5 Replies Latest reply on Aug 18, 2008 11:23 AM by Subramanyam Jayram

    Internal Requistions Setup

    AHS
      Hello,

      We have the following modules of oracle ERP 11.5.10 installed and implemented: Oracle Purchasing, Oracle Inventory, Oracle HRMS, Oracle Payroll, Oracle Payables, Oracle Fixed Assets,Oracle Cash Management Oracle General Ledger. Besides we have the following installed but not implemented: Oracle Order Management, Oracle Receivables.

      I need to know what are the required steps to implement Internal Requistions. Any Guidelines would be very helpful.
        • 1. Re: Internal Requistions Setup
          628428
          You need OM (for order types, price lists, orders, shipping and so on), and AR to the extent of creating customers at the bear minimum.

          Thanks
          Nagamohan
          • 2. Re: Internal Requistions Setup
            AHS
            Correct me if I'm wrong please,i believe I can skip the iprocurement setup steps and carry on those that has to do Order Management and Purchasing to reflect internal requistions. What are the options I have regarding the setup steps of internal requistions ?
            What are the impacts of implementing the internal requistions on a system that have one operating unit and a one primary set of book

            I would like to inquire please, how can I define the requistions approval hierarchy.
            Also, I really need to know how does the Human Resources Employee Hierarchy can affect the requistion hierarchy approval?

            Thank you...
            • 3. Re: Internal Requistions Setup
              594214
              Yes you can skip i-procurement setup steps and carry on with order management and purchasing setups for internal requisitions.

              The second thing is there will not be any impact if you have only one operating unit and set of books, as internal requisition is primarily used for internal sales in the multi org environment. like sale between the two units of same organization.

              For the approval hierarchy please go thru the purchasing user guide as that include many steps, where as if you have HRMS installed, then job , employee definition you have to make thru HRMS only, actually hierarchy setup is done thru HRMS only. Where as in purchasing you have to define just amount and document limitation.

              Thanks & Regards
              Ankur Dawra
              • 4. Re: Internal Requistions Setup
                AHS
                We have only one operating unit that we would like to implement the internal requistions process within it's Organizational Structure (value chain, sections, etc.). is that possible?

                I have started to follow the metalink note: 406312.1 but i could not pass the "organization assignment" step.
                What is required to redefine the current HR value chains and sections 'HR Organization' to define it as destination organization in the item "organization assignment" step?
                • 5. Re: Internal Requistions Setup
                  Subramanyam Jayram
                  Hi,
                  Pre-requisites

                  1) It is assumed that the above Organizations have been created in the system and the Costing Method is Average.

                  2) The Shipping Execution Setups have been done shipping the Internal Sales Orders.

                  Setups
                  1)The Order Management setups for the Internal Requisitioning Process are as follows:

                  a.Set up the profile option of OM : Item Flexfield and the Item Master Organization in the parameters window.

                  b.Define Transaction Types to be used for the Internal Sales Orders using the Navigation Path Setup -> Transaction Types -> Define

                  The default Order Cycle Workflows can be used for transaction type of the Internal Sales Order. All the Sales Orders created through the Internal requisitioning process will not be eligible for interfacing Invoices to AR.

                  c.Defining Order Management Number source for Internal Requisitions.

                  When Order Types are defined, a corresponding Document Sequence Category will automatically be created. Assign a sequence to the Document Category so created using the navigation path of Application -> Document -> Assign in System Administrator Responsibility.

                  d.Defining a Price List for the Internal Requisition using the navigation path Pricing -> Price Lists -> Price List Setup.
                  The Internal Requisitions use the Item Cost as the Unit Price. However, it is required to create a Price List and attach it to the Order Transaction type. There is no need to include any items for the Price List defined for the Internal Order.
                            
                  e.Decide on the default value rules for the Sales Orders.
                  Order Management comes with a set of default rules for Order Header and Order lines. Check out whether the same suits your needs

                  f.Define Inventory Accounting.
                  Order Management comes with a default Account Generator for COGS Accounting. This can be customized, if required.


                  2)The Inventory setups for the process are

                  a.Define Internally Requested Items

                  i)Items used in Internal Requisitions must be enabled for Inventory Item, Transactable and Stockable options under Inventory. Under Order Management, you need to select Internal Ordered, Internal Orders Enabled, OE Transactable and Shippable under Order Management.
                  b.Define Inter Org Shipping Networks
                  The Shipping Networks setup in Setup -> Organizations -> Shipping Networks determines the nature and timing of entries in the Source and receiving Organizations. This screen determines the parameters for the transfer of inventory between the Organizations specified.
                  Transfer Type : The transfer type of “Direct” puts the inventory directly in the requesting Organization.

                  “Intransit” transfer type moves the Inventory to the Intransit location before it is received at the receiving location.

                  If the Item is under lot or Serial Control, then the Transfer Type should be “Intransit”.

                  FOB Setting : The FOB point determines when the ownership of Inventory is transferred between the Organizations. The FOB setting of Shipment creates the Inter Org Receivables and Payables entries on shipment. The FOB setting of Receipt triggers the entries for Inter-Org receivables and Payables only at the time of receipt in the receiving Organization.

                  Transfer Charge : The transfer charges for the transfer can be None, a predefined % or a requested value or a % as entered in the Transfer, Distance region.

                  Other Accounts required : Enter the accounts for Transfer Credit (This account is used for collecting Transfer Charges in the Shipping Organization), the Inter Org Payable and Receivable Account and the account for the Intransit Inventory.

                  The Intransit Inventory Account defaults to the Intransit Inventory Account specified in the Organization parameters of the Shipping Org (if the FOB is receipt) or the Intransit Inventory Account of the Receiving Org (if the FOB is shipment).

                  c.Define Item Sourcing

                  Item Sourcing refers to the setting of the Source Type (Supplier or Inventory) and the Source Organization and an optional Source Sub Inventory while creating an Internal requisition.
                  Internal requisitions use the following order of precedence to determine the default source type and source for the item and destination:
                       Sourcing information specified in the item-subinventory relationship
                       Sourcing information specified in the subinventory definition
                       Sourcing information specified in the item definition
                       Sourcing information specified in the organization setup options
                  3)The Purchasing setups for the process are

                  a.Defining Internal Requisition Deliver To Sites

                  Purchasing uses locations to identify the final destination for both inventory and supplier sourced requisitions. The same destination can be used for both purchase and internal requisitions. This location is set up in the Locations screen available under Setup -> Organizations -> Locations in the Inventory responsibility.
                  For internal requisitioning process, a Customer needs to be created in the Shipping Organization for the Receiving Organization. This Customer needs to have a Ship-To Site corresponding to the Deliver-To location defined in the Receiving Organization.

                  Though the internal order lines are not invoiced, a Bill To site has to be created for the customer and the Primary flag has to be set to “Yes”. Alternatively, the Ship-To location can also be assigned to the Bill To location.

                  The Deliver To location created in the receiving Organization is attached to the Customer in the Customer Window of the shipping Organization. The Ship-To location of the receiving Organization needs to be attached in the Internal Region of the Ship-To Business Purpose of the Customer as given below :

                  b.Set Internal Requisition Type

                  This setup involves the setting up of the Approval rules and the Security types for the Internal Requisitions in the receiving Organization.

                  This is done in Setup -> Purchasing -> Document Types menu of the Purchasing responsibility.

                  c.Define Purchasing Options

                  In the Shipping Organization set the Order type to be used for Internal sales Orders against the Internal requisitions. Purchasing uses this Order type for the creation of Internal Sales Orders.


                  Thanks
                  subramanyam jayaram