Internal Material Transfer Requisitions
An internal material transfer in Self Service Procurement is a manual transfer of materials within or between organizations.
Oracle Fusion Cloud Self Service Procurement supports internal material transfers for self service users, and for advanced procurement requesters. (Internal material transfers aren't supported for automated requests such as FBDI Import and Purchase Request Web Service)
Lifecycle tracking for the transfer orders used in the orchestration of the transfers is supported. Budgetary control and encumbrance accounting are supported for internal material transfers to expense destination in requisition lines without project details.
Both inventory and expense destination types are supported for internal material transfers.
Before you can enter internal material transfer requisitions, the Internal Material Transfers feature must be enabled for the Self Service Procurement functional area.
You must also have the following privileges to work with internal material transfers:
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Create Requisition for Internal Material Transfers - let's you create internal material transfers requisitions in Self Service Procurement
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Get Internal Transfer Requesting Organization Price - enables obtaining transfer prices from the requesting organization for an internal transfer order
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Manage Inventory Transfer Order - allows the management of inventory transfer orders
For more information, see the Define Procurement Configuration Options chapter in the Implementing Procurement guide.
Source Organizations and Destination Types
Both inventory and expense destination types are supported for internal material transfers.
For expense destinations, the destination inventory organization is used as the preferred source organization. For inventory destinations, the source organization is determined based on supply source ranking information.
Source Organizations and Self Service Requisitions
When you search for an item in the Shopping Home page, items that are available internally are returned in the search result with an indicator and the text Internally Orderable. This way you know that the item can be potentially sourced internally even if it's a purchasable item.
The internal availability indicator is shown for these item configurations:
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Item is only internally transferable
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Item is both purchasable and internally transferable, whether the item is a master item or an agreement-backed item
The application transparently determines whether the item is available internally and can be fulfilled using an internal material transfer, or whether it must be purchased from an external supplier. When the item is available within the organization, the application determines the best way to source it.
Source Organizations, Rankings, and Advanced Procurement Requesters
As an advanced procurement requester, you can use internal material transfers to quickly request items. You can create requisition lines to balance time-sensitive inventory levels, or to transfer items between locations. Both expense or inventory destinations are supported.
Optionally, you can use the Select Supply Source page to manually select a source organization. Different source organizations are ranked based on previously established sourcing rules or using distance information.
Available inventory quantities are displayed along with the source organizations when Supply Availability Details for Internal Transfers is enabled in the Configure Requisitioning Business Unit task.
For planned items, the source organization ranking can be configured using the sourcing rules in Oracle Fusion Global Order Promising. For non-planned items, the ranking is determined using the distance values configured for the from and to organization pairs in the Manage Interorganization Parameters task.
See Setup of Interorganization Parameters for Transfer Orders in the SCM Cloud Implementing Manufacturing and Supply Chain Materials Management guide.
Intersubinventory Transfer
For inventory destination transfers, you can use Self Service Procurement to transfer materials from a source organization that stocks the material to a destination organization.
Transfer Prices
A transfer price is the price that one subunit charges for the goods or services that it provides to another subunit of the same organization.
Transfer prices are automatically calculated and displayed directly in the requisition line for an internal material transfer and are updated according to the supply source chosen.
Transfer prices can be based on:
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Cost
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A price previously negotiated between two organizations
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A financial trade agreement between the supplier organization and its immediate financial trade partner (either the requesting or an intermediary organization)
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Other factors such as the item involved, sender organization, profit center, partner profit center and so on
Oracle Supply Chain Financial Orchestration when integrated with Procurement provides support for the transfer price calculation. For more information on how transfer prices are calculated, see Internal Material Transfer Price: How It Is Calculated in the Oracle SCM Cloud Implementing Manufacturing and Supply Chain Materials Management guide.
Budgetary Control and Encumbrance Accounting
Budgetary control and encumbrance accounting rules are supported for expense destination internal material transfers without project.
With funds checking, users can ensure that budget funds are available before a requisition for an internal transfer is submitted for approval. Funds reservation can occur on requisition submission or on completion of requisition approval depending on your budgetary control configuration. Insufficient funds override rules and approvers can be configured as part of your budgetary control setup. Find the page in the Setup and Maintenance work area, Financials offering, Manage Budgetary Control task.
Encumbrance accounting entries are created for transactions subject to budgetary control and encumbrance accounting when the Create Accounting ESS program executes.
For more information see Define Budgetary Control and Encumbrance Accounting in the Oracle Fusion Cloud Procurement: Implementing Procurement guide.
Life Cycle Tracking and Change Management
Visibility into the life cycle of transfer orders, shipments, and receipts is supported from the Manage Requisitions task.
Users can perform minor updates to transfer orders, such as reducing the amount of an item on a transfer order line, or requesting the cancellation of a transfer order line.
Approvals
As an advanced procurement requester, you can use internal material transfers to quickly request items, or to transfer items between locations, with control over the source of the item to choose the most appropriate option.
Inventory destinations and expense destinations are both supported. Both inter- and intra-organization transfers are supported. A requisition can include both transfer items and purchase requests.
Approval routing for requisitions including internal transfers works the same as it does for purchase requisitions. When the requisition is approved, a transfer order is automatically created. Transfer order activity is visible in lifecycle tracking for the requisition.
The Internal Transfer Requisition approval attribute let's you tailor the approval rules of requisitions for internal transfers to your business needs. For more information, see Approval Rules for Internal Material Transfer Requisitions: Explained in the Implementing Procurement guide.