Fundamentals of Direct Item Functionality

Prepared by

Oracle Support

March 5, 2013

Table of Contents

Introduction ……………….………….………………………………. 1

Direct Procurement Accounting ….….……………………………… 2

Setup and Pre-requisites ……………….…………………………….. 3

Troubleshooting ……………………………………………………….. 9

Important Fixes and Notes ..………..……………….……………….. 10

Introduction

This paper describes the fundamentals of Direct Item functionality within Oracle Enterprise Asset Management (eAM). Direct Item functionality was introduced in Release 11.5.10. It requires much less setup than OSP (Outside Processing) and has additional benefits, such as the user can add these types of items on the work order on the fly.  Direct item is recommended since OSP process is more laborious.

What is Direct Item ? Items with infrequent use or criticality; they are not included in the internal catalog as stocked items. These items are contrived as "one off", bought directly from a vendor for a specific Work Order and Operation.

Material requirements for a Work Order may include stocked, non-stocked direct items, services, and direct items (description-based items).

These items are not transactable, not stockable, but you can procure them.

Direct items are either non-stock or description-based.

Non-Stock Direct Items can represent items that are not stocked in inventory, or services that need to be purchased from a supplier.

Non-Stock Direct Items are not stocked in inventory but are defined in the Item Master as an inventory item, purchaseable, and purchase but not stockable.

Direct Items are contrived as "one-off", bought directly from a vendor for a specific Work Order and Operation.

They are delivered directly to the Shop Floor from maintenance Work Order execution. You can add Planned Direct Items to a Work Order's Bill of Material (BOM) or an Activity BOM.

Planned Direct Items must first be created in the Item Master as Non-Stockable and Purchasable inventory items.

Direct Item Procurement for eAM Work Orders Process:

1

Direct Procurement Accounting

Relevant Tables Costs for direct item transactions are stored in the following tables: WIP_PERIOD_BALANCES WIP_EAM_PERIOD_BALANCES CST_EAM_ASSET_PER_BALANCES

Direct Item Cost Estimation LogicEAM considers the List Price of the non-stock direct item while computing the cost estimate contributed by the direct item. You can invoke cost estimation of work order at any point of the work order cycle and the latest available price as per below list (highest seq number as per below list) will be used:1. List price defined for direct item2. Price specified for direct item in the Work order3. Purchase Requisition price of direct item4. Purchase Order price of direct item.

If work order price is not specified and neither is the Purchase Requisition created, the work order cost estimator program will pick the list price of the non-stock direct item defined in the Organization Item master. EAM does not look at item costs, because direct items are never stocked in inventory and hence there is no point in looking at the inventory costing method for cost estimation.

Direct Purchase Accounts The cost of direct items goes into the WIP Material Account. This is the expected behavior. If you want to change this behavior, you can set up category defaults which will send costs to

another account based on the purchasing category used. The logic behind this is that if you buy or issue material, it is still material. If you are buying services, you should typically set these purchasing categories to point to the OSP account if you desire a separate account code. Navigation: Enterprise Asset Management -> Setup -> Category Associations

2

Setup and Pre-requisites

The following setup steps are required to ensure proper direct item processing (i.e., from releasing work order to creating requisition).

Enable Auto Request Material

For non-stock direct items and Description direct items, Auto Request Material flag needs to be checked to trigger the requisition automatically.

Navigation: Setup -> Parameters

Note: In the case of Stocked (Inventory) items, to request the material automatically, these three flags/parameters have to be set.

1) 'Enable Material Issue Requests' in EAM parameters form 2) 'Enable Material Issue Request' in Additional details region of Create/Update work order page 3) 'Auto Request Material' at the item level in the Material Requirements region of Create update work order page

In this case, you should use inventory planning or MRP process for creating requisitions, which are supported for EAM work order demand.

3

Set Profile Option ‘PO: Enable Direct Delivery’

Navigation: System Administrator -> Profile -> System

To enable direct item (both supplier catalog and non-catalog items) procurement for eAM Work Orders directly from an eAM Work Order, set the 'PO: Enable Direct Delivery To Shop Floor' profile option to Yes. When this value is set to Yes, you can create an eAM-related requisition or purchase order. You can enter eAM specific information, such as Work Order and operation reference numbers, as well as identify a requisition line as having a Shop Floor destination. Requisitions are created automatically for Direct Items (Non-Stock and Description-based), after a Work Order with those Direct Items on its material requirements listing is released.

