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Internal Material Transfers White Paper PDF
Internal Material Transfers White Paper PDF
Overview 4
Create IMT Request in Supply Order File Based Data Import Spreadsheet 26
Review Additional Transfer Order Charges and Ship Confirm Transfer Order 36
Demo One: Casual User Internal Material Transfer Requisition Process Flow 53
Process Flow 61
Receive Items 69
Create Item 86
It is recommended that users of this document first determine the Internal Material Transfer flow
they would like to perform. Once the appropriate flow has been identified, use this white paper to
review the necessary setup and transactional steps to complete the flow.
This flow is designed to show the Internal Material Transfer Flow and the various products and
user roles involved in the flow. A transfer order can be created from various sources such as min-
max planning, back-to-back, planning, and spreadsheet upload. In this flow, we will focus on the
transfer order source min-max planning. Internal material transfers will be created based on min-
max planning requirements. Min-max organization level planning is setup at the item-organization
level in Product Management.
The process will begin with the Product Manager creating a new item and assigning min-max
planning attributes. The item will be assigned to both organizations V1 and M1. The destination
organization V1 will receive a transfer order shipment from organization M1. In other words,
organization M1 is the source organization fulfilling the internal material requirements of
organization V1.
In order for organization M1 to transfer material to organization V1, on-hand inventory must be
available to transact in organization M1. The Warehouse Manage will create an inventory
transaction type of miscellaneous receipt to receive material into organization M1. When creating
The next step in the process involves the Cost Accountant user role setting up cost profiles. Once
the cost profile has been configured, the Cost Accountant will run the transfer transactions from
inventory to costing scheduled process. This process will transfer inventory transactions to the
cost management application to perform the necessary item costing. The Cost Accountant will
then create the cost accounting distributions and review the item costs.
The Supply Chain Application Administrator will perform several setup tasks to facilitate the
transfer and receipt of material between the two organizations. The setup task Manage
Interorganization Parameters defines the origin organization, destination organization, transfer
type and whether or not a transfer order is required. The Supply Chain Application Administrator
will also define item transaction defaults which indicate which subinventory the item will be stored
in upon receipt.
The next step in the process is to run the min-max planning report. The Warehouse Manager for
organization V1 will run the min-max planning report. Once min-max planning has completed, a
supply request will be sent to Supply Chain Orchestration. Supply Chain Orchestration provides
document generation rules to determine if a transfer order should be created and also provides a
consolidated view of supply and demand.
The Supply Chain Operations Manager user role will run the ‘Process Supply Chain Orchestration
Interface’ scheduled process. When running this process, Oracle Fusion Inventory Management
is specified as the supply request system. The Supply Chain Operations Manager will then
navigate to the Manage Supply Lines page to see the supply order number, document number,
and supply type.
The next step in the process involves the Warehouse Manager viewing the transfer order in the
Manage Transfer Orders page. The transfer order will display details such as source
organization, destination organization, and transaction origin type. The transfer order will be
interfaced to shipping for picking and shipping. The transfer order page also provides the ability to
view the associated shipments and receipts.
The final step in the process is receiving the transfer order in the destination organization and
performing the put away into inventory. The Warehouse Manager assigned to the destination
organization will navigate to the receipts work area and receive the transfer order. The
Warehouse Manager will perform the put away and then navigate to the manage item quantities
page and confirm the item quantity has been increased by the quantity indicated on the transfer
order receipt.
Internal material transfers can be generated from several sources including back-to-back orders,
planning, spreadsheet upload, and min-max planning. In this flow we will use min-max planning as
the source.
The first step in the process flow is to create an item and enable it for min-max planning. The job
role responsible for item creation is the ‘Product Manager’.
When you create an item you first need to specify the Organization and Item Class. Then select
the relevant templates. Once the create item fields have been entered, click the ‘OK’ button to
close the create item dialog window.
Navigation: Product Management > Product Information Management > Create Item
In this step, you will be creating an item association for inventory organization M1.
