy is also
maintained for each and every lot/serialized assembly in the system. Thus the user is
provided with a highly flexible and advanced solution for complex manufacturing
practices using lot/serial control functionality.
Caution: OSFM is a solution targeted for lot as well as serial based assemblies and it is
not a solution for assemblies that are only serial controlled with no lot control.
3.2.2.2. Enhanced Shop Floor Execution Capabilities
Several enhanced shop floor execution functionalities are available in Release 12.
Leveraging the latest OAF (Oracle Applications Framework) architecture available in E-

Business Suite, several new screens are available that enable users to capture actual data
on the shop floor in real time.
Some of the features are:

• New HTML based UIs provide the ability to see dispatch lists that can be
configured to suit user requirements
• Ability for the shop floor supervisors to control various execution actions that
different operators can perform.
• Ability to capture actual data (dates, quantities, name of the operator etc) on
operations completed and resources used
• Ability to define low-yield triggers for individual operations
• New HTML based UIs provide an ability to capture data for move-in to an
operation or move-out of an operation.
• Ability to specify reason codes for scrap and bonus during Move Transactions
• New HTML based UIs to perform WIP lot transactions like split, merge etc
• Ability to record uptime and downtime on resource and ability to view resource
history
• Ability to track secondary quantities on lot based jobs across different

operations
• Ability to see information on a job traveler and attachments
The above enhancements help customers to generate more comprehensive and valuable
reports for manufacturing operations. In addition, because of the extensive integration
with ASCP, planners can now generate schedules that honor real-time information
collected on the shop floor.
3.2.2.3. Sales Order Reservation for Lot-Based Jobs
Users can now reserve a lot based job against a sales order. Users can also view the
relevant sales order information for different jobs. In such cases where the net quantity
of the job during execution is reduced – the sales order reservation is changed
accordingly. Separate views have been developed that give users a snapshot of all the
sales orders reserved for a lot-based job.
3.2.2.4. Fixed Component Usage Support for Lot-Based Jobs
OSFM now supports fixed component usage (lot-based materials) defined in the Bill of
Material of an end item. When such a material is defined as a component, the system
does not proportionate the material requirements based on job quantity but would assume
a fixed usage. The same quantity is uniformly honored in all OSFM transactions such as
backflush of quantity during moves or any of the WIP lot transactions like split, merge
etc. In addition to the Bill of Material form, Co-products UI also supports an ability to
define the component as lot-based.
3.2.2.5. Support for Partial Move Transactions
OSFM users are now able to execute movement of a partial job quantity. If a job is at a
particular operation and a partial quantity of the same needs to be moved, the system
splits the parent job in the background and one of the resulting jobs holding the partial
qty moves forward, while the job holding the balance quantity remains at the original
operation.
Prior to release 12, OSFM enforced movement of entire job quantity from one operation
to another, or within an operation from one intraoperation step to another.
3.2.2.6. Enhanced BOM to Capture Inverse Usage
Users can now model inverse component usage through the new inverse usage field in
BOM UI. The resulting quantity per assembly is stored in unrounded form to accurately
determine the total required quantity of a component for a job. Storing the raw fractional
quantity per assembly prevents any undesirable component usage variances to occur
particularly in lot-based jobs with large build quantities.
Typically, in a semiconductor manufacturing process, wafers yield dies and the BOM of
a die have a need for specifying the inverse rather than the quantity per. To achieve this, a
component qty has to be defined with large decimal precision. The new functionality
provides the user with an easy way to define and update Co-Product and Bill of Materials
with inverse usage.
3.2.2.7. Planning Enhancements for OSFM
In Release 12, OSFM customers can leverage the following enhanced planning
capabilities available with Oracle Advanced Supply Chain Planning (ASCP).
• ASCP takes into account the actual start dates on OSFM jobs by calculating the
portion of the job that has already been completed prior to the plan start date and
scheduling only the portion of the job that is yet to be completed as of the plan
start date.
• ASCP supports planning for components on a Bill of Material that are
consumed on a “lot basis” rather than on a basis that is proportional to the
quantity of finished product being produced (Section 3.2.2.4).
• Sequence dependent setups are supported which allows users to create plans that
minimize the number of changeovers from one setup type to another by
grouping activities of the same setup type into a production run. In addition,
ASCP will have the ability to schedule such Sequence dependent Setup
Resources to the Resource Instance Level.
• Enhanced Gantt chart capabilities and enhanced planner’s workbench gives

users much better view of available information as well as help them plan their
shop floor in a much more detailed manner.
For more detailed information on this section, please refer to the Oracle Advanced
Planning Release Content Document.

Genealogy features for items used or manufactured in OSFM have been enhanced further
and more details of the same can be found in the Inventory section of the Oracle Logistics
Release Content Document.
3.2.2.9. Component Shrinkage

Users now have the flexibility to specify whether to include or exclude component
shrinkage in backflush transactions. This is controlled through a parameter and also gives
a provision to avoid backflush quantities getting inflated to an amount greater than actual
use, in case. For additional information, please refer to the Work in Process section of
this document.
3.2.2.10. Withdrawal of Option I

Release 11i.10 introduced an additional option (Option II) for OSFM users. Option II
enabled users to create individual job copies by copying BOM and network Routing as
soon as a new lot based job is created. This enabled users to hold, modify and view
detailed information for each and every operation of the job, which was not possible
before Release 11i.10. The behavior prior to release 11i.10 was renamed as option I for
the sake of clarity. Option I behavior related to the behavior of jobs, where in no copies
of the jobs are made and individual operation data is copied as the user moves to that
operation.
From release 12 onwards, Option I has been withdrawn and users migrating to release 12
from any prior release would be automatically upgraded to option II.
3.2.2.11. Support for Lot Attributes During Inventory Lot Transactions

While performing the Inventory lot transaction in OSFM using desktop form or open
interface, lot attributes of the starting Inventory Lot will be transferred to the resulting
inventory lot(s). In case of merge transaction, user will be able to specify one of the
starting lots, as ‘Representative Lot’ and the lot attributes of representative lot will be
transferred to the resulting lot.
Users can also 'alter' the attributes of an Inventory lot while performing Inventory Lot
transactions using desktop form or open interface.
3.2.2.12. Support for RosettaNet Transactions
Users, especially in the high tech industry, can exchange manufacturing transactions with
their partners through RosettaNet standards comprising of 7B1 (work in process) and 7B5
(manufacturing work order). For additional details please refer to the Oracle Supply
Chain Trading Connector for ResettaNet Release Content Document.
3.3. Oracle Flow Manufacturing - FLM

3.3.1. Overview
Oracle Flow Manufacturing is a comprehensive manufacturing software solution that

supports demand driven flow techniques to reduce product cycle times, minimize
inventories, simplify production, and improve product quality. These techniques provide
manufacturing operations with the ability to quickly respond to changing customer needs
in an e-business environment. Oracle Flow Manufacturing is part of the Oracle E-
Business Suite, an integrated set of applications that are engineered to work together.
3.3.2. Features
3.3.2.1. Enhanced Flow Execution Workstation

To further the vision of a “paperless” shop floor, users are now able to record lot and
serial data for the assembly and its components during production using the Flow
Execution Workstation. In addition, the workstation is integrated with the new self-
service quality, enabling users to enter quality plans at any operation without returning to
forms. Finally, users can now perform a work orderless completion from the self-service
application without returning to forms.
3.3.2.2. Maintain Schedule Number when Rolling Schedules Forward

To enable users to reference the schedule number on printed shop floor documentation,
roll flow schedules will now maintain the existing schedule number when rolling an
uncompleted scheduled forward.
3.3.2.3. Fixed Component Usage Support

