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).
Setup and Maintenance > Manage Interorganization ParametersDefine Location Association
Associate an internal location with the destination inventory org and assign it to the internal customer.
Setup and Maintenance > Manage LocationsDefine Internal Customer
The destination organization must be set up as an internal customer in Accounts Receivable.
Receivables > Billing > Create CustomerCheck Item Attributes
The item must have 'Internal Ordered' and 'Internal Orders Enabled' attributes checked in both orgs.
Product Information Management > Manage ItemsIR-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.