Document History

This document will continue to evolve as existing sections change and new information is added. All updates appear in the following table:

Date	Update Version	Notes
20 OCT 2017	Update 17D	New features delivered in update 17D.
09 OCT 2017	Update 17C	Revised update 17C.
21 APR 2017	Update 17B	New features delivered in update 17B.

Update 17D

Revision History

This document will continue to evolve as existing sections change and new information is added. All updates appear in the following table:

Date	Feature	Notes
20 OCT 2017		Created initial document.

Overview

This guide outlines the information you need to know about new or improved functionality in this update, and describes any tasks you might need to perform for the update. Each section includes a brief description of the feature, the steps you need to take to enable or begin using the feature, any tips or considerations that you should keep in mind, and the resources available to help you.

Security and New Features

The Role section of each feature in this guide identifies the security privilege and job role required to use the feature. If feature setup is required, then the Application Implementation Consultant job role is required to perform the setup unless otherwise indicated.

If you have created custom job roles, then you can use this information to add new privileges to those roles as needed.

GIVE US FEEDBACK

We welcome your comments and suggestions to improve the content. Please send us your feedback at oracle_fusion_applications_help_ww_grp@oracle.com.

Optional Uptake of New Features (Opt In)

We continue to add many new features to the Oracle Cloud Applications, and for some features, you can take advantage of new functionality at a pace that suits you by “opting in” to the feature when you’re ready. You can opt in to a feature in two ways:  by using the New Features work area, or by using the Setup and Maintenance work area.

To opt in using the New Features work area:

1. Click the Navigator, and then click New Features (under the My Enterprise heading).
2. On the New Features page, select the offering that includes new features you’d like to review.
3. Click Opt In for any feature that you want to opt in to.
4. On the Edit Features page, select the Enable option for the feature, and then click Done.

To opt in using the Setup and Maintenance work area:

1. Click the Navigator, and then click Setup and Maintenance.
2. On the Setup page, select your offering, and then click Change Feature Opt In.
3. On the Opt In page, click the Edit Features icon.
4. On the Edit Features page, select the Enable option for any feature you want to opt in to. If the Enable column includes an Edit icon instead of a check box, then click the icon, select your feature options, and click Save and Close. 
5. Click Done.

Update Tasks

This section gives you information to help you plan, deploy, and validate your update. We make frequent additions to this document, so don’t forget to check back and get the latest information before your update starts.

Feature Summary

Inventory Management

Manage and Distribute Shipping Documents

In the complex world of global trade, many countries require specific approved document formats and specific document processing protocol to ensure shipping documents are not fraudulent. There are a variety of requirements around sales invoices, shipping documents, auditing requirements, and reporting.

The term Shipping Documents is used to describe a complex process involving multiple applications and multiple fulfillment scenarios that result in the generation of a series of shipping documents. It includes the distribution of those documents by multiple mechanisms to a variety of trading partners, the documents required to accompany a shipment, and the documents to be filed with various fiscal agencies.

As a Warehouse Manager or Shipping Manager, you can define sets of shipping documents, called Shipping Document Sets, and use them to generate shipping documents at pick release or shipping confirmation. By creating Shipping Document Sets you can:

• Automate the generation of shipping paperwork as early as pick release or as late as shipping confirmation
• Improve productivity and accuracy by using rules to allow the system to determine which documents to generate
• Improve operational efficiency by having the system determine the shipping document format and delivery mechanism

To manage and distribute shipping documents in Inventory Management Cloud, perform the following setup activities:

• Define the Shipping Document Set as Job Set.
• Define Shipping Document Job Set Business Rules using Oracle Visual Information Builder to create simple or complex rules.
• Define shipping document delivery preferences to send documents to a printer, email, or fax.

Once this setup is complete, the documents are automatically generated when transactions are released for picking or ship confirmed.

DEFINE THE SHIPPING DOCUMENT SET AS A JOB SET

Create a job set to group your shipping documents and define which shipping documents should be generated together. Use the Manage Custom Enterprise Scheduler Jobs for Financial and Supply Chain Management and Related Applications page to create and manage your shipping document job sets. You can define a group of standard or user-defined shipping reports as document sets.

The Shipping Document Sets can be:

• User-defined documents and job sets for any business scenarios
• Used to generate documents at pick release and shipment confirmation
• Defined with Oracle Business Rules in Oracle Visual Information Builder

DEFINE SHIPPING DOCUMENT JOB SET BUSINESS RULES

Use the Manage Shipping Documents Job Set Rules page to set up the rules to use to determine which shipping documents are generated. This page leverages Oracle Visual Information Builder, which lets you create simple or complex business rules using intuitive visuals to build if-do or if-then-else-do rules. These rules can be simple or complex nested decision trees.

Create shipping document job set rules using any of the following shipment attributes:

• Ship-to Organization
• Ship-from Organization
• Customer
• Customer Site
• Customer Country
• Supplier
• Supplier Site
• Order Type
• Carrier
• Shipping Method

DEFINE SHIPPING DOCUMENT DELIVERY PREFERENCES

Automate the delivery of the shipping documents by setting output preferences and the delivery mechanism for the documents. Use the Manage Shipping Document Output Preferences to:

• Define shipping document output preference such as email, fax, and printer
• Define output preferences based on user, job role, organization, and subinventory
• Attach shipping documents to a shipment as attachments

Define output preferences either at the job set level or at the job level. Some job level preferences like format and layout will default from the Oracle Business Intelligence Publisher server.

INTEGRATION ENABLED

Automate the shipping paperwork trail and fetch shipping documents from the Inventory Management Cloud and send them to third-party systems. Leverage Oracle Integration Cloud Service (ICS) to get shipping documents associated with a shipment and integrate to a third-party system to send them. Use the Shipping Advice web service to get shipping documents for any shipment and send them to another system. If the document job set was run for the shipment and the documents are associated with a shipment, you can fetch documents for:

• Any status for a single shipment
• A range of shipments
• A range of shipment dates

Shipping Document Sets help you improve your operational efficiency and productivity by providing the tools to automate the generation and distribution of shipping documents.

Steps to Enable

The Manage and Distribute Shipping Documents opt-in feature is introduced in the Shipping functional area in the Manufacturing and Supply Chain Materials Management offering in the Setup and Maintenance work area.

To enable the Manage and Distribute Shipping Documents feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click Change Feature Opt In.
3. On the Opt In: Manufacturing and Supply Chain Materials Management page, click Features for Shipping.
4. On the Edit Features: Shipping page, select Enable for the Manage and Distribute Shipping Documents feature.
5. Click Done.

Once you enable the opt-in, the Manage Shipping Document Job Set Rules and the Manage Shipping Document Output Preferences tasks become available in the Shipping work area.

MANAGE SHIPPING DOCUMENT JOB SET RULES

Manage Shipping Document Job Set Rules

To create a shipping document job set rule:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Shipping functional area.
3. Select the Manage Shipping Document Job Set Rules task.
4. Click Create New Rule to set up the shipping document job set rule based on the seeded shipment attributes.
5. Click Save or Save and Close to save the job set rule.

MANAGE SHIPPING DOCUMENT OUTPUT PREFERENCES

Manage Shipping Document Output Preferences

To define shipping document output preferences:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Shipping functional area.
3. Select the Manage Shipping Document Output Preferences task to define shipping document output preferences (email, fax and printer preferences) to use the functionality to distribute shipping documents.
4. Click Done to save the output preferences.

Tips And Considerations

• You can automate the generation of shipping documents based on the rules configuration.
• You can automate the delivery of the shipping documents by setting output preferences and the delivery mechanism (email, fax, printer) for the documents.
• You can attach shipping documents to the shipment based on a set up.
• You can review the document job set to be applied on a shipment on the Manage Shipments page.
• You can automate and fetch shipping documents from Oracle Inventory Management Cloud and send them to third-party systems by using Oracle Integration Cloud Service (ICS).

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Escalate Self-Service Receiving for Items Not Received

Self-service requesters in your organization sometimes do not receive orders or receive only partial orders from suppliers for a variety of reasons. Some situations do not require buyers to get involved. To help you and your company work more efficiently and to better utilize the time of your buyers, there is a new mechanism to determine when an action should be taken and when the buyers should get involved.

Use Oracle Action Framework to give self-service requesters and buyers the ability to define flexible rules for escalations when they do not receive the goods. With these capabilities, self-service requesters can better articulate when the buyers need to get involved if they do not receive the goods or if they do not receive the goods in full.

Steps to Enable

You must enable the Escalate Self-Service Receiving for Items Not Received feature to use the functionality. This feature is enabled by selecting the Enable checkbox in the Setup and Maintenance work area.

Enable Feature: Escalate Self-Service Receiving for Items Not Received

To enable the Escalate Self-Service Receiving for Items Not Received feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click Change Feature Opt In.
3. On the Opt In: Manufacturing and Supply Chain Materials Management page, click Features for Receiving.
4. On the Edit Features: Receiving page, select Enable for the Escalate Self-Service Receiving for Items Not Received feature.
5. Click Done.

Tips And Considerations

The notifications are available in the BPM Worklist.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Capture Serial Numbers at Pick

Simplify your material handling in the warehouse for serialized goods and delay identification of serial numbers until the last possible point in your materials management lifecycle.

Picking is added to the existing Oracle Inventory Management Cloud options of full serial tracking or tracking at issue. This helps you become more efficient and facilitates your process of packing serialized materials into containers prior to staging those packages for shipment. You can streamline the pick, pack, and ship process and save time and money.

This feature enables you to enter serial numbers further upstream in the fulfillment process, providing the ability to capture serial numbers at the time of picking. Since serial numbers are entered at pick confirmation, the Shipping Agent does not need to scan or enter serial numbers during the ship confirm process. This alleviates work on shipping personnel and results in the efficient processing of outbound shipments.

Serial number tracking and visibility is improved by providing a new entry point in the fulfillment process flow. You can view inventory transactions and the associated serial numbers. For example, you can navigate to the Review Completed Transactions page and view serial numbers entered for inventory transactions such as sales order pick or movement request issue.

To support this feature, the existing user interfaces and web services have been enhanced. The Confirm Pick Slips, Manage Shipment Lines, and Review Completed Transactions pages have been enhanced to support serial number entry at pick. The SOAP and REST-based web services have been expanded to support serial number entry at pick.

Capture Serial Numbers at Pick Process Flow

Steps to Enable

To enable the Capture Serial Number at Pick feature, the serial generation method for the item must be set to Entry at inventory pick in Oracle Product Information Management Cloud.

Serial Generation Method: Entry at Inventory Pick

Do the following steps to enable serial generation method Entry at inventory pick for the item:

1. In the Product Information Management work area, select the Manage Items task.
2. On the Manage Items page, enter your item and click Search.
3. Select your item and click Item.
4. In the Specifications tab, click Inventory.
5. In the Serial region, select Entry at inventory pick for Generation.
6. Click Save.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Pack into Packing Units at Pick

You can pick material directly into shipping containers instead of waiting until the shipping process. This can reduce your packing and shipping tasks for each shipment and help increase your order fulfillment rate. You can also generate shipping documents such as the packing slip and shipping label for the container as it arrives at the shipment staging location.

You can specify the packing unit while confirming the material picked on the Confirm Pick Slip page. 

Confirm Pick Slip: Enter Packing Unit

It reduces the process from three steps to two steps and increases the speed of the shipping function.

Reduced Steps

Steps to Enable

You must enable the Pack into Packing Units at Pick feature in Manufacturing and Supply Chain Materials Management offering to use this feature in Inventory Management. The feature is enabled by selecting the Enable checkbox in the Setup and Maintenance work area.

Feature: Pack into Packing Units at Pick

To enable the Pack into Packing Units at Pick feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click Change Feature Opt In.
3. On the Opt In: Manufacturing and Supply Chain Materials Management page, click Features for Inventory Management.
4. On the Edit Features: Inventory Management page, select Enable for the Pack into Packing Units at Pick feature.
5. Click Done.

Tips And Considerations

• Relaxes the need to set up packing configurations.
• All the existing validations and warnings for capacity will not be available for packing units created using this feature.
• If the lines are already packed, they will be unpacked before packing into the packing unit created using this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Enable Inline Electronic Records and Electronic Signatures for Inventory Management

Companies in regulated industries must keep detailed records of all information pertaining to the manufacture of their products including quality in accordance with the United States Food and Drug Administration (FDA) regulation on electronic records and signatures called 21 Code of Federal Regulations (CFR) Part 11. Oracle E-Signatures and E-Records Cloud is a configurable framework for securely capturing, storing, retrieving, and printing electronic records and signatures.

You can enforce the capture of an inline electronic signature immediately upon creation and update of inventory transactions. You can sign off on a miscellaneous transaction, put away, receipt, receiving transaction correction, and ship confirm and maintain your electronic records to comply with the regulatory requirements.

Capture E-Signature

An electronic signature represents a computer data compilation of any symbol or series of symbols executed, adopted, or authorized by an individual to be the legally binding equivalent of the individual's handwritten signature.

Electronic signatures can be enforced for the following inventory-related transactions:

• Miscellaneous Inventory Transactions
• Receipt Put Away
• Direct Receipts
• Receipt Corrections, and
• Shipment Confirmation

Electronic signatures are captured by way of user ID and password to keep detailed records of inventory and product manufacturing processes.

