Oracle Cloud offers a broad portfolio of software as a service applications, platform as a service, and social capabilities, all on a subscription basis. Oracle Cloud delivers instant value and productivity for end users, administrators, and developers alike through functionally rich, integrated, secure, enterprise cloud services.
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Subscribe to the OracleAppsHub to receive notifications when there are new posts:

 get RSS feed
 Oracle Fusion Applications (OFA) is a portfolio of next generation suite of software applications from Oracle Corporation. It is distributed across various product families; including financial management, human capital management, customer relationship management, supply chain management, procurement, governance, and project portfolio management
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

10 Min Guide for “Internal Requisition To Internal Sales Order Flow”

Posted on January 22nd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait. try it today

You already aware , Internal requisition is a requisition in the Purchasing system that will directly result in the generation of a sales order in the Order Management.

Internal Requisition/Internal Sales Order provide the mechanism for requesting and transferring material from one inventory organization to other inventory
organization or expense location.

When Purchasing, Order Management, Shipping Execution, and Inventory are installed, they combine to give you a flexible solution for your inter-organization
and intra-organization requests.

dgreybarrow Where : First you need to understand , where demand comes for Internal requisitions in company.

Demand for internal requisitions can come from the following sources

  • Online user's request for stock items out of inventory
  • Inventory Replenishment Requests
  • Inventory generates replenishment requests automatically using the following methods:
    1. Min-Max Planning
    2. Reorder Point Planning
    3. Subinventory Replenishments for Replenishment Counts
    4. Kanban Replenishments

Oracle Master Scheduling/MRP creates requisitions for buy items when you release them using the Planner Workbench.

For External system's requests, you can automatically import internal requisitions from other Oracle Applications or existing non-Oracle systems using the Requisitions Open Interface.

dgreybarrow How : here are steps which helps you to understand the flow from IR to ISO.

The key setup Steps Includes for IRO should be:

Item to be used on Internal requisition should have the following flags enabled.

  • Purchasing -> Purchasable
  • Order Management -> Internal Orders Enabled
  • Order Management -> Internal Ordered
  • Order Management -> OE Transactable

More important is , Item needs to be assigned to both source and destination inventory organizations.

Then you need to create shipping network between source and destination Inventory organizations.

Follow this navigation

Inventory responsibility -> Setup -> Organizations -> Shipping Networks

Once your shipping network should be created from source to destination organization.

You can setup transfer type can be either Direct or Intransit and internal Order required checkbox should be checked.

When you are using Internal Requisition/Internal Sales Orders, it is required to create an internal customer for each destination organization and a customer ship-to site for each deliver-to location within the destination organization.

Make sure you have defined the same address for your customer ship-to-site as your deliver-to location.

The Customer must be created in the Operating Unit of the Source Inventory Organization that is used on the Internal Requisition.

Make sure Profile option PO: Legal Requisition Type should be setup correctly which should be either BOTH or INTERNAL

  • PO: Legal Requisition Type = BOTH - That means items can be purchased from a vendor or from on hand inventory
  • PO: Legal Requisition Type = INTERNAL - that means items can only be obtained from on hand inventory

Thats all.

Next, refer to previous Post "Understanding data flow for “Internal Orders” helps you to understand the data flow table to table level.

Related Posts

Posted in Oracle Purchasing | No Comments »Email This Post Email This Post | Print This Post Print This Post

Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait. try it today
Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.