In-transit Inventory Ownership in Oracle Fusion

 

Understanding In-Transit Inventory Ownership in Oracle Fusion Internal Transfers

 

In Oracle Fusion Inventory Management, the ownership of material during an internal transfer depends on whether the transfer occurs within the same Business Unit (BU) or across different Business Units. The system uses predefined logic to determine when the ownership shifts from the shipping organization to the receiving organization.

1. Transfers Between Inventory Organizations Within the Same Business Unit

When two inventory organizations (Org A and Org B) belong to the same BU, Oracle Fusion always assumes that ownership transfers at the point of in-transit shipment.

How the ownership behaves:

• Org A ships the material.
• As soon as the shipment is confirmed, the material moves into an in-transit state.
• Even while the goods are physically in transit, the ownership belongs to Org B (the receiving organization).
• This means Org A no longer owns the inventory from the moment it is shipped.

Important Note

This ownership logic is system-driven and cannot be changed.
Oracle does not provide any configuration to override this behavior for same-BU transfers.

 

2. Transfers Between Inventory Organizations Across Different Business Units

When the transfer happens across BUs, Oracle provides more flexibility through Supply Chain Financial Orchestration (SCFO).

·       With SCFO

Using SCFO, customers can configure when the ownership changes:

• Ownership can change at Inter-Organization Shipment, or
• Ownership can change at Inter-Organization Receipt.

This allows organizations to align financial ownership with commercial, tax, compliance, or operational requirements.

·       Without SCFO

 

If a Financial Orchestration flow is not defined:

• Oracle defaults to the similar logic as Within-BU transfers.
• Ownership automatically transfers at the In-Transit Shipment, even when the transfer is across BUs.

This means SCFO is optional, but without it, the system applies the standard ownership transfer assumption.

 

Scenario	Ownership Transfer Point	Configurable?
Transfer within same BU	In-Transit Shipment	No (system default, cannot be overridden)
Transfer across BUs with SCFO	Configurable: Shipment or Receipt	Yes
Transfer across BUs without SCFO	In-Transit Shipment	No (same as intra-BU)