Difference between Inter-Org Transfer and IR-ISO
What is Inter-Org Transfer
Transferring the material from Source Org to Receiving Org within same Operating Unit.
Inter-Organization transfers can be performed as either direct or intransit shipments.
Direct inter-organization transfers:
Inventory is moved directly from a shipping organization to the destination organization. Receipt is not required to be made as the transfer is direct to inventory. Therefore no ASN.
Intransit inventory:
When two org at having some distance and transportation is involved then usually we go for this as Intransit times comes in picture and to track the material we use this. Usually done when transfer time is significant. Delivery location isn't specified during transfer transaction, You only need to enter subinventory you are shipping from, a shipment number, the freight information and inter-organization transfer charge. Then you need to perform Receipt from the Receiving forms.
Setups Required for Inter-Org Transfer
1. Shipping Network
Shipping Network between source org and destination org should be defined. Please make sure that Internal Order Required should be unchecked.
All accounts which you set here gets involved during this transaction.
2. Item Setup
Inventory Item with Active status.
Inter-Org Transfer Transaction
Navigation: Inventory > Transactions > Inter-organization Transfer > Select Source/Shipping Org
Accounting in Inter-Org Transfer
From org
-
Inter-org receivables debited
Inv valuation is credited
Inv valuation is credited
To
Org
-
Inv valuation debited
Inter-org payables credited
Inter-org payables credited
Purchase Price Variance Account also gets hit if source Org and Destination Org having different Item Cost.
