In this Document

Goal
Solution

Applies to:

Oracle iProcurement - Version: 11.5.1 to 11.5.10

Oracle Order Management - Version: 11.5 to 11.5.10
Oracle Purchasing - Version: 11.5.1 to 11.5.10
Information in this document applies to any platform.
iProcurement - Version: 11.5 to 11.5.10

Goal

What are the basic setup steps required to use the Internal Requisition Functionality?

Solution

The following steps outline the setups required, followed with an internal requisition creation example:

Responsibility: Inventory
(Ensure the responsibility has access to both the source and destination inventory organizations).

Step 1 - Creating the Item

Navigation: Items/Master Items

 Enter the Item Name and Description

 From the top text menu - choose Tools/Copy From
o Apply the 'Purchased Item' template - then Choose Done
Remaining in the form, choose the Purchasing Tab - add a price if the item is to be used in iProcurement.
Uncheck the purchasing checkboxes, if the item is to ONLY be ordered from an internal source.
Next, move to the Order Management tab, and choose the attributes:

 Internal Ordered
 Internal Orders Enabled
 OE Transactable
  Save the item

Remaining in the form, with the item still present, choose 'Tools/Organization Assignments' from the top
text menu.
Ensure that the item is assigned to both the Source and Destination Inventory Organizations and save.
In this example, the Item will have a destination of 'V1 - Vision Operations' and the source will be 'M1 -
Seattle Mfg'.
Step 2 - Create the Shipping Network
Navigation: Setup/Organizations/Shipping Networks

 Enter the Inventory Organization that will be the Source and the scope should be From or To
Organizations
 Choose the Transfer Type
o Direct - means that when the Internal Sales Order is shipped the receipt process in the
destination organization is done automatically
o Intransit - means that when the Internal Sales Order is shipped - the destination
inventory organization has to manually do the receiving process in Purchasing
 Choose Internal Order Required checkbox - Save
Please Note - If the Source and Destination Inventory Organizations are the same, then this step is
conditionally not required. (Essentially the Item is being transferred between subinventories in the same
Inventory Organization).

Step 3 - Create the Location

Navigation: Setup/Organization/Locations

 Enter a Location Name - for the Internal Location

 This is the location that is used as the Destination Location
 The Location will eventually be tied to a customer
The location created will be used to tie the Destination Location in the requisition form to the Internal
Customer to be used on the Sales Order form.

Step 4 - Conduct a Miscellaneous Receipt

Navigation: Transactions/Miscellaneous Transactions

 Choose the Inventory Organization that will be the Source Inventory Organization
 Enter 'Miscellaneous Receipt' - Choose 'Transaction Lines'
 Enter the Item created and then a sub-inventory, quantity, etc...
This step is being done to satisfy the Internal Sales Order which is created, as it ensures there will be
ample quantity On Hand to
perform the shipping portion of the Internal Sales Order process.

Responsibility: Order Management Super User

Step 5 - Create the Internal Customer - Assign the Location

Navigation: Customers/Standard - define the Customer appropriately in both operating units for the
source and destination inventory organizations

 Enter the Internal Customer Name - Choose the Find Button

 If it is a new customer - choose New from the dialog box that appears
 In this form - choose Open and enter the address details
 Move to the lower half of the form - enter a usage - of 'Ship To'
 Followed by choosing the Open button in the lower right hand corner of the form
In the new form which opened - enter the basic information for Payment Terms, Salesperson, etc..

 Very Important - in the Internal Block - choose the Location which was created in Step 3
 This association ties the customer to the location (Explanation will be confirmed as to why in
upcoming steps)
 Move to enter other pertinent information such as price list, etc, save - Close this sub-form only.
It is also recommended to create a Bill To Usage record for the new customer.

 Add a new record to the usage - and call this Bill To

 Hit Open and enter any new information that pertains to the Bill To
PLEASE NOTE: The Customer must be created in the Operating Unit of the Source Inventory
Organization that is used on the Internal Requisition. You can check the Operating Unit for the Source
Inventory Organization by using the following sql:

select 'The Inventory Organization '

||oo.organization_code||'has the inventory organization ID of '
||oo.organization_id||' and is under the Operating Unit'
||hro.name||' which has the Operating Unit ID of '||oo.operating_Unit
from org_organization_definitions oo, hr_all_organization_units hro
where upper(oo.organization_code) like upper('%&INV_ORG_CODE%')
and hro.organization_id = oo.operating_unit;

Pass in the Source Inventory Organization Code - and then ensure the Customer is created in the
Operating Unit for the Source Inventory Organization.

