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Discrete Manufacturing - Can A Transfer Price Be Used With An Inter-org Transfer? (Doc ID 2068028.1)

Last updated on NOVEMBER 01, 2021

Applies to:

Oracle Inventory Management - Version 12.1.3 and later
Information in this document applies to any platform.


- Background

It was noticed after upgrading from 11.5.10  to R12.2.3 that under "shipping network" setup there is a new tab "Transfer Price" with the option to tie a transfer price to a shipping network.

In testing a pricelist was tied to a shipping network to see if it was possible to utilize this when transacting an inter-org transfer between operating units but getting the transaction to use the price on the pricelist did not happen.  

Currently internal-orders are used to transfer goods between operating units (which functionality generally works well), however for a a specific operation in one Operating Unit where it is preferred to use inter-org transfers in the place of internal orders to transfer between operating units.  

This OU does not use a receivables module (there is a bare-bones setup only for internal orders) and so they are gaining no accounting benefit from the use of internal orders other than in this scenario. It keeps the costing correct in the transfer-to orgs which are average costing.  

Inter-org transfer transactions are seen as a much simpler transaction to perform and if it is possible to tie a pricelist to inter-org transfers it would be a simpler transaction and at the same time be a means of maintaining costing correctly in the transfer-to orgs.  

--  Question

In discrete mfg is it possible to utilize a transfer price with an inter-org transfer?  In other words, is it possible to use a transfer price with an inter-org transfer without the orgs being OPM-enabled?


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