With this enhancement, customers are able to define and use components whose
consumption quantity does not directly vary with the assembly quantity produced. This
can be deployed in situations where a fixed amount of a component is expended either to
facilitate production start up, or as a part of production setup, or during the course of
production. Flow Manufacturing fully supports this fixed component usage definition
whenever component quantity calculations are performed. Impacted areas include the
Flow Execution Workstation, Work Orderless Completions, Feeder Line
Synchronization, Outbound Broadcast Sequencing, and Kanban Planning.
See the Work in Process section of this document for more information on Fixed
Component Usage.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Flow Manufacturing - FLM 12
3.4. Oracle Configure to Order - CTO
3.4.1. Overview
In today’s business environment, customers are demanding products that are tailored to
their unique specifications. Successful companies must provide customized versions of
products, at any volume and ship them from/to anywhere in the world. With Oracle’s
industry-leading Mass Customization solution, you can build or source complex,
customized products by using Oracle Configurator, Oracle iStore, Oracle Order
Management, Oracle Advanced Planning and Scheduling, Oracle Purchasing and the
Configure-to-Order capability of Oracle Discrete and Flow Manufacturing. The Oracle
Configure to Order Solution is part of the Oracle E-Business Suite, an integrated set of
applications that are engineered to work together.
3.4.2. Features
3.4.2.1. Autocreate Internal Requisitions

To enable customers to more quickly respond to sales order demand that needs to be
sourced to other internal organizations, Oracle Configure to Order has introduced the
ability to Autocreate Internal Requisitions. With this release, users are now able to create
an internal requisition directly from a sales order for any ATO or configured item by
progressing the sales order line or running a batch program. The internal requisition
when created is reserved to the sales order, and the reservation is transferred to inventory
upon receipt. Users can see details of the internal requisition and its resulting internal
sales order from the Supply to Order Workbench.
3.4.2.2. Autocreate OPM Requisitions

Oracle Process Manufacturing (OPM) customers now have the ability to use the
autocreate requisition functionality to create back-to-back internal or external requisitions
in OPM organizations. To support these businesses, secondary quantity, secondary unit
of measure and grade are passed to the requisition and are used to create a reservation
between the sales order and the requisition. When material is received, the reservation is
transferred to on hand inventory. Secondary quantity and secondary unit of measure are
included for display in the Supply to Order Workbench.
3.4.2.3. Enhanced Reservations and Sales Order Statuses for Back to Back Orders
In this release, Oracle Inventory has enhanced its reservations model to support cross
docking, resulting in improvements for back-to-back orders as well. Users of autocreate
requisitions (or back-to-back orders) have the following new pieces of functionality:
• In WMS organizations:
• Upon receipt of an ASN for a PO that is reserved to a sales order, the

reservation is transferred to the ASN, and the status on the sales order line is
updated accordingly. Additional information has been added to the Supply
to Order Workbench to see the details of the ASN.
• Upon receipt of the material, the reservation status is updated to “In

Receiving”, and the status on the sales order line is updated accordingly
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Configure to Order - CTO 13
• If a receipt correction or return is done before material is delivered, the
appropriate reservation quantity is transferred back to the PO.
• Users are able to cross-dock any supply reserved to any sales order.
• Users are now able to manually reserve a sales order to any existing purchase
order, internal requisition or WIP job using the inventory reservations form.
In addition, the following has changed:
• Cancellation of a PO shipment results in a cancellation of the backing

requisition(s) if the PO was created for a CTO requested requisition. A new
requisition will be created the next time autocreate requisitions are run.
For more information on reservations functionality, please see the Inventory section of
the Oracle Logistics Release Content Document. For more information on Cross
Docking functionality, please see the Warehouse Management section of the Oracle
Logistics Release Content Document.
3.5. Oracle Project Manufacturing - PJM

3.5.1. Overview
Oracle Project Manufacturing manages the construction of large, often unique, items or
structures that require custom design. A comprehensive system that, especially if
combined with Oracle Projects and Oracle Project Contracts, provides a robust solution
for contract-based manufacturers in the Aerospace and Defense, Engineer-To-Order and
Seiban industries. Oracle Project Manufacturing helps you control a broad range of
product designs and quickly respond to changes that may impact contract planning,
costing, and execution. Oracle Project Manufacturing is part of the Oracle E-Business
Suite, an integrated set of applications that are engineered to work together.
3.5.2. Features
3.5.2.1. Purchasing Summary Lines in Project Manufacturing Inquires

From Release 12 onwards, “Project Manufacturing Portal” and “Seiban Portal” have been
renamed as “Project Manufacturing Inquiry” and “Seiban Inquiry”.
Prior to R12, while querying for a specific Project/Task/Seiban Number through Project
Manufacturing/Seiban Portals, Purchasing Summary Lines represented the Line Amount
as a total of all the distribution amounts at a PO Line Level. In Release 12, while
querying for a specific Project/Task/Seiban Number, Purchasing Summary Lines now
display the amounts with enhanced granularity at a PO/Line/Shipment/Distribution level.
This enhancement applies to viewing information related to Purchase Orders and Blanket
Releases through the Project Manufacturing/Seiban Inquiries.
3.5.2.2. Transfer Project Invoice Charges

“Transfer Projects Invoice Charges” functionality in Project Manufacturing has been
enhanced to include Tax Rate Variance (new in R12) while posting Invoice charges as
additional project costs to Projects in addition to IPV, ERV, Tax IPV, Tax ERV,
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Project Manufacturing - PJM 14
Miscellaneous and Freight charges. Tax Rate Variance is also captured in the Transfer
Project Invoice Charges Execution Report.
This enhancement was made as an impact of the changes made by Oracle Payables in
R12.
3.5.2.3. Multi-Org Access Control

Multi-Org Access Control enables companies that have implemented a Shared Services
operating model to efficiently process business transactions by allowing them to access,
process, and report on data for an unlimited number of operating units within a single
applications responsibility. This increases the productivity of Shared Service Centers for
users no longer have to switch applications responsibilities when processing transactions
for multiple operating units at a time.
In Release 12, following changes have been made in PJM as a result of the MOAC
project:
• For products that have MOAC dependencies such as Purchasing and Order
Management, based on the new Security Profile settings, PJM provides
secure views to Projects and Tasks information across Operating Units. Prior
to Release 12, Project/Task information is retrieved based on the Profile:
'MO: Operating Unit' tagged to the responsibility.
• For products that do not have MOAC dependencies, such as Work In Process
and Flow Manufacturing, Projects and Tasks information is retrieved based
on the Operating Unit derived from the Inventory Organization. Prior to
Release 12, Project/Task information is retrieved based on the Profile: 'MO:
Operating Unit' tagged to the responsibility.
• Projects Commitments: Commitments views have been changed in R12 to

allow Project Status Inquiry (PSI) display project commitments across
Operating Units based on the MOAC Security Profile settings.
3.5.2.4. Other Enhancements

Project Manufacturing Inquiry: In previous releases, Project Manufacturing Inquiry
supported viewing of Project related data across Inventory Organizations but within a
single Operating Unit. In Release 12, Project Manufacturing Inquiry includes all the
information related to a Project across Operating Units but independent of the MOAC
Security Profile settings.
3.6. Oracle Quality - QA

3.6.1. Overview
Oracle Quality is a flexible enterprise-wide quality management system that lets you
collect, distribute and analyze critical quality data throughout your supply chain. It also
allows you to implement quality management practices for nonconformances, corrective
actions and quality audits and supports regulatory compliance activities. Oracle Quality is
part of the Oracle E-Business Suite, an integrated set of applications that are engineered
to work together.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Quality - QA 15

3.6.2. Features
3.6.2.1. ERES support for 21 CFR Part 11 Compliance in Service, Field Service &
Quality
Oracle is committed to providing software tools and applications to help Medical Devices
and Life Sciences companies run their businesses in an efficient manner and in
compliance with federal regulations. Understanding that validating operating
environments in accordance with the FDA’s 21 CFR Part 11 is of high importance to this
industry, Oracle is providing an unmatched set of tools to achieve the goal of maintaining
cGMP/ QSR critical records electronically.
FDA expects that the (software) application that is Part 11 compliant to have the
capabilities of strong security, audit trail, operational system checks, electronic records
and electronic signatures that are legally binding signatures that are equivalent to
handwritten signatures.
In 11i10 Supply Chain Management, Electronic Records and Electronic Signatures

