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Shipped Quantity more than Ordered Quantity ???

If you find a case where Shipped Quantity more than Ordered Quantity, then you may control it using the shipment tolerance setup given below.
Over or under shipment tolerance can be setup at at three levels.

1. Item Level (Highest precedence)

2. Customer Level

3. Profile Option (Lowest precedence): This can be setup at Site level.

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Intercompany Invoicing Cycle

2.1. Intercompany Invoicing Cycle

When a sales order is entered in an operating unit, and if the shipping warehouse is part of a separate operating unit (may also belong to another SOB), then the goods can be shipped from the said shipping organization and the selling organization generates a customer invoice. Also the system automatically records an intercompany sale between the shipping organization and the selling organization by generating intercompany invoices. This is called Intercompany invoicing.

After entering the order in Selling operating unit, you can pick release and ship confirm the order from Shipping Operating unit. Then the following programs need to be run to ensure necessary Intercompany invoices are created ..

  1. Launch the Cost Manager in Inventory > Setup > Transactions > Interface Managers. If it is not active then go to Tools  and Launch Manager. Intercompany Invoices will not be generated unless this manager is active.
  2. In Shipping OU run ‘Create Intercompany AR Invoices’. Ensure that the items shipped have a price for ‘Internal Price List’.
  3. In Shipping OU run ‘Receivables AutoInvoice Program’
  4. In Selling OU run ‘Create Intercompany AP Invoices’. Ensure that the conversion rates between the functional currencies of above SOBs exist for the current date and GL period is open in both OUs.
  5. In selling OU run ‘Expense Report Import’ (Payables)

2.1.1. Transaction Steps

Create an Order in ‘Vision Operations’ OU and schedule it from D1 warehouse under ‘Singapore Distribution Centre’ OU as ..


After Pick release and shipconfirm the order, the delivery associated with the line is closed as ..

  • The Create Intercompany AR Invoices process creates invoice lines for order shipment transactions in Oracle Inventory where the shipping warehouse does not belong to the order entry operating unit.
  • The Oracle Receivables AutoInvoice program processes the records inserted into the interface tables by the Create Intercompany AR Invoices process.
  • Find the AR Invoice that has been generated in Shipping OU by querying for source ‘Intercompany’ and optionally by the Sales Order.

  • Create Intercompany AP Invoices process creates records in Payable invoices interface tables.
  • The Oracle Payables ‘Expense Report Import’ program processes the records inserted into the interface tables by the Create Intercompany AP Invoices process. All invoices created by the Create Intercompany AP Invoices program have Intercompany as their source.
  • Find the Payables Invoice that has been generated in Selling OU by querying for supplier and today’s date.

  • The customer invoice automatically gets created if the ‘Workflow background process’ is running. Find it in Selling OU by querying for the transaction source as ‘ORDER ENTRY’ and with a date range.

2.2. Set up steps

The below set-up steps are necessary for proper functioning of Intercompany invoicing cycle ..

  1. Define a customer and customer site in the selling operating unit.
  2. Define a supplier and supplier site in the shipping operating unit.
  3. Define Intercompany Relations
  4. Define price for the items in  ‘Internal Price list’

The organization itself is defined as a customer ‘Vision’, having a customer site in the selling operating unit as ..

The organization itself is defined as a supplier ‘Vision’, with a supplier site in the shipping operating unit as ..

Define Intercompany Relations as ..

Define price for the items in  ‘Internal Price list’ ..

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