With Contributing Author: Kavita Yetakuri

Material Classification tagging is a method of assigning and tracking the Material Classification at the point of use like sales order picking, receiving, or transferred internally.The previous Material Classification Code (MCC) tagging 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.

In Oracle EBS 12.2.10 new release, MCC feature is enhanced to enable MCC tagging at On-hand. With this feature, MCC will be recorded at the On-hand level and If the material is received or moved within/across the organizations the corresponding MCC value will track Material, Classification Type(lookup code) needs to be setup in EBS and then valid Classification Codes for each Classification Type. Then a default Material Classification Type and Classification Code needs to be associated with an item, in an organization, and enabled MCC tagging during Sales Order Pick or Sales Order Ship.

Now the system will enforce the MCC is captured for the specific item during Pick or Ship operation. This enhancement will allow retaining the Country Of Origin captured during item receipt if the item is enabled for MCC tagging and Material Classification Type of ‘COO’ is associated with it. Once MCC is captured for on-hand material, system can also provide visibility of the on-hand of an item, by classification code too. 

Business will be able to classify on-hand material (in the warehouse) without having to setup as different item in the item master.

E.x:

1. If a business stores the same item with a different Country of Origin in the warehouse, they would not be required to setup different item name in the item master, and track Country Of Origin as an item key flex-field segment.

2. Other examples of the need to classify on-hand material would be to identify refurbished material in the warehouse or items with different colors or sizes. If the same item is packaged in ‘regular’ packing or ‘holiday’ packing, it can be tracked with-in inventory without having to setup different items in the item master.

In the current behavior when we enable the MCC classification type in the Item form, the MCC Classification Tagging Assignment will be enabled.

For complete information on “Material Classification Code” Feature in Oracle eBusiness Suite, please refer this note:

Material Classification Code (MCC) for On-hand Inventory 12.2.10 (Doc ID 2754880.1)