• Click the Add icon to open the Select and Add: Organization dialog Add
• Select and Add: Organization
• Click the Save and Close button in the upper right-hand corner of the page
Once Organization M1 has been associated with the item, you need to navigate back to
Organization V1 and specify organization Seattle Manufacturing (M1) as the Source
Organization.
Navigation: Manage Items > Enter Item to Search > Click Search Button > Click on Record
for Organization V1 > Click on Specifications Tab > Click on Planning > Enter Organization
Seattle Manufacturing in the Source region > Click Save and Close when completed
In order to perform the internal material transfer, on-hand quantity must be created in inventory
organization M1. An inventory transaction type of miscellaneous receipt will be performed to add
on-hand quantity in inventory organization M1.
Sign out and sign in as Warehouse Manager for inventory organization M1.
In order to create item cost profiles, you will need to sign out and sign in as the Cost Accountant.
Navigation: Setup and Maintenance > All Tasks Tab > Manage Item Cost Profiles > Click
‘Go to Task’ link
In order to cost inventory transactions, the transactions must be transferred from Inventory
Management to Costing. The scheduled process Transfer Transactions from Inventory to Costing
is used to transfer inventory transactions to Cost Management. The Cost Accountant role will
perform this step.
The Cost Accountant will then create the cost account distributions.
Navigation: Costing > Cost Accounting > Create Cost Accounting Distributions
The Cost Accountant will then review the item costs associated with the miscellaneous receipt
transaction. When the miscellaneous receipt transaction was created, a unit cost of 9 was
entered for the cost component type item price. Once the transaction is processed and the
scheduled process Transfer Transactions from Inventory to Costing is ran, the unit cost of 9 will
be transferred to the Cost Management application.
In order to define interorganization parameters, you will need to sign out and sign in as Supply
Chain Application Administrator. The user interface Manage Interorganization Parameters
enables you to define parameters
Navigation: Setup and Maintenance > All Tasks Tab > Manage Interorganization
Parameters > Click ‘Go to Task’ link
Note: If the interorganization parameters have not been previously defined, you can create them
by clicking on the create icon.
The Supply Chain Application Administrator will then define the item transaction defaults.
Item transaction defaults will streamline the receipt process by specifying Receiving as the default
and subinventory Stores as the default subinventory.
Navigation: Setup and Maintenance > All Tasks Tab > Manage Item Transaction Defaults >
Click ‘Go to Task’ link
In order to create item cost profiles, you will need to sign out and sign in as the Warehouse
Manager for inventory organization V1.
Min-max planning is used to maintain inventory levels for selected items. With min-max planning,
you specify minimum and maximum inventory levels for your items.When the inventory level for
an item drops below the minimum, a transfer order will be created to bring the balance back up to
the maximum.
Navigation: Tools > Scheduled Process > Schedule New Process > Enter or Select Print
Min-Max Planning Report
Note down the Request Number XXXX (67295), later on just add prefix MINMAX when running
SCO ESS. For example, MINMAX67295
In order to run Process Supply Chain Orchestration Interface, you will need to sign out and sign in
as Supply Chain Operations Manager. This process creates supply orders based on supply chain
orchestration interface records.
The Manage Supply Lines user interface will allow you to view the newly created supply lines.
Additionally, the transfer order can be viewed in the column titled Document Number.
Log in as the Warehouse Manager V1 to view the transfer order. You can also click the View
Shipments and Receipts button to view all shipments and receipts associated with the transfer
order.
» Transfer Order: 286001 (This is the Document Number in Manage Supply Lines Page)
» Click the Search button
» Verify Line Status is Open
» Verify Interface Status is Interfaced to Shipping
Navigation: Warehouse Operations > Pick Waves > Create Pick Wave
» Ship-from Organization: M1
» Order Type: Transfer Order
» Enter Transfer Order in Order field
» Click Show More
» Click Options Tab
» Autoconfirm Picks: Checked
» Ship Confirm Rule: Null/Blank
» Click Release Now button
Confirmation Message: Pick wave 5235749 was release. Number of pick slips: 1 and number of
picks: 1.
