The following setup steps are required to process Internal Orders:
Set up a customer/address in the shipping operating unit to represent the receiving operating unit. Additionally, set up a supplier/site in the receiving operating unit to represent the shipping operating unit. Because internal orders are processed through the sales orders window, corporate locations that receive product from internal orders must be set up as customers. Create customer records to correspond to internal locations, and link them using location associations on the Customer bill-to site usage.
Set up the items you want to allow on Internal Orders with both the Internal Orders Enabled flag and the Internal Ordered Item flag on. Enable the item in both the source and the destination organizations
Order Transaction Type/Line Transaction Type
You do not have to set up special order transaction types or line transaction types for Internal Orders. You do have to specify in your Purchasing setup what order transaction type you are using for internal orders, however. You can use any generic order transaction type for internal orders.
You have to set up relationships and accounting information between the Source (From) and the Destination (To) Organization. You must set "Internal Order Required" to "Yes."
Note: If you use a Transfer Type of "Intransit," then you need to explicitly receive using the Enter Receipts screen. This is a standard receipt. If you use a Transfer type of "Direct," then the goods are shipped directly to Inventory. This is Direct delivery. Receipt Routing can be Standard or Direct.
Analyze your business process and define defaulting rules for Internal Order defaults. Processing Constraints Seeded processing constraints in Order Management prevent changes to the Customer, Ship To, Invoice To, Warehouse, Request Date, Source Type, and the Ordered Quantity for internal lines. If you want to further restrict what can be changed on internal orders, you can constrain other attributes using the Internal Order validation template.
An order source (for Order Import) of Internal is seeded. This should be selected in the Purchasing options setup for Order Source.
A price list needs to be defaulted during order processing but there is no validation during the internal order process. This price list must be associated with the customer address setup earlier. The items are transferred at their cost as defined in the source organization; this is the value that appears as the unit price on an internal requisition. On the internal sales order the value displayed is the cost as defined in the source organization plus any transfer charges.
Note: General Ledger distributions generated is based on their cost as defined in the source organization.
1. Enter Requisition in Oracle Purchasing. 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.