Implementing Manufacturing and Supply Chain Materials Management (2024)

The life cycle of an internal material transfer spans several tasks and products from initiation of the transfer source through the costing and accounting of the transfer. The internal material request and fulfillment process ranges from simple processes to extremely complex processes, spanning multiple legal entities, across geographies, and involving multiple shipment points.

Implementing Manufacturing and Supply Chain Materials Management (1)

Transfer Sources

You initiate internal material transfersfrom transfer sources.

This table shows the transfer sources from whichyou can create internal material transfers.

Transfer Source

Description

Min-max planning

Automatically create internal material transfersfrom min-max planning.

Back-to-back

Automatically create internal material transfersfrom back-to-back transfers.

Planning

Automatically create, reschedule, and cancel internalmaterial transfers from planning.

Supply Order web service

Manually create, update, and cancel internal materialtransfers through a supply request web service.

Template upload

Manually create, update, and cancel internal materialtransfers through a supply request file-based data import spreadsheettemplate.

Requisitions lines

Manually create internal material transfers fromrequisition lines in Self Service Procurement.

Create Supply Request page

Manually create internal material transfers on theCreate Supply Request page which you can access from the Manage ItemQuantities page. This allows entry of ad-hoc internal material transfersdirectly from Inventory.

Note: You cannot create an intraorganization inventorydestination transfer from requisition lines.

Generate Internal Material Transfer Recommendations(Supply Chain Orchestration)

The process starts with creating a transfersource. Multiple automatic and manual transfer sources are supportedincluding min-max planning, back-to-back, spreadsheet upload, SupplyOrder web service, planning, self-service procurement requisitionlines, and the Create Supply Request page from the Manage Item Quantitypage.

Sourcing tools enable you to manually create internal material transfer requisition lines in Self Service Procurement and create supply requests from the Manage Item Quantity page. These sourcing tools provide a default source organization and allow access to source organization rankings and available to promise quantities. Oracle Supply Chain Orchestration works with Oracle Global Order Promising and Oracle Inventory Management to identify the source organization rankings based on pre-established rules.

Enrichment Rules (Supply Chain Orchestration)

During the supply creation process, Supply Chain Orchestration evaluates the Supply Execution Documentation Creation Rules to determine if an internal material transfer should be executed using a transfer order or a purchase order.

Manage and Fulfill Transfer Orders (Inventory Management)

A transfer order is created automatically from the various transfer sources. The transfer order represents demand and supply in a single document. Both interorganization and intraorganization transfers are supported by Oracle Inventory Management.

Pick, Pack, Ship, Receive, and Put Away (Shipping, Receiving, and Inventory Management)

You can perform processes such as pick, ship,receive, put away, and return against a transfer order document. Warehousemanagers have full visibility to shipments and receipts associatedwith a transfer order. You can update attributes on a transfer ordersuch as source organization, requested delivery date, and requestedquantity.

You can also use self-service receiving for the receivingof requisition sourced transfer orders.

Financial Orchestration (Supply Chain Financial Orchestration)

Oracle Supply Chain Financial Orchestration (SFO) allows the supply chain controller to model financial flows between business units involving different pricing and accounting requirements. The Supply Chain Financial Orchestration framework provides an estimate of the transfer price for creation of transfer orders to transfer goods between internal organizations. Once the transfer price is calculated, Supply Chain Financial Orchestration calls the tax application to determine the tax applicable on the transfer price.

For internal material transfer requisition lines,Self Service Procurement calls Supply Chain Financial Orchestrationdirectly when creating transfer orders to get the estimated priceto use for approvals and budgetary control purposes.

Cost Accounting (Cost Management)

Oracle Cost Management has an infrastructure in place to trigger costing and accounting of internal transfers automatically. Internal material transfer transactions such as Transfer Order Shipment and Transfer Order Receipt are interfaced to Cost Management. Trade events are interfaced from Supply Chain Financial Orchestration to Cost Management. Cost Management also provides the ability to analyze the gross margin earned for internal sales transactions separately.

Note: Once the product is shipped and delivered, Cost Managementobtains the transfer price at that point in time and uses it for costing,budgetary control, and encumbrance accounting purposes.

Note: You can optionally fulfill internal material transfers through Oracle Order Management. Order Management enables the orchestration of transfer orders across fulfillment systems. Order Managers can centrally monitor the fulfillment of transfer orders and sales orders, and prioritize shipments across these orders.

Implementing Manufacturing and Supply Chain Materials Management (2024)
Top Articles
Latest Posts
Article information

Author: Carmelo Roob

Last Updated:

Views: 5995

Rating: 4.4 / 5 (45 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Carmelo Roob

Birthday: 1995-01-09

Address: Apt. 915 481 Sipes Cliff, New Gonzalobury, CO 80176

Phone: +6773780339780

Job: Sales Executive

Hobby: Gaming, Jogging, Rugby, Video gaming, Handball, Ice skating, Web surfing

Introduction: My name is Carmelo Roob, I am a modern, handsome, delightful, comfortable, attractive, vast, good person who loves writing and wants to share my knowledge and understanding with you.