Once you enable electronic signatures for inventory transactions, the inline electronic signature capture process is initiated when the transaction is submitted. Electronic records are generated and the electronic signatures are captured before the transaction is saved. Notifications are sent to approvers. Depending upon the outcome of the approval, the inventory transaction is either saved or rolled back.

Steps to Enable

You must enable the Capture Electronic Records and Electronic Signatures for SCM Transactions feature must be enabled to use Enable Inline Electronic Records and Electronic Signatures for Inventory Management. The feature is enabled by selecting the Enable checkbox in the Setup and Maintenance work area.

Feature: Capture Electronic Records and Electronic Signatures for SCM Transactions

To enable the Capture Electronic Records and Electronic Signatures for SCM Transactions feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click Change Feature Opt In.
3. On the Opt In: Manufacturing and Supply Chain Materials Management page, click Features for Customers (or Facilities or Suppliers).
4. On the Edit Features page, select Enable for the Capture Electronic Records and Electronic Signatures for SCM Transactions feature.
5. Click Done.

The buyer can receive notifications related to the purchase order through their Business Process Management (BPM) Worklist.

The following new parameters are introduced on the Configure E-Signature Preferences page to enable signature by organization and by transaction:

• Miscellaneous Transaction: Used to enable in-line signatures for miscellaneous transactions.
• Put Away: Used to enable in-line signatures for put away receipts.
• Receipt: Used to enable in-line signatures for receipts with direct receipts.
• Receiving Transaction Correction: Used to enable in-line signatures for correct receipts with direct receipts or put away (for example, only deliver transaction type).
• Ship Confirm: Used to enable in-line signatures for ship confirms.

Configure E-Signature Preferences

Do the following steps enable this feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Customers (or Facilities or Suppliers) functional area and then click the Configure Electronic Signature Preferences task.
3. On the Configuration E-Signature Preferences page, click Add icon.
4. On the Select and Add Organization dialog box, select an organization and click OK.
5. On the Configuration E-Signature Preferences page, select the following:
   • Miscellaneous Transactions
   • Put Away
   • Receipt
   • Receiving Transaction Correction
   • Ship Confirm
6. Click Save and Close.

Tips And Considerations

• You can capture e-signatures for a specific transaction only when the setup parameters are enabled.
• You can retrieve e-signatures created for a transaction by creating a user search. Based on the e-signatures ID field, you can search on the View Receiving Transactions, Manage all Lines, Review Completed Transactions, Completed Transaction Details, Manage Shipments, and Edit Shipment pages.
• The electronic records created are stored in a secured document repository and cannot be modified or deleted. You can search the electronic records based on the transactional information displayed in the electronic record heading in order to retrieve and print an electronic record.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Role Information

The Add Electronic Signatures (EDR_ADD_ESIGNATURES_TRANSACTIONS_PRIV) privilege has been added to the Receiving, Inventory, and Shipping job roles to allow users to capture e-signatures.

Cancel Transfer Orders Automatically

You may have various mechanisms in place to replenish your stock such as:

• Supply planning
• Min-max replenishment
• PAR replenishment processing

When replenishment requires a transfer order and there is not enough quantity on hand to fulfill the request, a shortage occurs, and the result is a backorder for either the full requested amount (when the quantity on hand is zero) or for part of the requested amount. In these situations the remaining quantity not fulfilled will either be fulfilled in the next planning or replenishment cycle, or perhaps fulfilled when the request is expedited and fulfilled from another source or supply. In some situations, you may not want to manage transfer order backorders, or you may want to create a consolidated request based on an up-to-date supply and demand picture thereby reducing the number of requests on the warehouse.

The ability to automatically cancel a transfer order backorder is also known as fill or kill. Meaning, you fill the requested amount with what you have on-hand and cancel the remainder of the request.

When using this feature the system will automatically cancel the quantity that cannot be filled on a transfer order at pick release time, when confirming pick slips and when confirming shipments. For example, if the pick wave action is initiated against a transfer order with an order quantity of 100 and only 95 are available, then the remaining five will be automatically canceled. If the full 100 was released but only 95 was picked, then the five that were not picked would be canceled when recording the pick confirm results. Likewise, if the full 100 was released and pick confirmed but at shipping time only 95 were ship confirmed, then the remaining five would be canceled.

The decision to cancel the remaining quantity on a transfer order is determined based on a hierarchy of options setup at three different levels:

• Destination subinventory level: Allows the cancelation of unfilled quantities on transfer orders that are being delivered to a specific destination subinventory. For example, where the subinventory is mapped as a par location or a store location. In this case, backorders are not managed since the next min-max replenishment cycle running at the subinventory level will just reorder any shortages left due to the remaining quantity being canceled on the previous transfer order request. This option is set at the destination subinventory level using the Manage Subinventories and Locators task.

• Interorganization parameters level: Allows the cancelation of unfilled quantities on transfer orders between a specific source and destination organization. This option is set using the Manage Interorganization Parameters task.

• Inventory organization level: Allows the cancelation of remaining quantities on all transfer orders that are not cancelled based on the option set at either the subinventory or Interorganization parameters levels. This option is set using the Manage Inventory Organizations task.

Steps to Enable

At the destination subinventory level, there is a new Cancel Backorders option that determines whether the cancel decision is made at this level for transfer orders that are being delivered to a specific destination subinventory. This option is set in the Manage Subinventories and Locators task and has the following three values:

• Cancel remaining quantities
• Do not cancel remaining quantities
• Use next level in hierarchy: The next level in the rule hierarchy would be the inventory organization level for intraorganization transfer orders. For interorganization transfer orders the next level in the hierarchy would be the interorganization parameters level.

The default value for this option is Use next level in hierarchy, so no entry is required at this level if the destination subinventory will not be a determining factor in canceling remaining quantities on transfer orders.

MANAGE SUBINVENTORIES AND LOCATORS

Do the following steps to enable the destination subinventory level option for canceling the remaining quantity on transfer orders:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Inventory Management functional area, and then click the Manage Subinventories and Locators task.
3. When using the Create or Edit actions to create or update a subinventory, set the Cancel Backorders option in the Source section to the desired setting.
4. Click Save and Close.

At the interorganization parameters level, there is also a new Cancel Backorders option that determines whether the cancel decision is made at this level for interorganization transfer orders where the option was not applied at the subinventory level. This option is set in the Manage Interorganization Parameters task and has the following values:

• Cancel remaining quantities
• Do not cancel remaining quantities
• Default to source inventory organization level

The default value at this level is Default to source inventory organization level, so no entry is required at this level if the source and destination inventory organization will not be the determining factor in the decision to cancel remaining quantities on transfer orders.

MANAGE INTERORGANIZATION PARAMETERS

Do the following steps to enable the option for canceling the remaining quantity on interorganization transfer orders:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Inventory Management functional area, and then click the Manage Interorganization Parameters task.
3. When using the Create or Edit actions on an interorganzation parameters line, set the Cancel Backorder option to the desired setting.

NOTE: There is an option in the Inventory Destination header as well as the Expense Destination header that allows for application of the rule at this level differently for inventory destination transfer orders versus expense destination transfer orders.

4. Click OK.

At the source inventory organization level, there is a new Automatically cancel transfer order backorders option that determines the cancel decision in cases where the lower levels in the hierarchy have defaulted up to the inventory organization level. This option is set in the Manage Inventory Organization Parameters task. When selected, the value is set to Yes, and when not checked, it is set to No. The default value is unchecked.

MANAGE INVENTORY ORGANIZATIONS

Do the following steps to enable the organization level option for canceling the remaining quantity on transfer orders:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Facilities functional area, and then click the Manage Inventory Organizations task.
3. Enter the organization in the search area and click Search.
4. In the search results, select the organization line and click Manage Organization Parameters.
5. In the General tab, select Automatically cancel transfer order backorders.
6. Click Save.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Use Flexfields in Your Warehouse Management System or Third-Party Logistics Provider Integrations

When you need to extend the integrations for your warehouse management system or third party logistics provider (3PL), Oracle Inventory Management Cloud has added descriptive flexfields to the existing web services to give you more flexibility.

With this feature you would be able to use flexfields:

• At the lot and serial number levels on receipt advices.
• At the line level on outbound shipment requests.
• At the serial number level on shipment confirmations when the item is configured as serial at sales order issue.

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

• The descriptive flexfields supported by this feature are available on the shipment lines in Oracle Shipping Execution.
• Users are recommended to use the Receiving Open Interface and Process Staged Receiving Transactions Group SOAP services to use these descriptive flexfields.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Send Item Cost in Transaction Manager Web Service

When you use the transaction manager web service for miscellaneous transactions, you can send the unit cost for an item.

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Calculate Minimum and Maximum Inventory Replenishment Thresholds

Minimum and maximum inventory thresholds and reordering policies can help ensure the availability of regularly stocked materials. However, maintaining them manually is time consuming, and manual updates are often slow to respond to major changes in demand. This release enhances Oracle Inventory Management Cloud’s min-max replenishment planning capability to support mean demand-based safety stock and replenishment ordering. It automates the maintenance of thresholds and improves customer service levels by dynamically updating the amount of inventory to keep on-hand. It also reduces costs by calculating the economic order quantity for replenishment when appropriate.

You can do the following:

• Define reusable replenishment profiles that set the lead time and historical horizon used to compute the average daily demand, desired safety stock days of cover, maximum days of cover, fixed order quantity, fixed cost per order, annual carrying cost percentage and standard item cost to be used in replenishment policy parameter calculations.
• Reduce maintenance effort by using item classifications to associate replenishment profiles to groups of items (or item categories) with similar characteristics.
• Compute average daily demand, safety stock (specified as days of cover), the economic order quantity (EOQ), minimum and maximum quantity replenishment policy parameters on-demand, or by using a scheduled process.
• Override values for minimum and maximum quantity for manually maintained items at the organization or sub-inventory level.

Generate replenishment orders according to your configured min-max replenishment policies on-demand or by using a scheduled process.

Steps to Enable

• Define classifications under a default classification group: In a classification you associate categories that have similar item attributes. For example, you can create a classification for item cost, such as High Cost or Low Cost. Use the Manage Min-Max Planning Classification Groups task to create classifications and associate categories to each classification.

• Define policy profiles: A policy profile is a place holder for the input policy parameters. Based on the policy parameters, the minimum quantity and maximum quantity are calculated. Use the Manage Min-Max Planning Policy Profiles task to define a policy profile.

• Assign policy profiles to classifications: Policy profiles can be assigned at classification, organization, and subinventory levels. Use the Manage Min-Max Planning Policy Profile Assignments task to assign policy profiles to classifications.

• Run the Calculate Min-Max Planning Policy Parameters process: Run the Calculate Min-Max Planning Policy Parameters process to calculate the replenishment minimum and maximum quantities.

Tips And Considerations

• Items need to be classified into different classifications depending on the requirement of similar input policy parameters.

• Standard cost of the items need to be calculated if you would like to use Economic Order Quantity for calculating maximum quantity.

• Ensure you have sufficient inventory transactions history to compute average daily demand.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Guide, available on the Oracle Help Center.

Role Information

Access to this feature is available through the following shipped job roles:

• Warehouse Manager 
• Inventory Manager

Cost Management

Analyze Cost Rollup and Component Usage Details

You perform ad-hoc cost planning, execution reporting, and analysis for cost accountants and business users by using the Oracle Transactional Business Intelligence subject areas for Oracle Cost Management Cloud. This reporting covers cost information related to standard costing of items, costing of inventory and manufacturing transactions, supplier accruals, gross margins, and cost processing exceptions.

The timely and accurate reporting of an enterprise’s financial results is contingent on an efficient and effective close of accounting periods for organizations throughout the enterprise. The ability to quickly identify and correct cost-processing exceptions on a daily basis ensures that all inventory and manufacturing transactions are duly processed and accounted within the desired accounting period.

In this release, you can generate spreadsheet extracts and build reports according to your business needs in the following new Oracle Transactional Business Intelligence subject areas:

• Cost Rollup Details: You can generate lists and reports that show material, resource, and overhead costs for the sub-assemblies defined in your work definitions:
  • You can generate indented work definition reports for a cost scenario that show the rolled up standard cost of a parent item and its sub-assemblies and components in each level of the work definition.
  • You can compare the costs of cost rollups performed in different cost scenarios. This is useful when you need to evaluate the financial impacts of updates to your current frozen standard costs.
  • View the details of exceptions and errors encountered during the cost rollup process. This information reduces the time required to analyze and correct the cost rollup processing exceptions.
  • View item cost details for configured items.
• Where Used Details: You can generate lists and reports that show the sub-assemblies and components where a specified item is used.

Steps to Enable

No steps are required to enable this feature.

Update 17C

Revision History

This document will continue to evolve as existing sections change and new information is added. All updates appear in the following table:

Date	Feature	Notes
09 OCT 2017	Analyze Manufacturing and Inventory Cost Details	Updated document. Revised Action Required information..
01 SEP 2017		Created initial document.

Overview

This guide outlines the information you need to know about new or improved functionality in this update, and describes any tasks you might need to perform for the update. Each section includes a brief description of the feature, the steps you need to take to enable or begin using the feature, any tips or considerations that you should keep in mind, and the resources available to help you.

SECURITY & NEW FEATURES

If your system has modified security structures, you may need to advise your security administrator of new features you would like to take advantage of.