» Ship-from Organization: M1
» Order: Enter Transfer Order (Add search field Order by clicking ‘Add Fields’)
» Click the Search button
» Click the Ship Confirm button
Once the transfer order has been released the Line Status should be ‘Staged’. The next step is to
Ship Confirm the transfer order.
Once the transfer order has been ship confirmed at the source (fulfilling organization), the next
step is receiving the transfer order at the destination organization.
Once the transfer order has been received at the destination organization, the next step is to
perform the receipt put away.
View Transfer Order On-hand Quantity V1. The transfer quantity in organization V1 will be
increased by quantity 15 for Item IMT_TEST.
The spreadsheet template will be loaded into the system by the Supply Chain Operations
Manager role using the Supply Chain Orchestration File Import and Export UI followed
by the “Load Interface File for Import” scheduled process.
Once the spreadsheet is loaded the “Process Supply Chain Orchestration Interface”
scheduled process is initiated to perform the processing required to generate the transfer
orders. The Supply Chain Operations Manager will then navigate to the Manage Supply
Lines UI to see the supply order number, document number, and supply type.
The next step in the demo involves the Warehouse Manager viewing the transfer order in
the Manage Transfer Orders UI. The transfer order will display details such as source
organization, destination organization, destination type and transfer order price. In the
demo flow, the transfer order will show as being interfaced to shipping identifying the
fact that the order has been created in the Shipping system and is ready for picking and
shipping activity. The Warehouse Manager can make changes to the transfer order using
this UI. The price of the item shown when viewing the transfer order shows a total price
for the transfer order that includes both the item’s cost plus the additional charges. The
transfer order UI also provides the ability to view the associated shipments and receipts.
When the Warehouse Manager has validated the transfer order, they will then create a
pick wave to pick release the transfer order. They will enter the order type and transfer
order number to release the transfer order. The pick wave process will allocate the
material, create a pick slip, and automatically pick confirm the transfer order. The
Warehouse Manager can then proceed to the Manage Shipments UI to review the
shipping charges and ship-confirm the transfer order.
The next step in the process flow is to receive the transfer order in the destination
organization. The product is being shipped to the receiving department at organization
V1 so the Warehouse Manager at V1 will navigate to the receipts work area and receive
the transfer order. Since the item is being expensed it will be delivered directly to the
requester by the receiving department.
The transfer order history recapping the shipping and receiving events can then be
viewed using the Manage Transfer Order UI. The Transfer Order UI will show that the
order is now closed and that the requested quantity has been shipped and received.
Create IMT Request in Supply Order File Based Data Import Spreadsheet
The first step in the demo flow is to create the internal material transfer (IMT) request
entries in the supply order file based data import spreadsheet template.
Set the following values on the “Additional Transfer Order Costs” tab
• Click on the Generate CSV button to generate the CSV files (This will save the
CSV and a .zip file containing the CSV files in the designated directory. The .zip
file will be used in the next step below.)
The next step in the demo flow is to load the spreadsheet template. This is a three step
process including the following steps:
1. Load file into document library – Use the “File Import and Export” UI to load the
CSV file created in the step above into the document library.
2. Run the “Load Interface File For Import” ESS process to load the details of the
internal material transfer order request into the Supply Chain Orchestration
Interface table.
3. Run the “Process Supply Chain Orchestration Interface” ESS process to process
the internal material transfer order request creating the transfer order.
After processing these steps the transfer order will be reviewed in the Manage Supply
Lines UI.
In order to run these steps you will need to sign in as Supply Chain Operations Manager .
The Manage Supply Lines user interface will allow you to view the newly created supply
lines. Additionally, the transfer order can be viewed in the column titled Document
Number.
Search for supply line using the batch number as search criteria:
• Transfer Order: 199002 (This is the Document Number in Manage Supply Lines
UI)
• Click the Search button
• Verify the Destination Type is Expense
• Review the Total Price. Item Cost is $210 so 10*210 is $2,100. The price shows
$2,125 because the “HANDLING” additional transfer order line charge was
created for this transfer order adding an additional $25 to the Total Price.
