Your customer wants to track and approve inventory transactions between two inventory organizations handling high value goods. What are the two types of inventory transactions recommended?

For transfers of high-value goods between two inventory organizations that require formal tracking and approval, Oracle SCM Cloud provides two primary recommended methods.
1. Internal Requisition to Transfer Order Flow (A): This process begins with an internal requisition, which goes through a formal approval workflow. Once approved, it creates a transfer order, providing robust end-to-end tracking from shipment to receipt. This method is ideal for controlled transfers, especially between different business units.
2. Movement Requests (D): A movement request is a formal document used to request the movement of materials. It can be configured to require approvals before the physical transaction is performed. This provides an essential control point for initiating transfers, ensuring they are properly authorized before execution.

B. Interorganization transfer: This refers to the direct transaction type. While it moves goods between organizations and can be tracked in-transit, the direct method lacks the built-in, formal pre-approval workflow specified as a requirement.
C. Subinventory transfer: This transaction is used for moving items within a single inventory organization (from one subinventory to another), not between two separate organizations.

1. Oracle Fusion Cloud SCM

Using Inventory Management

Chapter: Manage Internal Material Transfers

Section: Overview of Internal Material Transfers.

This section outlines the different ways to manage internal transfers. It describes Transfer Orders as being "formal requests for internal transfer of goods" that are "orchestrated business processes" often starting from an internal requisition with approvals. It also describes Movement Requests as a way to "manually request movement of material

" which can be subject to an approval process.

2. Oracle Fusion Cloud SCM

Using Inventory Management

Chapter: Manage Inventory Transactions

Section: Movement Requests.

The documentation states

"A movement request is a request for the movement of material within an inventory organization or between organizations... You can require approval for movement requests." This confirms that movement requests are a primary tool for approved transfers between organizations.

3. Oracle Fusion Cloud SCM

Using Inventory Management

Chapter: Manage Internal Material Transfers

Section: Create Transfer Orders from Requisitions.

This document details the process where an approved internal requisition is the source for a transfer order

highlighting the requisition and its approval as the key control step for initiating the interorganization transfer. This supports option A.