GIVE US FEEDBACK

We welcome your comments and suggestions to improve the content. Please send us your feedback at oracle_fusion_applications_help_ww_grp@oracle.com.

Optional Uptake of New Features (Opt In)

We continue to add many new features to Oracle Cloud Applications and we now give you the option to take advantage of new functionality at a pace that suits you. The ‘New Features UI’ is available to you from your cloud homepage, where you can make your choices and do any configuration necessary.

Update Tasks

This section gives you information to help you plan, deploy, and validate your update. We make frequent additions to this document, so don’t forget to check back and get the latest information before your update starts.

Release Feature Summary

	Action Required to Enable Feature
Feature	Automatically Available	End User Action Required	Administrator Action Required	Oracle Service Request Required
Inventory Management
Distribute Shipping Documents
Increase Visibility with New Transactional Business Intelligence Subject Areas
View Item Supply and Demand
Mass Cancel Transfer Orders
Define ABC Classifications by Item Cost
Cost Management
Enter and View Dates in Legal Entity Time Zones
Define Standard Costs for Externally Sourced Configured Items
Define Standard Cost Overhead for Configure-to-Order Models
Align Standard Costs for Drop Ship Receipts
Use Sales Representative Cost Center as Source for Account Rules
Analyze Manufacturing and Inventory Cost Details
Manage Cost Processing and Period End Exceptions
Raise Business Event on Standard Cost Update
Fiscal Document Capture
Capture and Validate Import Fiscal Documents
Interface Import Fiscal Document Details to Receiving
Capture Return Fiscal Document
Capture Fiscal Document Issued by Third-Party Warehouse Provider
Supply Chain Financial Orchestration
Use Original Transfer Price for Referenced Sales Order Returns
Pass Supplier Site and Sales Order Type for Use by Intercompany Receivables Invoice Processing
Use Source Order Attributes When Calculating a Transfer Price
Enable External Applications to Retrieve a Transfer Price for a Sales Order Shipping Flow
Streamline Organization Setups Along the Financial Route
Validations in Financial Orchestration Flow (Brazil Organizations only)

Inventory Management

Distribute Shipping Documents

Shipping documents are required to accompany all types of shipments in a variety of fulfillment scenarios from shipments originating from a warehouse to those being managed by trading partners.  In previous releases, you could generate shipping documents for your warehouse shipments using Oracle Business Intelligence Publisher.

In this release, you can generate shipping documents for other kinds of shipments, such as:

• Drop shipments: Send shipping documents to your customer for orders that ship directly from your supplier to your customer.You can also generate Advanced Shipment Notifications (ASN) for drop shipped orders to notify your customer of upcoming shipments coming directly from your supplier.
• Returned goods: Send shipping documents to your customer or carrier to accompany goods to be returned.

To support the distribution of shipping documents to trading parties such as carriers, customers, and suppliers, shipping documents can be attached to the shipment and then made available using the Shipment Advice web service.

In the complex world of global trade, many countries require specific approved document formats and specific document processing protocol to ensure shipping documents are not fraudulent.  There are a variety of requirements around sales invoices, shipping documents, auditing requirements, and reporting.

Steps to Enable

The following new parameters are introduced on the Manage Receiving Parameters page:

• Print shipping documents for drop ship orders
• Print shipping documents for return material authorizations

      Manage Receiving Parameters

The Print shipping documents for drop ship orders parameter is used to generate shipping documents for drop ship order. Similarly, the Print shipping documents for return material authorizations parameter is used to generate the shipping paperwork for customer returns.

The following steps enable this feature:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.

2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Receiving functional area, and then click the Manage Receiving Parameters task.

3. On the Select Organization dialog box, select an organization and click OK.

4. On the Manage Receiving Parameters page, select the following:

• Print shipping documents for drop ship orders
• Print shipping documents for return material authorizations

5. Click Save and Close.

Tips And Considerations

• You can generate Packing Slip, Bill of Lading, and Commercial Invoice for a drop ship, or customer return orders only when the setup parameters are enabled.
• You can retrieve shipments created for drop ship and customer return orders by creating a user search. Based on the order type and creation date fields, you can search on the Manage Shipments and Manage Shipment Lines page.
• You must manually attach the shipping documents and files on the shipment, which is communicated as a Shipment Advice on shipment close.
• You must perform the integration mappings in Oracle Integration Cloud Service during implementation to accept documents and files attachments in the Oracle Transportation Management Cloud Service or Oracle Global Trade Management application.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.

Increase Visibility with New Transactional Business Intelligence Subject Areas

You can increase your visibility into your Inventory locations and receiving areas with improvements in the Oracle Fusion Transactional Business Intelligence (OTBI) subject areas and enhancements in the key performance indicators and data elements.  OTBI is a user-friendly, robust business intelligence toolset used for real-time reporting of your business transactions.

In this release, there are several enhancements to the inventory subject area in OTBI, and there is a new OTBI subject area for cycle counting, which includes key performance indicators for cycle count accuracy.

In the Receiving subject area in OTBI, the following new elements are included:

• Notes to receiving agents
• Buyer
• Supplier
• Purchase order scheduled quantity

There are new OTBI Subject areas and attributes for:

• Cycle Counts
• ABC classification assignments
• ABC classification and item value analysis

Steps to Enable

No steps are required to enable this feature. 

Key Resources

• Oracle Supply Chain Management Cloud: Creating and Administering Analytics and Reports guide, available on the Oracle Help Center.

View Item Supply and Demand

When you have a product shortage, need to expedite an order, or just need to phase out a product, you need a quick summary of on-hand quantity, incoming supply, and out-going demand of select products.  In this release, the Review Item Supply and Demand page gives you a time-phased view of on-hand quantity as well as details on all types of demand and supply to quickly assess the situation and take action.

You can use the Review Item Supply and Demand page to look into product details using various search criteria such as organization, item, cutoff date, and the types of quantities to include. You can also export the details to a spreadsheet for offline review.

Review Item Supply and Demand Search Results

Steps to Enable

No steps are required to enable this feature. 

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.

Role Information

Privilege Name and Code	Job Role Name and Code
Review Item Supply and Demand INV_REVIEW_SUPPLY_DEMAND	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER Inventory Manager ORA_INV_INVENTORY_MANAGER

Mass Cancel Transfer Orders

Automated replenishment is often used to improve the efficiency of your warehouse and supply locations, especially for high volume, low cost items like nuts, bolts, and bandages.  Automated internal transfer orders can be triggered by Oracle Supply Chain Planning, minimum (min-max) replenishment settings, or PAR inventory processing.

When there is insufficient quantity to fulfill these transfer requests, a backorder or shortage condition results, and you may not want to manage the backordered transfer requests for some items and locations.

You can use this new process to strategically select and cancel (kill) remaining quantity on partially fulfilled transfer requests.

Use the Print Cancel Transfer Order Report scheduled process to initiate the mass cancelation of transfer orders. Run the report with or without the Cancel Orders option. If the Cancel Orders option is set to No, the report lists orders eligible for cancelation based on selection criteria entered at run time. Set the option to Yes to cancel the selected transfer orders and print a listing of the canceled orders.

Print Cancel Transfer Order Report Process

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.

Role Information

Privilege Name and Code	Job Role Name and Code
Print Cancel Transfer Order Report INV_PRINT_CANCEL_TRANSFER_ORDER_REPORT	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER Inventory Manager ORA_INV_INVENTORY_MANAGER

Define ABC Classifications by Item Cost

ABC Classification in inventory is a ranking system used to identify and group items based on their usefulness to you in achieving your business goals.  The importance of items and their ABC classifications varies by company, but managing the overall cost of inventory is often the most important.  Oracle Inventory Management lets you create ABC Classification Sets of items based on the item cost.

A criterion for item cost is available on the Manage ABC Classification Sets page when creating ABC Classification Sets of items. ABC Classification Set criteria include:

• Current tem Cost
• Current On-hand Quantity
• Current On-hand Value
• Historical Usage Value
• Historical Usage Quantity
• Historical Number of Transactions
• Previous Cycle Count Adjusted Value
• Previous Cycle Count Adjusted Quantity

Once the ABC Classification Set is created, you can view the item cost with the item on the View ABC Classification Set Items page.

Steps to Enable

The following steps enable you to configure the ABC Classification Sets with the Current Item Cost criteria:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.

2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Inventory Management functional area, and then click the Manage ABC Classification Sets task.

3. On the Select Organization dialog box, select an organization and click OK.

4. On the Manage ABC Classification Sets page, click Actions > Create.

5. On the Create ABC Classification Sets dialog box, create an ABC classification set with Criteria set to Current Item Cost.

6. Click Submit.

Manage ABC Classification Sets

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.

Cost Management

Enter and View Dates in Legal Entity Time Zones

The transaction date of inventory and manufacturing transactions determines the accounting date and period in which those transactions are booked. In prior releases, the accounting date and the accounting period for the transactions were determined using the transaction date stored in the cloud server time zone. This can cause a problem in inventory organizations whose associated legal entity expects the transactions to be accounted in a time zone that is different from the server time zone. In such a case, some of the transactions created on the first or last day of the accounting period may not be booked to the desired accounting period.

In this release, you can choose whether cost transactions are accounted in a period using the transaction date in the server time zone or the organization’s legal entity time zone. The elected time zone is used in determining the accounting date and accounting periods, displaying the time zone associated to the dates in the costing UIs, standard cost definitions, cost rollup, and period end validations.

The following system dates are generated by the cost accounting system and displayed in the legal entity’s defined time zone except as noted:

• Supplier invoice date
• Manual accrual clearing date
• Accrual reversal or expense adjustment date
• Transaction date (displayed in user preferred time zone)
• Cost date
• GL date
• Currency conversion date
• Period end validations

The following dates are entered by the user and displayed in the legal entity’s defined time zone:

• Accrual balances adjustment and reversal dates
• Cost cutoff date
• Cost adjustment date
• Transaction overhead effectivity dates
• Standard cost and rates effectivity dates

Steps to Enable

To enable legal entity time profile option, set up the Profile option in the Manage Legal Entity Configurator Profile Options page.

To enable the legal entity, perform the following steps:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. Search for the Manage Legal Entity Configurator Profile Options task. Select the task in the Legal Structures functional area.
3. On the Manage Legal Entity Configurator Profile Options page, enter XLE_ENABLE_LEGAL_ENTITY_TIMEZONE in Profile Option Code to search for the profile options.
4. In the Profile Values section, click Actions > New.
5. Set Profile Level to Site, and set Profile Value to one of the following value:

NOTE: Do not set Profile Level to Product or User because it can result in inconsistent data in costing.

• Yes to enable costing to use the time zone associated to the Legal Entity for accounting dates or period determination.
• No to enable costing to use the server time zone for accounting dates or period determination (regardless of how the Legal Entity is setup).

6. Click Save and Close.

Manage Legal Entity Configurator Profile Options

To enable the Legal Entity time zone, perform the following steps:

1. In the Setup and Maintenance work area, select the Manufacturing and Supply Chain Materials Management offering.
2. On the Setup: Manufacturing and Supply Chain Materials Management page, click the Legal Structures functional area, and then click the Manage Legal Addresses task.
3. On the Manage Legal Addresses page, search for legal entity address.
4. Select the legal entity location and click Actions > Edit.
5. On the Location Update dialog box, enter the time zone and click OK.
6. Click Save and Close.

Setup Time Zones

The following screenshot is an example of how the legal entity time zone is displayed in costing pages.

Legal Entity Time Zone

Key Resources

For more information on this feature, refer to following guides, available on Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

Cost Accountant

Define Standard Costs for Externally Sourced Configured Items

When a configured product is sold and its manufacture is outsourced to an external manufacturer who drop ships it to the customer, defining a standard cost for that product is a challenge as configured products have a large number of possible combinations of options and their item numbering is assigned only during the configuration process. 

In this release, you have the choice to cost the configured items using an actual or standard cost method. To facilitate an efficient and timely completion of the cost definition process for a configured item, the cost accounting system automatically defines and publishes a standard cost when the purchase order for the item is approved. The standard cost of the configured item from the external manufacturer is the rolled up sum of the standard cost of its included options. This process requires no user intervention and allows for the immediate cost processing of the item when it is logically received. 

Steps to Enable

To enable this feature:

1. Schedule the cost roll up process for a scenario of the Configured Items type to run at predefined intervals. When this process runs, it will check for any new purchased orders for configured items.
2. If new purchased orders are available, the cost roll up process will automatically create the cost for these configured items.

Tips And Considerations

The standard costs for the items used in the configuration must be available for the cost roll up process to calculate the rolled up cost of the configured item.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Cost Management

Define Standard Cost Overhead for Configure-to-Order Models

Cost accountants typically add overhead costs to the material and resource costs of configured items.

These overheads allow for the absorption of indirect costs, such as depreciation and supervisory labor costs, to the direct material and resource costs directly charged to a configured item that is internally manufactured.

In this update, you can define applicable overhead for a standard costed configure-to-order (CTO) model item. The model overhead is applied to configured items created from the model’s work definition. This provides you with a more efficient and timely way to define overheads for configured items.

In the following screenshot you specify the model item for which you are entering the overheads.

Specify the Model Item

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

The cost roll up process applies the overheads for the configured items in the following order:

1. Plant level overheads
2. Item Category level overheads that are applicable for this configuration
3. Overheads defined for the model linked to this configuration
4. Overheads defined for the specific configured item

NOTE: If more than one overhead is applicable for this item, all of the overheads will be applied.

