Inventory Organization Setups

Steps to define Inventory Organizations

An Inventory Organization refers to the storage. It can be either stores or distribution organization or manufacturing plant depending upon the business requirements.

In order to define Inventory Organizations, we will define the following

1.)   Accounting Information : It includes the following :

1. Primary Ledger : It is associated to Inventory Organization to share currency, chart of    accounts & sub ledger accounting methods
2. Legal Entity : It is associated to Inventory Organization to share income tax information
3. Operating Units : It is associated to Inventory Organization to share sales & purchase transaction information

2.)   Inventory Information : It includes the following:

1. Inventory Information : Here we enter organization code, master organization & work day     calendar.
2. Costing Information : It is used to determine the accounts which are used to valuate cost of material (Like overhead costs)
3. Revisions, Lot & Serial Controls : This tab is used to determine Revision, Lot & Serial controls (Serial control is required for warranty purpose)
4. ATP Rules & Picking Rules
5. Inter company & Other accounts Info

3.)   Receiving Information : It includes Receiving Information. It is used to determine the controls &  accounts required as how to receive goods in our inventory organizations

Here we will be doing minimum setups required to define an Inventory Organization

Locations: Before defining Inventory Organizations , you need to define locations. To define locations, navigate to Setup > Organization > Locations

Give Details as shown below

 

Now add inventory organization. Navigate to Setup > Organization > Organization

Click on New

Add following information & save the record

 

Now click on the field below name & add Inventory Organization. Click on Others tab 

Add Accounting information

 

Save your work & press OK. Again click on Others Tab & select inventory information

Add details as shown below

 

Save it & close the form. Click on Others Tab again & select receiving information

 

With this the Inventory organization is created.