(ERES) capabilities were provided for critical business events as identified by 21 CFR
Part 820 in the Discrete Manufacturing modules that need to comply with the
requirements of 21 CFR Part 11.
In Release 12, the ERES capabilities have been extended to critical events as identified in
21 CFR Part 820 related to
• 820.170 - Installation
• 820.198 - Complaint files
• 820.200 – Servicing
3.6.2.1.1. Installation
Per section 21 CFR 820.170, each manufacturer of a device requiring installation

shall establish and maintain adequate installation and inspection instructions, and
where appropriate test procedures. Instructions and procedures shall include
directions for ensuring proper installation so that the device will perform as intended
after installation. The manufacturer shall distribute the instructions and procedures
with the device or otherwise make them available to the person(s) installing the
device. The person installing the device shall ensure that the installation, inspection,
and any required testing are performed in accordance with the manufacturer’s
instructions and procedures and shall document the inspection and any test results to
demonstrate proper installation.
The steps in the installation business flow in Oracle Applications are carried out in
the Oracle Service, Oracle Field Service and Oracle Quality modules. The key steps
in the installation business flow and how it maps to Oracle Applications is described
below:
• Request and fulfillment for installation support ⇒ Service Request creation

in Oracle Service and its associated life cycle

• Installation by field service personnel ⇒ Field Service Task Schedule and
Dispatch
• Completion of installation by Field Service Technician ⇒ Field Service Task

Debrief with associated inspection, calibration and test data
• Closure of the Service Request ⇒ Service Request Closure
To support the installation business flow, the ERES events that have been introduced
are Service Request Approval to obtain approvals during the service request lifecycle
for installation and Debrief Report for the completion of the device installation by the
field service technician with associated test data.
3.6.2.1.2. Complaint Files
Per section 21 CFR 820.198, each manufacturer shall maintain complaint files,
establish and maintain procedures for receiving, reviewing, and evaluating
complaints by a formally designated unit.
The steps in the complaints processing business flow in Oracle Applications are
carried out in the Oracle Service and Oracle Quality modules. The key steps in the
installation business flow and how it maps to Oracle Applications is described below:
• Complaint Logging, Evaluation and Validation ⇒ Service Request creation

and update with associated approvals
• Identification and assignment of Complaint Investigation Tasks ⇒ Related

Service Request creation and update with associated approvals
• Recording of investigation test results ⇒ Quality Results collection
• Completion of Investigation Tasks ⇒ Related Service Request closure and

field service debrief (if applicable)
• Reportable Event Determination ⇒ Related Service Request creation and

update with associated approvals
• Reportable Event Data entry and maintenance ⇒ Quality Results collection
• Corrective Action logging, implementation and it’s entire lifecycle ⇒ Oracle

Quality Corrective Action Solution
• Complaint Closure ⇒ Service Request Closure with associated approvals
To support the complaints business flow, the ERES events that have been introduced
are Service Request Approval to obtain approvals during different phases of the
complaints lifecycle and Debrief Report (if applicable) for any completion of the
complaint investigation tasks. The ERES events for Oracle Quality in 11.5.10 have
been re-used with enhancements to support deferred approvals and to be triggered
from a service request.
3.6.2.1.3. Servicing

Per section 21 CFR 820.200, each manufacturer shall establish and maintain
instructions and procedures for performing and verifying that the servicing meets the
specified requirements.
The steps in the servicing business flow in Oracle Applications are carried out in the
Oracle Service, Oracle Quality, Oracle Field Service and Oracle Depot Repair
modules. The key steps in the installation business flow and how it maps to Oracle
Applications is described below:
• Request for Service ⇒ Service Request creation and update with associated
approvals
• Service Task creation and assignment ⇒ Field Service Task Dispatch and
Assignment for Field Service or Depot Repair Task for in-house repair
• Recording of test and inspection data ⇒ Quality Results collection
• Completion of Servicing Tasks ⇒ Submission of Debrief Report
• Closure of Service Request ⇒ Service Request closure with associated

approvals
To support the servicing business flow, the ERES events that have been introduced
are Service Request Approval to obtain approvals during different phases of the
service request lifecycle and Debrief Report for any completion of the field service or
depot repair tasks. The ERES events for Oracle Quality in 11.5.10 have been re-used
with enhancements to support deferred approvals to collect test and inspection data.
3.6.2.1.4. ERES Business Events Supported
To satisfy the requirements for the installation, complaints and servicing of medical
devices as governed by 21 CFR Part 820, the following business events have been
enabled for electronic records and electronic signatures in Oracle Applications:
Event E-Record E-Signature Navigation Description
Service Yes Yes – Service Requests For Service Request

Request Deferred > Create /Update approval that covers the
Approval Service Requests business flows for
installation, complaints
and servicing as described
in sections 3.6.2.1.1,
3.6.2.1.2 and 3.6.2.1.3

Quality Yes Yes – Service Requests For test, inspection and
Results Deferred > Update Service other types of quality data
Creation Requests > Enter as described in sections
and Quality Results 3.6.2.1.1, 3.6.2.1.2 and
Update 3.6.2.1.3
Depot
Workbench > Note: Corrective Action
Repair Tasks > Request (CAR) ERES
Enter Quality events were introduced in
Results 11.5.10
Quality > Results

> Enter / Update
Quality Results
Debrief Yes Yes – Online Field Service For service completion of

Report Technician tasks as described in
Dashboard > sections 3.6.2.1.1,
Task > Debrief 3.6.2.1.2 and 3.6.2.1.3
3.6.2.2. E-Records Usability Enhancement – Redlining of Changes to E-Record

One of the key enhancements to the E-Records and E-Signatures system that has been
delivered in Release 12 is the indication to the reviewer or approver of the e-record, the
changes that have been made to the record along with the old and new values of the data
elements in the e-record.
For additional information on this enhancement, please refer to Oracle E-Records section
of this document.

Regulated industries in particular have rigid traceability requirements to identify finished
goods lot/serial as well as any associated sub-assemblies and components. Traceability
may need to be performed for handling customer complaints, product recalls, retrace the
source of any quality problems, etc. The traceability requirements also increase with the
criticality of the device. Although the requirements are driven by 21 CFR Part 820.65 –
Traceability, as it applies to the medical devices industry, it is equally applicable to all
other industry sectors where traceability is important.
The key enhancements are:
• Unified view of lot and serial number genealogy
• Genealogy of Lot Exclusivity
• Quality information as part of Genealogy Inquiry
• Supplier Lot Number in Genealogy Inquiry
• Lot number validation for component return

• Lot and Serial Genealogy Report
For additional information on these enhancements, please refer to the Inventory section
of the Oracle Logistics Release Content Document.
3.6.2.4. Quality Integration with Shop Execution Workstations in WIP, FLM and
OSFM
In Release 12, Work in Process and Shop Floor Management have introduced HTML
interfaces called Discrete Execution Workstation and Shop Floor Execution UI
respectively and Flow Manufacturing has enhanced its Flow Execution Workstation.
Oracle Quality integrates with each of the user interfaces mentioned above. Please refer
to the respective product’s RCD for additional information on this feature.
The HTML interface introduced in 11i10 of Oracle Quality has been enhanced to
integrate with the transactions in WIP, Flow Manufacturing and Shop Floor
Management. The transactions that are integrated with Quality are the same transactions
that were integrated in the desktop forms application. They are:
• Completion Transaction (Work in Process)
• Move Transaction (Work in Process)
• Work Order less Completion (Flow Manufacturing)
• Line Operation Completion (Flow Manufacturing)
• Move Lot based job (Shop Floor Management)
The existing transactions - that are associated to a quality collection plan, transaction
context elements and collection triggers - are retained and will be applicable in the new
HTML interface as well.
With the HTML interface, for the transactions identified above, users will be presented
with a list of applicable quality collection plans for which data can be entered.
Mandatory or optional quality data entry is indicated in the user interface. Users can
enter quality results for a standalone quality collection plan or for a set of parent child
collection plans. The layout of the quality results entry can be configured to be a single
row or multiple rows user interface as part of the collection plan setup.
3.6.2.5. Quality Integration with Depot Repair Tasks

Depot Repair is the Oracle solution for in-house repairs. Depot Repair provides the
ability to perform customer interaction, repair management, and logistics transactions in
the fulfillment repairs. As part of the repair process, it is required to record quality results
at various points during the item repair visit such as receiving, inspection, and repair. For
receiving inspection and repair mode using WIP, Oracle Quality integration already
exists.
In Release 12, quality integration is provided for the task mode of depot repair. To
support this integration new seeded collection elements and a new template collection
plan have been provided. A new transaction and associated collection triggers have been
seeded to trigger entering of quality results in the task mode of depot repair.

