OIC Integration steps for Item structures Conversion from One Inventory Org to Other Inv Org.

OIC Integration: BOM and Item Structure Conversion Between Inventory Organizations

In Oracle Fusion Cloud, when businesses expand or reorganize their manufacturing or inventory setups, it often becomes necessary to replicate or convert Item Structures (BOM) from one Inventory Organization to another. Doing this manually can be time-consuming and error-prone. Thankfully, using Oracle Integration Cloud (OIC), we can automate this process efficiently.

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💡 Use Case Overview

We want to build an OIC integration that will:

• Extract BOM and Item Structure details from a Source Inventory Organization.
• Transform and prepare the data for a Target Inventory Organization.
• Load or create BOMs in the target org using Fusion REST APIs.

Example: Copy BOM structure for an item from INV_ORG_A (Manufacturing Plant A) to INV_ORG_B (Manufacturing Plant B).

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🔧 Step-by-Step OIC Integration Flow

Step 1: Create a Scheduled Integration

• Open OIC → Integrations → Create → Choose Scheduled Integration.
• Name it: BOM_Structure_Conversion.
• This will allow automation to run periodically or on demand.

Step 2: Get BOM Details from Source Org

Use the Fusion REST API for Item Structures to fetch BOM details.

 GET /fscmRestApi/resources/11.13.18.05/itemStructures ?ItemNumber={itemNumber} &OrganizationCode={SourceOrg} 

Example Response:

{ "ItemNumber": "LAPTOP1001", "OrganizationCode": "INV_ORG_A", "Components": [ {"ComponentItem": "MOTHERBOARD", "Quantity": 1}, {"ComponentItem": "BATTERY", "Quantity": 1} ] }

Step 3: Map Source to Target Organization

Use a Data Mapper in OIC to change the organization context from INV_ORG_A to INV_ORG_B.

 TargetOrg = "INV_ORG_B" 

Also, apply transformations if the target org uses different item codes or UOMs.

Step 4: Create BOM in Target Org

Use the Fusion REST API to create or update BOMs in the target organization.

 POST /fscmRestApi/resources/11.13.18.05/itemStructures 

Sample Request Payload:

{ "ItemNumber": "LAPTOP1001", "OrganizationCode": "INV_ORG_B", "StructureTypeCode": "Primary", "Components": [ {"ComponentItem": "MOTHERBOARD", "Quantity": 1}, {"ComponentItem": "BATTERY", "Quantity": 1} ] }

In OIC, use the REST Adapter to invoke this endpoint, passing the transformed JSON payload.

Step 5: Add Logging and Error Handling

Implement structured logging for traceability:

• Log item number, source org, and target org.
• Log API response status codes and errors.

Add a Scope + Fault Handler in OIC for retries and fault notifications (email or Teams webhook).

Step 6: Validation and Reports

• Use GET API again for the target org to verify successful BOM creation.
• Generate a CSV report of successfully migrated BOMs.
• Send it as an email attachment from OIC.

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🔗 Common Fusion APIs Used

API	Method	Description
/fscmRestApi/resources/11.13.18.05/itemStructures	GET	Fetch BOM/Structure details
/fscmRestApi/resources/11.13.18.05/itemStructures	POST	Create new BOM in target org
/fscmRestApi/resources/11.13.18.05/itemStructures/{StructureId}	PATCH	Update existing BOM

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✅ Best Practices

• Use paging and filters while fetching BOM data for large item volumes.
• Maintain a mapping table (e.g., via lookup in OIC or database) for item number and org mapping.
• Implement idempotent logic — skip BOM creation if it already exists.
• Log integration run IDs for audit trail.

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📊 Sample High-Level Integration Flow Diagram

 [SCHEDULE TRIGGER] ↓ [GET BOM from Source Org via REST Adapter] ↓ [Transform + Map Org Details] ↓ [POST BOM to Target Org via REST Adapter] ↓ [Validate + Log Results + Email Report] 

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🧩 Summary

This integration helps Oracle Fusion Cloud users automate BOM and item structure replication between inventory organizations using OIC. It eliminates manual effort, ensures BOM consistency, and enables smooth manufacturing transfers across plants.

Using Oracle Integration Cloud’s REST Adapters, transformations, and fault handling, you can easily scale this to handle hundreds of items with audit tracking and notifications.

