Internal Orders

Transfer the material from M2(Seller(om)) to M1(Buyer/Customer/Destination(po))

1. Item Setup
Navigate to Inventory -> Items -> Master Items
a.     Apply the 'Purchased Item' template
b.    Internal Ordered  Internal Orders Enabled
c.    Assignment in both orgs

2. Cost Set up (M2)
a.  Navigate to Inventory -> Costs -> Item Costs
Cost Element : Material
Sub-Element : Material
Basis : Item
Rate or Amount : 23
Cost Type : Pending

b.  Inventory -> Costs -> Standard Cost Update -> Update Costs
Run the standard cost update and verify that a new line is added at item cost with frozen cost.

3. Shipping Network Setup
Verify setup for inter organization Shipping Network between M2 and M1
- Navigate to Inventory -> Setup -> Organizations -> Shipping Networks
Transfer Type : Intransit
FOB : Receipt
Receipt Routing : Direct
Internal Order Required : checked

4. Define Inter-Location Transit Times (optional for testflow)
- Go to Inventory -> Setup -> Organizations -> Inter-Location Transit Times
- Go to View -> Find and enter
Origin Type : Location
Origin : M2- Boston
Destination Type : Location
Destination : M1- Seattle
- Enter the Ship Method and Intransit Time such as :
Ship Method : Airborne
Intransit Time : 5
Default Method  : check

5. Org M1 needs to defined as a customer
a. Create a location which can be used as the ship to location for customer M1 and enter this in ship to
b. No Sales Credit in sales person.

6. Verify the transaction type and order source (this is already done in Vision environment)
a. Order Type : New_Internal_ordertype
       The internal sales order in OM will be created with this order type
Order Source : Internal
       The internal sales order will be imported into OM with this order source
New_Internal_ordertype should have Shipping source type as internal.

b. A new document category is attached with the above order type. Attach a document sequence to it.

c. Navigate to Purchasing -> Setup -> Organizations -> Purchasing Options (M2)
- Click on the Internal Requisitions tab
- Notice the Order Type and Order Source setup

Process Steps

details @
1. Enter Requisition in Oracle Purchasing of M2(buying/destination). Sourcing Rules may set source type attribute to Inventory, or manually choose Inventory source type.

2. Approve the Internal Requisition.

3. Run the Create Internal Sales Order concurrent program in Purchasing to load the Order Import tables. This can also be scheduled as part of your set up to run periodically to meet business needs.

4. Run Order Import with Order Source = Internal in OM to create the Internal Order. Be sure to run Order Import using a responsibility that corresponds to the operating unit in which the internal order needs to be created. It is possible to create an internal order in an operating unit different from that of the internal requisition. This can also be scheduled as part of your set up to run periodically to meet business needs.

5. After Order Import completes successfully, book, pick and ship the internal  order.

6. Receive against the Internal Requisition.

Changes to ISO

Does R12 allow for changes to be made to ISO? Do these changes reflect back upstream to the IR?