IR and ISO

 Setups

1.  System profile option: PO:Requisition Type  :  "Both"
2.  System profile option: POR: Allow Manual Selection of Source : "Yes"

3.  Item Master – OM Tab – Internal order to be enabled
4. Item Master – Purchasing Tab - List Price

5.  Destination organization to be defined as a customer in the source organization

6.  Inventory Location

a.   Navigation : Inventory : Setup : Location (Attached in the Inventory Organisation)

b.   Shipping Details Tab: Ship to location is mandatory

7.  Shipping Network: Navigation : Inventory : Setup : Organisation: Shipping network

a.   In Main Tab – From Org and To Org to be defined

b.   Transfer Type – Direct/ In Transit

c.    Internal Order required check box to be enabled

8.  Create Sales Order Transaction Type for ISO separately.
Transactions
9.  Switch Responsibility to Purchase:

a.   Navigation: Setup : Organisation :Purchasing Options

b.   Internal Requisition order type can be attached ,Internal order source internal

10.  Raise Internal Requisition from the destination organization purchase responsibility

11.  Run concurrent “Create Internal Orders” in destination organization

12.  Change organization and run concurrent “ Order Import” with parameter source – Internal Order.

13.   Go Sales Order organizer and Query the SO

14.   Book the SO, Do launch pick release, ship confirm and auto invoice

15. Purchase Receipt Transaction

16. Accounting and Costing

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1.Profile Option Setup

Navigation : System Administrator : Profile : System

 Navigation : System Administrator : Profile : System

 3.  Item Master – OM Tab – Internal order to be enabled

Enable the item as Internal Ordered and Internal Order Enabled Item.

Navigation : Inventory : Items : Master Items

 4. Item Master – Purchasing Tab - List Price

Provide the per unit price of the item in List Price Tab

Navigation: Inventory: Items : Master Items

 5.  Customer Creation

Destination organization to be defined as a customer in the source organization.

Navigation: Order Management : Customers : Standard

Continue..

Click on Ship To Details and associate the Inventory Organization with the customer.  Attaching warehouse is Optional.

6.  Inventory Location

Associate the Inventory Organization with the respective Location.

Navigation : Inventory : Setup : Organizations : Location

 Continue..

7.  Shipping Network

Define the shipping network . Internal Order Check Mark to be Enabled which is the mandatory setup.

Navigation : Inventory : Setup : Organisation: Shipping network

8.  Transaction Type

Create Sales Order Transaction Type for ISO separately.

Navigation: Order Management : Setup : Transaction Types : Define

9.  Purchasing Option 

This is optional Setup . Internal Requisition order type can be attached ,Internal order source internal

10.  Internal Requisition [ Purchasing Responsibility ]

Raise IR  from the destination organization purchase responsibility

Navigation : Purchasing : Requisitions

 11.  Concurrent Request - Create Internal Orders

Run concurrent “Create Internal Orders” in destination organization

 12. Concurrent Request - Order Import

Change organization and run concurrent “ Order Import” with parameter source – Internal Order

Click OK

 13. Sales Order

Go Sales Order organizer and Query the SO

Navigation: Order Management : Orders,Returns : Order Organizer

 Continue..

 Open the sales order

14.Sales order Transaction Flow

Book the Sales Order

Navigation: Order Management : Orders,Returns : Sales Orders

Release the Sales Order

Navigation : Order Management : Shipping : Release Sales Orders

Navigate to Pending Transactions to get the Pick ID.

Picking Using Mobile Application

 Navigation: Tasks : Manual Tasks : Paper Based Pick

Enter the Pick ID

 Reconfirm the subinventory and locator details

 Click "Load"

 Staging 

Navigation: Tasks : Manual Task : Go to Directed Move : Drop Loaded LPNS 

 Continue..

 Enter the LPN and click on Drop.

 Reconfirm the sub inventory and locator.
 Shipping

Navigation : Outbound: Shipping: Quick Ship 

Continue..

 Enter the delivery number and click "Done"

 Check the status in shipping transaction form.

15. Purchase Order Receipt Transactions

Mobile Application IR Receipt

Navigation: Inbound : Receive : Int Req

Continue..

 Enter the Internal Requisition number and generate LPN

 Click on done

Inspection

Navigation : Inbound:Inspect

 Perform the inspection process

 Continue...

 Deliver

Navigation : Tasks : Directed Tasks : Inbound : Move any LPN

 Continue..

Enter the LPN and click on Drop

Material is delivered and this completes the process.

16.Accounting and Costing

To check the costing and accounting details follow the below navigation.

16.1 Receiving Transaction

Follow the navigation to find the receive accounting entry

Navigation:  Cost Management: View Transactions: Receiving Transactions

No Accounting Entry

16.2 Material Transaction

Follow the navigation to find the deliver accounting entry

Navigation:  Cost Management: View Transactions: Material Transaction

ISSUE- Shipping Org

RECEIPT- Receiving Org

Accounting Entry if FOB is Set to Receiving

Issue Transaction  - Shipping Inventory Organization

Transaction Type	Account	Dr (AED)	Cr (AED)
Shipping	In Transit Inventory	1000
	Inventory Material Valuation		1000

Receipt Transaction -Receiving Inventory Organization

Transaction Type	Account	Dr (AED)	Cr (AED)
Receive	NA	NA	NA
Deliver	Inventory Material Valuation	1000
Deliver	Intercompany Receivables	1000
Deliver	In Transit Inventory		1000
Deliver	InterCompany Payables		1000

16.3 Item Cost

Choose the cost management responsibility to find the cost history.

