Update column based on sum of data from another table

Hi We had two tables.
Table 1: matusetrans
ITEMNUM Location Quantity transdate
AM1324 AM1 2 12-4-12
AM1324 AM1 2 15-5-12
AM1324 AM1 3 10-6-12
AM1324 AM1 4 5-1-13
AM1324 AM1 2 13-3-13
AM1324 AM2 3 2-5-12
AM1324 AM2 2 12-7-12
AM1324 AM2 1 13-2-13
Table 2: Inventory
ITEMNUM STORELOC lastyear currentyear
AM1324 AM1 need sum(quantity) here need sum(quantity)
AM1324 AM2 need sum(quantity) here need sum(quantity)
We have to update the last year and current year columns with sum of quantities for each item from matusetrans table based on date at different location in Inventory table.
we had nearly 13,000 records(itemnum's with different location) in inventory table in DB we have to update entire records.
Any help...How to write an sql queries to update lastyear and currentyear columns with sum of quantities based on itemnum and location in Inventory table
Thanks
Edit/Delete Message

Try this
SQL> select * from matusetrans;
ITEMNU LOC   QUANTITY TRANSDATE
AM1324 AM1          2 12-APR-12
AM1324 AM1          2 15-MAY-12
AM1324 AM1          3 10-JUN-12
AM1324 AM1          4 05-JAN-13
AM1324 AM1          2 13-MAR-13
AM1324 AM2          3 02-MAY-12
AM1324 AM2          2 12-JUL-12
AM1324 AM2          1 13-FEB-13
8 rows selected.
SQL> select * from inventory;
ITEMNU STO   LASTYEAR CURRENTYEAR
AM1324 AM1          0           0
AM1324 AM2          0           0
SQL> merge into inventory i
2 using (
3            select itemnum
4                 , location
5                 , sum(decode(extract(year from transdate), extract(year from sysdate), quantity)) currentyear
6                 , sum(decode(extract(year from transdate), extract(year from add_months(sysdate, -12)), quantity)) lastyear
7              from matusetrans
8             group
9                by itemnum
10                 , location
11        ) t
12     on (
13           i.itemnum = t.itemnum and
14           i.storeloc = t.location
15        )
16 when matched then
17    update set i.lastyear = t.lastyear
18             , i.currentyear = t.currentyear
19 /
2 rows merged.
SQL> select * from inventory;
ITEMNU STO   LASTYEAR CURRENTYEAR
AM1324 AM1          7           6
AM1324 AM2          5           1
SQL>

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