Key Resources

For more information on this feature, refer to following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Cost Management

Align Standard Costs for Drop Ship Receipts

When purchased items are drop shipped from the supplier to the customer they are not physically received in an inventory organization. Instead a logical receipt and issue is created in the inventory organization in order to account for the movement and the cost related to the purchase/sale transactions.

In prior releases, you could only cost logical receipts of drop shipped items using an actual-based cost method. In this release, you have the option to cost them at actual or at standard using its current standard cost. This aligns the valuation of logical receipts with the valuation options used to cost physical purchase order receipts.

The following figure shows the align standard costs for the drop ship receipts.

Align Standard Costs for Drop Ship Receipts

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

1. The first logical receipt (Trade In Receipt Transaction) for the drop ship order in supplier facing node is costed based on the cost method of the item cost profile.
2. The cost method in the cost profile definition of drop shipped item must be set to Standard Costing in supplier facing Cost Organization node for costing the logical trade-in transit receipt at standard cost. If the cost method is Actual or Perpetual Average the logical trade-in transit receipt will be processed at transaction cost.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

Cost Accountant Job Role

Use Sales Representative Cost Center as Source for Account Rules

The performance of sales organizations and their sales representatives are often measured on the basis of gross margin targets (revenues less cost of goods sold) for items sold to customers. In order to provide sales management with accounting reports of this performance metric, the cost of goods sold (COGS) amounts for a sale are booked to the cost center that is credited with the sale.

In this release, the cost center associated with a fulfilled sales order is used to derive the cost of goods sold account. A new cost center source is added in subledger accounting allowing you to account for COGS transactions in the desired cost center. This capability allows sales management to accurately measure sales, cost, and gross margin by cost center account. 

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

Cost Accountant

Analyze Manufacturing and Inventory Cost Details

Ad-hoc cost planning and execution reporting and analysis for cost accountants and business users is performed through the available Oracle Fusion Transactional Business Intelligence (OTBI) subject areas for Fusion Cost Management. This reporting covers cost information related to standard costing of items, costing of inventory and manufacturing transactions, supplier accruals, gross margins, and cost processing exceptions.

In this release, you can generate spreadsheet extracts and build enhanced reports according to your business need in the following Oracle Transactional Business Intelligence subject areas:

• Receipt Accounting
• Cost Accounting
• Item Cost
• Inventory Valuation
• COGS & Margin Reporting
• Work Order Costs

Steps to Enable

No steps are required to enable this feature.

Manage Cost Processing and Period End Exceptions

The timely and accurate reporting of an enterprise’s financial results is contingent on an efficient and effective close of accounting periods for organizations throughout the enterprise. The ability to quickly identify and correct cost processing exceptions on a daily basis ensures that all inventory and manufacturing transactions are duly processed and accounted in the desired accounting period.  

In this release, you can generate spreadsheet extracts and build enhanced reports according to your business needs in the following Oracle Transactional Business Intelligence subject areas:

• Receipt Accounting Period Close
• Cost Accounting Period Close

Steps to Enable

No steps are required to enable this feature.

Raise Business Event on Standard Cost Update

When you define and publish standard costs in the cloud, there is often a need to share these standards with their other legacy or ERP applications used to manage other related aspects of their business. To facilitate relevance in financial reporting, standard costs of manufactured products and purchased components need to be kept in sync across their disparate systems.

In this release, Cost Management provides system integrators with an event framework that is used to notify subscribing business application of standard cost changes in Cost Management. When you perform a cost update that results in changes to the standard cost of your components or assemblies, a business event is raised and the subscribing application receives a notification of this change. When the previously scheduled Export Standard Costs costing process runs, an XML formatted document is exported to a content server and the document can then be retrieved and the revised standard costs can then be imported into the external business system.

Export Standard Costs

This integration allows you to align your cost standards across disparate business system in a timely and cost-effective manner.

Steps to Enable

No steps are required to enable the feature.

Tips And Considerations

• The business event is raised only when standard cost update is done in the primary cost book of the cost organization.
• The business event is raised only for standard cost updates of material costs to items.
• The failure of business event is notified by recording a warning for standard cost update job.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Cost Management
• Oracle Integration Cloud : Using Oracle Integration Cloud Service

Role Information

Cost Accountant Job Role

Fiscal Document Capture

Capture and Validate Import Fiscal Documents

Tax authorities require that companies check supplier fiscal documents to ensure that they have correctly calculated and reported prices, charges, and all applicable federal, state, and municipal taxes related to a purchase receipt. In this release, you can capture and validate an import fiscal document against transfer order shipment and transfer price details. 

The following figure shows the import fiscal document business flow.

Import Fiscal Document Business Flow

The following screenshot shows the new fiscal flow Import Material by Internal Transfer added to support capturing the import fiscal documents.

New Fiscal Flow - Import Material by Internal Transfer

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

On the Manage Fiscal Flows page, the new fiscal flow added to support capturing and validating import fiscal documents must be active.

The following screenshot shows the new fiscal flow on the Manage Fiscal Flows page.

Manage Fiscal Flows

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

Fiscal Document Specialist Job Role

Interface Import Fiscal Document Details to Receiving

A transfer order can only be received after successful validation of its associated fiscal document. On completion of the validation, information is interfaced to Fusion Receiving which automatically creates a transfer order receipt that can be delivered to an inventory or expense destination.

The following figure shows the transfer order receipt creation flow.

Transfer Order Receipt Creation Flow

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

• Fiscal Document Specialist Job Role
• Receiving Specialist Job Role

Capture Return Fiscal Document

When goods are returned to the seller and the seller creates and approves a return material authorization (RMA), the customer or seller generates a sales credit fiscal document that must accompany the transported goods from the customer to the seller’s location. Key information from this sales credit fiscal document must be validated before the returned goods can be received into inventory.

In this release, you can capture and validate information from the sales credit fiscal document and interface this information to Fusion Receiving which creates an RMA receipt for the returned goods.

The following screenshot shows the fiscal flow to capture return fiscal documents.

Fiscal Flow to Capture Return Fiscal Documents

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

On the Manage Fiscal Flows page, the new Material Returned by Seller and Material Returned by Customer fiscal flows are added to support capturing and validating return fiscal documents must be active.

The following screenshot shows the new Material Returned by Seller and Material Returned by Customer fiscal flows on the Manage Fiscal Flows page.

Manage Fiscal Flows

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Cost Management

Role Information

Fiscal Document Specialist Job Role

Capture Fiscal Document Issued by Third-Party Warehouse Provider

When goods are fulfilled from a third-party warehouse location and shipped to the seller’s customer, the warehouse generates a fiscal document that informs fiscal authorities that custody of the goods has been transferred from the warehouse to the seller. Periodically, the seller captures these custody transfer fiscal documents in their system for fiscal reporting purposes. No inventory or inventory transactions are generated.

 In this release, you can capture and validate fiscal documents issued by third-party warehouse providers that are used for fiscal reporting.

The following figure shows the fiscal reporting flow.

Fiscal Documents for Fiscal Reporting Flow

Steps to Enable

No steps are required to enable the feature.

Tips And Considerations

In the previous releases, you could enter fiscal documents as only bookkeeping. In this release, bookkeeping fiscal flow is enhanced to receive, validate, and capture the fiscal documents generated by the third-party warehouse providers to include goods that are fulfilled from a third-party warehouse location and shipped to the seller's customer. No inventory or inventory transactions are generated.

Key Resources

For more information on this feature, refer to the following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management

Role Information

Fiscal Document Specialist

Supply Chain Financial Orchestration

Use Original Transfer Price for Referenced Sales Order Returns

When customer returns happen, it is important to be able to credit not only the customer, but also any organization that was involved in the original sale. In this release, when goods are received against a referenced return order, the system credits all the organizations along the financial route at the transfer price that was used for the original sale:

• The goods could be originally shipped from one of your internal warehouses or drop shipped direct from a supplier.
• The credit is done up to the point of receipt, irrespective of whether the goods are received at the original shipping warehouse, or at any organization that was in the original financial flow. This gives you flexibility to accept returns at your customer facing facility, your shipping facility, or anywhere in between. For example, if you ship goods from your warehouse in France direct to your customer in the US, but sell the product from your French Legal Entity, to your Irish Legal Entity, to your US Legal Entity and then to your customer, you can receive the return at a warehouse in the US, Ireland, or France, and the system reverses the flow only up to the point of the receipt.
• The intercompany credit memo references the original intercompany invoice, giving you traceability back to the original transaction.

The following screenshot shows the RMA Delivery events processed as Referenced RMA on the Monitor Financial Orchestration Execution page.

RMA Delivery Events Processed as Referenced RMA

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management

Role Information

Supply Chain Controller

Pass Supplier Site and Sales Order Type for Use by Intercompany Receivables Invoice Processing

Supply Chain Financial Orchestration interfaces many attributes to the intercompany receivables invoice in order to generate and process the intercompany invoices along the financial route.  In this release, the following enhancements have been made to this interface:

• In order to support an accurate tax calculation on the intercompany invoices, the ship from address must be available on the intercompany invoice.  In the previous release, if goods were shipped from your internal warehouse, the warehouse ID was passed into the intercompany receivables invoice and used for calculating tax, but no value was passed for inbound purchases delivered to one of your warehouses or drop shipped to your customer.  In this release, for global procurement and drop ship purchase orders, the supplier purchasing site on the purchase order is passed in as the ship from site to the intercompany receivables invoice, enabling you to configure appropriate tax calculations for shipments originating at a supplier site.
• Some companies use order type on sales orders to differentiate internal vs external purchases, or service vs new sales. This order type can affect the intercompany accounts used when accounting for the intercompany invoices. In this release, sales order type of the original sales order is passed to the intercompany receivables invoices. This sales order type can be used in the subledger accounting rules to derive account distributions for the intercompany invoices.

The following screenshot shows Ship From Location and Sales Order Type in an intercompany receivable invoice's Line Information.

Ship From Location and Sales Order Type

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Financial Orchestration

Use Source Order Attributes When Calculating a Transfer Price

Transfer pricing rules can be complex, and the way the transfer price is calculated can depend on a diverse set of attributes.  Many of these attributes are defined as part of the financial route, but others are attributes of the source document (for example, order type, customer country, or custom flex fields on the order line).  In the previous release, you could use the advanced pricing capabilities of Oracle Fusion Pricing to calculate the transfer prices based on business attributes of financial orchestration routes and a few select attributes of the source order (such as, customer or supplier) that were passed to pricing by Supply Chain Financial Orchestration.  However, companies did not have access to the source document number and line, so they could not retrieve other source order attributes they may need to use in their algorithms.

In this release, Supply Chain Financial Orchestration exposes the source document order number and line to pricing.  This provides companies flexibility to write their own pricing algorithms that call services to retrieve any additional information from the source document that they might need for their transfer price calculations.

The following screenshot shows the financial orchestration flow with pricing strategy as the transfer pricing rule.

Pricing Strategy as the Transfer Pricing Rule

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management Cloud
• Oracle Supply Chain Management Cloud: Using Supply Chain Financial Orchestration

Enable External Applications to Retrieve a Transfer Price for a Sales Order Shipping Flow

Companies that use Supply Chain Financial Orchestration, often also use a global trade compliance system to manage their trade and customs documentation and processes.

In cases where the financial flow is separate from the physical flow, it is necessary to be able to pass the transfer price to an external trade compliance system in order to be able to create the proper commercial invoice, based on who owns the goods at the time of export or import.

In this release, Supply Chain Financial Orchestration creates an event when the transfer pricing calculations are complete for any sales order shipment transaction. The event contains a reference to the originating sales order fulfillment line ID, the transfer price value, and the currency of the last node in the financial flow. You can configure Oracle Integration Cloud Service to pick up the event and then pass the transfer price on to Oracle Global Trade Management or any other system to use in the creation of the commercial invoice for import at the final destination.

This enables companies to generate proper commercial invoices and other customs documentation for sales orders without manual intervention, saving both time and money when transacting complex flows.

The following screenshot shows the get transfer price business event in Oracle Integration Cloud Service.

Get Transfer Price Business Event in Oracle Integration Cloud Service

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Oracle Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Financial Orchestration

Streamline Organization Setups Along the Financial Route

In order to support intercompany invoicing and accounting transactions when shipping across countries, you need to create logical trade organizations in all business units along your financial routes. In most companies, this means setting up an inventory organization in all customer facing business units, even if these business units never carry any physical inventory. In the previous releases, you set up these organizations as inventory organizations orgs and all items sold from that business unit were assigned to these logical inventory organizations, even though those items are never physically stored in those organizations. This resulted in a large maintenance burden because you had to setup and maintain the items in a large number of trade organizations that never transact any inventory.

In this release, the items no longer have to exist in the logical trade organizations.  The actual inventory organizations in the flow are used to derive the key item attributes of Item Expense Flag, Primary & Secondary UOM.

As a result, companies can greatly reduce their item setup and item maintenance burden.

The following screenshot shows the inventory organizations associated to an item.