Navigation: Warehouse Operations > Pick Waves > Create Pick Wave
• Ship-from Organization: M1
• Order Type: Transfer Order
• Enter Transfer Order in Order field
• Ensure ‘To Scheduled Ship Date’ and ‘To Requested Date’ Match Transfer Order
• Click Show More
• Click Options Tab
• Autoconfirm Picks: Checked
• Ship Confirm Rule: Null/Blank
• Click Release Now button
Confirmation Message: Pick wave 5368894 was released. Number of pick slips: 1 and
number of picks: 1.
Review Additional Transfer Order Charges and Ship Confirm Transfer Order
Next step is to ship confirm the shipment. Before performing the ship confirm step
review the shipment costs verifying that the “HANDLING” additional transfer order line
charge has been applied to the shipment line and that it is available for edit and viewing
purposes.
• Ship-from Organization: M1
• Order: Enter Transfer Order (Add search field Order by clicking ‘Add Fields’)
• Click the Search button
• Verify that the Line Status is Staged
• Verify that the Total Shipping Costs Recorded is $25
Once the transfer order has been ship confirmed at the source (fulfilling organization), the
next step is receiving the transfer order at the destination organization since the “Receipt
Required at Expense Destination indicator is set to “Yes” for the M1 to V1
Interorganization Parameters.
The transfer order shipping and receiving details can be reviewed using the Manage
Transfer Order Task.
DEMO COMPLETE
Create Item
The first setup step that needs to be performed is to create an item. The job role
responsible for item creation is the ‘Product Manager’.
When you create an item you first need to specify the Organization and Item Class. Then
select the relevant templates. Once the create item fields have been entered, click the
‘OK’ button to close the create item dialog window.
Navigation: Product Management > Product Information Management > Create Item
• Click the Add icon to open the Select and Add: Organization dialog Add
• Select and Add: Organization
• Click the Save and Close button in the upper right-hand corner of the page
In order to perform the internal material transfer, on-hand quantity must be created in
inventory organization M1. An inventory transaction type of miscellaneous receipt will
be performed to add on-hand quantity in inventory organization M1. A cost will be
added at this point to establish an initial cost for the item that will be viewed on the
internal material transfer.
Sign out and sign in as Warehouse Manager for inventory organization M1.
Before running the costing steps a cost profile will need to be setup for the item. In order
to create item cost profiles, you will need to sign out and sign in as the Cost Accountant.
Navigation: Setup and Maintenance > Search for Manage Item Cost Profiles > Click
on task name
The Cost Accountant will then create the cost account distributions.
Navigation: Costing > Cost Accounting > Create Cost Accounting Distributions
The Cost Accountant will then review the item costs associated with the miscellaneous
receipt transaction. When the miscellaneous receipt transaction was created, a unit cost of
$150 was entered for the cost component type item price. Costing applied an additional
$60 overhead to the cost of the item to come to a total cost of 210.
Verify that the deliver to location that will be used in the demo has been setup in the
Manage Transit Time UI. If it is not there it must be added. In the case of this demo the
item will ship from internal origin type M1 – Seattle Mfg and be delivered to the internal
destination type of V1 – Vision Operations. Search to verify that the setup for this
combination exists. If it does not exist it must be added. See example below.
In order to view or define transit times, you will need to sign out and sign in as Supply
Chain Application Administrator.
Navigation: Setup and Maintenance > Search for “Manage Transit Time” > Click on
task name
Note: If the interorganization parameters have not been previously defined, you can
create them by clicking on the create icon.
In order to define Shipping Cost Type, you will need to be signed in as Supply Chain
Application Administrator. The user interface Manage Shipping Cost Types enables you
to define shipping cost types.
Navigation: Setup and Maintenance > Search for “Manage Shipping Cost Types” >
Click on task name
Note: If the HANDLING cost type has not been previously defined, you can create it
by clicking on the create icon.
