Overview

Target readers
All Consultants, Solution Lead, Technical Lead

Keywords

Internal Requisition, iProcurement, IR-ISO Process

Abstract

Internal Requisition Via iProcurement : Client had a requirement wherein, whenever

a department requires inventory items for any of its research activities, they
should be able to raise internal requisitions against the Inventory Organizations via
iProcurement. An internal sales order will be generated for these internal
requisitions in Order Management module with item cost reflected as selling price.
Client also wanted to understand on accounting entries associated with IR-ISO
transactions. This document describes IR-ISO flow with accounting entries on how
this can be achieved through standard functionality

Reference(s):
1. Oracle Workflow User guides
2. Metalink Notes
3. Purchasing User guides
4. Project Experience

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 Background

Internal Requisition Via iProcurement

 As a business practice in at the Company, whenever any department requires
Inventory items for any of their activities, They generally raises an Internal
requisitions with the stores (Inventory Organization). An internal sales order will
be generated for these internal requisitions in Order Management module and
once the stock are available for requested items it will be delivered to the
requesting Department.

 This presentation covers entire life cycle of Internal Requisition to Deliver

process.

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 Solution Overview

Search for the Items

in iProcurement

After finalising the item,

Click on the link to select
the source

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 Solution Overview

Select Source “Internal”

and the corresponding
Inventory Org. It will show
the available qty. Select &
click Add to cart

Normal Checkout process

flow for iProcurement

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 Solution Overview

Fill all the necessary details

In the requisition

Completed Requisition
sent for Approval

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 Solution Overview

Approver gets notification.

Once Approved, requisition
is available to create ISO

Create Internal Order Program

is run/scheduled to create
Internal Orders from IR’s

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 Solution Overview

Order Import generates

Internal Sales Order in
Order Management

Query for newly created Sales

Order using req. number

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 Solution Overview

Book the Internal Sales

Order

Pick Release the Internal

Sales Order.
Status – “Picked”

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 Solution Overview

Ship Confirm the Internal

Sales Order.
Status – “Shipped”

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Appendix 1

Important Setups

• All Mandatory Setups for Order Management

• Set profile “POR: Allow Manual Selection of Source” to Yes
• Set profile “PO: Legal Requisition Type” to Both
• Item to be “transact able” in Item Master
• Tick the “Internally Ordered” flag in Item Master

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Appendix 2

Accounting for IR/ISO Process

Material Transactions
In order to see material transaction associated with a particular transaction for
example here (Internal sales order), two major transaction types associated with
Internal sales order are as below

1. Internal Order Pick : Transfer between stores to staging sub inventory for Packing.
2. Internal Order Issue : Shipping of item from staging sub inventory to requesting
department.

In order to see accounting entries with respect to each transaction type in internal
sales order click on distributions to see the accounting details.

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• Run Create accounting program in cost management to transfer the
transaction details to GL and on completion of the accounting program
journal entries are automatically imported in GL as seen below

• Break up of these accounting entries will be seen in the next slide.

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 CONCLUSION

This concludes the presentation on entire cycle of Internal requisition to Sales

order and clients primary requirement on reflecting cost of item as selling price in
Internal sales order is met with a view of accounting entries at different stages of
IR-ISO Transaction
The price reflected for the item in the Internal Sales Order i.e. the Selling Price is
derived from item cost defined at Item level.

Item cost 22.3

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