Setup steps required to use the Internal Requisition - Internal Sales Order Functionality - Part 1

Internal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. To use this functionality, you need to have Purchasing, Order Management, Shipping Execution, and Inventory installed. Internal Requisition (after suitable approval) will directly result in the generation of a sales order in the Order Management system through the Order Import process in Order Management

Setup Steps:

Step 1 - Creating the Item (Navigation: Items/Master Items)
a) On 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.
b) On the Order Management tab, and choose the attributes: Internal Ordered, Internal Orders Enabled & OE Transactable
c) Ensure that the item is assigned to both the Source and Destination Inventory Organizations

Step 2 - Create the Shipping Network (Navigation: Setup/Organizations/Shipping Networks)
a)Enter the Inventory Organization that will be the Source and the scope should be From or To Organizations
b)Choose the Transfer Type
Direct - means that when the Internal Sales Order is shipped the receipt process in the destination organization is done automatically
Intransit - means that when the Internal Sales Order is shipped - the destination inventory organization has to manually do the receiving process in Purchasing
c)Choose Internal Order Required checkbox

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 & will eventually be tied to a customer

Step 4 - Conduct a Miscellaneous Receipt (Navigation: Transactions/Miscellaneous Transactions)
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.
a)Choose the Inventory Organization that will be the Source Inventory Organization
b)Enter 'Miscellaneous Receipt' - Choose 'Transaction Lines'
c) Enter the Item created and then a sub-inventory, quantity, etc

Step 5 - Create the Internal Customer - Assign the Location
(Navigation: Customers/Standard)
a) Enter the Internal Customer Name - Choose the Find Button
b) If it is a new customer - choose New from the dialog box that appears
c) In this form - choose Open and enter the address details
d) Move to the lower half of the form - enter a usage - of 'Ship To'
e) 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.
Important: In the Internal Block - choose the Location which was created in Step 3
This association ties the customer to the location. 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

Step 6 - Item Price (Navigation: Items/Master Items)
a) Query the item created in Step 1
b) 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

Now you are ready to execute the flow which is explained in the next post titled "Setup steps required to use the Internal Requisition - Internal Sales Order Functionality - Part 2"