✨ Tip: You can extend this integration to migrate Work Definitions, Routing, and Cost Structures as well.

Periodic Cost Adjusment In Oracle Fusion Cloud

Periodic Cost Adjustment in Oracle Fusion Cloud — End‑to‑End Guide

By Akhil Sayed • Updated: October 7, 2025 • Cost Management / Inventory

Contents

• What is Periodic Cost Adjustment?
• Why it’s needed
• How it works — process
• Numeric example
• Accounting impact
• Where in Fusion
• Setup & considerations
• Best practices & FAQ

1. What is Periodic Cost Adjustment?

A Periodic Cost Adjustment is a period‑end correction that updates item costs and inventory valuation in Oracle Fusion when final costs become known after initial transaction postings. It’s used in Periodic Average Costing (PAC) or other period‑based costing methods where costs are finalized at period close.

In short: it trues up provisional costs (receipts-based) to actual costs (including invoices, landed costs, FX differences) so financials reflect true inventory value and COGS.

2. Why it’s needed

• Landed cost allocation: freight, duties, insurance allocated to received quantity after invoices arrive.
• Invoice price variance: supplier invoice differs from receipt price.
• FX revaluation: currency fluctuations that affect landed costs.
• Accurate financial reporting: Ensure inventory and COGS are not misstated at period end.

3. How it works — Periodic Costing flow

1. Capture all material transactions for period (receipts, issues, returns).
2. Receive supplier invoices and landed cost adjustments into the system.
3. Run the Periodic Cost Processor (or equivalent process) to compute final item costs for the period.
4. System calculates the variance between provisional and actual costs and creates Periodic Cost Adjustments.
5. Posting: the adjustment journals are generated and posted to GL (after review/approval depending on config).

4. Numeric example

Scenario:

• Received 200 units of Item X at provisional unit price $20 → provisional inventory = $4,000.
• Later, freight invoice of $200 and supplier invoice variance of $100 are received (total extra $300).
• Actual cost = $4,300 → new unit cost = $21.50.

Periodic Cost Adjustment amount: +$300 to inventory valuation (and corresponding variance account) for the period.

5. Accounting impact

Event	Debit	Credit
Periodic cost adjustment (increase)	Inventory Valuation	Cost Variance / Adjustment
Periodic cost adjustment (decrease)	Cost Variance / Adjustment	Inventory Valuation
When invoice posted later	Cost Variance (reverse)	Accounts Payable

Note: exact ledger accounts depend on your chart of accounts and costing setup (inventory valuation accounts, variance accounts, landed cost accruals, etc.).

6. Where to run this in Oracle Fusion

• Cost Management work area — Manage Periodic Cost Adjustments or Periodic Cost Processor.
• Run reports: Periodic Item Cost Report, Inventory Valuation Report, Cost Adjustment Journal.
• Review and approve generated journals before posting to GL (depending on business flow).

7. Setup & configuration considerations

• Enable the appropriate costing method (Periodic Average Costing) for the inventory organization.
• Configure landed cost elements and cost allocations if you use landed cost functionality.
• Define GL accounts for inventory valuation, cost variances, and landed cost accruals.
• Set period close controls: ensure all invoices/receipts for the period are entered before running the periodic processor.
• Decide on automation: schedule processing vs manual run for review control.

8. Best practices & FAQs

Best practices

• Keep a strict cutoff for period transactions and invoices to avoid frequent reopenings.
• Use landed cost automation to capture freight/duties timely.
• Reconcile inventory valuation reports to GL after posting adjustments.
• Document accounting policy for cost variances and reversals.

Frequently asked

Q: Can I reverse periodic cost adjustments?

A: Yes, but reversing usually requires reopening the cost period or running corrective adjustments depending on the system configuration and audit controls.

Q: Are periodic cost adjustments posted to GL?

A: Yes — the system generates adjustment journals that should be reviewed and posted to the General Ledger.

Q: What happens if I miss an invoice after period close?

A: You’ll need to correct via subsequent period adjustments or reopen the period (depending on your control policies). Frequent misses indicate process gaps in invoice capture.

© 2025 — All content original. Written for Oracle EBS / OIC professionals migrating to Oracle Fusion Cloud.