Demo One: Casual User Internal Material Transfer Requisition Process Flow
This demo use case is a scenario where a casual user is requesting an item that is stocked
in inventory at a warehouse within their same organization. The user does not work with
the internal systems very often so they want to be able to simply enter a requisition to
have the item delivered to their cubical.
The demo will show how an IMT requisition line can be created with very little
interaction required from the user. Since the item will be delivered from an internal
inventory warehouse within the requesters own organization and expensed to that user an
intra-organization expense destination transfer order will be generated to deliver the item
directly to the requester’s cubicle.
The requisition will be created using the shopping page in self service procurement.
Once submitted from the shopping cart it will go through approval processing. When it is
approved the system will automatically create a transfer order. The associated transfer
order number will be posted to the requisition allowing the requester to drill into the
order to view its progress.
The transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, pick and then automatically ship, automatically pick and manually ship
or to automatically pick and ship as is being done in this demo script.
Since we are showing a process flow that requires the least amount of interaction from
the casual requester the system is setup to not require a receipt when the item is
The first step in the demo flow is to create the IMT requisition line. This will be done by
selecting the item from the shopping page in the Purchase Requisitions work area. Sign
in with privileges to create a requisition in order to perform this step.
Figure 1: Search Results after searching for item in Purchase Requisitions work area
Once the order is submitted it will be sitting in a “Pending Approval” status. Once
approved a transfer order will be generated and the transfer order number will be
available from the Manage Requisition page. Bring up the page to review the requisition.
Then click on the transfer order number to drill-down to the transfer order to review it.
The transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, pick and then automatically ship, automatically pick and manually ship
or to automatically pick and ship as is being done in this demo script.
The Warehouse Manager sign-on for the M2 warehouse will be used for this step.
Since we are showing a process flow that requires the least amount of interaction from
the casual requester for this demo the system is setup to not require a receipt when the
item is delivered. The intersubinventory parameter has been setup to not require a receipt
for expense destination transfer orders. The item will be shipped and automatically
“delivered” in the system. In this case the shipping department would physically send
this directly to the requesters location completing the process.
In this step the delivered requisition will be viewed along with the shipment details
associated with the transfer order showing that the order has been shipped and
automatically received and delivered in the system.
This demo use case is a scenario where a more sophisticated user is requesting an item
that is stocked in inventory at a warehouse within their same organization. A good
example would be a user in an engineering department that orders parts out of internal
inventory on regular basis.
This user is allowed to override many of the fields on a requisition line and has authority
to source the material from warehouses outside the current organization when necessary
to secure parts needed for prototypes.
The demo will show how an IMT requisition line can be created using the Create
Requisition Line page. Since the user has the ability to source product from multiple
warehouses the Select Supply Request page will be used to review the availability of
inventory at different warehouses prior to selecting one as the source of the internal
material transfer.
Once the requisition is created and approved the associated transfer order will be
automatically created. The details of the approved requisition and associated transfer
order can then be viewed and edited if changes are necessary to quantities or the
requested delivery date.
The transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, perform a pick step and then automatically ship, automatically pick and
manually ship or to automatically pick and ship as is being done in this demo script.
Once shipped the requested item will be delivered to the requester who will use self
service receiving to acknowledge the receipt. The completed requisition and transfer
order will then be reviewed showing the shipment and receipt history.
The first step in the demo flow is to create the IMT requisition line. This will be done by
entering the requisition details using the Enter Requisition Line page accessed from the
Purchase Requisitions work area. Sign in with privileges to create a requisition in order
to perform this step.
In this next step of the demo the approved requisition is reviewed and the transfer order is
drilled into to show how the order can be viewed and changed. In order to change the
transfer order the Manage Transfer Order privilege needs to be assigned to the user.
Figure 14: Edit Transfer Order – Drill-down to transfer order from Manage
Requisition page
The transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, pick and then automatically ship, automatically pick and manually ship
or to automatically pick and ship as is being done in this demo script.
