Before you begin implementing Enterprise Asset Management (eAM), decide which organizations are eAM enabled. A valid organization must exist before you can enable the organization for Enterprise Asset Management (See: Setting Up Organizations).

   To define an Enterprise Asset Management enabled organization:

You can create a new Enterprise Asset Management enabled organization, or convert an existing organization to an Enterprise Asset Management enabled organization. Oracle recommends that you keep Enterprise Asset Management organizations separate from production organizations. Enterprise Asset Management parameters are on the Inventory Parameters tab, within the Organization Parameters window.

1. Navigate to the Organization Parameters window.

2. Enter a valid organization code. For information on how to create an organization, See: Setting Up Organizations.

3. Select the Approve automatically value in the Move Order Time Out Action field. Move orders are created with a status of Incomplete if the planner is defined in the Organization Items - General Planning tab.

   Set up the Move Order parameters for Move Order Time Out and Move Order Time Out Action as required. See Overview of Move Orders, Oracle Inventory User's Guide.

   If the planner is not defined, move orders are created with a status of Pre-approved.

   Approval action is required to change the status of the move order to Approved. After approval, the material allocation will occur.

   For more information regarding planner definition, see Defining Planners, Setting Up, Oracle MRP User's Guide.

4. Select the EAM Enabled check box to enable Enterprise Asset Management for this organization. You cannot clear this check box after Enterprise Asset Management items or Enterprise Asset Management parameters are defined in the current organization.

5. If Enterprise Asset Management is enabled for the current organization, the EAM Organization value defaults and is disabled; the current organization code defaults.

   For organizations that are not Enterprise Asset Management enabled, you can populate the EAM Organization field with an Enterprise Asset Management enabled organization code. The designated eAM organization maintains equipment items for the designated production organization. For example, if the current organization is a production organization, this is how you would identify a maintenance organization that is associated with the production organization (See: Overview of the Process and Discrete Manufacturing Integration). You can update this field, if asset equipment association does not exist in this organization.

6. If you are using encumbrance accounting, you must enable this feature.

   Navigate to the Costing Information page.

7. Select the Reverse Encumbrance option.

8. Save your work.