What is Consignment , Consignment Orders and Consignment Receipts in Oracle Fusion

Consignment Process in Oracle Fusion Cloud: Consignment Orders & Receipts (Step‑by‑Step)

By Akhil Sayed • Updated: October 7, 2025 • Oracle Fusion Cloud SCM

Quick links

• What is Consignment?
• Consignment Orders
• Consignment Receipts
• Consumption & Accounting
• Required Setup in Oracle Fusion
• Best Practices & FAQs

1. What is Consignment Inventory?

Consignment inventory is a model where the supplier retains legal ownership of goods stored at the buyer’s site until the buyer consumes them. In Oracle Fusion Cloud, consigned goods are received into inventory but remain on the supplier’s books until consumption triggers ownership transfer and invoicing.

Why companies use consignment: improves cash flow, lowers buyer’s working capital, and shortens replenishment lead times while ensuring availability of critical parts.

2. Consignment Orders (Purchase Order Behavior)

A consignment order is essentially a purchase order line flagged as Consignment. It records the intent to hold supplier-owned stock at buyer locations.

Lifecycle — at a glance

1. Create a consignment agreement with supplier (procurement contract).
2. Create a Purchase Order with consignment lines or a dedicated consignment PO type.
3. Supplier ships and you perform a consignment receipt.
4. Inventory is available as Consigned on‑hand.

System behavior

Action	Result
Create consignment PO	No immediate payable; PO lines marked as consigned
Receive consigned goods	On-hand increases (consigned), no ownership/accounting change
Consume items	Ownership transfers; create consumption advice; invoice posted

3. Consignment Receipts (Receiving Without Ownership Transfer)

Consignment receipt is the inventory receipt transaction that puts supplier-owned stock into a receiving locator or bin while preserving supplier ownership.

How to receive (short)

1. Inventory → Receipts → Receive Expected Shipments or Manage Receiving.
2. Select the consignment PO/ASN and perform the receipt.
3. Confirm quantities and complete the receipt; items become Consigned on-hand.

Tip: Use locator/bin controls to segregate consigned stock for easier reporting and cycle counting.

4. Consumption, Consumption Advice & Accounting

Consumption occurs when a consigned item is issued to production, a sales order, or an internal use. That event triggers the transfer of ownership, the creation of a consumption advice, and eventually supplier invoicing.

Accounting flow (simplified)

// When consigned goods are received
No accounting entry (supplier still owns stock)

// When consumed by buyer
Debit: Inventory (or COGS) — buyer
Credit: Consignment Liability (or Supplier Liability)

// When supplier invoice is received
Debit: Consignment Liability
Credit: Accounts Payable
      

Consumption advice

Oracle can generate consumption advice documents that list consumed items and quantities. These can be sent to the supplier automatically or manually depending on integration setup (B2B, EDI, or email).

5. Required Setup in Oracle Fusion Cloud

1. Enable consigned inventory functionality in Inventory Management (feature availability depends on your Fusion release and configuration).
2. Define supplier and consignment contract terms in Procurement Contracts.
3. Create consignment PO lines (set Consignment flag) or use a specific PO type for consignment.
4. Configure inventory locators/bins and choose an accounting treatment for consigned stock.
5. Set up integrations for consumption advice / invoicing (B2B/EDI or manual process).

If your implementation team needs help, coordinate Procurement, Inventory, and Finance to align accounting and operational controls.

6. Best Practices & FAQs

Best practices

• Keep consignment stock in dedicated locators and enable cycle counting for visibility.
• Agree on clear consumption reporting cadence with suppliers (daily/weekly/monthly).
• Automate consumption advice where possible to avoid invoice disputes.
• Track unit prices and valuation method to ensure correct accounting at the time of consumption.

Q: Does receiving consigned stock create a payable?

A: No — payables are created only after consumption or when an agreed billing event occurs.

Q: Can I return consigned stock to the supplier?

A: Yes — treat it like an inventory transfer back to the supplier and follow your receiving/returns process.

Q: How is consigned stock valued?

A: Valuation typically occurs at consumption by applying the agreed unit price. Ensure your accounting rules and item costing setup reflect this behavior.

© 2025 — Original content. Written for Oracle EBS / OIC professionals looking to migrate or document consignment processes in Oracle Fusion Cloud.