Material movement between Organizations

Material movement between two inventory organizations can be performed in Oracle through either of the
two processes mentioned below:

Inter Organization Transfer

Transfer material in a single transaction

Internal Requisition & Sales Order

Provides the mechanism for requesting
and transferring material

Internal Requisition/Internal Sales Order

Internal Requisition/Internal Sales Order provide the mechanism for Requesting and Transferring
material.

Introduces an approval mechanism for ordering material.

IR (Internal Requisition) functionality supports automatic replenishment through planning processes.

System provides better traceability and control. Allows tracking through documents from requirement
initiation to servicing the requirement e.g. pick slips, packing slip, Bill of Lading.

Below is the process flow which has to be followed in each module in order to execute Internal Sales
Order

Purchasing
Create Internal
Requisition(IR)
in Destination
Organization

Order
Management
Internal
requisition is
converted into
Internal Sales
Order (ISO) in
the Source
Organization
2

Inventory
Material is
picked and
shipped
against ISO to
Destination
Organization.

Inter Organization Transfer

Inter-organization transfer is used to move inventory directly from a shipping organization to a destination
organization.

Source organization Pushes inventory to Destination Organization.

The inter-org cycle has a simple flow, more user friendly and no interfaces involved. (no risk of interface
errors)

Comparison

Inter Org Transfer

IR ISO

No Approval Process
Tracking is limited
Transfer within one operating
unit
Single step process
Process involves one Module
-Oracle Inventory

Approval is required
Better traceability and control
Transfer is possible across
operating units
Multi step process
Process involves multiple
modules Purchasing, Order
Management, Inventory
Supports automatic
replenishments through
Planning process
Supports documentation

Automatic replenishment in
not supported. Inventory is
Pushed to Destination
No Documentation