Category Archives: HR

Inventory Organization Overview

Inventory Organization Overview

Let us see the basic structure of the definition of an inventory organization by looking at the data already defined in the Vision database.
Note: Do not change any data we see below.
Change the Responsibility to Inventory and Navigate to Setup –> Organizations –> Organizations.

Query by the name ‘Seattle Manufacturing’. This is the organization (organization code M1) we commonly use in the Vision Database to create Inventory transactions, including shipment of sales orders. Notice the entry ‘Inventory Organization’ under Organization Classifications. Place the cursor on that row, and click on the button Others.


Select ‘Accounting Information’ from the list.

  • Place cursor anywhere in the Accounting Information field to see details.
  • Notice this is where the organization is associated with its ‘Set of Books, Legal Entity and Operating Unit’.
  • The concept of Operating Unit will often come up, so it is good to know where this relationship is defined, ie. which Operating Unit the Inventory Organization (warehouse) belongs to.
  • Close the Accounting Information window and Additional Organization Information screen.



Place the cursor on the classification Inventory Organization again, click on the Others button and select ‘Inventory Information’ from the list.

  • Notice this is where the Inventory organization parameters are defined.
  • This screen can also be accessed directly from Inventory > Setup > Organizations > Parameters.
  • Notice this is where the organization code ‘M1’ is specified, and the Item Master Organization is specified as ‘Vision Operations’ (V1). This sets the relationship for Seattle Manufacturing (child org) and Vision Operations (master org).



As an optional step, you can query the organization ‘Vision Operations’ and check that it is classified as both a Legal Entity and Operating Unit as well as an Inventory Organization. If you check the Inventory Organization Parameters for ‘Vision Operations’ you will notice that the organization code is defined as ‘V1’. The master org is itself.

As another optional step, you can go to Edit > Preferences > Profiles, and run a query with the profile name ‘MO:%’. You will see the value for the profile option ‘MO: Operating Unit’ being ‘Vision Operations’. This is the Operating unit in which the OM transactions are created when logged into the responsibility used in this testflow (for R11i).

Reference: oracle metalink


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