In Oracle Fusion, Transfer Orders are the equivalent of the Internal Requisition/Internal Sales Order (IR/ISO) flow in Oracle E-Business Suite (EBS). Explain summary differences in terms of setups in two systems i.e oracle fusion and Oracle E-Business Suite (EBS). Client is migrating from Oracle E-Business Suite (EBS) to Oracle Fusion. Act as Solution architect to map these system. Need high level summary for this
As a Solution Architect mapping the Transfer Orders process in Oracle Fusion to the Internal Requisition/Internal Sales Order (IR/ISO) flow in Oracle E-Business Suite (EBS) for a client migrating from EBS to Fusion, I’ll provide a high-level summary of the key differences in setups between the two systems. This comparison focuses on the functional and configuration aspects critical for a smooth transition.
Overview of Transfer Orders (Fusion) vs. IR/ISO (EBS)
Oracle EBS IR/ISO: The IR/ISO process involves creating an Internal Requisition (IR) in Oracle Purchasing, which is fulfilled via an Internal Sales Order (ISO) in Oracle Order Management. It facilitates the movement of goods between organizations within the same or different operating units, often involving multiple modules (Purchasing, Order Management, Inventory).
Oracle Fusion Transfer Orders: Transfer Orders in Oracle Fusion Supply Chain Management (SCM) streamline the process of moving goods between inventory organizations. They are managed within the Inventory Management and Supply Chain Orchestration modules, consolidating the requisition and order process into a single flow with enhanced automation and flexibility. High-Level Summary of Setup Differences
Module Structure and Integration:
EBS: IR/ISO spans multiple modules: Oracle Purchasing (IR creation), Oracle Order Management (ISO creation), and Oracle Inventory (material movement). Requires explicit integration between modules, with setups like sourcing rules, shipping networks, and intercompany transaction setups.
Workflow-driven, with separate requisition approval and order processing steps.
Fusion: Transfer Orders are managed primarily within Inventory Management and Supply Chain Orchestration, with a unified process. Simplified integration using Supply Chain Orchestration, which automates the link between requisition, transfer order, and fulfillment. Leverages a centralized Supply Chain Financial Orchestration (SFO) for intercompany transactions, reducing manual setup complexity.
Migration Consideration: Map EBS modules (Purchasing, Order Management, Inventory) to Fusion’s SCM modules (Inventory Management, Supply Chain Orchestration). Ensure the client understands that Fusion consolidates IR/ISO into a single Transfer Order flow, reducing module dependencies.
Inventory Organization Setup:
EBS: Inventory organizations are defined with detailed setups for intercompany relationships, shipping networks, and sourcing rules. Requires explicit setup of Internal Customer and Ship-To Location mappings in Order Management for ISO processing. Intercompany transactions require setup in Oracle Inventory and General Ledger for accounting. Fusion: Inventory organizations are defined in the SCM setup, with simplified interorganization parameters (e.g., transfer type, profit tracking). Supply Chain Financial Orchestration governs intercompany flows, allowing flexible configuration of transfer pricing and accounting rules. No explicit Internal Customer setup; Transfer Orders use inventory organizations and predefined relationships. Migration Consideration: Review EBS inventory organization setups and map them to Fusion’s inventory organizations. Reconfigure intercompany relationships using Fusion’s SFO, replacing EBS’s complex intercompany setups.
Sourcing Rules and Assignment:
EBS: Sourcing rules are defined in Oracle Purchasing to specify supply sources (e.g., internal inventory organization). Requires manual assignment of sourcing rules to items or organizations via the Approved Supplier List (ASL) or Sourcing Rule Assignment. IRs reference sourcing rules to generate ISOs. Fusion: Sourcing rules are defined in Supply Chain Planning or Inventory Management and are more flexible, supporting multiple supply types (e.g., transfer, buy, make). Rules are assigned at the item, category, or organization level, with automated orchestration via Supply Chain Orchestration. Transfer Orders automatically reference sourcing rules without requiring a separate ISO step. Migration Consideration: Migrate EBS sourcing rules to Fusion’s sourcing and assignment sets. Validate that item-level and organization-level assignments align with Fusion’s automated sourcing logic.