3.6.2.6. Quality Integration for OPM Batch Process Nonconformance
Management
In Oracle Process Manufacturing (OPM), as part of the Electronic Batch Record System
(EBRS), nonconformances of a batch process need to be managed. Some of the
nonconformances are allocation deviations, quantity deviations, resource and item
substitutions, etc. For more information on EBRS please refer to the Oracle Process
Manufacturing (OPM) RCD.
A process nonconformance can be initiated from the batch execution forms in OPM such
as batch details, batch steps, material reservations, etc and logged in Oracle Quality.
New quality collection elements related to batches, such as batch number, step number,
process operation, activity, process parameter have been introduced to capture context of
the nonconformance. The Quality Nonconformance Solution Template has been
enhanced to have these new collection elements. Once a process nonconformance has
been logged, it can be monitored, updated and progressed through the phases in the
nonconformance lifecycle.
3.6.2.7. Quality Integration with Asset Operational Status

In Release 12, Oracle Enterprise Asset Management (EAM) has introduced functionality
to support the capability of viewing past and current asset operational statuses. Please
refer to the EAM section of the Oracle Maintenance Management Release Content
Document for more information on this functionality.
In relation to this functionality, EAM has introduced the transactional capability to check
in or check out an asset. For these two transactions, Oracle Quality can be triggered to
collect quality results. A new template collection plan with associated collection
elements, triggers and actions has been introduced. The capability to associate the two
new EAM transactions in Oracle Quality has also been provided.
3.6.2.8. Quality Enhancements for Process Inventory Convergence with Discrete

Inventory
As part of the convergence of discrete and process inventory, several enhancements are
being introduced in Oracle Inventory and the related impacted modules. Please refer to
the Inventory section of the Oracle Logistics Release Content Document to obtain
additional details on the features and enhancements.
Oracle Quality provides the following enhancements as a result of Inventory

Convergence:
• Lot Number Length change
With the increase in inventory lot number from 30 characters to 80 characters, Oracle
Quality has enhanced the lot number collection element and underlying database
schema and user interfaces to support this length increase
• Quality Collection Plan for OPM Receiving Inspection
With the converged inventory model, Oracle Process Manufacturing will be using
Oracle Quality to perform receiving inspection. To achieve this, Oracle Quality has
introduced a new template collection plan with associated new collection elements
(Sampling Group Disposition and Receipt Line Number) for OPM receiving
inspection. The user procedure would include the following steps:

• Purchased material is received
• If sampling in OPM is not required, perform visual inspection and enter

results in Oracle Quality to accept or reject the received material
• If sampling is required, initiate sampling through OPM Quality and

based on the sampling disposition, enter quality results in Oracle
Discrete Quality to accept or reject the received material
• Genealogy Inquiry of Quality information
Oracle Quality data collected for lot and serial numbers can be viewed directly from
the inventory genealogy inquiry screens. It is possible to view the quality collection
plans for a given lot or serial number and the associated quality results,
nonconformances, corrective actions, etc. that were collected. For additional
information, please refer to the Inventory section of this document
3.6.2.9. Quality Enhancements for Multiple Organization Access Control

Multi-Org Access Control enables companies that have implemented a Shared Services
operating model to efficiently process business transactions by allowing them to access,
process, and report on data for an unlimited number of operating units within a single
applications responsibility. This increases the productivity of Shared Service Centers for
users no longer have to switch applications responsibilities when processing transactions
for multiple operating units at a time. Data security is still maintained using security
profiles that are defined for a list of operating units and determine the data access
privileges for a user.
As a result of this feature, existing seeded quality collection elements used in the Quality
integration with Receiving have been enhanced.
3.6.2.10. Quality Audits Solution

Quality Audit is a powerful tool that can be used to measure the effectiveness of the
Quality management System by taking data that are called ‘Facts’ and evaluating the
results called ‘Observations’ or ‘Findings’. An audit is performed to establish the level of
compliance to published standards and document any corrective actions needed. Audit is
a good management tool that can be used to review processes and identify any
weaknesses, risks and areas of future improvement. Audits are also used to check any
previously identified non-conformances to make sure that the corrections have been
implemented.
In order to support this quality business function, in Release 12, Oracle Quality has
introduced solution templates for ‘Quality Audits’. The solution components are similar
to the Nonconformance and Corrective Action solution templates introduced in 11i.9. It
basically consists of seeded collection elements, collection plans and associated actions in
a pre-defined parent-child collection plan structure that can be copied and modified to
suit the implementation needs. The key steps in the audits business flow supported
through the audits solution are:
• Identification and definition of audit scope and audit areas
• Assignment of auditors to the audit areas

• Prepare audit questionnaire and execute audit
• Collect auditee response and corresponding evidence
• Review, evaluate and log findings and corrective actions as necessary
• Follow-up on open actions and close audit
3.6.2.11. Output of Quality Charts in HTML UI

In Release 12, the output of the Oracle Quality charts, viz. pareto, histogram, trend and
control charts, are rendered in an improved html user interface.
The setup steps for the charts remain the same. There are no upgrade or additional setup
steps required. When the user clicks on the “View Chart” button from the respective
chart setup form, the chart output will be available in a separate browser window.
3.7. Oracle Cost Management - CST

3.7.1. Overview
Oracle Cost Management is a comprehensive solution that helps organizations project

costs then perform cost accounting for supply chain transactions. These activities serve
as a key component for complying with regulatory reporting and accounting
requirements, for the streamlined use of working capital in organizations, and improved
profitability for businesses. Oracle Cost Management is part of the Oracle E-Business
Suite, an integrated set of applications that are engineered to work together.
3.7.2. Features
3.7.2.1. Matching Cost of Goods Sold to Revenue

The Matching Principle is a fundamental accounting directive that mandates that revenue
and its associated cost of goods sold must be recognized in the same accounting period.
This enhancement will automate the matching of Cost of Goods Sold (COGS) for a sales
order line to the revenue that is billed for that sales order line. Prior to this enhancement,
the value of goods shipped from inventory were expensed to COGS upon ship confirm,
despite the fact that revenue may not yet have been earned on that shipment. This
enhancement synchronizes the recognition of revenue and COGS in accordance with the
recommendations of generally accepted accounting principles.
3.7.2.1.1. COGS Deferral
The Cost Processor defers the recognition of COGS for a sales order issue transaction
by placing the balance of the cost of the shipment into a deferred COGS account and
journal line type.
3.7.2.1.2. Revenue Recognition Drives COGS Recognition
The Cost Processor now transfers the balance from the deferred account to the COGS
account in the same proportion of revenue recognized for an order line.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Cost Management - CST 23
• Oracle Receivables publishes a business event when the revenue recognition
percentage changes.
• Oracle Cost Management subscribes to this event and adjusts the balances in
the deferred and actual COGS accounts, ensuring that the COGS percentage
equals the revenue recognition percentage.
3.7.2.1.3. Un-invoiced Order Lines
If a sales order shipment line does not get interfaced to Receivables, its associated
deferred COGS balance is transferred to COGS when it is closed. Oracle Order
Management will raise a business event to Cost Management when the non-
interfaced shipment line is closed.
3.7.2.1.4. RMAs with Sales Order Reference
RMAs that reference a sales order shipment line with a deferred COGS balance will
credit that balance when the accounting for the RMA receipt is performed. The
credit will be apportioned between the deferred and actual COGS balances to
maintain the existing revenue/COGS recognition percentage.
3.7.2.1.5. Drop Shipment Support
Revenue/COGS matching is supported in the customer-facing operating unit for drop

