2 Replies Latest reply on Mar 6, 2013 4:29 PM by Mike Kudo

    R12 Purchasing/Payables Setup - Financial Options - Inventory Org required

    Mike Kudo
      I am defining a new Primary Ledger/Operating Unit within a structure that has 1 Primary Ledger/1 Operating Unit/3 Inventory Orgs

      1) The new Operating Unit will NOT procure or store inventory.
      2) When setting up Purchasing/Payables (for expenses) in the new Operating Unit - under the Financial Options: Purchasing-Supplier tab - the Inventory Org field is required. However, no Inventory Org will exist in this OU.
      3) I opened in SR for this issue - and support's suggestion is to create a dummy inventory org. I don't feel this is a valid solution since this org will need to be opened/closed, have items assigned in it, or not, will be visible for OM to ship from, etc, etc.

      I'm sure others have had this scenario - did you actually define a dummy inventory org?

      What about a company which is in the financial industry - bankiing, insurance, etc, etc. Do all of you actually have dummy inventory orgs define just so you can purchase expenses? This doesn't seem right to me.

      Thanks for your help.
        • 1. Re: R12 Purchasing/Payables Setup - Financial Options - Inventory Org required
          Yes that'z true if you have payables, create a dummy master Inv org, it doesnt impact other Operating Unit OM's, any Financial business also requires a

          Oracle suggests to an inventory organization if you use Purchasing. You can associate each of your Purchasing operating units with one inventory item master organization. When you associate your Purchasing operating unit with an inventory organization, items you define in this organization become available in Purchasing. You can only choose an inventory organization that uses the same set of books as your Purchasing operating unit. Do not change the Inventory Organization after you have already assigned one to Purchasing.

          If you are using OM for the same OU where you define AP, I guess you would need Inventory org as well, orders cannot be shipped without having Inventory org defined

          Best Regards
          • 2. Re: R12 Purchasing/Payables Setup - Financial Options - Inventory Org required
            Mike Kudo
            Hi Krishna - thanks for the update to my message.

            1) The main reason for setting up the new Operating Unit is because we want another Primary Ledger with a different currency.
            2) I saw your suggestion that I could associate the new Operating Unit Purchasing setups with the item master, however this inventory org is associated with the original Primary Ledger. Therefore, I don't think this solution is possible.
            3) It still seems strange to me that a services ONLY company who wants to purchase expenses or just Payables for processing expenses will need to define an Inventory Org.
            I am still pushing Support to see if they can come up with a better solution.