Inside Oracle Fusion: The Transfer
Orders
Transfer Orders in Oracle Fusion play a pivotal role in
facilitating inter-organization or intra-organization movement of
goods within an enterprise.
Transfer Orders (TOs) enable movement of
goods between two inventory organizations OR between two subinventories within
the same inventory organization.
For the process to function correctly,
several setups must be configured in Oracle Fusion.
Below is an elaboration of each critical configuration point.
1.
Item
Attributes – “Internally Transferrable” & “Transfer Orders Enabled”
Before an item can be
used in a Transfer Order, it must be properly configured in the Product
Information Management (PIM) module.
The following attributes play a vital role:
- Internally Transferrable:
- This attribute allows the item to be
transferred between inventory organizations within the enterprise.
- If disabled, the item will not appear as
eligible for Transfer Orders.
- Transfer Orders Enabled:
- This flag ensures the item can be
included in transfer transactions that use the Transfer Order
document type.
- It works in conjunction with the internal
material transfer flow defined in Supply Chain Execution.
Note: Always ensure both attributes are enabled at
the item master level and propagated to all associated inventory organizations.
2.
Item
Assignment to Both Inventory Organizations
For the item to be
shipped from one org and received into another, it must be assigned to both
the source and destination inventory organizations.
- The system must recognize the same Item ID
and definition across both orgs; otherwise, the Transfer Order creation or
shipment process will fail.
- Additionally, costing and valuation
attributes should align if both organizations belong to the same cost
organization.
This ensures consistency in item data, UOM conversions, and cost processing across the two organizations involved in the transfer.
3.
Manage
Interorganization Parameters (Shipping Network)
This is the heart of
Transfer Order configuration — it defines the relationship between the
source and destination organizations.
Navigation:
Setup and Maintenance → Manufacturing and Supply Chain Materials Management →
Manage Interorganization Parameters
Key configurations:
· From Organization → To Organization (pairing)
· Transfer Type: In-transit or Direct
·
Receipt
Routing: Applicable for
In-transit transfer types.
· Expense or Inventory Destination: Determines if the goods will be received into
inventory or charged as expense.
Impact:
These parameters control the logistics, costing, and accounting behaviour
of the Transfer Order flow.
4.
Manage
Transit Time with Default Ship Method Assignment
This setup defines the
expected transit duration and shipping method between organizations.
Navigation:
Setup and Maintenance → Manufacturing and Supply Chain Materials Management →
Manage Transit Times
Configurations:
· Define Origin (Location associated with
the Source Org) and Destination (Location associated with the
Destination Org) pairing.
· Assign Ship Method and Transit Time
(in days or hours).
· Specify Default Ship Method
Purpose:
· Helps in calculating expected receipt dates
in planning and execution modules.
· Used by Supply Chain Orchestration and Order
Management to schedule delivery and receiving operations.
5.
Shipping
Parameters for Source Organization (Shipping Org)
The source
organization acts as the shipping organization, and its shipping
setup determines how shipments are executed.
Navigation:
Setup and Maintenance → Manufacturing and Supply Chain Materials Management →
Manage Shipping Parameters
Key configurations:
· Default Release Sequence Rule and Ship Confirm
Rule.
· Default Pick Slip Grouping Rules – determines grouping of shipments.
This ensures that the Transfer
Order Shipment process (Pick → Ship Confirm) executes seamlessly from the
source warehouse.
6.
Receiving
Parameters for Destination Organization (Receiving Org)
The destination
organization acts as the receiving organization, and its parameters
define how incoming goods are processed.
Navigation:
Setup and Maintenance → Manufacturing and Supply Chain Materials Management →
Manage Receiving Parameters
Key configurations:
· Receipt Routing: Direct Delivery, Inspection Required, or
Standard Receipt.
This controls
the behaviour of receipt transactions, in-transit accounting, and
inventory updates when goods arrive at the destination org.
