Oracle Inventory - Cycle Counting

Oracle ebusiness suite>Oracle SCM > Oracle Inventory

Cycle Counting

Module: Oracle Inventory Module

Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of inventory quantities and values. Accurate system on-hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production.

You can perform cycle counting instead of taking complete physical inventories, or you can use both techniques side-by-side to verify inventory quantities and values.

Cycle counting can be on Inventory Org or Sub Inventory Level.

Following 2 Steps for Cycle count.

1- ABC Analysis

2-Cycle Count 

Defining ABC Classes ___________________________________

You use ABC classes to identify the value groupings to which your items belong. You define these classes using your own terminology. For example, you might define classes High, Medium, Low, and later assign your items of highest rank to the High class, those of lower rank to the Medium class, and those of lowest rank to the Low class. You can add to the list of classes you have already defined.

You can use ABC classes to group items for a cycle count where you count "A" items more frequently than "B" items. When you use ABC classes in this way, you perform an ABC analysis and assign items to classes based on the results of that analysis

Process of ABC analysis is as below:

• ABC Compile
• ABC Classes 
• ABC Assignment Group
• Assign Item

1- ABC Compile

To define an ABC class:

1. Navigate to the ABC Compiles folder window and choose New. The Define ABC Compile window appears.

2. Enter a unique name for the ABC compile.

3. Determine the scope of the analysis by selecting the content level for items to include in the compile.

If you use the entire organization, Oracle Inventory includes all items defined for your current organization in the ABC compile, even those with zero cost or zero quantity. If you use a particular subinventory, Oracle Inventory includes all items for which you have defined an item/subinventory relationship.

4. Select the Compile specification as Criterion or Cost Type etc.

5. Press Compile button to compile.system will compile / calculate the number of item within the organization and value of the items.

ABC Descending Value Report will be run automatically.

2- Define ABC Classes

1. Navigate to the ABC Classes window

2. Enter a unique name for the class.

3. Save your work

3- Define ABC Assignment Group

ABC assignment groups associate ABC classes with an ABC compile. You assign items to ABC classes within a particular group. This allows you to assign items to different ABC classes in different groups.For example, suppose you define ABC groups "Cycle Counting" and "Planning". You can assign different ABC classes to these two groups. You can then assign an item to a different ABC class in each group. This allows you to prioritize items differently for cycle counting and planning.

 Press Group Classes Button to assign classes

4- Assign ABC Item

Click on Assign Items Button, Assign all the items from compile "ABC_COMPILE" to these 3 classes and save. Once save the records, in back end conc program "Define ABC assignments" will run.
( "ABC descending value report" will display items in descending order based Quantity and value). In our example i am assigning top 10 items to the class Class_A and top 11 to 499 items to Class_B and renaming to class C.

Cycle Counting _____________________________________

Navigate to the Cycle Count Summary folder window by selecting Cycle Counts on the menu and choose New to open the Cycle Counts window.

1. Enter a unique name for the cycle count.
2. Enter the workday calendar to use for this cycle count.
   Inventory uses this calendar to determine the days on which to automatically schedule cycle counts.
3. Enter the general ledger account to charge for cycle count adjustments
4. Enter Count control , Late days or Starting Seq etc..
5. Select Count Subinventories that is required for count

Check the check box called Auto Schedule to schedule the counting if auto scheduling is required.

Click on Adjustment and ABC Tab and assign ABC assignment Group Name and save. Once we save the record, in back end Conc. Program "Initialize cycle count items" will run

Click on Classes Button and enter number of times we are planning to count the items from ABC Classes per Year and save

Click on Item Button ( in Adjustment and ABC Tab ) and all the item from ABC Classes are populated automatically

In order for Inventory to perform automatic scheduling you must:

• Set the Cycle Count Enabled item attribute to Yes for the items you want to include in the cycle count.
• Enable automatic scheduling when you define your cycle count.
• Request the schedule using the Generate Automatic Schedule Requests window.

Each time the auto scheduler runs, it schedules counts only for the schedule interval you defined for the cycle count header. So if your schedule interval is weeks, Inventory schedules all items that need to be counted on all of the workdays in the current week. If your schedule interval is days, then Inventory only schedules those items that are due for counting on the current date

Manual Schedule of Cycle Counting

Select the Items for manual scheduling.

Request for Cycle Counting

Run the report from tools "Generate Count Request"

Open Cycle Count form and Query With Cycle Count "ABC_CycleCount" and click on Counts Button to see the on hand Quantity of the item in system. In our Example, on hand Qty in system for Item "3400033' = 3000.

Enter the Count Quantity

Adjustment quantity and value 

Approve the Cycle Counts entries.

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