INTER ORGANIZATION TRANSFERS
Scope and Application
This document is intended for users of Oracle Inventory applications. This document does not address the accounting distribution for inter - organization transfers.
Note: Items must be defined in both organizations in order to be able to transfer
INTER ORGANIZATION TRANSFERS
You can define multiple inventories, warehouses, and manufacturing facilities as distinct organizations. With Oracle Inventory you can perform inter–organization transfers as direct or intransit shipments.
You can transfer one or more items in a single transaction. You can also transfer partial quantities of the same item to different subinventories and locators in a single transaction. The items you transfer must exist in both organizations. You can also transfer expense and asset items from one organization to another using intransit inventory.
Direct Inter–organization Transfers
You can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization.
The validity of a transfer transaction depends on the controls you have defined in both the shipping and destination organizations for the items you want to transfer.
For example, you can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for item A in organization X during the transfer transaction). However, you
cannot transfer item B from organization X to organization Y if item B is under lot control only in organization Y (you cannot specify lot numbers for item B in the destination organization because you are performing a direct transfer).
Inter–Organization Transfers via Intransit Inventory
You usually transfer material to intransit inventory when transportation time is significant. When you perform the transfer transaction, you do not need to specify the delivery location. You only need to enter the subinventory you are shipping from, a shipment number, the freight information, and, depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute
transfer charges.
If the FOB point is set to Receipt in the Shipping Networks window, the destination organization owns the shipment when they receive it. If it is set to Shipment, the destination organization owns the shipment when the shipping organization ships it, and while it is intransit.
While your shipment is intransit, you can update shipping information such as the freight carrier or arrival date in the Maintain Shipments window. See: Managing Shipments, Oracle Purchasing User’s Guide.
At the time of shipment, you must define your receiving parameters for the destination organization. You can receive and deliver your shipment in a single transaction or you can receive and store your shipment at the receiving dock. See: Receipts, Oracle Purchasing User’s Guide.
The validity of a transfer transaction depends on the controls you have defined in both the shipping and destination organizations for the items you want to transfer. For example, you can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for item A in organization X during the transfer transaction). You can also
transfer item B from organization X to organization Y if item B is under lot control only in organization Y (you can specify lot numbers for item B in the destination organization when you perform the receiving transaction).
Transferring Between Organizations
You can transfer material from your current organization to another organization, or from your current organization to intransit inventory.
Material in intransit inventory belongs to the organization identified by the FOB point. See: Defining Inter–Organization Shipping Networks.
Prerequisites
Define an inventory item that is common to both organizations. See: Defining Items and Assigning Items to Organizations. Define at least two organizations, one of which is valid to receive material from the other. See: Creating an Organization, Oracleand Defining Human Resource Management Systems User’s Guide
Organization Parameters.
Set up inter–organization relationships and their corresponding accounts. See: Defining Inter–Organization Shipping Networks.
For direct transfers, if the item to transfer is under serial number control, the item must have the same unit of measure in each organization. See: Defining Items.
To enter the information to perform a transfer between organizations:
Navigate to the Inter–organization Transfer window.
Enter the date of entry for the transaction.
The date you can enter is controlled by the INV:Transaction Dateprofile option. See: Oracle Inventory Profile Options.
Validation
Enter an organization to which to transfer the material. You must first define this organization as valid to receive material from your current organization. See: Defining Inter–Organization Shipping
Networks.
In addition, if this organization uses intransit inventory, Oracle Inventory stores the material as intransit inventory when you transfer any material to this organization. You must then move the material from intransit inventory to this organization with an intransit inventory receipt.
Enter a transaction type. This can be either a predefined system type or one you defined. See: Defining and Updating Transaction
Types.
Optionally, you can enter the source of the transaction type. See: Defining and Updating Transaction Source Types.
Indicate if inventory information should be defaulted from the serial number.
Enter any optional Shipment information.
Optionally, you can enter the following Shipment information:
To enter the items to transfer:
Choose Transaction Lines from the Inter–organization Transfer window.