shipments to customers. Intermediate (internal) operating units will not defer inter-
org COGS or match it to the inter-org revenue.
3.7.2.1.6. Support for Configured Items
Revenue/COGS matching is supported configured items.
• Assemble-to-Order (ATO) – synchronize and match revenue/COGS

recognition for the top model.
• Pick-to-Order (PTO) – synchronize and match revenue/COGS recognition
for any shippable item for its nearest invoiceable parent, whether that is the
item itself, the top model, an option, option class, etc.
3.7.2.1.7. Cost Ownership for RMA receipt transactions
This enhancement changes the way RMA receipts into inventory are valued.
Previously an RMA receipt replenishes inventory at the current on-hand inventory
valuation. With this enhancement a referenced RMA is received into inventory at its
original sales order issue cost. This ensures accurate and consistent revenue/COGS
matching for RMA receipts.
3.7.2.1.8. Accounting Period Synchronization between Receivables and Costing
This enhancement introduces a dependency in the Receivables and Costing period

close processes. Since the goal is to match revenue and COGS in each accounting
period, Costing will process COGS recognition events in a closed inventory period
until the Receivables period status is set to CLOSED.
3.7.2.1.9. Deferred COGS Reconciliation Report
This report lists revenue/COGS matching by sales order line, displaying the deferred/
actual COGS balances as well as the unearned/earned revenue balances. The report
flags lines where the COGS recognition percentage does not match the revenue
recognition percentage.
3.7.2.2. SLA - Subledger Accounting

The new Oracle Subledger Accounting (SLA) architecture allows users to customize the
standard Oracle accounting entries. As a result of Cost Management’s uptake of this new
architecture, users can customize Receiving, Inventory and Work in Process transactions.
Accounting entries are generated in a manner consistent with previous releases but are
now created within the framework of the new Subledger Accounting architecture. This
allows customers to leverage the following SLA features:
3.7.2.2.1. Flexible Journal Entry Setups

Users can control every aspect of the subledger journal entries associated with a
subledger transaction. Users can define rules based on data drawn from subledger
transactions, controlling which types of journal lines are created, how accounting
flexfields are derived and how journal entries are described.
3.7.2.2.2. Multiple Accounting Representations
Using multiple accounting representations, users can generate journal entries to
multiple accounting ledgers. Each accounting representation generated for a Legal
Entity could represent alternate accounting for the underlying subledger transactions.
Each accounting representation may use different charts of accounts, calendar and
subledger accounting method. If a transaction-level alternate currency is used the
accounting representation may also have different accounting currencies.
3.7.2.2.3. Inquiries, Drilldown, and Reporting
Based on its common data model, SLA provides detailed subledger accounting
reports and inquiries that satisfy local fiscal and business requirements for the
reconciliation between subledger and accounting transactions
Previously, users could customize certain aspects of the standard accounting in Cost
Management using distribution hooks. These customizations will need to re-
implement their extensions within SLA to maintain their customized accounting
behavior.
For more details on this new feature, please refer to the Oracle Financials Release
Content Document.
3.7.2.3. Accrual Reconciliation and Write-Off Enhancements

The Accrual Reconciliation report and the associated Write-Off process are enhanced to
improve processing performance and feature usability.
3.7.2.3.1. Enhanced Load Program
• The transaction data load process is run independently from the Accrual
Reconciliation report generation process.
• Data for balanced accrual transactions are no longer stored. This significantly
reduces the volume of generated data increases processing performance.
• Users may optionally refresh the accrual data. Rather than reloading all data
during each run of the load program users can restrict the data load to data
that has changed since the last run.
3.7.2.3.2. Flexible Accrual Reconciliation Reports
• Three new Accrual Reconciliation reports are available.

• The Accrual Reconciliation Summary Report allows users to view the
accrual accounts with outstanding balances. For each account the accrual
balance by transaction type is displayed.
• The Payables and Purchase Order Accrual Reconciliation Report allow users
to view Payables and PO transactions at the PO distribution and/or
transaction level. At the PO distribution level the report shows the
summarized balances from each transaction source. At the transaction level
the report shows the details of all transactions within a distribution.
• The Miscellaneous Accrual Reconciliation Report allows users to view the
Inventory and miscellaneous Payable transactions in an accrual account.
• All the reports are generated using Oracle XML Publisher technology that
facilitates report customization and allows accrual data to be exported to a
spreadsheet for further analysis.
3.7.2.3.3. Enhanced Write-Offs Process
• Three new accrual Write-Offs forms allow users to write-off aged or

erroneous accrual balances.
• The Payables and Purchase Order Write-Off form displays accrual balances
at the PO distribution level. The user can select a specific distribution and
view the associated transactions for that distribution.
• The Miscellaneous Write-Off form is similar to the 11.5.10 version that lists
ungrouped transactions and allows users to select individual transactions for
write-off.
• Both forms allow users to select all transactions displayed in the query form
facilitating the mass write-off of transactions.
• The View Write-Offs form allows users to view and reverse written-off
transactions.
• A redesigned write-off report allows users to view write-off amounts and
their associated transactions.
• All of the forms generate write-off accounting entries that are transferred to
the General Ledger.
3.7.2.4. Periodic Costing Enhancements

The Periodic Costing Process is enhanced in the following areas:
3.7.2.4.1. Accounting for Inter-Organization Transfers
• The accounting template for periodic costing inter-organization transfers is

now consistent with the template used for perpetual cost methods. The
template adds inter-org Payables/Receivables, in-transit and accounting by
cost group.
• The Periodic Costing accounting template for internal sales order transfers
across Operating Units is now consistent with the template used for perpetual
cost methods. The template adds inter-org COGS and accrual using a
specified transfer price.
3.7.2.4.2. Enhanced Periodic Costing Algorithm
• The periodic item cost is calculated after taking into account all cost owned
transactions rather than being calculated after each transaction. This
enhancement produces a more accurate periodic item cost and minimizes the
generation of variances.
• The Periodic Item Cost Change report provides details on the calculation of
each item’s period end cost.
3.7.2.4.3. Enable MOH Absorption Rules for PAC
• Material overhead absorption rules are now supported in periodic average

cost organizations.
3.7.2.4.4. Periodic Costing Support for EAM
• Enterprise Asset Management work orders are now supported in periodic

average costing organizations.
• The Periodic Cost Estimations processor allows users to estimate EAM work
order costs based on an item’s periodic average cost.
• The Periodic EAM Work Order Report can be used to compare estimated
charges against the actual charges incurred for each EAM work order.
3.7.2.4.5. Support for Final Completion
• Periodic average cost processes respect the WIP job final completion flag. If
the final completion flag is checked, all incurred costs will be absorbed into
the completion cost.
3.7.2.4.6. Completion Costs Based on Required Quantity
• Users can optionally base the completion costs on the required quantity
defined on the job’s Bill of Material rather than the actual quantity issued to
the job.
3.7.2.4.7. Scrap Absorption
• When the completion cost is based on actual quantity, unrelieved scrap

values are absorbed into the completion cost.
• When the completion cost is based on required quantity, unrelieved scrap
values are absorbed into the completion cost only when the final completion
flag is checked.
3.7.2.5. Value Reports Enhancements

3.7.2.5.1. As-of Date
On-hand, Intransit, and Receiving valuation reports have a new optional ‘As-Of
Date’ parameter. When the user specifies an as-of date, the reports display valuation
data up to the specified ‘As-Of Date’. If no date is specified, the report displays
valuation data up to the current system date.
3.7.2.5.2. Reports Changes
The submission process for existing value reports is consolidated to reflect whether
the report displays value by sub-inventory or by cost group. Users of the existing
reports will now run the corresponding reports listed in the New Report column.
Old Report New Report

Inventory Value Report Inventory Value Report – by Subinventory
Inventory Value Report – Warehouse Inventory Value Report – by Cost Group
Management
All Inventories Value Report All Inventories Value Report – by
Subinventory
All Inventories Value Report – Average Costing All Inventories Value Report – by Cost
All Inventories Value Report – Warehouse Group
Management
Elemental Inventory Value Report Elemental Inventory Value Report – by
Subinventory
Elemental Inventory Value Report – Average Elemental Inventory Value Report – by Cost
Costing Group
Elemental Inventory Value Report –
Warehouse Management
The Receiving Value by Destination Account Report, Subinventory Account Value