When the order is shipped the transfer order will be updated as being shipped and a
transfer order inventory transaction will be generated to record the fact the item has been
issued out of the source inventory.
If a receipt is not required then this transaction will be used by Costing to record both the
issue and the expensed delivery at the destination organization. If the receipt is required
than an inbound shipment is created in the receiving system allowing the item to be
received and delivered by user entered responses at the user location using either the self-
service receiving pages or the warehouse receiving pages. In this demo the
interorganzation parameters between organization M1 and M2 have the “receipt
required” option checked. So, the next step in this demo will be to use Self-Service
Receiving pages to receive and deliver the item.
The steps required to ship the item are noted below. The Warehouse Manager sign-on for
the M1 warehouse will be used for this step.
Receive Items
Since the “Receipt Required” option has been set on the Interorganization parameters for
the M1/M2 organization pair the next step in the process flow is to receive the item once
it is delivered to the requester. Note that the receipt can be entered in either self-service
receiving pages or the warehouse receiving pages. In this demo the self-service receiving
pages will be used and the item will be received in the system by the requester.
Note that in order to use the self-service receiving pages to receive a requisition sourced
item the “receipt routing” option in the interorganization parameters between the M1 and
M2 organization must be set to “Direct”. If the “receipt routing” option is set to
“Standard” or “Inspection” then the warehouse receiving pages must be used to receive
the item.
Sign-in as the requester to receive the transfer order from the self-service receiving pages.
In this step the delivered requisition will be viewed along with the shipment and receipt
details associated with the transfer order showing that the order has been shipped,
received and delivered.
Sign in as the requester to perform this step in the demo.
Figure 22: Shipment and Receipts – Show shipment and receipt history of transfer
order
In this demo an inventory manager needs to replenish inventory for an item that is out of
stock in-between the normal Min-Max or Planning replenishment cycle. This
demonstration shows how an inventory manager can generate an ad-hoc IMT request
using the Create Supply Request page that is accessed from the Manage Item Quantities
page.
This demo starts with the warehouse manager going into the Manage Item Quantities
page and initiating the Request Transfer Order action from the Action menu. This action
will bring up the Create Supply Request page. The Create Supply Request page will be
used to create the transfer order. For this demo an “inventory” destination
interorganization transfer order will be created transferring needed inventory to the M2
organization from the M1 organization.
Once the supply request has been entered the associated transfer order will be viewed
using the Manage Transfer Orders page. This page allows the user to view and edit
transfer order details.
Next, the transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, perform a pick step and then automatically ship, automatically pick and
manually ship or to automatically pick and ship as is being done in this demo script.
Once shipped the requested item will be delivered to the M2 warehouse where Receiving
personnel will use the warehouse receiving pages to receive the item and put it away to a
subinventory.
The completed transfer order will then be reviewed showing the shipment and receipt
history.
In this step the user will use the Create Supply Request page to create an internal material
transfer.
The user will go into the Manage Item Quantities page and select the Request Transfer
Order action from the Action menu. This action will bring up the Create Supply Request
page.
• Select the “Request Transfer Order” action from the Action menu. This will
bring up the Create Supply Request page.
• Click on the “Add Row” icon ( ) to add a line.
• Enter the Item: IMT_DEMO_ITEM01
• Enter Requested Quantity: 100
• UOM will default to Each
• Enter a Requested Delivery Date
• Select Source Organization by clicking on the “Select Supply Source” button.
This will bring up the Select Supply Source page. Select the M1 (Seattle
Manufacturing) supply source as follows:
o Select the Source Organization: Notice that the top ranked source
organization is Vision Operations but the “Total Available Quantity”
column shows that it does not have any inventory available. The Seattle
Manufacturing organization does have available inventory. So, select the
Seattle Manufacturing line.
o Click on “Ok” to finish selecting the source organization and return to the
Create Supply Request Page.
• Notice that the Supply Source column now has Seattle Manufacturing as the
source organization.
This step will show how the new transfer order can be viewed and changed.
