Overview of Internal Requisitions
Internal Requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. When Purchasing, Order Entry / Shipping, and Inventory are installed, they combine to give you a flexible solution for your inter-organization and intra-organization requests. You should be able to:
- Set up your supply chain and automatically source your requirements from inventory or suppliers
- Define your inter-organization shipping network, and optionally require that you use internal orders for your inter-organization transfers
- Use intransit inventory when you want to track items as they move between organizations
- Reduce warehousing, shipping, and handling costs by requesting items in fixed lot sizes
- Use the same windows for data entry and inquiry that you use for purchase requisitions and sales orders
- Take advantage of standard requisition and sales order functionality to suit your individual business requirements
- Automatically generate inventory replenishment requisitions and fulfill them via internal or external suppliers
- Automatically source MRP generated requisitions to internal or external suppliers
- View the status of requests on-line
- Use internal requisitions to move inventory items from one inventory organization to another, even if that organization belongs to a different operating unit, set of books, or chart of accounts
Major Features
Purchasing and Inventory combine to provide the flexibility you need to define your item sourcing information. You can use the default sourcing options to automatically determine the correct source type and source for your requests. You can specify either Inventory or Supplier as the default source type, as well as the source organization and subinventory for internal requests.
Inventory provides the features you need to define your inter-organization shipping network. For transfers between two organizations, you can specify whether to use intransit or direct shipments. You can also require internal orders for transfers between specific organizations.
You can tailor internal requisition processing to fit your requirements. You can limit on-line interaction by setting up background processes to automatically perform specific actions such as creating inventory replenishment requests and creating internal sales orders in Order Entry / Shipping. Or, you can take advantage of other features such as on-line requisition approvals, internal sales order cycles, and on-line receipt and delivery of internally requested items.
You can create on-line internal requisitions for both expense and inventory destinations using the same windows you use to create purchase requisitions. You can combine inventory and supplier sourced requisition lines on the same requisition. Also, Purchasing uses your item sourcing information to default the correct source type and supplier for the item and destination. You can define requisition templates for commonly requested internally sourced items.
Full Unit of Issue Enforcement
Purchasing offers the option of full unit of issue enforcement in which quantities entered on internal requisitions are automatically rounded to a full unit of issue defined for the item. You can also set this option to recommend a rounded quantity on requisitions, but leave the opportunity to change the recommended quantity. The quantity rounding is based on the specified unit of issue, if available, otherwise on the primary unit of measure.
Inventory generates replenishment requisitions through min-max planning, reorder point planning, subinventory replenishment, and Kanban replenishment. Purchasing uses your item sourcing information to create inter-organization or subinventory transfer requests. See: Overview of Inventory Planning and Replenishment. See: Kanban Replenishments.
MRP generated requisitions are sourced using the same item sourcing information that you define for inventory replenishment and on-line requisitions. For "buy" items, the Requisition Import process uses the item sourcing information to create either a purchase requisition or an inter-organization internal requisition for planned orders.
You can control internal requisition approvals and document security just as you control purchase requisitions. Purchasing gives you the flexibility you need to set up approvals and limits for internal requests. You can use the same authorization rules, or you can relax or tighten controls for internal requisitions.
When you approve an internal requisition for a stocked item, Purchasing translates the requisition into an internal sales order, providing a link between the end user's requirement and the physical demand against Inventory.
Once you create an internal sales order from a requisition, you can manage internal requisitions just as you manage regular sales orders. You can use Order Entry /Shipping to define order cycles, approvals and holds to effectively process requisition orders. You can selectively pick release and otherwise process internal sales orders as easily as you do regular sales orders.
You get complete visibility on the status of requests through inquiries and reports. You get on-line visibility to the internal sales order number, as well as the shipment and delivery status for requisitions. You can report on backordered items, internal requisition status, and delivery discrepancies.
Exception Processing
Internal Requisitions help you manage exceptions to your normal business flow. Order Entry / Shipping automatically backorders your request when you have insufficient supply to fill the internal order. And, you can reschedule orders when the shipment date changes. For intransit shipments, you can update the expected arrival date as you confirm the shipment when you encounter delays.
You can easily cancel a request if you have a change in requirements or if you cannot fulfill the entire order. Using Order Entry / Shipping, you can partially or fully cancel the line quantities on the internal sales order. You complete the cancellation process by cancelling the original requisition line in Purchasing.
Using Internal Requisitions
Internal Requisitions provide a flexible solution to your inventory requisitioning needs. You can eliminate user intervention when you do not need it, such as when you are loading internal requisitions into Order Entry / Shipping or placing demand. The following sections describe the entire business and information flow for internal requisitions, and identifies opportunities for you to simplify processing.