Report, and Cost Group Account Value Report are now obsolete.
3.7.2.6. Period Close Diagnostics

The period close process is enhanced to allow users to easily identify the pending and
uncosted transactions that prevent period close.
3.7.2.6.1. Forms Drilldown
The existing Inventory Accounting Periods form now supports drilldown to the
associated transaction forms. This allows users to more quickly view the details of
the transactions that preventing period close.
3.7.2.6.2. Workflow to Notify Users of Errors in Costing

A new workflow notifies users of transactions that fail the costing process. This
facilitates the timely identification and resolution of costing errors and minimizes
problems during the period close process.
3.7.2.6.3. Period Close Pending Transactions Report
This new report displays the details of all transactions preventing period close. This
report, based on Oracle XML Publisher technology can be easily customized to meet
user requirements.
3.7.2.7. Discrete/ OPM Inventory Convergence

Oracle Cost Management adds its support to the OPM (Oracle Process Manufacturing)
Inventory convergence initiative. In the past, Oracle process manufacturing customers
used OPM’s Inventory Management module. With this release OPM customers can
migrate to Oracle Inventory for their inventory management needs.
This integration provides OPM users with a seamless integration to the e-Business Suite
while maintaining the existing user experience for discrete users. It is important to note
that the discrete Oracle Cost Management Costing and OPM Process Costing
applications are not converged and remain distinct applications.
• Oracle Cost Management forms, concurrent programs and reports are modified to
prevent an OPM organization user from accessing discrete costing setup forms,
reports and other programs. This validation is needed to ensure that process
transactions are not accounted for in both the discrete and process costing
applications.
• Material transfers between process and discrete inventory organizations are

costed based on a specified transfer price. A new “Interorg Profit/Loss” account,
captures the difference between the sending organization’s periodic cost and
transfer price.
For more details on OPM Inventory Convergence, please refer to the Oracle Process
Manufacturing Release Content Document.
3.7.2.8. Fixed Component Usage Support

This enhancement adds support for lot-based materials that have a fixed usage regardless
of the job size for discrete WIP jobs, OSFM lot-based jobs and Flow Manufacturing. This
feature provides a more accurate valuation of assembly cost where fixed quantities of
materials are used for a job.
For more details on this feature, please prefer to the Work in Process section of this
document.
3.7.2.9. Component Yield Support

Users now have the flexibility to control the value of component yield factors at WIP job
level. The transaction logic now considers pre-yield BOM quantity per assembly rather
than the quantity inflated by shrinkage. This enhancement eliminates the generation of
unrealizable decimal quantities in WIP jobs.
Users can continue to have the backflush transactions include the yield by using the new
“Include Component Yield” parameter in the WIP Parameters form. If the parameter is
unchecked, backflush transactions will not consider component yield. The user can
control the actual quantities used by either overriding the quantity during backflush
transactions or by entering manual component issue transactions.
For more details on this new feature, please refer to the Work in Process section of this
document.
3.7.2.10. Period End Accruals Enhancements

Enhancements to the Period End Accruals program and the Uninvoiced Receipts report
provide performance and usability improvements.
3.7.2.10.1. Calculate Accrual Balances at PO Distribution Level
• In prior releases, the period-end accruals process calculated an accrual

amount at the PO shipment level and prorated it among its associated
accounting distributions. In this release the accrual amount is calculated at
the accounting distribution level more accurate accrual accounting entries.
• The Period End Accruals program and the Uninvoiced Receipts report now
use a common API. This change eliminates differences in calculated amounts
in the two processes.
• The Uninvoiced Receipts report layout now displays the accrual amount,
received quantity, billed quantity and unit price at the PO distribution level.
The sum of these accrual amounts along with PO currency and functional
currency is displayed at the PO shipment level.
• The period end accruals process in Periodic Costing is modified to calculate
accrual balances at the PO distribution level.
3.7.2.10.2. Exclude Prepayment type of Invoices
• The period end accruals program and the Uninvoiced Receipts report process
now correctly exclude factor prepayments in the accrual calculations.
3.7.2.11. Ledger Architecture/Legal Entity uptake

Oracle Cost Management processes are enhanced to support the new Ledger and Legal
Entity architecture. In this new architecture, Ledgers replace Set of Books. Each
Operating Unit is associated with a Primary Ledger. Multiple Legal Entities can be tied to
a Ledger through the accounting set up flow. The existing link between Operating Unit
and Legal Entity is no longer be maintained.
For more details on this new feature, please refer to the Oracle Financials Release
Content Document.
3.7.2.12. Multi-Org Access Control

Multi-Org Access Control enables companies that implement a Shared Services operating
model to efficiently process business transactions by allowing them to access, process,
and report on data for an unlimited number of operating units within a single applications
responsibility. This increases the productivity of Shared Service Centers as users no
longer have to switch applications responsibilities when simultaneously processing
transactions for multiple operating units. Data security is maintained using security
profiles that are defined for a list of operating units and determine the data access
privileges for a user.
For more details on this new feature, please refer to the Release 12 Oracle Financials
Release Content Document.
3.7.2.13. Cost Rollup Enhancements

3.7.2.13.1. Creating Snapshot of Bill of Materials
The Supply Chain Rollup process is enhanced to optionally store a snapshot of the
Bill of Materials used. The snapshot is copied to an alternate Bill of Material as
specified by the user.
3.7.2.13.2. Decommission Assembly Cost rollup
• Assembly Cost Rollup is obsolete and replaced by the Supply Chain Cost
Rollup process.
• The Consolidated Bill of Material report and the Indented Bill of Material
report that are based on the Assembly Cost Rollup are now obsolete. These
are replaced by the Supply Chain Consolidated Bill of Material report and
the Supply Chain Indented Bill of Material report.
3.7.2.14. EAM Enhancements

3.7.2.14.1. EAM Direct Item Delivery of PO Service Lines
Oracle Cost Management now supports direct item delivery of service line types to
EAM work orders. There is however no support for Outside Processing.
3.7.2.14.2. Install Base Convergence
The Cost Estimations process and the Cost processor are enhanced to support the
mapping between an EAM Asset and an IB Instance.
3.7.2.14.3. EAM Budgeting and Forecasting Support
In prior releases costs calculated by the cost estimations process are stored on the
basis of maintenance cost buckets:
• Equipment
• Labor
• Material
This method of bucketing estimated charges does not provide visibility as to the GL
accounts being charged. The Cost Estimations process is modified to specify the GL
accounts that are setup to be charged. This information can then be used for
budgeting and forecasting purposes.
For more information on these features, please refer to the Enterprise Asset
Management section of the Oracle Maintenance Management Release Content
Document.
3.7.2.15. Costing Support for Chargeable Subcontracting

Oracle Cost Management now supports costing for Chargeable Subcontracting.
Chargeable Subcontracting is a concept used in Japan, Korea and Taiwan with
subcontract manufacturers. On delivery of OSA items any difference between current
standard cost and OSA price is posted to a Chargeable Subcontracting Variance account
instead of a Purchase Price Variance account.
3.7.2.16. Payables Invoice Lines Architecture

Oracle Cost Management adds support for the architectural changes introduced by Oracle
Payables in this release. The Period-End Accruals, Accrual Reconciliation and Periodic
Costing processes and the associated reports are enhanced to support the new Payables
architecture.
For more details on the new Oracle Payables technical architecture, please refer to the
Oracle Payables Release Content Document.
3.7.2.17. Bonus During Moves

Oracle Cost Management adds support for the new Bonus During Move transaction
introduced by Oracle Shop Floor Management. This OSFM feature allows an operator to
enter the progress of a job in terms of bonus, scrap and good quantity at each operation.
The Bonus transaction entered during a move is costed in the same manner as an Update
Quantity transaction.
For more details on the new transaction, please refer to the Shop Floor Management
section of this document.
3.7.2.18. Job Close in PL/SQL

In this release, the job close program and the job close variance program are migrated
from Pro*C to PL/SQL. This enhancement provides performance improvements but does
not change job close functionality.
3.8. Oracle Item Master - ITM

