Setup of Interorganization Parameters for Transfer Orders

Use the Manage Interorganization Parameters task to configure rules for interorganization transfer orders and define the relationships between source and destination inventory organizations. Transfer orders represent demand and supply in a single document. You can transfer material to an inventory destination or an expense destination.

Here are some important interorganization parameters for transfer orders:

• Inventory destination transfer type

• Inventory destination receipt routing

• Transfer order required

• Expense destination receipt required

• Expense destination receipt routing

• Cancel backorders

In the Setup and Maintenance work area, use the Manage Interorganization Parameters task to set up your interorganization parameters:

• Offering: Manufacturing and Supply Chain Materials Management

• Functional Area: Inventory Management

• Task: Manage Interorganization Parameters

Inventory Destination Transfer Type

Specify either direct or in-transit. This option determines how material should be transferred between two inventory organizations.

Inventory Destination Receipt Routing

Specify the receipt routing for in-transit inventory destination transfer types. Receipt routing options include Standard, Direct, and Inspection.

Transfer Order Required

Indicate whether a transfer order is required for each transfer.

Expense Destination Receipt Required

Indicate whether or not a receipt is required in the destination inventory organization for expense destination transfers going to that destination location. If you select this option, a receipt is required on interorganization expense destination transfer orders between the from and to organizations. If you do not select this option, then the transfer order is considered received and delivered at the time of shipment. This field is available for Expense destination types only.

Expense Destination Receipt Required

Specify the receipt routing for expense destination transactions. Receipt routing options include Standard, Direct, and Inspection.

Cancel Backorders

Specify whether or not you want to automatically cancel the remaining quantity on a backordered transfer order line. This option enables you to cancel the remaining quantity on a transfer order line that would normally be backordered when orders cannot be filled due to shortages.

The three possible values for the Cancel Backorders option are shown in this table.

Cancel Backorders Option	Description
Cancel remaining quantities	Automatically cancel the remaining quantities on transfer order backorders.
Do not cancel remaining quantities	Do not automatically cancel the remaining quantities on transfer order backorders.
Default to source inventory organization level	Use the default set at the inventory source organization level to determine whether or not to automatically cancel the remaining quantities on transfer order backorders.