Oracle Apps Training Index

Inter Organization Shipping Network

This training article will helps to understand basic concepts of Define Inter-Organization Shipping Network. It defines relationship between shipping source (From) organization to a destination (To) Organization with accounting information.

Shipping Network must define between two organizations before transfer material between organizations. To define shipping network your responsibility must have function security assigned, it determines whether you have the ability to define shipping networks for all organizations or just the current organization.

Navigation>Inventory>Setup>Organizations>Shipping Networks

From Organization / To Organization :
As defined above material can be ship from M2 org to V1 org. you can define shipping network from V1 to M2.

Transfer type : (Intransit/Direct)
Intransit: Oracle Inventory transfer material to an intermediate state and then final destination. After the material arrives need to receipt transaction to retrieve it.
If you select intransit you can setup

Shipping Methods

GL Accounts to use in transit

Material ownership during transfer

Planning lead times

Transfer Charges 

Direct: Oracle Inventory directly moves the material to the destination organization.

For direct transfer type the FOB & receipt routing is disabled.
However, for both transfer types, you can determine default receipt routing and whether internal orders are required to transfer material.

FOB (Shipment/Receipt)
It determines ownership of the material. If it is shipment then To(Receiving) organizations owns the material at the point of material is shipped. If it is receipt then ownership is transferred from the 'From(Sending)' organization to the 'To(receiving)' organization when the material is received at the receiving organization.

Receiving routing
If you selected Intransit in the Transfer Type field, select a receipt routing option:
Standard: Receive this item first, then deliver without inspection.
Direct: At receipt, deliver this item directly to its location.
Inspection: Receive this item first, inspect it & then deliver.

Shipping Method
Shipping methods are the way to ship material. Shipping method is a QuickCode must be enable before use in shipping network. If shipping method is disable, it cannot be used in a shipping network.

Navigation>Setup>Organizations>Shipping Network>Tools>Shipping Method

Kalyani Balbudhe

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