Once you approve inventory sourced requisition lines, Purchasing translates the requisition into an internal sales order, providing the link between the requestor's requirement and the physical demand against inventory. You run two separate batch processes to create the internal sales order from the approved requisition:
Create Internal Sales Orders. See: Create Internal Sales Orders Process.
Order Import. See: Order Import, Oracle Order Management Implementation Manual.
Purchasing uses location associations to create internal sales orders from internal requisitions for a given deliver-to location. When you associate a customer and customer site with a location and then enter an internal requisition with that location as the deliver-to point, Purchasing uses the associated customer and customer site on the internal sales order that it creates. The associated customer site becomes the ship-to site for Order Management's ship confirmation. See: Defining Locations. See: Creating and Updating Customers.
Internal orders are automatically scheduled by setting the Schedule Ship Date on the sales order to the Need-by Date from the requisition. If you specify a subinventory on the internal requisition line, Order Management reserves the goods and uses only the specified subinventory for allocation. If the goods do not exist at the specified subinventory, Order Management backorders them, even if they do exist in another subinventory.
The Create Internal Sales Orders process loads the Order Management open interface, OrderImport, using the order type you define in the Purchasing Options window. See: Defining Internal Requisition Options. OrderImport creates internal sales orders from the records in the interface table, and determines the order cycle and defaults values based on the order type.
Note: You should not drop-ship internal sales orders. See: Drop Shipments.
A Multi-Org implementation of Purchasing enables separate operating units within an organization to operate independently of each other. However, you may still need to obtain goods from another operating unit, and Purchasing supports this. You can create an internal sales order for an item in another operating unit. When creating this internal sales order, you must create it in the destination organization's operating unit, and all Order Management activity must take place within that destination operating unit. For example, the following table lists the generalized steps involved and indicate the organization in which they take place.
| Step | Action | Operating Unit 1 Inventory Org A | Operating Unit 2 Inventory Org B |
|---|---|---|---|
| 1 | Create and approve internal requisition. | X | |
| 2 | Run Create Internal Sales Orders. | X | |
| 3 | Run Order Import in Order. Management | X | |
| 4 | Perform pick release and ship confirm in Order Management. | X | |
| 5 | Receive goods. | X |
When you use internal sales orders to transfer goods from another operating unit, the items' transfer cost is posted to the intercompany payables and receivables accounts as defined in the shipping network and an intercompany invoice can be generated. See: Inter-Organization Shipping Network, Oracle Inventory User's Guide.