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Oct 7, 2009

Oracle R12 Internal Requisition and Internal Sales Order Process Flow.

In this blog I will explain the Process flow and Setup required to create Oracle Order Management Internal Sales order (ISO) from Internal requisition (IR)

What is internal sales order
A request within your company for goods or services. An internal sales order originates
from an employee or from another process as a requisition, such as inventory or
manufacturing, and becomes an internal sales order when the information is transferred
from Purchasing to Order Management. Also known as internal requisition or purchase

Oracle Purchasing uses Order Import to transfer requisitions for internally sourced
products to Order Management. Once imported, the internal sales orders are processed
similar to regular sales orders.

Note: You can create requisitions (with same number) in two different operating units.

You can partially or fully cancel the line quantities on internal sales orders.
You can make the following attribute changes after an internal sales order has been generated:
Update Scheduled Shipment Date
Decrement order line quantity
Note: If you cancel an internal sales order, order line, or backordered order line that is linked to an internal requisition, manually cancel the internal requisition. The order cancelProcessing issues a reminder.

Test Case –
Item – IR Item004
Assign to Inventory Org M1 and M2
Create Requisition with Destination Org M1 and Source Org M2.Create Internal Sales Order in M2

1# Create Item IR Item4 , with “Purchased Item” as template , in Oracle Inventory Management.

2# Mark Item as Internal Order Enabled.

3# Assign Item to M1 and M2 Inventory Orgs.

4# Define Cost for Item Navigation >Costs >Item Costs

5# Update the cost
        Update Standard Costs
             Update Cost

6# Set the Internal Order Setup at Customer Ship To Site in Oracle Order Management.

7# Define Shipping Network setup Between M2 and M2 in Oracle Shipping.
Inventory > Setup > Organization > shipping Network

8# Define Purchasing Option Setup for Internal Sales Order and define
Internal requisition Order Type
Internal requisition Order Source.
in Oracle Purchasing Module

9#Create & Approve Requisition in Oracle Purchasing

Save and Approve Requisition.

10#submit “Create Internal Order” Concurrent program in Oracle Purchasing.

11#Submit Order Import

Query for Sales Order based on requisition Number.

12# Progress the Sales Order from Awaiting Shipping to Close.


  1. Hi ,

    Its a very useful post.thanks
    I have one doubt.In step 6, the second screen shot..i am not able to locate it... can u please help

  2. This comment has been removed by the author.

  3. It is in Customer setup.Please go to customer , under General Purpose tab

  4. I want to change quantity after importing data from Internal Requisition. I have noticed that if "Status" flag has value "entered" then i am able to change sales order line quantity but by default "status" is "booked" and not allow to change the quantity value

  5. Hi Michelle

    Please note that if you are in R12 and has latest patch set , you should be able to change the Quantity on a book Internal Order .
    Please note that you still need to disable the Processing Constraint
    Update Ordered Quantity
    Please refer my Post

  6. Dear,

    According to my business, I had been setup Processing Constraint - Slip Order Line, will its generate error ?

  7. Hi! Harry

    Purpose of Processing Constraint is to add additional validation conditions or enforce some have stated that you are planning to add PC ( Slip Order Line), I am not sure what exactly it do , so it is difficulty to comment. Give me some additional details and I may able to assist you .


  8. This is very good!

    Sandip Jadhav

  9. Hi,
    This is really very helpful explanation covering att pre-requisit set up and process cycle.

    Please assist me with my query, is it possible to do return of internal sales order in R12?

    Warm Regards,
    Abhigyan Visen

  10. I am not sure if RMA for Internal Sales Order is possible . You can try for reverse IR and then ISO.

    What exactly is your requirement.


  11. Hi, Its a nice post. Will ISO create Invoice?

  12. no , ISO don't create Invoice in AR.

    Hope that helps

  13. is RMA performed in ISO? if so how

  14. I don't think RMA is possible in case of ISO...What exactly is your requirement...

  15. Once ISO is closed, Should the IR also be closed or will IR get closed

  16. how to reverse IR and then ISO

  17. could you please provide me the screnn shots to reverse the IR

  18. Once ISO is closed IR will closed too.

  19. Hi:
    I'm having issue with the price default on the Internal requisition.$0 price is getting defaulted on the IR item lines. The environment is OPM enabled organization. Any advise in this regard? OPM costing is enabled, item is costed and cost type is standard cost and the cost of the item is active in the current period. If you know the solution then please advise.

    Best Regards,
    Prashanthi Chennupati.

  20. Hi:

    I'm having issue with the price default on the Internal requisition.$0 price is getting defaulted on the IR item lines. The environment is OPM enabled organization. Any advise in this regard? OPM costing is enabled, item is costed and cost type is standard cost and the cost of the item is active in the current period. If you know the solution then please advise.

    Best Regards,
    Prashanthi Chennupati.

  21. I am not sure about integration between Pricing and Requisition , but will try to find out some information...

  22. Very good document.


  23. Hi! I have a question. I have a need to flag an item as "inspection required" for external purchases, but not required on Internal requisitions. (Some items require inspection on both internal and external.....but some do not).

    Any ideas how we can flag a specific part as inspection required but not for others? Flagging at the Item Master appears to be an "all or nothing" default.


  24. As you have said , Inspection at the time of receiving is based Inventory Setup ( Value of Receipt Routing field in Receiving tab).If you don't turn on the Inspection in the Item level setup then probably you need to customized work flow .
    At high level design should be something like this , once you cross the wait fir receiving activity , add a custom work flow activity based on outcome you call Wait for Inspection or just skip that

  25. I made all the requested setup steps for overshipment but I can not overship the item?

  26. are you doing Over shipment on Internal Sales Order ????

  27. Can you undership a sales order line and then cancel the sales order line without initiating a backorder?
    If so, can this be done as a profile setting instead of having to go back into the sales order to either cancel the line or set the quantity to zero? Thank you for any advice on this. We are implementing R12.2.3


  28. Thank you. I just wanted to know where to ship it since I know now to keep producing it...

    Cloud ERP

  29. I have a question and I apologize if my tech verbage is not up to speed. If u have a Internal Sales Orders with multiple lines that have different scheduled ship dates, are those dates irrelevant(when Pick Release occurs) because the only date that applies is the need date from the Requisition

  30. Can notes from an IR be sent across to the source organization on an ISO?

    1. Can you please check on this whether notes from an IR be sent across to the ISO organization -Is it standard oracle feature. If not how can one achieve this requirement.

  31. Regards
    Sridevi Koduru (Senior Oracle Apps Trainer
    LinkedIn profile -
    Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, SQL, PL/SQL, D2K at | +91 - 9581017828.

  32. Cant find where to define payment terms for an IR. ISO won't book with payment terms defined.

  33. Hi, I get this error when trying to import IR - Can someone provide some guidance ?

    Request Id: 70436905
    Failed to perform Action Request BOOK_ORDER
    No. of orders found: 1
    No. of orders imported: 0
    No. of orders failed: 1

    Source/Order/Seq/Line Message
    10/106260//2/ Validation failed for the field - Price List

    10/106260//2/ Validation failed for the field - Order Type

    End of Order Import Concurrent Program

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