Inventory Organizations Associated to an Item

Steps to Enable

No steps required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Financial Orchestration

Validations in Financial Orchestration Flow (Brazil Organizations only)

In Brazil, there are specific requirements for supply chain accounting and documentation for movements of goods into, within, and out of the country.  When there is a financial route associated to an internal transfer and the buying business unit is in Brazil, the following requirements must be met:

1. Ownership must transfer on shipment
2. Currency on the invoice and other fiscal documents must be BRL
3. Tax must not get calculated

To support these requirements, validations are added when saving an internal transfer type financial orchestration flow, such that the following must be true for any node in the flow where the receiving business unit or the buying business unit is in Brazil:

1. The assigned documentation and accounting rule must indicate that the currency option is set to Buying node, and the ownership change event for the forward flow is set to Interorganization Shipment.
2. There must be a transaction business category assigned as a sell side tax determinant on the financial route. You should procedurally use the same transaction business category (CFOP) whenever the destination is Brazil. The transaction business category is passed to accounts receivable and then on to tax. Oracle Fusion Tax is configured so that taxes are not applicable for that CFOP.

These validations ensure that a financial flow that is triggered by an internal movement of goods into Brazil comply with the Brazil’s requirements for ownership change and invoicing.

The following screenshot shows the validation error if a transaction business category is not entered when the destination business unit is in Brazil in the financial orchestration flow.

Validation in a Financial Orchestration Flow

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to the following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Financial Orchestration

Update 17B

Revision History

This document will continue to evolve as existing sections change and new information is added. All updates appear in the following table:

Date	Feature	Notes
21 APR 2017		Created initial document.

Overview

This guide outlines the information you need to know about new or improved functionality in this update, and describes any tasks you might need to perform for the update. Each section includes a brief description of the feature, the steps you need to take to enable or begin using the feature, any tips or considerations that you should keep in mind, and the resources available to help you.

SECURITY & NEW FEATURES

If your system has modified security structures, you may need to advise your security administrator of new features you would like to take advantage of. Appendix A provides details about the security attributes needed to employ the new features after you have decided to implement them.

GIVE US FEEDBACK

We welcome your comments and suggestions to improve the content. Please send us your feedback at oracle_fusion_applications_help_ww_grp@oracle.com.

Optional Uptake of New Features (Opt In)

We continue to add many new features to Oracle Cloud Applications and we now give you the option to take advantage of new functionality at a pace that suits you. The ‘New Features UI’ is available to you from your cloud homepage, where you can make your choices and do any configuration necessary.

Update Tasks

This section gives you information to help you plan, deploy, and validate your update. We make frequent additions to this document, so don’t forget to check back and get the latest information before your update starts.

Release Feature Summary

	Action Required to Enable Feature
Feature	Automatically Available	End User Action Required	Administrator Action Required	Oracle Service Request Required
User Interface Enhancements
Analytic-Driven Infolets on the Home Page and Work Area Landing Pages
Inventory Management
Quickly Assess Key Metrics and Exceptions
Inventory Work Area Landing Page
Additional Inventory Management Enhancements
Accept, Fulfill, and Support Tracking of Optimized Transportation Shipments
Screen and Validate Customer Shipments for Export Trade Compliance
Request Internal Material Transfers
Selectively Inspect Material and Collect Inspection Results with Quality Inspection Plans
Reconcile Inventory Balances From External Warehouse Management Systems or Logistics Service Providers
Integrate and Enrich Your Materials Management Processes
Cost Management
Cost Manufacturing Work Orders
Transform Work Orders
Rework Work Orders
Quickly Assess Key Metrics and Exceptions
Receipt Accounting Work Area Landing Page
Cost Accounting Work Area Landing Page
Fiscal Document Capture Work Area Landing Page (Brazil Organizations Only)
Additional Cost Management Enhancements
Include Outside Processing Services in Your Work Order Costs
Expanded Support for Internal Material Transfers
Analyze and Report Manufacturing and Landed Costs
Share Product Costs Across Applications in the Cloud
Support Regulatory Accounting in France
Manage Inbound Fiscal Documents (Brazil Organizations Only)
Use Localized Attributes for Brazil Organizations
Capture of Fiscal Documents
Validate Fiscal Documents
Validate Fiscal Documents Prior to Delivery
Validate Receipts
Request Complementary Fiscal Documents
Interface Fiscal Document Information
Generate Freight Fiscal Documents
Supply Chain Financial Orchestration
Use Interactive Infolets in the Financial Orchestration Work Area Landing Page
Select and Access Favorite Financial Orchestration Flows
Appendix A: Function Security Privileges and Aggregate Privileges

User Interface Enhancements

Successful inventory and cost management business processes rely on your ability to aggregate, analyze, and act upon key insights that drive timely and reliable business decisions. You need highly visual, analytically driven, and timely information at the forefront of the applications you use every day. This release introduces a revamped home experience page and work area landing pages that provide visual, insightful, and actionable information for your inventory and cost management business processes.

Analytic-Driven Infolets on the Home Page and Work Area Landing Pages

The new home experience and application work area pages provide modern user interface components called infolets. An infolet is a self-contained, interactive container that helps you quickly visualize high-level information, review relevant details, and proceed to action. Because infolets are role-based, you see only what is relevant to your specific role. Progressive disclosure of details is available to you by expanding or inverting the infolet as needed. You can also rearrange the layout of your infolets or hide the ones that you do not need.

Infolets are available to you at two levels:

• Home experience infolet page: This page exists at the same level as your springboard page (where you access your application icons). You can click the page controls (indicated by dots at the top-center of the home page) to access a set of logically grouped infolets aggregated from multiple application work areas. If you have all the relevant roles, you are able to view infolets on the home experience infolet page that aggregate critical information business processes such as order to cash and plan to produce.
• Infolet-based work area landing pages: An infolet-based work area landing page contains infolets specific to a single product work area. You can access an infolet work area landing page by clicking an icon button on the springboard, an icon button in the springboard strip, a work area name in the Navigator, or an infolet on a home experience infolet page. The redesigned work area landing pages present information quickly and clearly to draw your attention to actionable content, which is key to your productivity. Infolet-based pages have easy-to-read analytic tiles that users can rearrange and configure to meet personalized needs. The tiles also provide additional metrics and improved usability. This design allows all users to monitor the part of the operation that best meets their own role or interest.

Where applicable, infolets pertinent to individual infolet pages of application work areas are covered in the following product sections in this document:

• Inventory Management
• Cost Management
• Supply Chain Financial Orchestration

The following table summarizes the infolets grouped on the home experience infolet page for inventory and cost management:

Product	Infolet	Infolet Description
Inventory Management	Shipments by Priority	Displays the top five priorities, in terms of volume of shipments.
Inventory Management	Open Shipment Lines	Displays shipping lines that haven't been shipped, are open today, and have been open the past 30 days.
Inventory Management	Shipment Exceptions	Displays all of the shipment-level exceptions. For example, Shipment Lines on Hold, Pick Release Warnings, Shipment Lines on Hold for Update, Packed Lines not Interfaced, and Shipping Cost Interface Processing Errors.
Cost Management	Inventory Valuation	Displays the current value of on-hand inventory in all organizations.

The following screen capture illustrates the new welcome experience page:

Oracle Applications Welcome Page

Steps to Enable

No steps are required to enable this feature.

Inventory Management

Oracle Inventory Management Cloud offers a complete materials management solution that allows your company to successfully manage the flow of goods: inbound, within the warehouse, and outbound. This functionality optimizes the flow of material so that it meets customer demand in a cost-effective manner. New features introduced in this release include:

• Support planned transportation shipments. Receive transportation planning information and optionally release sales orders going out on the same transportation shipment together for picking. Allow transportation management to reduce freight costs by calculating the optimal grouping of order lines onto customer shipments and transportation shipments. Support releasing sales orders that are going out on the same transportation shipment together for picking and staging in shipping.
• Screen for global trade compliance. Avoid paying penalties and delays at customs by ensuring that all of your outbound shipments comply with global trade regulations. Perform a final global trade compliance screening of the material actually picked before shipping. Ensure required shipping and export documents accompany the shipment.
• Capture quality inspection plans. Selectively inspect material based on sampling plans or skip lots and capture quality inspection plans during receiving. Optionally, raise a nonconformance event and analyze quality exceptions in Oracle Quality Management Cloud.
• Streamline asset creation and return process. Streamline your asset creation and update process by automatically updating Oracle Installed Base Cloud upon shipments to and returns from customers. In addition to increasing efficiency, this update also ensures that Installed Base always has up-to-date and accurate customer asset information when creating and managing service contracts in Oracle Enterprise Contracts Cloud.
• Support product genealogy. When a failure occurs with a product or component, you want to identify the source and scope of a failure, what other items might be impacted due to a relationship or common origin, where the item has been during its lifecycle, and what occurred at each location or event. Inventory Management provides the required tracking information for receiving and quality inspection, inventory, and shipping transactions for Oracle Manufacturing Cloud to identify a lot controlled or serialized product’s current location, its complete transaction history, and associated lot or serial numbers of its components or parents.
• Support and monitor materials used in outside processing. For companies outsourcing portions of their manufacturing process, control and visibility of assemblies is crucial. In this release, Inventory Management has been enhanced as part of the larger outside processing feature to shipping material to and receiving material back from suppliers that perform outside processing services.
• Support and monitor materials used in maintenance. Warehouse operations must support fulfillment, reverse logistics, manufacturing, and also maintenance of assets. With Release 13, Inventory Management now supports issuing materials to maintain assets, return of any unused materials, and recording scrap.
• Support fiscal document capture. In Brazil, taxes are levied on the movement of goods and not on the sale, as is customary in other countries. For this reason, a fiscal document (also known as nota fiscal), which is a legal document, must accompany goods during their shipment. For inventory organizations in Brazil, Inventory Management offers support for fiscal documents associated with inbound shipments from suppliers and outbound internal material transfers and returns to vendors. Receiving integrates with the fiscal document capture capability to capture and validate the fiscal document prior to receipt. Shipping integrates with the fiscal document generation capability to request a fiscal document and ensure the fiscal document has been approved by the fiscal authorities before shipping.

Quickly Assess Key Metrics and Exceptions

As a warehouse manager or inventory manager, you often have a broad set of key processes to monitor and tasks to perform in a wide variety of areas. It can be time consuming to navigate to all of the required tasks to approve and manage exceptions. Spikes in materials management activities or exceptions can be difficult to identify and can lead to disruption of smooth fulfillment operations.

Inventory Work Area Landing Page

In this release, a new infolet-based work area landing page is available. Infolets display key information that is relevant to the user roles accessing an application and are the top level navigation to application tasks allowing for quick assessment of the current state of operations and exceptions and easy access from the infolet to the transaction pages to manage them.

The Inventory Management work area provides key inventory and materials operations information including on-hand inventory value and expected receiving, cycle counting, picking, and shipping activities required. Exceptions, such as rejected materials received and shipping exceptions, are highlighted. Additional customer shipment information is highlighted, such as shipments by carrier and shipments by priority. You can flip or expand the infolet to get more details on the information and drill down into transactional pages to act upon the information.

As a warehouse manager, the most important activities are to keep warehouse operations running smoothly. Visibility to the expected materials management activity load, status of key processes, and approvals and exceptions requiring attention are critical. The ability to quickly and easily view relevant and actionable information and exceptions allows the warehouse manager and inventory manager to spend more of their time focusing on daily tasks.

The new Inventory Management work area landing page replaces the Warehouse Operations dashboard and the work areas Pick Slips, Pick Waves, Inventory, Receipts, Shipments and Counts. The Inventory Management work area is accessible from the springboard page and from the navigator. The infolets related to Inventory Management, Shipping, and Receiving are combined on the Inventory Management work area, thereby providing users a consolidated view of work progress across the various functional areas at any point in the day.

Inventory Management Work Area Page

The front of the infolet displays a summary of information for the associated business object. If the user needs to know more about this information, they can view the back of the infolet, or the expanded view of the infolet. Additionally, at various points in the process, the user can click on the numbers and graphics and to view additional details of this information, where they can then perform related tasks.

Expanded View of an Infolet

The Inventory Management work area landing page provides a single point of entry for all functions related to Inventory Management, Receiving, and Shipping in a warehouse. Users can quickly access tasks in different functional areas, or search across various inventory management objects, without having to navigate to separate work areas. The data is displayed across inventory organizations, depending on the user’s access, giving a broader view of progress and status for various inventory organizations. Infolets provide a quick view of key data allowing users to drill down to review more detail and take action on the data displayed.

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center

Additional Inventory Management Enhancements

Accept, Fulfill, and Support Tracking of Optimized Transportation Shipments

Companies have made strong gains in terms of optimizing their operations within their functional silos of order management, transportation planning, and inventory management. However, optimal support for the end-to-end order fulfillment process is often lacking.

With this release, Oracle Order Management Cloud and Oracle Inventory Management Cloud have been enhanced to support the end-to-end order fulfillment process and can use transportation systems, such as Oracle Transportation Management Cloud. Enhancements to Inventory Management include the capability to:

• Receive transportation planning information. Based on how fulfillment lines and quantities have been grouped into transportation shipments and pick-up or delivery stops, customer shipments to be delivered at a particular delivery stop are built accordingly.
• Support releasing sales orders going out on the same transportation shipment together for picking and staging in shipping.
• Publish shipment confirmation details of both the customer shipment and the material shipped.

These enhancements allow transportation management to reduce freight costs by calculating the optimal grouping of order lines onto transportation shipments and pick-up or delivery stops. With Inventory Management, you have the ability to:

• Accept and execute an optimized transportation plan to support the end-to-end order fulfillment process.
• Publish actual shipment details back to transportation systems to improve visibility.

