How Transfer Orders Are Processed

Transfer orders transfer inventory for interorganization, intraorganization, and intercompany flows. You can transfer material to inventory destinations or expense destinations.

Settings That Affect Transfer Order Processing

The settings that affect transfer order processing include:

• Inventory destination transfer type

• Receipt routing

• Transfer order required

• Receipt required at expense destination

This table describes the parameters for transfer order processing.

Parameter	Description
Inventory Destination Transfer Type	Determine how material should be transferred between two inventory organizations. Specify either direct or in-transit transfer types.
Receipt Routing	Specify the receipt routing for in-transit transfer types. Receipt routing options include Standard, Direct, and Inspection. You can specify a separate receipt routing option for inventory destination transfers and expense destination transfers.
Transfer Order Required	Indicate whether a transfer order is required for each transfer.
Receipt Required at Expense Destination	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 don't 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.

How Transfer Orders Are Processed for Inventory Destination Transfers

Use the Manage Intersubinventory Parameters setup task to configure parameters for transferring material between two subinventories within an organization. When material is transferred between subinventories, intersubinventory parameters determine the transfer type and receipt routing.

For an in-transit transfer type, intersubinventory transfers move material to in-transit inventory before reaching the destination subinventory. Receipts are required for in-transit transfer types. For the direct transfer type, intersubinventory transfers move your material directly from the shipping subinventory to the destination subinventory.

Use the Manage Interorganization Parameters setup task to specify how material should be transferred between two inventory organizations. Also, indicate whether a transfer order is required for each transfer.

When creating transfer orders from Oracle Planning, min-max planning, and as supply orders in back-to-back situations, the transfer order also has an inventory destination.

Transfer orders with an inventory destination must be delivered to a subinventory and locator.

How Transfer Orders Are Processed for Expense Destination Transfers

For expense destination transfers, when selecting the Expense Destination type on the Manage Intersubinventory Parameters page, you must set the Receipt Required at Expense Destination option. If a receipt is required, you must also choose the receipt routing. You can optionally enter the source subinventory.

If you enter a source subinventory for an Expense destination type, then the parameters on this row apply to all intraorganization expense destination transfer orders sourced from the entered subinventory. If a subinventory isn't entered, then the parameters on this row become the default parameters for the organization, and the parameters are applied to any intraorganization expense destination transfer order that's sourced from a subinventory that doesn't have a specific intersubinventory parameter row defined.

Note: If the source subinventory for an intraorganization expense destination transfer order isn't found on an intersubinventory parameter row at shipping time, and a default parameter row hasn't been set up, then the Receipt Required at Expense Destination option is automatically set to not selected, and the transfer order is considered received and delivered at the time of shipment.

When creating transfer orders from Oracle Fusion Cloud Self Service Procurement, the Manage Item Quantities page, spreadsheet upload, and the Supply Order web service, you can create either inventory or expense destination transfers.

Transfer orders with an expense destination must be delivered to a location.