Internal Requisitions and Internal Sales Orders

Internal Requisitions (IR) and Internal Sales Orders (ISO) are used to transfer material from one inventory organization or warehouse to another, within the same company.

The organization that requisitions the material should have an employee, who is authorized to enter an internal requisition in the system. This employee also needs to be assigned to an Approval Group where, by virtue of his position he is either able to approve the requisition himself or forward it to an approver who can approve the IR for him.

Material has to be requisitioned by an organization, called the Destination Organization. This is the organization that creates the IR. This material will be supplied by an organization called the Source Organization. This is the organization that ships the ISO.

These two organizations need to have a Shipping Network defined between them, which allows for movement of material between them through the use of IR only.
The IR should carry the destination location as a valid internal Ship To location defined within the destination organization.


Now, since the destination organization acts as a customer, it should be defined as an Internal Customer in Order Management. For the internal requisition process, an internal customer is one, which is associated to an internal location as the Ship To location.

So, if an order is raised for this customer, then the Ship To location on the order header would be the internal location assigned to this customer.


Source: http://www.oracle-apps-training-online.com/internal-requisitions.html

What is Backorder in OM

1. Pick release has processed the delivery line and cannot find the entire quantity.  This typically occurs when the Oracle Inventory indicates that there is not enough material (either because there is not enough material or because the inventory balance is incorrect). 

2. At ship confirm, you Enter Shipped Quantity that is less than Original Requested Quantity. Backorder the entire delivery quantity transfer a reservation to cycle count.
 
3. This typically occurs when the material that you want to ship:

a. Has become unavailable, for example, damaged, between picking and shipping.

b. Is available and you backorder material for specific business reasons. For example, all available material has  been allocated to a specific customer when you find out additional supply for other orders will be delayed.

What is Blanket Sales Agreement

Blanket Sales Agreements are used when you have specific characteristics related to a purchasing agreement between a customer and a supplier. These characteristics include the date range of the agreement, the items included, the price of the items, the quantity of each item that the parties committed to, as well as other attributes, like freight or payment terms.

Once a Blanket Sales Agreement is entered for a customer, multiple releases (shipments) against the Blanket Sales Agreement are processed over a period of time within Order Management. The order is fulfilled and billed according to the terms of the Blanket Sales Agreement. Tracking information will also be accumulated for Blanket Sales Agreements, such as, Blanket Sales Agreements quantity fulfilled, and dollar value fulfilled of released lines. This information is used to view status of orders executed against a Blanket Sales Agreement.

Source: http://www.oracleug.com/user-guide/order-management/blanket-sales-agreements

Shipping: Drop Shipment

In a depressed economy, companies are looking at any supply chain process where they can save time, money or resources. Drop shipping is a popular process where companies can reduce the need to keep inventory in their warehouse, lower their overall shipping costs and improve customer service.

The drop shipment process allows companies to collect sales orders information from customers and send that information to their manufacturers. Those manufacturers will then ship the items directly to the customers.

Source: http://logistics.about.com/od/operationalsupplychain/a/Dropship.htm