Transportation planning details are received into the Inventory Management Cloud using the batch method of the shipment request public web service. The details include transportation shipment, transportation shipment line, initial destination, shipping method, and scheduled ship date. You can also review errors and resubmit the shipment request using the Manage Shipping Messages Interface task.

Transportation planning related attributes have been introduced on the Manage Shipment Lines page, providing users with ability to view and monitor transportation planning details such as planning status and associated transportation shipment. You can also search for shipment lines by transportation planning status and transportation shipment, as shown in the following screen capture:

Manage Shipping Lines Page

Change management is restricted on shipment lines once they are been planned for transportation. However, an exception handling mechanism is provided to manually update the transportation details on the shipment line using the action ‘Change Transportation Plan’ on the Manage Shipment Lines page. You can update selected attributes, such as scheduled ship date and shipping method, as shown in the following screen capture:

Change Transportation Plan Page

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center

Screen and Validate Customer Shipments for Export Trade Compliance

Outbound shipments that do not comply with global trade regulations (such as shipping to denied parties) can result in you paying penalties. Delays at customer sites can result when international shipments don’t have the necessary shipping and export documents accompanying the shipment.

With this release, Order Management and Inventory Management have been enhanced to support the end-to-end order fulfillment process and can use export trade management systems, such as Oracle Global Trade Management Cloud. Enhancements to Inventory Management include the ability to:

• Perform a final global trade compliance screening of the actual material picked before shipping and validate all information is in order for shipment export.
• Verify the required shipping and export documents accompany the shipment.

The ability for you to use global trade management solutions and verify that outbound shipments comply with export trade regulations is critical to your global supply chain strategies. Specifically, this feature assists you in avoiding delays in shipments at customs and paying fines for noncompliance.

A new trade compliance screening event has been created. This event is published upon staging or anytime after the shipment lines are staged. This event includes a list of shipment line identifiers. The compliance screening event is published based on the trade compliance screening method chosen for the shipment line. When the trade compliance screening method is None, the shipment line will not be screened for compliance. When the method is Pick Confirm, the shipment line is submitted for screening when it is staged. When the method is User Initiated, the line is submitted for screening only when Check for Trade Compliance is selected from the Manage Shipments or Manage Shipment Lines page.

Using this event, trade management systems can retrieve the list of shipment lines ready for compliance screening. Once screening is complete, the trade management system sends the trade compliance screening results for the associated shipment lines.

The following screen capture shows the selection of trade compliance screening method:

Trade Compliance Screening Method Selection

The Manage Shipment Lines page has been enhanced to include trade compliance related attributes. For example, trade compliance status is displayed enabling users to view and monitor the trade compliance screening results.

Manage Shipment Lines Page

Steps to Enable

A new parameter trade compliance screening method is introduced on the Manage Shipping Parameters page. This parameter is used to default the trade compliance screening method during the pick release process.

The following steps enable the shipping parameter trade compliance screening method.

1. In the Navigator, click Setup and Maintenance.
2. On the Setup and Maintenance page, in the Manage Shipping Parameters task, select an option from the Trade Compliance Screening Method drop-down list.
3. Click Save and Close.

Enable the Trade Compliance Screening Method

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center.

Request Internal Material Transfers

Movements of material between locations of an organization have the same need for full shipping support as sales orders and receiving support as purchase orders. Modeling these transfers as sales orders at shipping and purchase orders at receiving can lead to significant challenges for you in keeping the two business documents in sync when changes occur.

Internal material transfers are designed to support the movement of material between locations of an organization with a single transfer order document with full shipping and receiving support. With this release, internal material transfer support is enhanced as follows:

• Casual requesters can request material by way of the normal purchase requisition processes, thus taking advantage of robust requisition approvals, budgetary control, and encumbrance accounting. If an internal transfer flow exists in Oracle Supply Chain Financial Orchestration Cloud, the transfer price is displayed to the requester. If no financial flow exists, the cost is used as the transfer price.
• Material manager requesters have a new, specialized request page within Inventory Management designed to give them the required visibility and control when making a transfer request.

Full shipping and receiving support significantly increases your warehouse productivity and reduces errors associated with the shipping of material to be internally transferred and received at the destination location.

In this release, internal material transfer processing provides two new entry points for creating internal material transfers. Additionally, new options and controls are provided to monitor and manage the entry and execution of the internal material transfers.

Procurement requesters can create internal material transfers from requisition lines via the normal purchase requisition processes. Additionally, material manager requesters can now create internal material transfers directly from the Manage Item Quantities page in Inventory Management. A new, specialized request page is provided to give the required visibility and control, assisting the decision making process when making a transfer request.

When entering a requisition line, the user has the ability to select the source type and corresponding supply source. Users will have the option to select from a listing of available supply sources. The select supply source page will rank the different source organizations based on previously-established sourcing rules setup in Global Order Promising and Inventory Management. The individual source organization alternatives are displayed along with available inventory quantities at those organizations, as shown in the following screen capture:

Select Supply Source Page

A new action is introduced on the Manage Item Quantities page. You can select material and request a transfer order. When the action is selected, the Create Supply Request page is initiated allowing entry of transfer order details that are fed directly into Supply Chain Orchestration for creation of the transfer order. This provides a simple method for creating ad-hoc internal material transfers outside of the normal planning cycle.

The following screen capture shows Request Transfer Order action on the Manage Item Quantities page:

Manage Item Quantities Page

The Create Supply Request page enables users to enter the requested quantity and requested delivery date. Once this information has been entered, the supply source can be selected. The select supply source page includes attributes such as ranking, supply type, supply source, and total available quantity, as shown in the following screen capture:

Create Supply Request Page

Steps to Enable

The parameter ‘Enable supply availability details for internal transfers’ must be enabled in order to display available inventory quantities along with the associated source organization. This parameter is only applicable when initiating the Select Supply Source page from the Enter Requisition Line page. This parameter does not impact selection of the supply source from the Manage Item Quantities page. This parameter is enabled for the Configure Requisitioning Business Function setup task, which is accessible from the Setup and Maintenance work area.

The steps listed below will enable you to configure the requisitioning business function:

1. From the Main Menu Navigator, select Setup and Maintenance.
2. On the Setup and Maintenance page, in the Configure Requisitioning Business Function task, select the parameter ‘Enable supply availability details for internal transfers’.
3. Click Save and Close.

Configure Requisitioning Business Function Task

The Manage Interorganization Parameters page is used to identify the ‘from’ and ‘to’ organization pairs, for which internal material transfers are allowed. In this release, the format of this page is changed to distinguish the parameters specific to inventory destination transfers from the parameters specific to expense destination transfers. In addition, a new ‘Receipt Routing’ parameter is added under the expense destination heading allowing users to differentiate the routing behavior for expense destination transfers from inventory destination transfers in Receiving. These parameters are used as the default values when processing the two different types of internal material transfers.

The steps listed below will enable you to configure the interorganization parameter receipt required at expense destination:

1. From the Main Menu Navigator, select Setup and Maintenance.
2. On the Setup and Maintenance page, in the Manage Interorganization Parameters task, enable the selected parameters for the inventory and expense destinations.
3. Click Save and Close.

Manage Interorganization Parameters Page

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center.

Selectively Inspect Material and Collect Inspection Results with Quality Inspection Plans

Is your company’s strategic direction at risk due to quality issues of real or potential impact? Unfortunately, the potential impact posed by a given issue is not always clear at the moment of discovery. Therefore, organizations require effective quality tools to guide team members through quality processes and controls in order to implement safe and effective solutions.

Quality inspection plans and results are available with Inventory Management. Supported features include:

• Selective inspection of material based on a sampling size or skip lot frequency
• Data collection using quality inspection plans to complete the receiving process
• Optional generation of an action in Oracle Quality Management Cloud to perform further analysis and corrective action when a quality inspection results in nonconformance to the quality specifications.

NOTE: Additional capabilities for quality issues and actions require Quality Management. For more information, see the Oracle Manufacturing Cloud Release 13 New Feature Summary document.

Quality Management delivers a unified platform for enabling quality visibility, collaboration, and execution through quality control techniques and closed-loop quality management.

The Quality Inspection page can be launched from Inventory Management to collect quality inspection data. The Quality Inspection page captures the quality inspection data directly in Oracle Quality Management Cloud while providing a reference to the receiving transaction. When a user is performing the receipt inspection, they can simply select the action ‘Enter Quality Results’ to enter the quality inspection data associated with the receipt and item.

Quality Inspection Page

Warehouse managers and receiving agents can quickly view quality inspection results by navigating to the Quality Inspection Results page. The Review Quality Inspection Results task has been introduced allowing users to navigate directly from Inventory Management. Additionally, users can view the quality inspection results by navigating from the Receiving Transaction History page.

The following screen capture shows the Quality Inspection Results page:

Quality Inspection Results Page

Steps to Enable

A new parameter, Use quality inspection plan, has been introduced on the Manage Receiving Parameters page. This parameter must be enabled in order to launch the Quality Management pages from Inventory Management.

The steps listed below will enable you to use quality inspection plan for the receiving inventory organization:

1. From the Main Menu Navigator, select Setup and Maintenance.
2. On the Setup and Maintenance page, in the Manage Receiving Parameters task, select Inspection required from the Receipt Routing drop-down list.
3. Select Use quality inspection plan.
4. Click Save and Close.

The following screen capture shows the Manage Receiving Parameters page:

Manage Receiving Parameters Page

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center.

Reconcile Inventory Balances From External Warehouse Management Systems or Logistics Service Providers

Does your company use an external warehouse management system or outsource your warehousing to logistics service providers? If so, you are aware of the substantial integration required to coordinate support for purchase order receipts, returns to vendors, internal material transfers, inventory transactions, and sales order shipments.

This release of Oracle Inventory Management Cloud expands upon the core integration framework delivered in a recent release to also support receiving inventory balances. You can periodically receive snapshots of inventory balances from your external warehouse management systems and logistics service providers and use this information to reconcile inventory balances.

Inventory Management supports a central integration framework across Oracle Purchasing Cloud, Oracle Order Management Cloud, and Inventory Management to support the interactions between an external warehouse system or logistics service providers.

Oracle Inventory Management Cloud can accept inventory balance messages posted via a new REST-based web service - Record Inventory Balance Transaction Messages. Additionally, inventory balance messages can be imported using a newly introduced file-based data loader template. You can also review and resolve any processing exceptions using the Manage Inventory Balance Messages task. Lastly, you can purge inventory balance messages periodically to free up space.

Two new scheduled processes are introduced to manage inventory balances:

• Manage Inventory Balances Process: Reconciles the inventory on-hand balances in the inventory organization with the on-hand inventory details provided by the external system. On-hand details include subinventory, locator, lot, and serial number information.
• Purge Inventory Balance Messages: Purges historical balance messages collected over time in the interface tables. Using the processing status parameter, you can choose to purge error messages, successful messages, or all messages between a specified date range.

By utilizing these integration capabilities, you can accurately reconcile inventory balances improving tracking and visibility across your organization’s supply chain.

The following screen capture shows the new scheduled processes:

New Scheduled Processes

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center.

Integrate and Enrich Your Materials Management Processes

One of the key benefits of working in the cloud is rapid implementation. Oracle Inventory Management Cloud provides a rich set of web services that you can use to integrate with other Oracle, third-party cloud, and on-premise applications that support your supply chain.

New integration features in this release include:

• Integrate applications. Oracle SCM Cloud solutions that integrate with Inventory Management are: Oracle Installed Base Cloud, Oracle Quality Management Cloud, and Oracle Maintenance Cloud.
• Integrate web services. Use web services to integrate with and enrich your inventory operations. You can use web services to integrate with external systems, such as Oracle Transportation Management Cloud (for transportation management), or Oracle Global Trade Management Cloud (for export trade management) or mobile inventory applications, or PAR Location Management solutions. New and enhanced web services include: creation and management of subinventories and locators, on-hand balance query, on-hand reservations, material status updates, internal material transfer creation and management enhancements, management of customer shipment lines, and customer shipments.

The ability to support a wider variety of web services and integration methods reduces integration costs and implementation times to external systems.

Inventory Management Cloud provides integrations to trading partners, partner applications, and external systems though the use of REST-based web services, Oracle Integration Cloud Service (ICS), and B2B Messaging.

The following screen capture illustrates the Inventory Management integrations:

Inventory Management Integrations

Integration web services allow customers to address high-priority and immediately-needed gaps by developing and using custom applications. For example, customers can add mobile capabilities to their facilities using partner applications that utilize web services.

REST-based web services can be used to create PaaS, cloud, or other types of applications with advanced user experience, supporting list of values and real-time validations. For example, values entered for a material status attribute can be restricted to a list of valid status values. Additionally, REST-based web services can be used to view on-hand quantity details, reservation details, list of valid material statuses, and shipment information. Lastly, services are provided to update material status at the subinventory, locator, lot, and serial number levels and to confirm shipments.

Steps to Enable

No steps are required to enable this feature.

Key Resources

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the Oracle Help Center

Cost Management

Oracle Cost Management Cloud delivers a flexible and unified platform for your product costing, standard cost estimation, landed-cost management, and supply chain accounting activities. Cost Management facilitates managerial accounting control and execution in your procure-to-pay, plan-to-produce, and order-to-cash business flows.

