Internal Requisitions
Internal Requisitions
Internal Requisitions
Internal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or exp ense locations.
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. You should be able to:
• Set up your supply chain and automatically source your requirements from inventory or suppliers
• Define your inter-organization shipping network, and optionally require that you use internal orders for your inter-organization transfers
• Use intransit inventory when you want to track items as they move between organizations
• Reduce warehousing, shipping, and handling costs by requesting items in fixed lot sizes
• Use the same windows for data entry and inquiry that you use for purchase requisitions and sales orders
• Take advantage of standard requisition and sales order functionality to suit your individual business requirements
• Automatically generate inventory replenishment requisitions and fulfill them via internal or external suppliers
• Automatically source MRP generated requisitions to internal or external suppliers
• View the status of requests online
• Use internal requisitions to move inventory items from one inventory organization to another, even if that organization belongs to a
different operating unit, legal entity, or ledger
Major Features
Complete Item Sourcing Definition
Purchasing and Inventory combine to provide the flexibility you need to define your item sourcing information.
You can use the default sourcing options to automatically determine the correct source type and source for your requests.
You can specify either Inventory or Supplier as the default source type, as well as the source organization and subinventory for internal
requests.
Inter-Organization Shipping Network
Inventory provides the features you need to define your inter-organization shipping network.
For transfers between two organizations, you can specify whether to use intransit or direct shipments.
You can also require internal orders for transfers between specific organizations.
Flexible Processing
You can tailor internal requisition processing to fit your requirements. You can limit online interaction by setting up background processes to
automatically perform specific actions such as creating inventory replenishment requests and creating internal sales orders in Order
Management. Or, you can take advantage of other features such as online requisition approvals, internal sales order cycles, and online receipt
and delivery of internally requested items.
Creating Online Requisitions
You can create online internal requisitions for both expense and in ventory destinations using the same windows you use to create purchase
requisitions.
You can combine inventory and supplier sourced requisition lines on the same requisition.
Also, Purchasing uses your item sourcing information to default the correct sourc e type and supplier for the item and destination. You can
define requisition templates for commonly requested internally sourced items.
Full Unit of Issue Enforcement
Purchasing offers the option of full unit of issue enforcement in which quantities entere d on internal requisitions are automatically rounded to
a full unit of issue defined for the item.
You can also set this option to recommend a rounded quantity on requisitions, but leave the opportunity to change the recomme nded
quantity.
The quantity rounding is based on the specified unit of issue, if available, otherwise on the primary unit of measure.
Inventory Replenishment Requisitions
Inventory generates replenishment requisitions through min -max planning, reorder point planning, subinventory replenishment for
replenishment counts, and Kanban replenishment. Purchasing uses your item sourcing information to create inter-organization or
subinventory transfer requests.
See: Overview of Inventory Planning and Replenishment, Oracle Inventory User's Guide.
See: Demand for Internal Requisitions, page 3-16.
R12: What Are The Steps Required To Setup An Internal Requisition In Purchasing? (Doc ID 1384716.1)
Goal
Solution
Step 1 - Creating the Item
Step 2 - Creating the Shipping Network
Step 3 - Create the Internal Location
Step 4 - Conduct a Miscellanies Transaction (Receipt)
Step 5 - Create the Internal Customer - Assign the Location
Step 6 - Item Price Information
Step 7 - Creating the Requisition (PO Requisition Approval, Main Requisition Approval, PO Create Documents,
Overall Document Creation/Launch Approval)
Step 8 - Submitting the Create Internal Orders Concurrent Request
Step 9 - Import the Internal Sales Order
Step 10 - Execute Pick Release/Ship Confirm
Step 11 - Conduct the Receipt in the Destination Organization
Step 12 - Confirm the Quantity is Delivered
SOLUTION
Test case Scenario : The following setups will demonstrate the flow of an Internal Requisition between two inventory organizations.
M1 - Seattle Manufacturing will represent the destination organization
M2 - Boston Manufacturing will represent the source organization
In this example, the item will be procured internally from the M2 - Boston Manufacturing inventory organization
The following responsibilities are utilized in this example:
Purchasing Super User (or equivalent)
Order Management Super User, Vision Operations (USA)
Inventory
Practice - Create Internal Requisitions
Overview
In order to use internal requisitions, you must have Oracle Inventory, Oracle Order Management, and Oracle Purchasing installed.