The Manage Transfer Order page will be used to bring up the transfer order. This page
can be used to view the status of the transfer order. It can also be used to change or
cancel the transfer order.
To perform this step you will need to be signed in using an inventory manger role.
The transfer order will be picked and shipped in Shipping. Note that there were no
changes to the processing flows in shipping in Release 13 so for this demo a pick wave
will be created using the auto-pick and auto-ship features. In an actual production
environment users have the same choices as always allowing them to pick and ship as
individual steps, pick and then automatically ship, automatically pick and manually ship
or to automatically pick and ship as is being done in this demo script.
When the order is shipped the transfer order will be updated as being shipped and a
transfer order inventory transaction will be generated to record the fact the item has been
issued out of the source inventory.
The steps required to ship the item are noted below. The Shipping Manager sign-on for
the M1 warehouse will be used for this step.
Receive Items
Since the transfer type option has been set to “Intransit” on the interorganization
parameters for the M1/M2 organization pair the next step in the process flow is to
receive the item once it has been delivered to the M2 warehouse.
Note that for this demo the “Receipt Routing” parameter on the interorganization
parameters for the M1/M2 organization pair is set to “Direct” so a one step receiving
process will be used to receive and put away the item in a single step. If the “receipt
routing” option is set to “Standard” or “Inspection” then a multi-step receiving process
would be used.
Sign-in as the receiving clerk in the M2 organization to perform this step.
• Click on the search icon “ ” and search for the inbound transfer order
shipment in the Receiving System. Enter search criteria as follows:
o Expected Shipment Line.
o Transfer Order
o 179033 (enter transfer order number)
o Click on Search button. This will load the transfer order shipment details
into the search results of the Receive Expected Shipment page.
• Select the transfer order shipment line that is in the search result.
• Click on the “Receive” button to bring up the Receive Lines page.
• Create the receipt using the Create Lines page and the Create Receipt page as
follows:
o Enter the receipt quantity of 100
o Click on the Create Receipt button
o Once the Create Receipt page comes up Click on Submit
o Click “OK” in the confirmation popup
Sign in as the inventory manager in the M2 organization to perform this step in the demo.
(Note that while the demo goes into the Manage Transfer Orders page to view the
transfer order the same pages are available by drilling down from the shipment in
Shipping or from the receipt in Receiving.)
Figure 37: Shipments and Receipts – View shipments and receipts details
Create Item
The first setup step that needs to be performed is to create an item. The job role
responsible for item creation is the ‘Product Manager’.
When you create an item you first need to specify the Organization and Item Class. Then
select the relevant templates. Once the create item fields have been entered, click the
‘OK’ button to close the create item dialog window.
Navigation: Product Management > Product Information Management > Create Item
Next, enable the item for transfer orders. This is required for both the source and
destination organizations when ordering items on internal material transfer order
requisition lines.
Note that the “Check ATP” attribute must also be set to “None” in order to use rankings
based on the Interorganization Parameters UI settings when using the Select Supply
Source UI (as identified in previous paragraph above when setting item attributes under
the Sales and Order Management specifications).
Next, create an item association for inventory organizations M1, M2 and M3.
• Click the Add icon to open the Select and Add: Organization dialog Add
• Select and Add: Organizations M1 and M2
For this demo on-hand quantities will be setup in both the M1 and M2 organizations. A
quantity of 1 will be setup in the M2 organization so it is available for a intra-
organization transfer in the first part of this demonstration. A quantity of 1000 will be
setup in the M1 organization so it is available for an Interorganization transfer between
the M1 and M2 organizations in the second and third parts of this demonstration.
First, use an inventory transaction type of miscellaneous receipt to add on-hand quantity
in inventory organization M1. A cost will be added at this point to establish an initial
cost for the item that will be viewed on the internal material transfer.
Sign out and sign in as Warehouse Manager for inventory organization M1.
Next, sign in as Warehouse Manager for inventory organization M2 and repeat the same
steps above using a Miscellaneous Receipt inventory transaction to add an on-hand
quantity of 1 in the M2 organization.