Navigation: Cost Management: Item Costs : Item Cost History

Average Cost Update Calculation

Average Cost = (Transaction value + current inventory value) / (Transaction quantity + current on-hand quantity)

Average Cost = (1000+ 1000) / (100+1000)

Unit Cost = 2000/ 1100 

Unit Cost = 1.81818 for Each Quantity

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16.4 Oracle Standard Accounting Entries Document For Reference

Using Intransit Inventory

You can move material from the shipping organization to intransit inventory using the Transfer Subinventories window. You can use the Receipts window to move material from intransit invenotry to the receiving organization.

Issue Transaction

Depending upon the Freight On Board (FOB) point defined in the inventory organization relationship, the shipment to intransit inventory creates the following accounting entries:
FOB Point is set to Receiving:

Account	Organization	Debit	Credit
Intransit inventory account	Sending	XX
Subinventory accounts	Sending		XX

FOB Point is set to Shipment:

Account	Organization	Debit	Credit
Inter-Organization Receivable	Sending	XX
Subinventory accounts	Sending		XX
Intransit Inventory account	Receiving	XX
Inter-Organization Payable	Receiving		XX

Receipt Transaction

Depending upon the FOB point defined in the organization relationship, the receipt from intransit inventory creates the following accounting entries:
FOB Point is set to Receiving:

Account	Organization	Debit	Credit
Inter-Organization Receivable	Sending	XX
Intransit Inventory account	Sending		XX
Subinventory accounts	Receiving	XX
Inter-Organization Payable	Receiving		XX

FOB Point is set to Shipment:

Account	Organization	Debit	Credit
Subinventory accounts	Receiving	XX
Intransit Inventory account	Receiving		XX

In addition to accounting for the movement of the material, these transactions also update the inter-organization receivable and payable accounts. These inter-organization clearing accounts represent inter-organization receivables and payables for the respective shipping and receiving organizations.

Direct Inter-Organization Transfer

When your organization relationship is set to directly transfer material, Inventory performs both the issue and the receipt transaction at the time of the issue. Any difference between the cost of items in the two organizations is recognized as variance in the receiving organization. The accounting entries created are as follows:

Account	Organization	Debit	Credit
Inter-Organization Receivable	Sending	XX
Subinventory accounts	Sending		XX
Subinventory accounts	Receiving	XX
Inter-Organization Payable	Receiving		XX

Use the Transfer Subinventories window for direct transfers.

Material Overhead and Inter-Organization Transfers

If your item has material overhead(s), you earn material overhead on inter-organization transfers. The subinventory entry is increased for the material overhead with a credit to the material overhead absorption account(s) in the receiving organization.

Account	Debit	Credit
Subinventory accounts	XX
Material Overhead Absorption account		XX

Attention: The subinventory account is combined with the above entry. The material overhead absorption transaction adds one additional account to the entry.

The FOB Point changes the accounting for freight. With FOB receiving, freight is accrued on the receipt transaction by the sending organization. With FOB shipment, freight is accrued on the shipment transaction by the receiving organization. For direct transfers, the receipt and shipment transaction occur at the same time.
When the FOB Point is set to Receiving, the transfer creates the following freight and transfer charge entries at time of receipt:

Account	Organization	Debit	Credit
Inter-Organization Receivable	Sending	XX
Freight Expense account	Sending		XX
Inter-Organization Receivable	Sending	XX
Inter-Org. Transfer Credit	Sending		XX
Org. Material account	Receiving	XX
Inter-Organization Payable	Receiving		XX

For the receiving organization, the inter-organization payable account is increased for freight and transfer charges. These charges are included in the comparison to the standard cost.
When the FOB Point is set to Shipment, the transfer creates the following freight and transfer charge entries at shipment:

Account	Organization	Debit	Credit
Inter-Organization Receivable	Sending	XX
Inter-Org. Transfer Credit	Sending		XX
Intransit Inventory account	Receiving	XX
Freight Expense account	Receiving		XX
Inter-Organization Payable	Receiving		XX

Intransit inventory includes both freight and transfer charges. The inter-organization payable is only increased for transfer charges.

Expense Subinventories and Expense Items

When you receive an inter-organization transfer into an expense subinventory or receive an expense inventory item, you have expensed the material and cannot directly issue it. The system assumes the material cost is consumed at the expense location.
Using the direct or intransit method, you can receive material to an expense subinventory or receive an expense inventory item. When you receive to expense locations or receive expense inventory items, the subinventory expense account is debited for the receiving organization, instead of the valuation accounts. The subinventory expense account is charged the total transaction value from the other organization.

Inter-Organization Transfers and Sets of Books

The Inter-Organization Direct Transfer transaction also supports transfers from any set of books, even if the currency is different. However, you cannot use the Inter-Organization Intransit with multiple sets of books. These transactions use receiving functions from Purchasing, which only supports one set of books. To perform an inter-organization intransit transfer from one set of books to another, you need to perform a combination of two transactions: a direct transfer and an intransit transfer.