Responsibility: Purchasing Super User

Step 6 - Item Price (Informational Step - No Action Taken)

Navigation: Items/Master Items

 Enter query mode using the F11 key or View/Query By Example

 Enter the item 'INTERNAL ITEM' in this scenario
 Execute the query to fetch the item
 Choose Tools/Item Costs from the top text menu
The screen to follow shows the item price that is used when creating the Internal Requisition. This is how
purchasing derives the price when creating the Internal Requisition.

Step 7 - Creating the Requisition

Navigation: Requisitions/Purchase Requisitions

 In the Order Type Field - change the Order Type to Internal

 Click into the Lines Region on the Item field
 At this point - look to the Destination fields - this information is fetched from the Employee Record
 If the Destination Inventory Organization is not proper - move to that field and change it
 If the Location is not the internal location - move to that field and change it to the new Internal
Location
Question: Why is the Following Error message encountered : 'Destination location requires customer
association.'
The reason for this error is that the code is trying to match the Location that is currently entered on the
form to a
customer, and the customer association is not found. This was done earlier in step 4. The solution to this
error is to
setup the employee record to default a location that was associated with a customer (as in step 4 above)
or prior to
entering the item, move to the destination section of the form and enter an inventory organization and
location that is
properly assigned to a customer, followed with entry of the item.

Approve the Requisition.

Step 8 - Submit the 'Create Internal Orders' process

Navigation: Reports/Run

 Single Request - execute the request - 'Create Internal Orders'

This process is responsible for inserting data into the Order Management interface Tables. One of the
fields that is inserted
is the location_id - and because Order Management uses Customers rather than locations - this is why it
is mandatory to assign the Internal Location to the Customer. The location that is passed from
purchasing is correlated to a customer so as to allow the Order Import to run successfully.
The following sql can be used to review the data in the oe_iface tables.

It can be used as a confirmation that the requisition has been inserted into the oe_lines_iface_all table:

select count(*) from oe_lines_iface_all where orig_sys_line_ref

in (select requisition_line_id from po_requisition_lines_all
where requisition_header_id in
(select requisition_header_id from po_requisition_headers_all where segment1 =
'&Requisition_Number'))
Question: How can the data for Internal Requisitions be viewed in the Order Management Module?

This is possible using the Order Management Responsibility - and navigating to Orders/Import
Orders/Corrections (above)

 Choose an order type of Internal

 In Order Reference use the List of Values to locate the Requisition Number
 If the Requisition is not located - it has either been created into a Sales Order or not inserted into
the tables by the Create Internal Orders program

The records are viewable at this stage and can be deleted.

PLEASE NOTE - if records are going to be deleted, it is necessary to Delete the Lines first and then the
header

 Be sure to choose Lines first - and then choose the delete icon from the toolbar - then delete the
header

Deletion of the header record will NOT delete the line - it is not a cascade delete option. If the header is
deleted prior to the line - it is not possible to ever again locate the line in this form - sqlplus will have to be
used to remove the line.
Enhancement Bug 4966920 has been created to improve this form and add the cascade delete
functionality.

Question: How can the Internal Requisition be resubmitted to the Order Management interface tables?
In the po_requisition_headers_all table there is a column 'transferred_to_oe_flag'. Setting this column to
a value of 'N' followed with a run of the Create Internal Orders process will again post the requisition data
into the Order Management interface tables. There are currently no options available through the Oracle
Purchasing forms that allow the updating of this flag, so sqlplus would have to be used.

Question (Problem): When Running the Create Internal Sales Order Process - it completes with
Success but no records are inserted into the Order Management Interface Tables?
Please ensure that Patch 4756100 has been applied to the system. When the internal requisition is
created the code needs to validate that the customer was created in the Operating Unit that the Source
Inventory Organization belongs too. Prior to this patch - the validation was only checking that a Customer
Existed in the Operating Unit that the Destination Deliver To Inventory Organization belonged too rather
than the Source Inventory Organization. When the Create Internal Sales Order process runs, if the
Deliver to Location is not tied to a Customer Ship To Site in the Operating Unit of the Source Inventory
Organization used on the requisition - then it will not insert data into the oe_headers_iface and
oe_lines_iface table.
Please review the previous step 5 and use the sql given to ensure that the Customer was created in the
Operating Unit that belongs to the Source Inventory Organization.

VERY IMPORTANT ALSO REGARDING Create Internal Orders - In Release 12 you must make sure
that you are choosing an Order Type in the Purchasing Options - that was created in the SAME operating
unit for the Purchasing Options you are setting up.

