Internal Order Process in Oracle Order Management

In multi-site companies, One of common business practices is internal fulfillment. There is two common
scenarios that need Internal-Fulfillment from another operating unit:

• Manufacturing facility is centralize but has multiple distribution sites.
• Manufacturing operations are spread out from many locations.

The demand can come from marketing plan of distribution sites or by min-max planning at source organization. In Figure below, Vision Singapore (Ledger Singapore) is a distribution operation unit. Singapore Distribution Center(S2) follows the sales plan, it need to replenish the good from Seattle Manufacturing (M1)

The Internal Orders process content following step:

1. According to Sale plan, Vision Singapore(VS) creates an internal requisition. This internal requisition is transferred as internal sales order for Vision Operation (V1)
2. Vision Operation pick releases the internal sales order to Seattle Manufacturing (M1)
3. M1 ships the goods to S2. S2 receives the goods.
4. V1 issues an AR inter-company invoice to VS at transfer price.
5. VS issues an inter-company payable to V1.

OracleValue Team

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