Order Management is used to track internal sales orders. To enter an internal sales order, you must start with a requisition in
Purchasing. Steps for this practice:
R12: What Are The Steps Required To Setup An Internal Requisition In Purchasing? (Doc ID 1384716.1)
Goal
Solution
Step 1 - Creating the Item
Step 2 - Creating the Shipping Network
Step 3 - Create the Internal Location
Step 4 - Conduct a Miscellanies Transaction (Receipt)
Step 5 - Create the Internal Customer - Assign the Location
Step 6 - Item Price Information
Step 7 - Creating the Requisition (PO Requisition Approval, Main Requisition Approval, PO Create Documents,
Overall Document Creation/Launch Approval)
Step 8 - Submitting the Create Internal Orders Concurrent Request
Step 9 - Import the Internal Sales Order
Step 10 - Execute Pick Release/Ship Confirm
Step 11 - Conduct the Receipt in the Destination Organization
Step 12 - Confirm the Quantity is Delivered
SOLUTION
Test case Scenario : The following setups will demonstrate the flow of an Internal Requisition between two inventory organizations.
M1 - Seattle Manufacturing will represent the destination organization
M2 - Boston Manufacturing will represent the source organization
In this example, the item will be procured internally from the M2 - Boston Manufacturing inventory organization
The following responsibilities are utilized in this example:
Purchasing Super User (or equivalent)
Order Management Super User, Vision Operations (USA)
Inventory
Step 1 - Creating the Item
Purchasing Super User - Navigation: Items/Master Items
Enter the Item Name
Ensure it is Purchased and Purchasable
Enter the Item Name
Ensure it is Purchased and Purchasable
Select these attributes:
Customer Ordered and Customer Orders Enabled
Shippable
Internal Ordered
Internal Orders Enabled
OE Transactable
Assign the item to the inventory organizations which are involved in the Internal Requisitioning process.
SH1 will be the destination inventory organization and SH2 will be the Source Inventory Organization.
Step 2 - Creating the Shipping Network
Inventory: Navigation: Setup/Organizations/Shipping Networks
Enter the Inventory Organization that will be the Source and the scope should be From or To Organizations
Choose the Transfer Type:
Direct - means that when the Internal Sales Order is shipped the receipt process in the destination organization 1. is done automatically
2. Intransit - means that when the Internal Sales Order is shipped - the destination inventory organization has to manually do the receiving
process in Purchasing
Choose Internal Order Required checkbox - Save
In this example, the setups are being done to allow the user to Enter a Receipt in SH1 after the item has been shipped from S H2 (Intransit).
Please Note - If the Source and Destination Inventory Organizations are the same, then this step is conditionally not required. (Essentially the
Item is being transferred between subinventories in the same Inventory Organization).
Choose the Other Details tab, enter the Inventory Organization for the Destination Organ ization.
The location created will be used to tie the Destination Location in the requisition form to the Internal Customer to be used on the Sales Order
form.
Purchasing does not allow the entry of a Customer - therefore it passes the location to Order Management.
During Order Import in Order Management - the system locates the Customer Record to which the Location is assigned. Associating the
location to the customer record will be done in the later steps.
Step 5 - Create the Internal Customer - Assign the Location
Order Management Super User: Navigation: Customers/Standard
A web based form will open, choose the Create button in the lower left.
Enter the Customer Name - in the Organization Name field.
Choose the Profile Class that applies to the customer. Ex. Excellent.
Scroll further down and enter the Address details for the Internal Customer.
Move to the bottom of the form and under Business Purposes - Choose Add Another Row.
Set the purpose for the new row as 'Ship To'
Choose the Save and Add Details
Move to the bottom of the page, and the address should be visible.
Choose the Details icon
The Account Site Information will appear, select the Business Purposes tab
The Ship To and Bill To should now be visible.
Select the Details icon to the right of the Ship To
Under the Order Management section, there is a field 'Internal Location'
Enter the Location that was created in Step 3 (Ex. M1-Internal Location)
Apply and save the record
PLEASE NOTE: The Customer must be created in the Operating Unit of the Source Inventory Organization that is used on the Internal
Requisition. You can check the Operating Unit for the Source Inventory Organization by using the following sql:
Pass in the Source Inventory Organization Code - and then ensure the Customer is created in the Operating Unit for the Source Inventory
Organization.
Step 6 - Item Price Informati on
Purchasing Super User: Items/Master Items The price used on the requisition comes from the item costs section.
Query back the item Choose from the top text menu - Tools/Item Costs
The screen to follow shows the item price that is used when creatin g the Internal Requisition. This is how purchasing derives the price when
creating the Internal Requisition. It uses the price for the Cost - in the Source Inventory Organization. Whatever the price is in the Source
Inventory Organization used on the requisition - the price is derived. The reason is that the Sales Order is being created in the Source
Organization, so the price in the Source Organization must be used.
