Substitute Items on Transfer Orders During Pick Release

You can automatically pick release a substitute item in place of the original requested item on a transfer order line if you've enabled a specific organization and set up item substitute relationships. The ability to pick substitute items for your transfer orders provides greater flexibility in case you run out of goods to fulfill internal demands.

Once you enable the feature for an organization, all transfer order and shipment lines created in that organization default to allow item substitution, represented by an attribute on the line. You can disable this on a line-by-line basis. Likewise, if the organization isn't enabled, you can enable it line by line. Both transfer order and shipment lines show an attribute against the original requested item to indicate the use of a substitute item.

You can define item-substitute relationships in the Product Information Management work area, at the master or destination organization level, by rank. At pick release, depending on the original requested item's availability, the functionality cycles through the ranked item relationships, by level in hierarchy and then rank, to determine which substitute items meet the requested quantity. You can define many item-substitute relationships. However, pick release stops looking for substitutes after considering three viable items. Any quantity outstanding from there is backordered in the original item, or canceled if the appropriate setup is in place.

Here are important notes about using substitute items for transfer orders:

• Shipment lines show original and substitute items used to fulfill the demand from pick release onwards, including their statuses.
• Once the transfer order line has shipped, you can review the substitute items used, but the transfer order line only represents the original item. Backorders are also only for the original item. Shipment lines represent all items after being released to the warehouse.
• Reservations are maintained according to item substitutions at pick release, but item substitution isn't supported for transfer order lines with prior reservations.
• Changes to the transfer order are supported for lines using substitute items.
• Item substitution isn't available for return transfer orders, back-to-back sales orders being fulfilled by transfer orders, or for organizations located in Brazil, India, or Portugal due to tax implications.
• Control of item substitution at the transfer order line level is supported by the Manage Transfer Orders pages and through the Inventory Transfer Orders REST resource.
• Releasing a pick online shows you in the UI the number of substitute items used, whereas scheduling a pick release generates a log with more information on the substituted items.
• When item substitution happens at pick release for transfer order lines under budgetary control, there's no change to the existing funds reservation and there are no new approvals generated for the substitution.
• This capability is only available when transferring materials internally, directly through Oracle Shipping.
• This capability is only available when creating or scheduling a pick wave, pick releasing from shipment lines, or through the Pick Waves REST resource.
  Important: It's recommended that you don't specify multiple child processes when scheduling a pick wave where item substitutes are likely, as this could result in parallel picking errors.
• Substitute items can be for different units of measure than the original item, with standard, interclass, and intraclass conversion required as appropriate, except for dual unit of measure items, which must have the same primary and secondary unit of measure as the original item in the destination organization.
  Important: It's recommended for the substitute items to have the same unit of measure as the original item. Having different units of measure can lead to fractional quantities left over in certain scenarios.