Inventory Valuation in Transfers between organizations

Currently, in its regular procedures without using Oracle Cloud, the business transfers goods from one inventory organization to another. The destination inventory organization represents another external entity of the company, managing the stock as consigned. This destination inventory organization sells the merchandise through an external system, without a sales order in oracle cloud. Consequently, the material's issue from the destination inventory organization is recorded as an adjustment rather than a shipment to a customer.

For this implementation, the company requires that when a transfer is made to the external inventory organization (representing a different entity than the company), the stock reduction should impact the company. In other words, the company seeks functionality in Oracle Cloud to ensure that a transfer between organizations does not consider the transferred stock as part of the company's inventory valuation but rather keeps it outside the company.