1. Using Inventory Management
  2. Project-Specific Inventory for Transfers

Project-Specific Inventory for Transfers

You can use project-driven supply chain to transfer project-owned material from the point of storage to the point of use on demand, and ensure that it remains segregated through the moves. You can also make sure that when material transfers in or out of a project, its costs are properly accounted for on the project.

With project-driven supply chain, you can reduce the capital tied up in stored inventory and expedite the project schedule by maintaining central warehouses and transferring material to points of use when required on a task.

You must first enable inventory tracking by project for your applicable organizations and set up your default expenditure types.

Use the transfer project-specific inventory functionality to:

  • Create requisitions for inventory destination transfer orders

  • Create transfer orders from requisitions in Supply Chain Orchestration

  • Manage transfer orders

  • Pick materials

  • Ship materials

  • Cost and account transfer orders

  • Manage project-specific transfer order costs

Create Requisitions for Inventory Destination Transfer Orders

Use Self-Service Procurement to manually create internal requisitions for inventory destination items and charge the transfer cost to projects by including project costing details in the distribution. The project costing details you enter in the user's preference also default to the requisition line for the inventory destination when you add items to the cart.

After requisition approval, the application automatically creates the transfer order and the project details from the requisition copy over to the transfer order. Using Oracle Project Costing, you can report committed costs of requisitions that are outstanding against your projects.

Note: Internal transfer requisition lines to inventory destinations aren't subject to budgetary controls. In case you enable budgetary control to the requisitioning business unit, the funds status is Not Applicable for internal transfer requisition lines to inventory destinations with or without project details.

Project Accountants can view committed costs for internal material transfer requisitions with project reference once Procurement creates the requisition. When the requisition is converted to a project transfer order, the committed costs are reported against the transfer order which are then relieved upon the item receipt. Project Managers can view committed costs on the Review Project Performance page.

Create Transfer Orders from Requisitions in Supply Chain Orchestration

Oracle Supply Chain Orchestration can receive interorganization transfer requests of inventory destination and expense destination with project costing attributes through Self-Service Procurement. Since Self-Service Procurement prevalidates the project costing attributes, Supply Chain Orchestration forwards the transfer order request to inventory, and inventory creates a transfer order based on the details on your requisition.

You can also search and manage supply requests using project and task number attributes on the Manage Supply Request Exceptions and Manage Supply Lines pages. Similarly, you can view the project costing attributes on the Supply Order Details page.

Manage Transfer Orders

Within Inventory Management, the application creates the transfer order line with project and task details at the transfer order distribution level for inventory destinations based on your requisition or supply request. When you use common material to fulfill such a transfer order, material gets reclassified to that project and task, and incurs corresponding accounting adjustments at both the source and destination as needed. If you want to return the material on a transfer order, the application stamps the appropriate project and task on the return transfer order depending on whether the project and task are valid at the source organization of the original transfer order. Depending on the situation, you might have to reclassify the material from project to common before shipping the return transfer order, or after receiving it, to ensure the accounting entries are reverted accurately.

While using transfer project-specific inventory, you can track commitments for project related internal material transfers. You can use the Update Project Performance Data process to summarize the project information and view committed costs in Project Portfolio Management.

Pick Materials

You can pick release transfer orders by entering the costing project number and task number on the Create Pick Wave page. The pick release honors the reservation and allocates the material based on the reservations. The inventory project and task populate on the pick if you chose to allocate the project material to the demand. These fields are blank if you chose to allocate to common material. You can also group the picks with the same project and task on a single pick slip.

You can search picks by the inventory project, inventory task, project number, and task number. When searching by the inventory project and inventory task, your search results show the picks based on the material allocated to the demand. If you search based on the project number and task number, your search results show the picks based on the project and task on the demand.

Ship Materials

You can create shipment lines with the project and task specified to indicate the project costing preference. You can specify the project and task even if they're not valid in the shipping organization or if you haven't enabled the shipping organization for projects. You can manage and process the lines with the same costing project and task together.

You can also use Quick Ship to bypass pick release and pick confirm, and ship the material from either project inventory or common inventory.

Cost and Account Transfer Orders

You can cost project-based interorganization transfers and transfer order issue transactions using project-driven supply chain.

When you perform a transfer of common or project-specific inventory, for a transfer from a project specific inventory, Costing sends these expenditures:

  • Negative expenditure to the project referencing the transfer-from organization

  • Positive expenditure referencing the destination organization

If common inventory is transferred, the project is charged referencing the destination organization. There's no corresponding credit to the project referencing the sending organization.

Costing uses the transfer price to charge the project referencing the destination organization when the transfers happen across profit center business units and Supply Chain Financial Orchestration applies for the flow. For all other types of transfers, project transactions happen at cost. You can specify whether or not to send an expenditure to a project by setting up an exclusion for project cost collection by project types. You can also manage project specific accounting based on project attributes that are available as accounting sources. In addition to the transfer price or the cost, you can define overheads to apply directly on issue transactions.

Return transfer orders and return transfer orders to scrap transactions that reference a project transfer order are costed and accounted to projects appropriately.

Manage Project-Specific Transfer Order Costs

Within Project Portfolio Management, you can import transfer order delivery transactions using the Import Costs process.

Depending on the source transaction and the destination type, Project Portfolio Management creates one or more of the following document entries for the transfer order delivery document:

  • Item cost

  • Nonrecoverable tax

  • Nonrecoverable tax inclusive

  • Project inventory overhead

You can use the Manage Project Costs task in Costs work area in Project Portfolio Management to search and view expenditure item and project costing details associated to the transfer order.

If the cost incurred against the project is a billable cost, you can bill your customer based on the completion percentage or milestones achieved on the project. If it is a cost that can be capitalized, you can proceed to run the capitalization flow. You can also choose to allocate costs to other projects, project tasks, or accounts as appropriate.