Step 7 - Creating the Requisition
Purchasing Super User: Navigation - Requisitions/Requisitions
In the Order Type Field - change the Order Type to Internal Click into the Lines Region on the Item field
At this point - look to the Destination fields - this information is fetched from the Employee Record
If the Destination Inventory Organization is not proper - move to that field and change it
If the Location is not the internal location - move to that field and change it to the new Internal Location Approve the requisition.
Question: Why is the Following Error message encountered : 'Destination location requires customer association.'
The reason for this error is that the code is trying to match the Location that is currently entered on the form to a
customer, and the customer association is not found. This was done earlier in step 5. The solution to this error is to
setup the employee record to default a location that was associated with a customer (as in step 5 above) or prior to
entering the item, move to the destination section of the form and enter an inventory organization and location that is
properly assigned to a customer, followed with entry of the item.
Question: Why is the Source Inventory Organization Not showing the inventory organization which was setup in the shi pping
networks?
If the internal requisition is going to be for a cross operating unit scenario - then it should be noted that the HR: Security Profile is used.
Both operating units for which the inventory organizations belong too must exist in the HR: Secu rity Profile.
To confirm the operating units for the inventory organizations - this sql can be used:
The following sql can be used to review the data in the oe_iface tables.
SELECT *
FROM OE_HEADERS_IFACE_A LL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
SELECT *
FROM OE_LINES_ IFACE_ALL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
Pass in the requisition number when prompted.
Question: How can the interface data for Internal Requisitions be viewed in the Order Management Module?
This is possible using the Order Management Responsibility - and navigating to Orders>Import Orders>Corrections
Choose an order type of Internal In Order Reference use the List of Values to locate the Requisition Number
If the Requisition is not located - it has either been created into a Sales Order or not inserted into the tables by the Create Internal Orders
program The records are viewable at this stage and can be deleted.
PLEASE NOTE - if records are going to be deleted, it is necessary to Delete the Lines first and then the header
Be sure to choose Lines first - and then choose the delete icon from the toolbar - then delete the header
Deletion of the header record will NOT delete the line - it is not a cascade delete option. If the header is deleted prior to the line - it is not
possible to ever again locate the line in this form - sqlplus will have to be used to remove the line.
Enhancement Bug 4966920 has been created to improve this form and add the cascade delete functionality and now is implemented with the
following
Patch 13702362 - AFTER HEADER IS DELETED, ORPHAN DATA IS LEAVED IN SALES ORDER INTERFACE TABLES>>
Question: How can the Internal Requisition be resubmitted to the Order Management interface tables?
In the po_requisition_headers_all and po_requisition_lines_all table there is a column 'transferred_to_oe_flag'.
Setting this column to a value of 'N' followed with a run of the
Create Internal Orders process will again post the requisition data into the Order Management interface tables. There are cur rently no options
available through the Oracle Purchasing forms that allow the updating of this flag, so sqlplus would have to be u sed.
Question (Problem):
When Running the Create Internal Sales Order Process - it completes with Success
But no records are inserted into the Order Management Interface Tables?
When the internal requisition is created the code needs to validate that the customer was created in the Operating Unit that the Source Inventory
Organization belongs too.
When the Create Internal Sales Order process runs, if the Deliver to Location is not tied to a Customer Ship To Site in the O perating Unit of the
Source Inventory Organization used on the requisition - then it will not insert data into the oe_headers_iface and oe_lines_iface table.
Please review the previous step 5 and use the sql given to ensure that the Customer was created in the Operating Unit that be longs to the Source
Inventory Organization. For
this example, it would be required to check the Purchasing Options for the Operating Unit which M2 is belonging too.
Question: Does the Purchasing Create Internal Orders process pass flexfield values from the Purchase Requisition?
Currently, the Create Internal Orders process does not pass any values from flexfields. If there are mandatory/required flexfields setup on the
Order Lines table in Order Management, a value will have to be defaulted as a default value from some other method in order for the import
process to complete successfully.
Step 9 - Import the Internal Sales Order
Order Management Super User: Navigation: Orders ,Returns/Import Orders/Order Import Request
Enter these values:
Operating Unit - Operating Unit of the Source Inventory Organization (Ex. M2)
Order Source - Internal (or the order type being used
Order Reference - Requisition Number
Submit the request. Confirm that it completes.
Navigating to Orders, Returns/Order Organizer