Ex. If you are in the Germany Purchasing Options - then ensure you choose a Order Management Order
Type that was created in Germany Order Management. BEWARE - The list of values for Order Type is
showing Transaction Types from other Operating Units. So, if you are in Germany Purchasing Options
and then choose a France Created Transaction Type - no Records will be inserted during the Create
Internal Orders Process. This is fixed in Release 12.1.1.

Also, remember that whatever the Source Inventory Organization that is used on the Internal Requisition
- the purchasing options must be setup for that Source Organizations Operating Unit. So if the internal
requisition has two inventory organizations from different Operating Units - ensure the Purchasing
Options have been setup for both of the Inventory Organizations Operating Units - as the code is going to
check the Purchasing Options from the operating unit of the Source Organization to obtain the Order
Type to use - as the Sales Order is going to be created in the Source Organizations Operating Unit.

Step 9 - Import the Internal Sales Order

Responsibility: Order Management Super User

Navigation: Orders-Returns/Import Orders/Order Import Request

 Enter the parameters for the Order Import request - Choosing Source Internal and Order
Reference the Requisition Number
 Submit the request and confirm it completes with success
Question: Does the Purchasing Create Internal Orders process pass flexfield values from the Purchase
Requisition?
Currently, the Create Internal Orders process does not pass any values from flexfields. If there are
mandatory/required flexfields setup on the Order Lines table in Order Management, a value will have to
be defaulted as a default value from some other method in order for the import process to complete
successfully.

Navigation: Orders-Returns/Order Organizer

 In the Find form enter the requisition number

 Choose Find and the Sales Order is presented - which confirms the order was imported
 The corrections form should be used to confirm if any errors have occurred during the import if
the sales order is not found
Question: Can the price be updated adjusted during the Order Import?
The calculate price flag is frozen and the price cannot be changed. This is based on the values inserted
by the
Create Internal Orders process from Purchasing.

Question: Where is the schedule Ship Date coming from?

The scheduled ship date is passed from the requisition Need By Date, it cannot be defaulted any
differently.

Question: How is the Order Type being chosen?

This is coming from the Purchasing Options - Responsibility Purchasing Super User -
Setup/Organizations/Purchasing Options.

Step 10 - Execute Pick Release against the Sales Order

Navigation: Shipping/Release Sales Order

 Move to Inventory tab - and choose the source inventory organization

 Enter the Internal Sales Order number - and adjust the ship dates to include the ship date on the
order line
 Move to the Shipping Tab - choose Yes for Autocreate Delivery and Auto Pick Confirm
Choosing these settings will conduct the move order transaction automatically.

 Choose Concurrent and Confirm the Pick Release process has completed with success

The pick release process is responsible for moving the quantity from the sub-inventory (selected during
the miscellaneous transaction earlier) for the Source Organization - to the Staging sub-inventory.

Step 11 - Execute the Ship Confirm for the Sales Order

Navigation: Shipping/Transactions

 Enter the Internal Sales Order in the field 'From Order Number'
 Choose Find and then move to the Delivery Tab
 Next choose Ship Confirm from the actions and then the GO Button
In the new sub-form that appears - take the defaults or adjust appropriately and choose Ok
During this stage, the quantity is being transacted between the staging sub-inventory and the destination
inventory organization.
Earlier, when setting up the shipping network setups, Direct was chosen - meaning the receipt will be
conducted at the time of ship confirm.

Step 12 - Confirm the Quantity is Delivered on the Requisition

Responsibility: Purchasing Super User

Navigation: Receiving/Receiving Transactions Summary

 Choose the Destination Inventory Organization

 Change the source to Internal and enter the Item Number - choose transactions - and hit find
The transactions are displayed.

Question: Sometimes the following error occurs, why?

Error: Default sub-inventory is not defined in the destination organization

Action: Either the transfer sub-inventory should be populated or a default sub-inventory should be setup
for the destination organization using the inventory forms.

This error means that a destination sub-inventory was not entered on the Requisition form in the
destination section of the form. This is visible in the requisition in step 7 of this note.

To correct this error, query the item in the item master and view the Destination Organization details of
the item using the inventory responsibility.

 Move to the Receiving Tab - and enter a Default Receiving Subinventory in the lower right hand
corner - save
 Next, still in inventory - Navigate to Transactions/Transaction Open Interface - query on the item
in question
 Choose 'Find' and then next to the record returned in error choose 'Submit' checkbox and save

Next run of the inventory interface transaction manager will process the record using the new default sub-
inventory entered into the item's receiving tab. If using iprocurement, the default sub-inventory can be
set in the iProcurement preferences, and will be used when creating the requisitions, avoiding the error all
together for future requisitions.