Cost Manufacturing Work Orders

In current competitive business environments, the delivery of quality products at the lowest possible cost is a key factor in the long-term viability and profitability of your business. This release provides support for additional manufacturing work order types, allowing you to track and report the manufacturing costs of your rework and transform activities. You can now:

1. Rework orders for product that had previously been completed to inventory.
2. Transform work orders to upgrade or downgrade an existing assembly to transform it into an assembly with a different item number.
3. Track the financial performance of work orders by charging them to separate work order valuation accounts.

Transform Work Orders

In this release, you can track and report the manufacturing costs incurred as a result of your transform activities on the shop floor. You can create and charge transform work orders to upgrade or downgrade an assembly. The costing of a transform work order is the same as that of a rework work order. However, the work order completion to inventory references a different assembly item number than the assembly item number being upgraded or otherwise transformed in the work order.

In the Review Work Order Costs page, the details of the component added and the component removed are shown clearly labeled for Rework Work Orders. Similarly for Transform Work Orders, the product that is issued and the product that is completed are also identified.

 Work Order Details

In the Review Cost Accounting Distributions page, you can review the distributions created for the new transaction type “Work in Process Negative Material Issue”.

Review Cost Accounting Distributions

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Rework Work Orders

In this release, you can track and report the manufacturing costs incurred as a result of your assembly rework activities. In a rework work order, you remove a damaged component and replace it with a new component bearing the same item number. The material and resource charges for the process are generally captured and costed in the same way as regular manufacturing work orders. The return of damaged or obsolete components from the work order to inventory is performed using a new material negative issue transaction from the work order. This component return transaction is costed at the plant standard cost or current actual cost of the item, depending on the case. You can also reverse this issue transaction by performing a material negative return transaction. You can define material overhead rules using the new material negative issue and return transactions. You can also create subledger account rules referencing these new transactions.

Steps to Enable

No steps are required to enable this feature.

Quickly Assess Key Metrics and Exceptions

As a cost accountant, the most important activities are to track key processes and the current status of the key costing-related metrics. The ability to quickly and easily view relevant and actionable information allows the cost accountant to focus on daily tasks.

Cost Management work area landing pages provide key cost accounting information, such as monitoring cost, process job statuses, inventory, and work-in-process valuations, cost levels of receipts, and reported exceptions. This release delivers new infolet-based landing pages that replace the work area-based navigation in earlier releases. Infolets display key information that is relevant to the specific roles accessing an application and are the top-level navigation to application tasks. Users with the cost accountant role have access to the Cost Management work area landing pages as described in the following subsections.

Receipt Accounting Work Area Landing Page

At any time during the day, the cost accountant needs a quick and effective way to monitor and manage exceptions that require immediate action and to review key cost metrics. This release adds a new Receipt Accounting landing page that displays key information related to receipt accounting and landed-cost management filtered by bill-to-business unit. The infolets on this page include:

• Cost of receipts. Ring chart that shows the detailed cost of items received in the last 7 days. 
• Unmatched accrual balances. Bar chart that shows the current amount of accrued receipts not matched to supplier invoices.  
• Accrual write-off. Amount of supplier accruals written off in the last 7 days. 
• Trade operations status. Count of active landed cost trade operations that are in draft, open, and on hold statuses.
• Exceptions. Count of current receipt accounting processor exceptions. 
• Open charge invoice associations. Bar chart that shows the count by status of invoice line associations in landed cost trade operations.
• Charge line status. Ring chart that shows the count by status of landed cost trade operation charge lines.
• Recent processes. Activity list that shows the date, time, and completion status of scheduled processes submitted in receipt accounting and landed cost management.

The following screenshot illustrates this:

Receipt Accounting Landing Page Infolets

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

In this release, the Receipt Accounting landing page has content from both receipt accounting and landed cost applications. This is a common landing page and you can access both receipt accounting and landed cost management tasks from this landing page. Note that the infolets ‘Cost of Receipts’, ‘Exceptions’, ‘Unmatched Accrual Balances’, ‘Accrual Write Off’ display content from Receipt Accounting whereas the  infolets ‘Trade Operations’, ‘Open Charge Invoice Associations’ and ‘Charge Line Statuses’ display content from Landed Cost Management. The ‘Recent Processes’ infolet shows the process belonging to both Reciept Accounting and Landed Cost Management.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Cost Accounting Work Area Landing Page

This release adds a new Cost Accounting landing page that displays key information related to inventory and manufacturing cost accounting filtered by cost organization. The infolets on this page include:

• Inventory valuation. Ring chart that shows the current balance amounts of asset, expensed, and consigned on-hand inventory.
• Current work in process balances. Ring chart that shows the current balance amount of work orders that have been released, completed, and are on hold.
• Cost rollup. Counts of items that did or did not successfully complete in the last cost rollup.
• Transaction status. Count of transactions that have been interfaced to costing but not yet costed, and transactions that have been costed but not yet accounted.
• Gross margin. Amount of revenue, cost of goods sold (COGS), and gross margin that have been cost-processed in last 7 days.
• Work order costs. Amount of work order scrap, scrap percentage, and work order variance in last 7 days.
• Recent exceptions. Count of exceptions raised in last submitted cost accounting scheduled process.
• Purchase price variance. Bar chart that shows the amount of positive, negative, and total purchase price variances in last 7 days.
• Recent processes. Activity list that shows the date, time, and completion status of scheduled processes submitted in cost accounting.

Cost Accounting Work Area Landing Page

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Fiscal Document Capture Work Area Landing Page (Brazil Organizations Only)

This release adds a new Fiscal Document Capture landing page that highlights fiscal document completion status and exceptions requiring attention filtered by bill-to-business unit. The infolets on this page include:             

• Fiscal document life cycle. Bar chart that shows the count of currently open fiscal documents by life cycle status.
• Fiscal documents by business flow. Bar chart that shows the count of currently open fiscal documents by business flow type.
• Requiring revalidation. Ring chart that shows the count of fiscal documents that must be resubmitted for validation.
• In process. Count and amount of fiscal documents that are open and whose validation has not yet completed.
• Deliveries pending. Count of deliveries from suppliers that are pending fiscal document validation.
• Interface errors. Count of transaction errors by error type encountered in the loading of XML-formatted fiscal documents.
• Recent processes. Activity list that shows the date, time, and completion status of scheduled processes submitted in fiscal document capture.

Fiscal Document Capture Work Area Landing Page

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

This is a common landing page for both the fiscal document specialist and the receiving specialist. The ‘Deliveries Pending’ infolet is primarily designed to help the receiving specialist to receive the expected shipments on the receiving dock.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Additional Cost Management Enhancements

Include Outside Processing Services in Your Work Order Costs

The purchase and use of outside processing services from third-party vendors is often a significant part of the cost of your manufactured items. Outside processing is where a job step is performed for a fee by an external vendor, and as such, involves manufacturing and procurement as well as costing. In this release, you can include the costs of outside processing services in your work order costs, providing you with a more accurate measure of the costs of your manufactured items. Cost rollup, work order costing, and subledger accounting now support the cost accounting of outside processing items in global procurement, purchase order receipt, and return-to-vendor business flows. You can add outside processing items as material requirements in the work definitions of your assemblies; and when applicable, you can perform a cost rollup that includes the standard cost of outside processing services from an external vendor.

An outside processing service item is received at its purchase order price and delivered to the work order operation in which it is defined as a material requirement. You can adjust the cost of the received item, when applicable, to account for retroactive purchase order price changes and invoice price variances. You can optionally define landed-cost charges for an outside processing item and apply these charges to the cost of the received item. You can also define material overhead rules that include outside processing items, allowing you to apply overhead to the cost of delivered outside processing items. 

A work order’s valuation includes the cost of outside processing items that are charged to one or more of its operations. Completions to scrap and completions to inventory include the cost of outside processing service items charged to the work order. You can view outside processing item costs in existing item cost and cost distribution pages, and then analyze their costs in existing Oracle Transactional Business Intelligence (OTBI) subject areas. You generate and review accounting entries for the work order costs of outside processing items in the available subledger accounting pages.

On the Review Work Order Costs page, you can identify the details of the supplier operations.

Work Order Detail Balances Outside Processing Item Cost

The Review Cost Accounting Distributions page shows the details for accounting of the new transaction type “Purchase Order Receipt into Manufacturing”. The following screenshot explains this:

Review Cost Accounting Distributions for Purchase Order Receipts Into Manufacturing

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Expanded Support for Internal Material Transfers

This release provides additional flexibility in the costing of internal material transfers, adding support for additional capabilities that include the costing of internal receipt deliveries to multiple charge destinations and transfers to inventory destinations. In addition, several internal transfer receipt-to-expense destinations scenarios are supported as described in the following subsections.

Cost Management supports budgetary control and encumbrance accounting (BCEA) for the following transaction types:

1. Transfer Order Delivery to Expense (Receipt performed in destination)
2. Transfer Order Logical Delivery to Expense (No receipt performed in destination)

The following screenshot of the Review Receipt Accounting Distributions page shows the transactions that are budgetary controlled, and also details of the encumbrance accounting.

Review Receipt Accounting Distributions View of Fund Reservation

To be more specific this is what you can do with regard to budget control:

1. Use budgetary control with receipt performed in destination. In this type of transfer the system can create a commitment of funds when the requisition for the internal material transfer is initiated in Procurement. When the transfer is received at the destination, the commitment against the funds is liquidated and the actual expenditure against the funds is recorded. On internal receipt of transfer order items at the destination, the costing system liquidates the commitment and books expenditure.
2. Use budgetary control with no receipt performed in destination. You create a commitment when a requisition is initiated in procurement. On completion of the internal shipment, the costing system creates a virtual receipt, liquidates the commitment, and books an expenditure.

The following screenshot explains this:

Example of Budgetary Control Liquidation Logic

For example, assume there is a budget for $500 available; a requisition is created for a quantity of 10, at an estimated transfer price of $25.00 each. Also assume a transfer occurs for part of the quantity and the actual price of that transaction turns out to be $30 each instead of the estimated $25 each. The requisition will create a commitment of funds for $250 ($25 * 10). When the partial transfer of 5 occurs, receipt accounting will liquidate the commitment for 5 at $25 each, and create the actual expenditure for 5 at $30, totaling $150. This leads to a remaining balance of available funds equaling $225 ($500 budget - $150 actual expenditure - $125 remaining requisition commitment). You can also enable encumbrance accounting for internal material transfers delivered to expense destinations:

1. Perform encumbrance accounting with receipt in destination. The costing system optionally creates encumbrance accounting on receipt of the internal transfer in the destination organization to reverse the commitment created in the requisition.
2. Perform encumbrance accounting with no receipt in destination. The costing system optionally creates encumbrance accounting on completion of the internal shipment to reverse the commitment created in the requisition.

Example of Encumbrance Accounting Done for BCEA Enabled Transfer Order Flows

Encumbrance Accounting is performed in Cost Management if the budgetary control validation status is set to “Funds Reserved." The Create Receipt Accounting Distributions process liquidates the reserve for the encumbrance account and passes actual journal entries for the receipt. The logic used to liquidate transfer order requisition commitment is always at the price used to create the commitment, which is the liquidation quantity delivered multiplied by the requisition price used when raising the commitment. In scenarios where no receipt exists, the price equals the liquidated quantity shipped multiplied by the requisition price used when raising the commitment.

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Analyze and Report Manufacturing and Landed Costs

The profitability of your warehouse and manufacturing operations depends in large part to the availability and reporting of cost performance and benchmark data related to those operations. This release adds a new OTBI subject area to support analytical reporting of landed-cost charges included in purchase order receipts. A new subject area is also added to support analytical reporting of manufacturing work order costs, including those related to standard, maintenance, rework, and upgrade work orders.

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Share Product Costs Across Applications in the Cloud

Information generated by cloud applications is commonly required for use in other cloud and on-premise applications. In this release, the current cost of your components and assemblies can be shared by applications within and outside of Oracle Applications Cloud. You can use a cloud-enabled web service (Get Item Cost Estimate Service) to get the current cost of an item in an inventory organization or plant. You can also get the cost at the most atomic level as per the user choice, by additionally specifying the following optional parameters when calling the cloud-enabled web service.

• Cost at a specific inventory control attribute viz;
  • Sub Inventory, Locator, Lot Number, Serial Number, Grade
• For a Specific Cost Book
• Specify the type of cost needed
  • Published Standard Cost
  • Latest Perpetual Average Cost
  • Last Layer Actual Cost
  • Average of all available layer costs
  • Latest approved PO price (include estimated landed costs if any)
• Cost needed only for owned items or consigned items
• Date as of which cost is required
• Currency in which cost is needed
• UOM in which cost is needed

Steps to Enable

No steps are required to enable this feature.

Tips And Considerations

To get the cost at atomic level, the calling application should additionally pass the optional parameters. If not, the cost would be retrieved as per the inbuilt default cost derivation logic for an item at the inventory organization level.

Key Resources

For more information on this feature, refer to following guides, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain Materials Management
• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Support Regulatory Accounting in France

To comply with the statutory financial accounting mandates in France, an additional set of accounting entries are required when material is received or issued in an inventory organization. In France, a supplemental set of accounting entries expense the entire value of goods received and post a contra entry to bridging accounts. These entries create supplemental accounting and do not change the original set of accounting templates used to create accounting in prior releases.

