Overview of Internal Material Transfers
An internal material transfer is an automated or manual transfer request of materials within or between organizations.
Transfer orders transfer inventory for interorganization, intraorganization, and intercompany flows. Transfer orders represent demand and supply in a single document. You can transfer material to an inventory destination or an expense destination. The transfer order serves as the orchestration document representing demand and supply for an internal material transfer. Transfer orders are routed directly through Oracle Shipping, or through Oracle Fusion Cloud Order Management.
Here's an overview explaining how internal material transfers work:
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Transfer source
Transfer requests can come from multiple sources such as back-to-back, planning, inventory min-max planning, self-service requisition lines, the Create Supply Request page, Supply Order web service, and spreadsheet uploads.
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Determine transfer order or purchase order
Oracle Supply Chain Orchestration provides visibility to supply and demand, in addition to providing rules to determine if a transfer order or purchase order is created.
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Transfer price and tax calculation
Oracle Supply Chain Financial Orchestration calculates the transfer price and integrates with tax for tax calculation.
For requisition lines, Self-Service Procurement calls Supply Chain Financial Orchestration directly when creating transfer orders to get the price to use for approvals and budgetary control purposes.
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Create new transfer order document and fulfill transfer orders
Create your transfer order documents in Oracle Inventory Management.
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Perform pick, ship, receive, put away, and return processes
You can process transfer orders using the standard pick, pack, ship, deliver, and return processes through Oracle Shipping, Receiving, and Inventory Management.
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Perform automatic costing and accounting
Oracle Cost management orchestrates the costing and accounting of internal material transfers automatically.