Internal Requisition to Internal Sales Order (IR-ISO) Cycle
A guide to managing internal stock transfers between organizations.
IR-ISO Cycle Overview
The Internal Requisition to Internal Sales Order (IR-ISO) cycle is a core Oracle process for managing the transfer of goods between two separate inventory organizations within the same or different operating units. It formalizes the request and fulfillment process, creating a full, auditable chain of transactions for internal stock movements. This is crucial for companies with multiple warehouses, distribution centers, or manufacturing plants.
Case Study: Transferring Spare Parts
Key Prerequisites
Define Shipping Network
Define the relationship between source and destination inventory orgs, including transfer type (In-Transit or Direct).
Define Location Association
Associate an internal location with the destination inventory org and assign it to the internal customer.
Define Internal Customer
The destination organization must be set up as an internal customer in Accounts Receivable.
Check Item Attributes
The item must have 'Internal Ordered' and 'Internal Orders Enabled' attributes checked in both orgs.
IR-ISO Process Flow
Create Internal Requisition (IR)
Approve Internal Requisition
Create Internal Sales Order (ISO)
Pick Release & Ship
Receive in Destination Org
Step-by-Step Breakdown
Create Internal Requisition (IR)
Actor: Requester (e.g., Warehouse Planner) | Module: Oracle Purchasing or iProcurement
The process starts when a user in a destination organization (the one needing the stock) creates a requisition of type "Internal" to request items from a source organization (the one holding the stock).
Example: A planner at the service center (Org M2) is low on a specific spare part. They create an internal requisition for 50 units, specifying the central warehouse (Org M1) as the source.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Procurement > Purchase Requisitions > "More Tasks" > Enter Requisition Line
Key Actions:
Select the Requisitioning BU, choose type "Internal", and specify the source organization on the line.
Approve Internal Requisition
Actor: Approver / Manager | Module: Oracle Purchasing / AME
The Internal Requisition goes through an approval workflow, similar to a standard purchase requisition, to ensure the transfer is authorized.
Example: The service center manager receives a notification and approves the request for the 50 spare parts.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Bell icon (Notifications) in the global header, or via BPM Worklist.
Key Actions:
Review the notification details and click "Approve".
Create Internal Sales Order (ISO)
Actor: System / Planner | Module: Oracle Order Management & Purchasing
Run the "Create Internal Orders" concurrent program. This process reads approved internal requisition lines and automatically creates a corresponding internal sales order (ISO) in Order Management within the source organization.
Example: The "Create Internal Orders" program runs, finds the approved requisition, and creates an Internal Sales Order in the central warehouse (Org M1) to fulfill the request from M2.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Orchestration automatically processes the internal transfer.
Key Actions:
This is an automated step. Supply Chain Orchestration creates a transfer order directly, which acts as the ISO.
Pick Release & Ship
Actor: Warehouse Staff (Source Org) | Module: Oracle Shipping Execution
The internal sales order is pick-released and ship-confirmed in the source organization. This process reserves the inventory, picks it from its subinventory, and formalizes the shipment to the destination organization.
Example: Staff at the central warehouse (M1) pick-release the ISO. They pick the 50 spare parts and ship them to the service center (M2).
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Execution > Inventory Management > "Manage Shipments" or "Manage Transfer Orders"
Key Actions:
Create a pick wave for the transfer order, confirm the pick, and then ship confirm the shipment.
Receive in Destination Org
Actor: Warehouse Staff (Destination Org) | Module: Oracle Purchasing / Inventory
When the goods arrive, staff at the destination inventory organization perform a receipt against the original internal requisition. This increases the on-hand stock in the destination organization.
Example: The shipment of 50 parts arrives at the service center (M2). Staff perform a receipt against the original IR, and their on-hand inventory is increased.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Execution > Receiving > "Receive Expected Shipments"
Key Actions:
Search for the transfer order number in the receiving work area and receive the items.