Before running the costing steps a cost profile will need to be setup for the item. In order
to create item cost profiles, you will need to sign out and sign in as the Cost Accountant.
Navigation: Setup and Maintenance > Search for Manage Item Cost Profiles > Click
on task name
Repeat the steps above to transfer transactions from inventory to costing for the ZCST-
Boston cost organization.
The Cost Accountant will then create the cost account distributions for the ZCST-Seattle
and ZCST-Boston cost organizations.
Navigation: Costing > Cost Accounting > Create Cost Accounting Distributions
The Cost Accountant will then review the item costs associated with the miscellaneous
receipt transaction. When the miscellaneous receipt transaction was created, a unit cost of
$150 was entered for the cost component type item price in both the M1 and M2
organizations. In the screen shots below you can see that Costing applied an additional
overhead to the cost of the item to come to a total cost of $160 in the M2 organization
and $210 in the M1 organization. This will vary based on demo systems but is pointed
out here to note that overhead rates are applied to the cost of the item so it will not be the
same as that entered when the item was initially received.
Verify that the deliver to location that will be used in the demo has been setup in the
Manage Transit Time UI. If it is not there it must be added. In the case of the first demo
provided in this document the item will be sent from the M2 organization to the location
provided in the requisition user’s preferences. There must be a relationship setup
between these two locations using the Manage Transfer Time UI.
In the case of the second and third demo steps the item will ship from internal origin type
M1 – Seattle Mfg and be delivered to the internal destination type of M2 – Boston
Operations. Search to verify that the setup for this combination exists. If it does not exist
it must be added. See example below.
In order to view or define transit times, you will need to sign out and sign in as Supply
Chain Application Administrator.
Navigation: Setup and Maintenance > Search for “Manage Transit Time” > Click on
task name
In addition, these two demos will show a priority list of source orgs to choose from when
creating interorganization internal material transfers. The priorities of the source
organizations available for sourcing to the M2 organization is established using the
distance parameter set for the from/to organization pairs. This can be setup using the
actual distance value between the organizations or it can be setup just by giving a
sequential number to identify the priorities using that same distance value.
In this demo a sequential number (1, 2, 3) has been setup making V1 the top priority
source organization, M1 the second and M3 the third. (Note that the UOM must be the
same for all. Also note that if no value is entered then the priority of that org pair will
default to the end of the priority list. Since we are only concerned about showing V1, M1
and M3 source orgs in this demo that is all that is populated with a distance value.)
Note: If the interorganization parameters have not been previously defined, you can
create them by clicking on the create icon.
In order to create internal material transfers on requisition lines the “Internal Material
Transfers” feature must be activated from the Self-Service Procurement functional area
for the Procurement offering.
In order to setup this feature you will need to sign in as a procurement or supply chain
administrator.
Navigation: Setup and Maintenance > Procurement Offering > Self Service
Procurement > Select “Change Feature Selection” from Self Service Procurement
dropdown selections
This setup task allows you to make the available inventory quantities visible for users
who use the ‘Select Supply Source’ page to select the source organization when creating
internal material transfer requisition lines. This page will be shown in the second demo.
Navigation: Setup and Maintenance > Search for “Configure Requisitioning Business
Function” > Click on task name
The user’s requisition preferences drive how many of the default values are set when
creating an internal material transfer sourced requisition line. For these demos the user
preferences will be setup as follows:
Navigation:Procurement>Purchase Requisitions
• Click on the edit icon “ ” next to the users name. This will bring up the “Edit
Requisition Preferences” popup
• Verify that the entries noted below are set
• Deliver-to Location: Set to “M2- Boston”(This will be the destination shipping
location on the internal material transfer.)
• Destination Type: Set to “Expense” (This will default the internal material
transfer to always be an expense destination transfer. This can be overridden
when creating requisitions using the Create Requisition Line action.)
• Favorite Charge Accounts: Set to a valid expense charge account.
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