Material Status, Onhand Status and Item Status in Oracle Inventory

By Jag - April 21, 2014

What is Material Status?

Material Status control restricts the movement and usage of portions of on-hand inventory. Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it. In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning. You assign material statuses at four levels: subinventory, locator, lot, and serial.

You assign subinventory and locator statuses in the subinventory and locator windows. The location status applies to the material in the location and not the location itself. To assign a material status to a lot or serial, you must first enable the item attributes Lot Status Enabled, and Serial Status enabled on the item in the Item Master. You can also optionally assign a default lot or serial status to an item on the Item Master. When you receive the item, the system automatically assigns the default lot or serial status to the item. The lot or serial status remains the same through all inventory transactions including organization transfers. If necessary, you can change the material status at receipt, or use the material workbench or mobile status update page to modify the material status.

You can track material status at the Subinventory, Locator, Lot, or On-hand balance levels.

When you track material status at the on-hand level for an organization, the material status assigned at the Subinventory, Locator, or Lot level will be used to default on-hand level material status and the on-hand material will have a status associated with it. To enable the On-hand Material Status tracking option, run the Activate On-hand Level Material Status Tracking concurrent request.

Once you enabled your organization as onhand status tracking then you should need to look for material status at onhand level and not at the individual level.
The benefit of this is that if a portion of a pallet is crushed you can separate the pallet into two parts and assign the bad crushed part a status of 'throw away' while assigning the good portion an acceptable status.
The onhand status only persists as long as you have inventory onhand. Once your inventory goes to 0 for a certain lot or location the status no longer exists.

There is priority order for onhand status picking, and like following…
Item Status/Lot status > Locator Status > Sub status > Org status



Material Status Transactions

A material status is a combination of transactions and planning actions that you choose to disallow in a particular circumstance. Disallowed transactions and planning actions are cumulative. When you set up transaction types, you determine whether some transactions can be restricted by material status. The transactions for which you enable status control in the Transactions Types window appear in the Material Status Definition window. If you do not enable status control for a transaction type, then the transaction type is always allowed.
You can also assign the planning attributes Allow Reservations, Include in ATP, and Nettable to the material statuses that you create. When you transact an item, the system checks all of the material statuses. If the system finds a status that disallows the transaction, whether at the serial, lot, locator, or subinventory level, then the transaction fails.
The following table provides examples of material statuses that you might set up for your organization. In this example, each status either allows or disallows certain transactions. For example, the material status of Active allows all transactions and disallows no transactions. Conversely, the material status of Immature allows picking and shipping for internal customer orders, but disallows these transactions for external customer orders.
StatusActiveHoldImmatureAlmost Mature
DisallowedNothingPicking, shipping, and productionPicking and shipping for external customersShipping for customer
AllowedEverythingSubinventory transfersPicking and shipping for internal customersPicking for customer



What is Item Status?

This item status is different with ‘Material Status’.
We use item statuses to provide default values for certain item attributes to control the functionality of an item. When you update the values for a status, all items to which it is assigned are also updated.
Attention: When your current organization is not the Item Master organization, the organization is temporarily changed to the Item Master organization until you exit this window. You can use the statuses created here in all defined organizations.
A status code controls certain item attributes designated as status attributes. The status attributes are:
BOM Allowed
Build in WIP
Customer Orders Enabled
Internal Orders Enabled
Invoice Enabled
Transactable
Purchasable
Stockable
Process Execution Enabled
Recipe Enabled
Associated with each status attribute is a Status Setting option. This option determines whether a status attribute value is set by the status code and is not updatable, defaulted and updatable, or not used when you define an item. You choose a Status Setting for a status attribute with the Item Attributes Controls window. You assign a status code to an item when you define the item. 

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