See more in page 7-3 Oracle Enterprise Asset Management User's Guide (E13670-05)

4

Set Profile Option 'MO: Operating Unit'

The profile option 'MO: Operating Unit' for EAM responsibility needs to be set to the same value as for the purchasing responsibility. Requisition Import concurrent program picks the records from the 'po_requistions_interface_all' based on the value of the profile 'MO: Operating Unit'.

5

Use Template '@Non-Stocked Item'

This template creates non-stock direct item quickly with the following item attributes set:

6

Link Employee to User

Ensure that the employee is linked to user in System Administrator -> Security -> Users -> Define.

Process Work Order• Once above setup is done, create work order (via Forms or OAF).• Include Direct Item (Description Based / Non-stock) in the Materials Requirement under Operations zone.• Release Work Order.• After releasing work order, concurrent request Requisition Import will be fired automatically and a

requisition will be created.

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Manual Creation of Requisition/PO

Requisition/PO can be entered manually for direct items via Oracle Purchasing or Iprocurement. Direct items and the requisition and purchase order info can be displayed  in the Material Requirements region of the Work Order Detail page in EAM.  

I. Iprocurement                                                       Create requisition for a non-stock direct item and associate it to a Workorder and verify in

Work Order Material Requirements page.                       II. Purchasing -> Requisitions                                            Create requisition for a non-stock direct item and associate          it to a Workorder and verify in Work Order Material Requirements page.                      III. Purchasing -> Purchase orders                                          Create Purchase order for a non-stock direct item and associate          it to a Workorder and verify in Work Order Material Requirements page.            

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Troubleshooting

In Release 12 onward, requisition import will run at the time of work order release and whenever there is a change in quantity or addition of new direct or non-stock items. When requisition is not triggered, additional debugging and troubleshooting steps are needed to identify the culprit.

Note:For Direct Item functionality, system does not check WIP Parameters under Outside Processing tab, as it does for OSP items.

Turn on the EAM logging profiles and provide the EAM logs generated in order to examine if the requisition process is even being kicked-off. Steps to generate debug log are as follows:

• Set EAM:Debug Profile Option to 'Yes'• Recreate the scenario in EAM Work Order form• Execute this query to find the directory where the log file will reside

SELECT value INTO l_full_path FROM v$parameter WHERE name = 'utl_file_dir';

• There will be files with name 'createwo.log' or 'updatewo.log'.• Examine these files further for potential culprit (e.g., missing expense accounts)

Review Requisition Import Exceptions Report which contains possible causes for the requisition not to be triggered or processed correctly.

Review results of the following queries Check if data was inserted from EAM into PO table via the Requisition Import process: select * from po_requisitions_interface_all where wip_entity_id in (select wip_entity_id from wip_entities where wip_entity_name='&work order #');

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Important Fixes and Notes

The following shows important fixes that were delivered as one-off patches. Also, a list of notes contains important setup changes to allow the Direct Item functionality to work correctly.

Issue Description DOC ID Patch # ER # RemarksRequisition Import is not triggered for the direct items added in workorder is approved from the Notifications region of the Oracle Applications Home page

13638082:R12.EAM.B Code issue that was fixed. Patch is released.

How to See Descriptions on Requisitions Created from EAM Work Order for Direct Item Requisitions

316260.1 Intended functionality described in the note.

Direct Item Not Allowed For Line Type In Eam Requisition

1439952.1  Setup issue described in the note.

Requisition Is Getting Triggered For Direct Item With The User Who Created The WO, Not Who Released.

1523463.1 15976290:R12.EAM.B Code issue that was fixed. Patch is released.

Direct Item Disappears From Work Order After Receiving.

12665646:R12.EAM.B Code issue that was fixed. Patch is released.

Requisition Created From Direct Item Won't Import 'Invalid Deliver To'

329630.1 Intended functionality is described in the note.

Duplicate requisitions created when changing work order status from On-hold to Released.

11877887:R12.EAM.B

ADDING ATTRIBUTES TO DIRECT ITEMS VIA DFF

8598178 This ER has been implemented.

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