Review Cost Accounting Distributions

Steps to Enable

The France specific accounting will be created only when the subledger accounting method is changed and the necessary seed data is associated with this method.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Supply Chain Managerial Accounting

Manage Inbound Fiscal Documents (Brazil Organizations Only)

In Brazil, the calculation and payment of trade-related taxes are managed and enforced through the use of legally prescribed fiscal documents (known as nota fiscal). Fiscal documents are required for sale and purchase business transactions between parties and also for movements of goods between physical locations in the country. A fiscal document identifies the parties involved in a buy-sell or transfer business transaction, lists the items involved, and provides details of the amounts of federal, state, and local taxes that apply. A fiscal document is generated by the seller of goods and services or an organization sending materials or goods to another physical location. An organization that buys material or goods from a supplier is prohibited from taking legal title or otherwise receiving those items until the fiscal document generated by the seller of those items has been verified. In addition, taxes specified in the fiscal document must have been validated as accurate and conforming to Brazilian fiscal reporting requirements.

In this release, Oracle Fiscal Document Capture Cloud allows you to capture and validate fiscal documents from external and internal suppliers and to transfer that information to receiving for receipt creation and to payables for invoice creation. The following business flows are provided in this release for companies that provide financial and other business services in Brazil:

Inbound Business Flows:

• Purchase order receipt and delivery of materials to inventory and expense destinations
• Purchase order receipt of materials drop shipped by supplier
• Purchase order receipt of enterprise assets to expense destinations
• Capture and validation of fiscal documents with no purchase order
• Purchase order receipt with budget checking and encumbrance accounting
• Internal receipt of materials (simple transfers)
• Import of materials (not for resale)
• Capture and validation of freight fiscal documents 

Outbound Business Flows:

• Sale of services (see the Oracle Financials Cloud New Feature Summary)
• Return of materials to vendor
• Internal shipment of materials (simple transfers)
• Generation of fiscal documents for imported materials (partner solution)
• Internal transfer of enterprise assets (see the Oracle Financials Cloud New Feature Summary) 

NOTE: For more information, see the Oracle Financials Cloud New Feature Summary document for the description of features related to the generation of fiscal documents. 

Steps to Enable

There are no steps necessary to enable this enhancement.

Use Localized Attributes for Brazil Organizations

To comply with fiscal regulations, purchases from suppliers can’t be received until their associated fiscal documents have passed validation. Brazil inventory organizations must prevent the manual creation of purchase order receipts because their receipts are automatically created based on information interfaced from Fiscal Document Capture. To facilitate this, the manual creation-update of receipts in such organizations is disabled.

Process Flow for Brazil Organizations

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Capture of Fiscal Documents

The inbound fiscal document validation process begins with the capture of the information contained in a supplier’s or other issuer’s fiscal document. A fiscal document is typically received from the issue in a structured XML-formatted file, which you can load into and transform using Oracle Collaborative Messaging Framework Cloud. In cases where the supplier only provides a printed copy of the fiscal document, you can enter and edit the fiscal document information directly using the new Manage Fiscal Documents page. Collaborative Messaging Framework allows communication with Secretaria de Estado da Fazenda (SEFAZ), the Brazilian fiscal authority, to confirm the validity and status of the received fiscal document.

Manual Capture of Fiscal Documents

Steps to Enable

The steps listed below will allow you to import the XML-formatted file into the application:

1. In the Navigator, click File Import and Export.
2. Click Add.
3. In Upload File dialog, select Zipped XML-formatted file.
4. Select the Account scm/BrazilSEFAZSupplierMessages/import.
5. Click Save and Close.
6. In the Navigator, click Scheduled Processes.
7. Schedule the process Import Brazil Electronic Documents.

Import XML-Formatted File Into the Application

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Validate Fiscal Documents

Tax authorities require that companies check supplier fiscal documents to ensure that they have correctly calculated and reported all applicable federal, state, and municipal taxes related to a purchase receipt. In this release, inbound fiscal documents are validated to ensure that the business transaction details are accurate and that the applicable taxes have been correctly calculated. Integration with Oracle Tax Cloud allows you to compare the rates and amount of taxes specified in the issuer’s fiscal document to the rates and amounts determined as applicable and calculated in Oracle Tax Cloud. 

Process of Validating Fiscal Documents

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Validate Fiscal Documents Prior to Delivery

When purchased materials are shipped, the supplier generates and transmits a sales fiscal document to the buying organization. As a result, fiscal documents are typically received before the ordered items are delivered to the buyer. On receipt and capture of the fiscal document, you can perform a predelivery validation, comparing the items and prices of the items listed in the fiscal document against the items and prices specified in the purchase order. A predelivery validation of taxes is also performed against purchase order item quantities and prices. Differences in item prices or taxes are flagged and the fiscal document is placed on hold pending investigations and resolution of any price and amount difference.

Fiscal Documents Imported Using CMK Service and Scheduled for Prevalidation

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Validate Receipts

When purchased materials are delivered to the buying organization’s location, the delivered item quantities are counted and compared to the items quantities specified in the purchase order. Differences in delivered quantities are flagged, and the fiscal document is placed on hold pending investigations and resolution of the quantity differences.

Confirm Item Deliveries

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Request Complementary Fiscal Documents

The complementary fiscal documents feature allows a supplier to correct errors in the calculation of taxes discovered during the validation of the fiscal document related to a purchase receipt. In this release, when the fiscal document capture tax comparison process determines that the supplier has under-reported applicable taxes in its fiscal document, the fiscal document specialist contacts the supplier to request a complementary or adjusting fiscal document that includes the differential amount of taxes. The original and complementary fiscal documents are then referenced in the validation process. You can specify the upper and lower quantity, price, and tax amount tolerances beyond which you want Fiscal Document Capture to flag an exception.

Steps to Enable

No steps are required to enable this feature.

Interface Fiscal Document Information

The information in a fiscal document that passes validation is used to create a receipt in receiving, an invoice in accounts payable, and a cost in receipt accounting that includes all applicable taxes and charges. When the inbound fiscal document passes validation, Fiscal Document Capture interfaces the information to receiving, payables, and cost management.

Fiscal Document Charge Details Transferred to Costing

Fiscal document information is transferred to the receiving open interface, which allows automatic creation of a purchase order receipt, and to the payables invoice interface, which automatically allows creation of a supplier invoice. Information is also transferred to cost management, which costs and accounts for the receipt transaction inclusive of the applicable charges and taxes.

Invoice Automatically Created From Fiscal Document

Steps to Enable

No steps are required to enable this feature.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Generate Freight Fiscal Documents

Fiscal authorities require that freight charges incurred in the purchase of items be allocated and added to the cost of the items after they are received. When freight charges are the responsibility of the buying organization, the freight company generates a freight fiscal document and sends this document to the buying organization, typically on a monthly basis. To comply with the freight cost regulations, this release allows you to capture and validate a freight fiscal document which is used to adjust the receipt cost against which the specific freight charges apply.

Capture and Process Freight Fiscal Documents

Steps to Enable

1. Ensure Collaborative Messaging Framework service is set up and working for importing XML-formatted files for Brazil.
2. Ensure that the necessary tax setups in Financials are complete.
3. Ensure the relevant enterprise setups are complete for Brazil organizations.

Tips And Considerations

For Brazil Inventory Organizations, Oracle Receiving Cloud cannot be used to directly create Purchase Order or Transfer Order receipts. Receipts are automatically created on interfacing of fiscal document information to Receiving. Delivery transactions can however be directly created.

Key Resources

For more information on this feature, refer to following guide, available on the Oracle Help Center:

• Oracle Supply Chain Management Cloud: Using Fiscal Document Capture

Supply Chain Financial Orchestration

Trade that occurs between internal parties requires complex financial relationships. Oracle Supply Chain Financial Orchestration Cloud is a configurable application that manages these relationships. This functionality allows you to separate your physical flow of goods from the financial accounting of these goods. It includes the following new features:

Use Interactive Infolets in the Financial Orchestration Work Area Landing Page

The Financial Orchestration work area has a new work area landing page with interactive graphs and metrics. These graphs and metrics provide the status of financial flows in-process, highlight the orchestration exceptions that need attention, and list recent updates to the financial flow definitions. The interactive graphs allow you to drill down to monitor the financial orchestration page to have a detailed view of the transactions in context. This new experience enables the supply chain controller to have a quick glimpse of the progress of the financial orchestration execution and issues that need resolution.

The following screenshot depicts the interactive infolets displayed in the Financial Orchestration work area:

Financial Orchestration work area

Steps to Enable

No steps are required to enable this feature.

Select and Access Favorite Financial Orchestration Flows

In prior releases, setting a favorite was managed through the Favorites and Recent Items toolbar, which required a few extra clicks. In this release, you can easily establish financial orchestration flows or drop-ship financial flows as favorites with a click on the Star icon that appears next to the object title. One click identifies the object as a favorite (solid yellow star), and one click removes it from favorites (empty star). Establishing a favorite provides you with easy access to revisit those objects by opening your Favorites and Recent Items list and clicking on the title.

The following screenshots depict the financial orchestration flow, which is set as a favorite and managed through the Favorites and Recent Items toolbar:

Financial Orchestration Flow page

Favorites and Recent Items menu

Steps to Enable

No steps are required to enable this feature.

Appendix A: Function Security Privileges and Aggregate Privileges

This release includes new roles and privileges that facilitate function security for new features. If you have created custom job roles, then you can add new privileges to those custom roles as needed.

Table A-1 Function Security Privileges for Inventory Management

Privilege Name and Code	Job Role Name and Code
Monitor Inventory Management Work Area INV_MONITOR_INVENTORY_MANAGEMENT_WORK_AREA	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER   Warehouse Operator ORA_INV_WAREHOUSE_OPERATOR   Receiving Agent ORA_RCV_RECEIVING_AGENT   Shipping Manager ORA_WSH_SHIPPING_MANAGER   Shipping Agent ORA_WSH_SHIPPING_AGENT
Manage Inventory Balance Messages INV_MANAGE_INVENTORY_BALANCE_MESSAGES	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER
Purge Inventory Balance Messages INV_PURGE_INVENTORY_BALANCE_MESSAGES	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER
Manage Inventory Balance Process INV_MANAGE_INVENTORY_BALANCE_PROCESS	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER
Reconcile Inventory Balance Process INV_RECONCILE_INVENTORY_BALANCES	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER
Record Inventory Balance Transaction Messages by Web Service INV_RECORD_INVENTORY_BALANCE_TRANSACTION_MESSAGES_WEB_SERVICE	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER   Warehouse Operator ORA_INV_WAREHOUSE_OPERATOR
Print Transfer Order Status Report INV_PRINT_TRANSFER_ORDER_STATUS_REPORT	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER
View On-Hand Quantity Value INV_VIEW_ONHAND_QUANTITY_VALUE	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER

Table A-2 Function Security Privileges for Shipping

Privilege Name and Code	Job Role Name and Code
Check Shipment Lines for Trade Compliance WSH_CHECK_SHIPMENT_LINES_FOR_TRADE_COMPLIANCE	Warehouse Manager ORA_INV_WAREHOUSE_MANAGER   Inventory Manager ORA_INV_INVENTORY_MANAGER   Shipping Manager ORA_WSH_SHIPPING_MANAGER

 Table A-3 Function Security Privileges for Supply Chain Orchestration

Privilege Name and Code	Job Role Name and Code
Create Supply  DOS_CREATE_SUPPLY_REQUEST	Supply Chain Operations Manager ORA_DOS_SUPPLY_CHAIN_OPERATIONS_MANAGER
Select Supply Source DOS_SUPPLY_SOURCE_REC	Supply Chain Operations Manager ORA_DOS_SUPPLY_CHAIN_OPERATIONS_MANAGER

Table A-4 Function Security Privileges for Supply Chain Financial Orchestration

Privilege Name and Code	Job Role Name and Code
None	Supply Chain Controller ORA_FOS_SUPPLY_CHAIN_CONTROLLER_JOB

Table A-5 Function Security Privileges for Fiscal Document Capture

Privilege Name and Code	Job Role Name and Code
Capture Fiscal Document CMF_ENTER_FISCAL_DOCUMENT	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Load Electronic Fiscal Document Privilege_Code_Name_2	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Manage Import Validation Errors CMF_MANAGE_IMPORT_ERRORS	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Process Electronic Fiscal Documents CMF_PROCESS_E_FISCAL_DOCUMENTS	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Confirm Item Deliveries CMF_CONFIRM_ITEM_DELIVERIES	Receiving Specialist ORA_CMF_RECEIVING_SPECIALIST
Confirm Item Deliveries CMF_CONFIRM_ITEM_DELIVERIES	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Process Electronic Fiscal Documents CMF_PROCESS_E_FISCAL_DOCUMENTS	Receiving Specialist ORA_CMF_RECEIVING_SPECIALIST
Interfacing Fiscal Document Details to Payables for Invoice processing CMF_INTERFACE_FD_TO_PAYABLES	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Interfacing Fiscal Document Details to Receiving for further processing CMF_INTERFACE_FD_TO_RECEIVING	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Set Up Fiscal Document Tolerances CMF_FISCAL_DOC_TOLERANCES	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST
Set Up Fiscal Flows CMF_FISCAL_FLOWS	Fiscal Document Specialist ORA_CMF_FISCAL_DOCUMENT_SPECIALIST