Most of the businesses have a requirement to capture Country Of Origin (COO) while receiving the goods and track the item’s on-hand by Country of Origin. This functionality isn’t available with Oracle EBS R12.2.9 & lower versions including EBS R12.1. Unfortunately there is no good custom solution also to implement this type of business requirement.
Oracle enhanced the functionality to capture Country of Origin info at PO Receipt time in Oracle EBS R12.2.10 and later versions. With this functionality, Material Classification Code(MCC)/Country of Origin will be recorded at the on-hand level. Once the Country Of Origin/Material Classification Code is captured, System can also provide on-hand visibility of an item by classification code/COO and the value will flow through picking & shipping. The COO can also be printed on labels and shipping documents. Currently this functionality is supported for WMS enabled organizations only. The functionality is not enabled for Lot Controlled and Serial Controlled (At Receipt) items.
Material Classification overview:
In EBS R12.2.6, Material Classification Code (MCC) is a new feature added to Oracle SCM Logistics family of products that allows users to tag the inventory item for classification.
Material Classification tagging is a method of assigning and tracking the Material Classification at the point of use like sales order picking/Shipping. The previous MCC tagging functionality was limited to SO Pick and issue transactions. If the material is received or moved within the organization from one location to another location, Material Classification is not tracked. With EBS R12.2.10, Enhanced the MCC feature to enable MCC tagging at On-hand level.
WMS picking rules will allow to enforce if an item with specific MCC should be shipped to a specific Customer/Ship To. If the business would like to hold some on-hand for specific channel, so that specific quantity is only used to fulfill retail or International Orders, it can be achieved by classify the on-hand material in the warehouse and let WMS rules enforce the picking rules.
Here are the detailed steps to implement and use Material Classification Code (COO) for on-hand inventory.
- Setting up Material Classification Types:
- Navigation: Inventory -> Setup -> Lookups
- Query for MTL_CLASSIFICATION_TYPES. Captures the type of Material Classification.
- Define lookup codes based on your business requirement.
2. Define a flexfield structure and it’s segments to use the lookup types:
- Navigation: Inventory -> Setup -> Flexfields -> Descriptive -> Segments
- Query for Title = ‘Material Classification Types’ -> Unfreeze
- Create new context value based on the business requirement
- Freeze and compile the structure.
3. Assign material classification codes to the flexfield segments or attributes
Navigation: Inventory -> Setup -> Material Classification Codes
For country of origin, The above defined values should be consistent with Purchasing Country of Origin lookup.
4. Item Attributes – Adding Material Classification attributes for Item:
Navigation: Inventory -> Items -> Master Items & Organization Items
- Master Item -> Query the desired item -> Inventory Tab -> Select Material Classification Type -> Save
- Organization Items (WMS enabled Org) ->Query the desired item -> Material Classification Tagging Assignment form (Actions Menu)
Add new Transaction Type: PO Receipt and Save.
4. Create Purchase Order with Ship to Org as WMS enabled org for the above desired item.
5. MSCA Receipt: Receiving the above PO to capture COO.
Navigation: Inventory -> Inbound -> Receiving
Received Qty of 2 with COO as US and qty of 2 as India.
6. View on-hand availability by COO:
Material workbench allows user to view and update the MMC for on-hand inventory in WMS-enabled organizations.
Navigation: Inventory/MSCA -> Onhnad, Availability -> Material Workbench. Query the desired item for on-hand.
We can see MCC(COO) value on the the material workbench.
MCC Update from Material Workbench:
Material classification Code value can be see from the Material Workbench/on-hand availability Form as well.
Navigation: Inventory -> On-hand availability -> On-hand Quantity
To see MCC values like country of origin on the material workbench, the user must drill down to the Locator/LPN level.
Material Classification Code Update option is available from the Material Workbench Core form as well.
Tools -> Material Classification Code Update