Approval Processes:
EBS: IRs follow Oracle Purchasing’s approval hierarchy, configured via Approval Management or position hierarchies. ISOs may require additional approval in Order Management, depending on the setup. Separate approval workflows for IR and ISO can create complexity. Fusion: Transfer Orders use Fusion’s Business Process Management (BPM) Worklist for approvals, with a single approval process for the entire flow. Approvals are configured centrally in the Setup and Maintenance work area, offering more flexibility and role-based rules. Simplified approval setup compared to EBS’s dual workflows. Migration Consideration: Map EBS approval hierarchies to Fusion’s BPM rules. Consolidate IR and ISO approval processes into a single Transfer Order approval workflow in Fusion.
Intercompany Accounting and Pricing:
EBS: Intercompany transactions require manual setup of Intercompany Invoicing and Advanced Pricing for transfer pricing. Accounting entries are defined in Inventory and General Ledger, with potential manual reconciliation for cross-operating unit transactions. Fusion: Supply Chain Financial Orchestration (SFO) automates intercompany pricing and accounting, with predefined flows for transfer pricing (e.g., cost, markup). Centralized accounting rules in Fusion Financials reduce manual intervention. Supports advanced profit tracking and cost allocation. Migration Consideration: Replace EBS intercompany setups with Fusion’s SFO configurations. Map EBS pricing rules to Fusion’s transfer pricing agreements and validate accounting rules in Fusion Financials.
User Interface and Process Flow:
EBS: IR/ISO involves multiple screens and modules (Purchasing, Order Management, Inventory), with a fragmented user experience. Manual intervention is often required to progress from IR to ISO to shipment. Fusion: Unified user interface in Fusion SCM for creating, managing, and tracking Transfer Orders. End-to-end process visibility with automated orchestration, reducing manual steps. Mobile and self-service capabilities for initiating and approving Transfer Orders. Migration Consideration: Train users on Fusion’s simplified UI and consolidated Transfer Order process. Highlight the reduction in manual steps and the use of self-service portals.
Key Migration Recommendations Data Migration: Migrate EBS inventory organizations, items, and sourcing rules to Fusion’s SCM setup. Map EBS intercompany setups to Fusion’s Supply Chain Financial Orchestration agreements. Extract and transform EBS IR/ISO historical data (e.g., open requisitions, orders) to Fusion Transfer Orders. Setup Simplification: Leverage Fusion’s SFO to replace EBS’s complex intercompany setups. Consolidate EBS approval workflows into Fusion’s BPM-based approval rules. Use Fusion’s sourcing rules and assignment sets to streamline supply chain logic. Testing and Validation: Validate end-to-end Transfer Order flows in Fusion, including interorganization transfers and intercompany accounting. Test sourcing rule assignments to ensure correct supply source determination. Verify approval workflows and financial orchestration setups for accuracy.
User Training:
Train users on Fusion’s unified SCM interface and Transfer Order process. Highlight differences from EBS, such as reduced manual steps and centralized orchestration. Integration Considerations: If the client uses external systems integrated with EBS for IR/ISO, map these integrations to Fusion’s SCM APIs (refer to https://x.ai/api for xAI API details if relevant, though not directly applicable here). Ensure compatibility with Fusion’s web services for external system connectivity. Summary The migration from EBS IR/ISO to Fusion Transfer Orders involves transitioning from a multi-module, manual process to a streamlined, automated flow in Oracle Fusion SCM. Key setup differences include:
Consolidated Modules: Fusion unifies IR/ISO into Transfer Orders, reducing module dependencies. Simplified Intercompany Setup: Fusion’s SFO replaces EBS’s complex intercompany configurations. Automated Sourcing and Approvals: Fusion offers more flexible sourcing rules and centralized BPM approvals. Enhanced User Experience: Fusion provides a unified UI with fewer manual steps.
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