How and when an Instance is Created in Oracle Installed Base?

In order to create an Install Base instance for an inventory item in oracle one has to mark the item as Install base trackable at master organization level. This can be done in Item Master under service tab. Once the item is set up as trackable in Oracle Install Base, then an inventory receipt such as miscellaneous receipt or PO receipt creates or updates an Oracle Install Base instance. These inventory transactions send a message to SFM Event queue which updates the Oracle Installed Base.

For non-serialized items, if an instance already exists then the new instance is added to the quantity of existing one at the same location.

If an item is serial controlled at receipt, then an instance is created with quantity 1.

If an item is serial controlled at order issue, then it is treated as non-serialized in inventory and only when the order is issued it gets a serial number and an instance is created with this serial number.

For an Oracle Installed Base trackable, shippable item, a shipping transaction generates an inventory issue transaction in Oracle Inventory. If the inventory item is serialized (serialized at receipt) this transaction would change the location and ownership depending upon the transaction type being used. But if the item is serialized at sales order issue this shipment transaction causes the creation of a new instance with the serial number. For non-serialized items, the quantity is subtracted from the instance at inventory location, and a new instance is created with customer ownership and location.

Once the IB instance is created, then any subsequent inventory transactions will be tracked in Oracle Installed Base as well. For any inventory transfer or move order transactions the location of an instance is updated to reflect the new location for a serialized item. For a non-serialized item, the quantity for the instance at the TO location is increased and is subtracted at the FROM location with the quantity which is being moved. If there is a WIP job opened for the item then the location of the item reflects the WIP job number.