Enter an inventory item to transfer.
You can transfer the same item more than once. For example, you can specify an item more than once to transfer partial quantities to different subinventories or stock locators.
For a direct transfer, if the item is under revision control in either organization, enter a revision that is common to the item in both organizations.
Enter a subinventory from which to transfer the material.
Optionally, enter the subinventory to which to transfer the material.
You must enter a value in this field for direct inter–organization transfers.
If you established locator control for the item, enter from and to locators.
Enter a lot number for the item. If you want to enter multiple lot numbers, complete the remaining steps, then choose the Lot/Serial button to display the Lot Entry window. For receipt transactions, if you enter a lot number, enter the date the lot expires. You can enter a value here only if the Lot Expiration (Shelf Life) Control attribute is set to User–defined Expiration Date.
Enter a unit of measure. This can be the primary unit of measure(the default) or any valid alternate unit of measure. If you enter an alternate unit of measure, Oracle Inventory issues the quantity you specify in this unit of measure. Oracle Inventory also converts the quantity to the primary unit of measure so that it can correctly update the on–hand quantity.
Enter the quantity of the item to transfer.
Optionally enter a reason code for the transaction. For example, you can use reason codes to allow you to mark exceptional charges to support a quality data collection and reporting system. You can also enter up to 240 characters of free text in the Reference field that describe the transaction.
To enter internal transfer charges to assign to the To organization:
_
Enter a value in the Added Value field that represents the transfer
charge. You can enter a value here only if you entered Requested value in the Inter–Organization Transfer Charge field in the Organization Parameters window.
Enter the percent of the transaction value that represents the transfer charge. You can enter a value here only if you entered Requested percent in the Inter–Organization Transfer Charge field in the Organization Parameters window. Defining Inter–Organization Information.
To enter freight information costs to assign to the From (current)
organization:
Enter the transportation cost to physically transfer the material; that is, the freight carrier charges.
Enter the general ledger account to which to charge the value you entered in the Transportation Cost field. Oracle Inventory displays the account you defined for the freight carrier as the default. See: Defining Freight Carriers.
To enter a unit number:
If Oracle Project Manufacturing is installed and if you have enabled its end item model/unit effectivity feature, you can enter a unit number for the item. See: Model/Unit Effectivity, Oracle Project Manufacturing Implementation Manual. Note: The Unit Number field is visible only if you have installed Project Manufacturing.
To enter lot or serial number information.
Choose the Lot/Serial button. See: Assigning Lot Numbers and Assigning Serial Numbers.
To view quantity available and quantity on hand values:
Review the following fields: Available: Displays the quantity available to transfer, based on the unit of measure you specified. The available quantity is the quantity on hand less all reservations for the item. This amount could include the amount you have reserved if you enter a transaction source that has reservations against it. The available quantity includes reservations against current transaction source. The available quantity is specific to the revision level, lot number, From
subinventory, and From locator you specify for the transfer. On hand: Displays the current on–hand quantity for the item, based on the unit of measure you specified. The on–hand quantity is specific to the revision, lot number, From subinventory, and From locator you specify for the transfer. On–hand includes quantities for pending transactions in the MTL_MATERIAL_TRANSACTIONS table.
To process the transaction:
Save your work.
To record movement statistics:
Use either of the following methods to record and maintain information associated with the movement of goods: Navigate to the Movement Statistics window and record information manually. See: Entering Movement Statistics. Automate the collection of this information by setting up parameters in the Movement Statistics Parameters and Economic Zones windows. See: Defining Movement Statistics Parameters and Defini
•A shipment number to uniquely identify an item or group of items to transfer. When the To Org uses intransit inventory, you must enter a value here.
•The freight carrier for the transfer.
•A waybill or airbill number for the transfer.
•The number of containers in which the material is stored for the transfer.
•The date you expect to receive the material at the destination organization. You must enter a date equal to or later than the current date. Oracle Inventory uses this date for reporting purposes only.
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S.Grace Paul Regan
