For each organization relationship you create, you must indicate what type of shipment is used. If you choose to use intransit inventory, Oracle Inventory moves material to intransit inventory before it reaches the destination organization when you perform an inter-organization transfer. Typically, you transfer material through intransit inventory when transportation time is significant. If you do not choose intransit inventory, Oracle Inventory moves your material directly to the destination organization when you perform an inter-organization transfer. You must also specify whether internal orders are required from the destination organization to perform inter-organization transfers. Oracle Inventory does not allow you to perform inter-organization transfers using the Transfer Between Organizations window to an organization that requires internal requisitions. See: Overview of Internal Requisitions.
If you choose to use intransit inventory, you must specify which organization has ownership of the inventory while intransit. You must also specify the primary receiving routing: Standard receipt to a receiving location, standard receipt with inspection, or direct receipt to the final destination.
Regardless of the intransit type, you must define an inter-organization transfer charge type. You can choose to add a predefined percentage of the transaction value, to enter a discrete percentage of the transfer value, to enter a discrete value to add when you perform the inter-organization transfer, or not to add transfer charges at all.
Also, you must provide general ledger accounts to record debits and credits involved in an inter-organization transfer.
Finally, you can optionally define shipping methods in the Ship Method QuickCodes window and then enter lead times for these shipping methods in the Inter-org Shipping Methods window. These lead times are used by MRP. See: Defining Bills of Distribution.
Oracle Inventory defaults the shipping information you entered in the Organization Parameters window when you create new organization relationships in the Inter-Organization Shipping Network window.
Defining Inter-Organization Shipping Network
Defining Shipping Methods
Defining Sourcing Rules