Oracle Fusion SCM Enterprise Structure 2

Oracle Fusion SCM Enterprise Structure 2 

In Oracle Fusion SCM, the enterprise structure is a fundamental component that defines the organization’s hierarchy, enabling the management and organization of various supply chain-related data and processes. Here, we’ll continue discussing the key components of the enterprise structure:

1. Subinventory:
   1. Subinventories are physical or logical subdivisions of inventory locations where items are stored. They represent specific areas within a warehouse or storage facility.
   2. You can define multiple subinventories to track the availability of items in different locations, such as raw materials, finished goods, or quarantine areas.
   3. Each subinventory can have its settings for managing item quantities, including stocking levels and reorder points.
2. Inventory Organization:
   1. An inventory organization represents a specific organizational unit within the enterprise where inventory-related activities take place. It typically includes a combination of an operating unit and a legal entity.
   2. Inventory organizations are used to manage inventory, track transactions, and define inventory-related policies and procedures.
   3. Organizations can have multiple inventory organizations to represent different warehouses, distribution centers, or manufacturing facilities.
3. Operating Unit:
   1. The operating unit is a critical component of the enterprise structure in Oracle Fusion SCM. It represents a self-contained business unit responsible for its own financial and operational activities.
   2. Each operating unit is associated with a specific set of books, legal entity, and ledger, ensuring financial and regulatory compliance.
   3. Operating units are used to define responsibilities and access controls within Oracle Fusion SCM.
4. Ledger:
   1. A ledger is a financial reporting entity that defines the chart of accounts and accounting rules for a specific set of books within an operating unit.
   2. Ledgers are associated with specific accounting periods and currencies, ensuring accurate financial reporting for inventory-related transactions.
5. Legal Entity:
   1. A legal entity is a distinct legal entity recognized by law and represents a separate legal and financial reporting entity.
   2. Each legal entity has its own tax registrations, reporting requirements, and legal responsibilities.
   3. Legal entities are associated with specific operating units and ledgers to ensure compliance with legal and financial regulations.
6. Unit of Measure Classes and Units:
   1. Unit of measure classes and units are used to define how items are measured and quantified in the supply chain.
   2. Each unit of measure class can include multiple units, such as kilograms, liters, or pieces.
   3. These units are essential for managing item quantities, pricing, and conversions.
7. Facilities and Locations:
   1. Facilities and locations represent the physical places where supply chain activities occur, such as warehouses, factories, or distribution centers.
   2. They are associated with inventory organizations and subinventories, allowing for precise tracking of inventory movements.