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    Ashok
    Internal Material Transfers: Defaulting Logic for Source...
    Topic posted November 2, 2018 by AshokGold Crown: 30,000+ Points, tagged How-To, Internal Material Transfer 
    71 Views, 3 Comments
    Title:
    Internal Material Transfers: Defaulting Logic for Source Organizations
    Summary:
    Internal Material Transfers: How does the source organization value default on a requisition?
    Content:

    A few customers asked about the defaulting logic of the attribute 'Source Organization' on a requisition. As you know, this attribute defaults on a requisition when user shops for and selects an item that is internal transfer enabled. In addition, the source organization is displayed with additional options for the user to select one in the Enter Requisition Line page.

    Concept:

    The source organization is required for internal material transfers to be processed. The rule-driven sourcing tool provides a default source organization and enables use of source organization rankings and available to promise quantities. Source organization rankings are based on pre-configured rules.

    The ranking rules are as follows:
    1. If the item is defined in PIM as a Planned Item, then a GOP Sourcing Rule is required to rank the source organizations
    2. If the item is not defined in PIM as Planned Item, then GOP Sourcing Rule is not required. The the distance in the interorganization parameters setup will determine the ranking. The organization with the shortest distance will have priority. Use the Manage Interorganization Parameters setup page in FSM to configure this.

    The defaulting rules are as follows:

    1. If the destination type in the requisition is Expense and the item can be stocked in the organization, then the deliver-to organization will be defaulted as the source organization
    2. If the destination type in the requisition is Inventory, then the lowest ranked organization (based on GOP rules or interorganization parameters distance) will be defaulted as source organization.

    NOTE: 

    In the Enter Requisition Line flow, when more than one organization can source the item, the user has an option to select the appropriate source. The user can open the Select Supply Source popup by clicking the Select Source link next to the source organization attribute. To see the available to promise quantities in the Select Supply Source popup, check the Enable supply availability details for internal transfers in the Configure Requisitioning Business Function page.

    This topic has come up among customers quite a few times. We hope this detail provides the configuration and processing details required to help with your implementation queries.

    Comment

     

    • Ramesh Radhakrishnan

      Thanks for the note Ashok!!

    • GAURAV JAIN

      Thank Ashok. This is the best note so far

      This flexiblity can be given only via 'Enter Requsition Line' 

      We want some requestor to have full control and decide whether to create IR or PR and user can flip option irrespective whether on hand exist or BPA exist 

      However in this case sometimes i find source ( Inventory or supplier) cannot be changed and remains frozen in some situations - your comments on this please. 

       

    • Ashok

      Gaurav

      Your observations on some cases where source is frozen:

      A) Inventory is frozen in scenarios where the item is not purchasable

      B) Supplier is frozen where it is not internally transferable

      Both of these are based on the attribute definition in PIM.

      While this is an accurate response to your question, it is still a bit simplified. There are scenarios where Inventory may be available but without correct transfer price configuration, will still not allow you to request an internal transfer.

      Now, on your other observation about giving the requester full control: Correct, the design is to allow this flexibility only to the Advanced Procurement Requester role which role has access to the Enter Requisition Line page. As you can imagine, a normal requester would not and in many cases ought not to be burdened with this decision as they are most likely consumers and end users who don't need to be aware of the sourcing logic for an item that is requested.

      Hope this answers both of your queries.