3.8.1. Overview
Item Master manages the core entity ‘Item’ that is the basis for all of Oracle
Manufacturing. Item Master allows customers to manage their items’ information – such
as item attributes, status control attributes – ‘Transactable, Purchasable, Stockable etc.’,
flex attributes etc. In addition, item related information is supported – file attachments,
related items, cross-references, etc. Item Master supports multi-organization capabilities
and gives the ability to define control attributes at Master Organization or child
organization as the business case demands. Item revisioning capability offers ability to
maintain item revisions and data specific to item revisions. Users can create user item
types and usage of items in various business scenarios – such as managing manufacturing
items, assets, services, etc. Item Master in conjunction with Oracle Inventory, Bills of
Material, Engineering, Order Management, MRP/MPS, OSFM, WIP, etc. offers a
powerful enterprise solution for businesses worldwide. Oracle Item Master is part of the
Oracle E-Business Suite, an integrated set of applications that are engineered to work
together.
3.8.2. Features
3.8.2.1. APS - Service Requirements Planning

Planning and execution has the following additional attributes:
Repair Lead-time –Time to repair the part at the supplier site. The definition is always
in context with the final usable part or product and not based on the defective part
Repair Yield - Yield when a defective part is repaired/upgraded to a new part. The
definition is always in context with the final usable part or product and not based on the
defective part.
Pre-positioning Point - The Pre-positioning Point represents the Push type of

relationship with the trading partner. When planning hits a Pre-positioning point for an
item organization, it will push all the existing supply downstream till this point.
Repair Program - defines the relationship with the vendor for the repair item.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Item Master - ITM 32
3.8.2.2. APS - Deployment Planning
Validation changes are made for item attribute Safety Stock Method. The validation is as
follows:
Safety Stock Method can be MRP Planned % if either of “Planning Method = MRP /
MPS Planned or DRP Planned = Checked” is true.
3.8.2.3. JMF – Chargeable Subcontracting

New Item Attributes are added for Planning and Purchasing for Chargeable
Subcontracting
Subcontracting Component - Indicates whether the sub-contracting type associated to

this item when it is used as a sub-contracting component in Chargeable Subcontracting.
The attribute control is at Org level
Outsourced Assembly - ORACLE PURCHASING ONLY
Identifies whether an item is Outsourced Assembly item or not. Control Level:

Organization
3.8.2.4. ITM – OPM-Discrete Item Master Convergence: Attribution

The Oracle Process Manufacturing (OPM) item master is converged to the Oracle
Discrete Manufacturing item master. Additionally, several new attributes have been
added to the item entity and some changes have been made to existing item attributes.
Additonally, the OPM item master has thirty Descriptive Flex Fields (DFFs) whereas the
Discrete item master has fifteen DFFs. The Discrete DFF attributes have been extended
to thirty attributes to accommodate all of the OPM DFF attributes.
The following OPM attributes are added to the Discrete item master definition:
3.8.2.4.1. Dual Unit of Measure (UoM) Control Attributes

While some of these fields have been included in the Discrete item master, they now
are functional:
• Tracking Quantity
• Pricing Source
• Secondary Default
• Secondary UoM
• Deviation + (%)
• Deviation – (%)
During organization assignment, depending on attribute control settings and
secondary UoM usage, item-organization assignments allow the user to modify
Secondary UoM, Pricing, Tracking, Defaulting, and Positive / Negative Deviation
factors.
3.8.2.4.2. Functional Control Flag Attributes
The following flags are available to control the availability of the items in various
OPM functional areas:
• Recipe Enabled
• Quality Enabled
• Production Enabled
• Process Costing Enabled
• Hazardous Material
3.8.2.4.3. Product Development Attributes
Using the following flag, an item may be designated as an experimental item for the
OPM Product Development process. Note that this flag already exists and is
overloaded to indicate experimental items.
• Experimental Item
3.8.2.4.4. Process Execution Attributes
The following Process Execution attributes are used to determine the supply and
yield locations for the item in a production batch.
• Supply Sub-inventory
• Supply Locator
• Yield Sub-inventory
• Yield Locator
3.8.2.4.5. Regulatory Attributes
The following Regulatory attributes are used to capture the information about
Hazardous Materials. Note that the UN/NA Number and Hazard class fields already
exist in the purchasing tab.
• CAS Number
• UN/NA Number
• Hazard Class
3.8.2.4.6. Inventory Attributes
The following attributes are added to the inventory tab.
• Lot Divisible
• Grade Controlled
• Default Grade
• Retest Interval
• Shelf Life Days (This attribute already exists)
• Expiration Action Interval
• Expiration Action
• Maturity Days
• Hold Days
• Child Lot Enabled
• Parent, Child Generation
• Prefix
• Suffix
• Validation
• Copy Lot Attributes
3.8.2.5. ITM – OPM-Discrete Item Master Convergence: APIs

3.8.2.5.1. Item Creation API
A stored procedure and wrapper function for creating new items based on input from
outside systems
3.8.2.5.2. Item Update API

Offers a stored procedure and wrapper function for updating existing items based on
input from outside systems.
3.8.2.6. Telco - Recurring Charges

Added a new Item attribute - Charge Periodicity - to address recurring charges scenario.
Charge Periodicity - The time unit by which a persistent or recurring service or product
is priced at ordering/quoting time.
3.8.2.7. IP - Procurement Buyer as Contingent Worker

Default Buyer - ORACLE PURCHASING ONLY
‘Contingent worker’ can also be assigned as a Default Buyer for a requisition. PO Buyer
validations are enhanced to accommodate this business case.
3.8.2.8. MLS Enable Item Status and Item templates

MLS support is enabled for Item Status and templates.
3.8.2.9. WMS - RFID, EPC & GTIN Compliance

New item attribute has been added for an Item-GTIN cross reference which is used to
track a serial counter / sequence number for a GTIN. This is required based on a Wal-
Mart mandate that all pallets and cases shipped to them include an RFID encoding of the
GTIN + serial.
3.8.2.10. CZ – Make Item Attributes Visible for CZ Rules Engine

User Defined Item Attribute Groups are enabled for Configurator and Configurator can
consume these values in its ecosystem.
3.8.2.11. FIN - Item Attribute Changes to Support E-Business Tax (ZX) Initiative
Current tax code attributes for Receivables and Purchasing are modified to use the new
tax classification data model.
Input Tax Classification Code - ORACLE PURCHASING ONLY
Existing “Tax Code” field is renamed to Input Tax Classification Code.
Output Tax Classification Code - ORACLE RECEIVABLES AND ORACLE ORDER

ENTRY ONLY
Existing “Tax Code” field is renamed to Output Tax Classification Code.
3.8.2.12. MFG - EAM – Item Attribute Changes to Support Transactable Asset

Groups
Removed item validation to allow Asset Groups to be transactable. Added validation and
upgrade script to ensure that Asset Groups and Re-buildable Items are install base
trackable.
Asset Group Item
• Allows Item to be Stockable and Transactable. Currently Asset group Item

cannot be transactable.
• Allows Serial control be only “Predefined” and “At Receipt” for Asset Group.
Currently only “Pre-defined” is allowed.
• Item must be IB Trackable. Value of the attribute “Track in Installed Base” in

the service tab should be Yes. In Asset Group template the “Track in Installed
Base” attribute should be checked by default. Currently it is not checked.
Rebuildable Item
For serial controlled Items, Track in Installed Base attribute should be set toYes.
Currently Track in Installed Base attribute value is optional.
3.9. Oracle Bills of Material - BOM

3.9.1. Overview
Oracle Bills of Material (BOM) is used throughout Oracle Manufacturing for managing
item lists and hierarchy of product structures. Oracle Bills of Material is used in –
Inventory, MRP/MPS, Order Management, Engineering, Costing, Work In Process, etc.
Since Oracle Manufacturing supports several types of items that can have bills of
material, there are several bills of material types. The most common type of bill is a
standard bill of material. A standard bill of material lists the components that are
associated with a product or subassembly. It specifies the required quantity for each
component plus other information to control work in process, material planning, and
other Oracle Manufacturing functions. Other common definitions are model and option
class, planning and product family bills of material. For each of these types you can
define both primary and alternate BOMs. Oracle Bills of Material is part of the Oracle E-
Business Suite, an integrated set of applications that are engineered to work together.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Bills of Material - BOM 36
3.9.2. Features
3.9.2.1. APS - Sequencing Window on Dept-Resource Entity

Added an additional attribute added for identifying the sequencing window for a resource
within a department on a Department Resource Form.
3.9.2.2. APS - Batchable Resource Validations in Routing Form

Added a new attribute on the resource definition form to identify if a resource is
batchable.
3.9.2.3. APS - Usability Improvements in Setup Changeovers Screen

Enhanced usability of Penalty and Change over definition interfaces. Significantly
improved Setups and change over User Interface for mass maintenance of large setup
matrices (FROM multiple setup types TO multiple setup types)
3.9.2.4. MFG - Enhance BOM to Capture Inverse Usage

A new attribute is introduced in the BOM Definition Form to support an inverse of
component quantity.
3.9.2.5. MFG - Expanding OSFM into MES

• Down Codes definition at Operation - Defining Down Codes for Resources of
Type Equipment
• Bonus and Scrap Reason Codes - Defining Bonus and Scrap Reason codes at the
Standard and non-Standard Operation Level
• Low Yield Trigger - Introduced a new tab in the Standard Operation Form for
shop floor transaction attributes - Lowest Acceptable Yield, Use Organization
Settings, Move In, Move Out, Show Next Operation By Default, Track Multiple
Resource Usage Dates, Show Lot Attributes, Show Scrap Codes
3.9.2.6. MFG – Fixed Component Usage on the BOM for WIP and OSFM
Traditionally, the quantity of a component in a BOM has been restricted to 'quantity per
assembly'. Users now can designate a lot-based quantity for a component or substitute
component rather than a quantity per assembly.
3.9.2.7. OPM - Convergence to Discrete Manufacturing Calendar and Validations

for Process Organizations
There is a new ORG classification to designate an ORG to be a Process ORG and this
enhancement will prevent model option class type of BOMs from being updated and
ordered in a Process ORG.
3.9.2.8. BOM – Batch Import Capability for Open Interface for Bills of Material
Users can segment the import data by assigning a batch identifier and launching the open
interface using that identifier. This allows the user to break down large datasets and
process them concurrently.
R12 Discrete Mfg. Release Content Document, Rev. 01 Oracle Bills of Material - BOM 37
3.9.2.9. BOM – Material Control Attribute Updates for Common BOM
While retaining the common BOM relationship, user’s can now update certain
component attributes at the organization level. These attributes are:
• Operation Sequence
• WIP Supply Type
• Sub-inventory
• Locator
• Include in cost roll-up
3.10. Chargeable Subcontracting

3.10.1. Overview
Chargeable Subcontracting is a common business practice in Japan. Companies in Korea

and Taiwan are also adopting this. According to this method, the OEM ships and makes a
provisional sale of component materials used to build the assembly at the manufacturing
partner (MP). This is a provisional sale only, the ownership still lies with OEM and the
inventory is reported under OEM's inventory valuation. When the assemblies are
completed and returned to the OEM, the manufacturing partner bills the OEM for the
gross price of the assembly. The receivable from the manufacturing partner is netted
against the OEM's payable to the manufacturing partner such that the financial settlement
of accounts is streamlined and represents only the value addition by the manufacturing
partner. This business practice is populary known as Shikyu in Japan and Korea.
Chargeable Subcontracting functionality helps you to easily track and manage your
extended manufacturing with your manufacturing partners.
3.10.2. Features
3.10.2.1. Planning at OEM and MP

Planning considers the OSA (outsourced assembly) requirements in OEM and
appropriately plans for the constituent components required at MP. Both Synchship and
prepositioned material movements are supported.
3.10.2.2. Goods Movement between OEM and MP

Creation of Subcontracting Purchase order triggers automatic creation of the requisite
sales and purchase orders to enable the movement of components from OEM to MP.
Also, the discrete jobs required to assemble the OSA at MP are automatically created.
3.10.2.3. Inventory Tracking and Visibility at MP

You have online visibility into the component stocks available at the MP. Receipt of
OSA against the subcontracting PO in OEM triggers automatic consumption and
R12 Discrete Mfg. Release Content Document, Rev. 01 Chargeable Subcontracting 38

reduction of the component stocks at MP. Further any unforeseen consumptions can be
manually reconciled using a workbench.
3.10.2.4. Financial Settlement Process

Financial settlement is streamlined by appropriately netting the receivables and payables
invoices so that you pay the MP only for the value added service.
R12 Discrete Mfg. Release Content Document, Rev. 01 Chargeable Subcontracting 39

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RELEASE CONTENT DOCUMENT

Prepared by Discrete Manufacturing Product Management Team

Last Updated: 8/23/2006

Copyright © 2006, Oracle. All rights reserved.

R12 Discrete Mfg. Release Content Document, Rev. 01 ii

R12 Discrete Mfg. Release Content Document, Rev. 01 iii

R12 Discrete Mfg. Release Content Document, Rev. 01 iv

R12 Discrete Mfg. Release Content Document, Rev. 01 Purpose of Document 1

2.1. Purpose of Document

2.2. Reference Documents

R12 Discrete Mfg. Release Content Document, Rev. 01 Purpose of Document 2

• Oracle Work in Process (WIP)

3.1. Oracle Work in Process - WIP

Oracle Work in Process is a complete production management system that improves

3.1.2.1.1. Configuration preferences

3.1.2.1.2. Dispatch lists

The workstation supports presentation of a dispatch list -- a listing of all job

3.1.2.1.3. Transaction Enhancements

3.1.2.1.4. Streamlined lot and serial capture

When component and assembly lot/serial data need to be entered as part of a

3.1.2.1.5. Exceptions Reporting and Resolution

In addition to these, mass reporting of exceptions is also supported. For example, if

3.1.2.1.6. Shop Floor Supervisor Activities

Current information about problem jobs and machines is presented in a separate

3.1.2.2. Fixed Component Usage Independent of Build Quantity

3.1.2.3. Optional Inclusion or Exclusion of Component Shrinkage in Material

3.1.2.4. Inverse Component Usage

3.1.2.5. Reservation of Discrete Job as Source of Supply through Inventory

3.1.2.6. Reservation of Completed Serialized Assemblies through Inventory

3.1.2.7. Mobile Return of Assembly Reserved to a Sales Order

3.1.2.8.1. Print Gantt Charts

• Specifying the date and time range for the printout

• Printing the snapshot of the “as is” Gantt view

• Printing Gantt for a chosen timeline bucket

• Limiting the number of jobs or resources to avoid a cluttered display

3.1.2.8.2. Restore last-worked customized views

3.1.2.8.3. Additional tool tip for Resource and Job Workbench

3.1.2.8.4. Schedule over long time ranges in the Resource Workbench

3.1.2.9. Genealogy Enhancements

3.1.2.10. Enhancements to Lot/Serial Entry during Backflush

3.2. Oracle Shop Floor Management - OSFM

3.2.2.1. Support for Lot and Serial Controlled Assemblies

The solution supports:

• Point of association (operation in the network routing) of serial numbers to the

• Generation of serial numbers by the system

• Genealogy with Lot/Serial details

3.2.2.2. Enhanced Shop Floor Execution Capabilities

Leveraging the latest OAF (Oracle Applications Framework) architecture available in E-

Some of the features are:

• Ability to define low-yield triggers for individual operations

• Ability to track secondary quantities on lot based jobs across different

• Ability to see information on a job traveler and attachments

3.2.2.3. Sales Order Reservation for Lot-Based Jobs

3.2.2.4. Fixed Component Usage Support for Lot-Based Jobs

3.2.2.5. Support for Partial Move Transactions

3.2.2.6. Enhanced BOM to Capture Inverse Usage

3.2.2.7. Planning Enhancements for OSFM

• Enhanced Gantt chart capabilities and enhanced planner’s workbench gives

3.2.2.8. Genealogy Enhancements