You can define multiple inventories, warehouses, and manufacturing facilities as distinct organizations. With Oracle Inventory you can perform inter–organization transfers as direct or intransit shipments.

Inter-Org transfers can be done within or accross operating units but you can not generate intercompany invoice with inter-org transfer. Intercompany invoicing is possible for inter-org transfers of type ‘In-transit’ only through ‘Internal sales Orders’. No intercompany invoicing is possible if you perform org transfers between two inventory orgs belonging two different operating units without ‘internal sales Orders’. Also note that intercompany invoice cannot be raised for inter-org transfers of type ‘Direct Transfer’ through Internal sales Orders.

You can transfer one or more items in a single transaction. You can also transfer partial quantities of the same item to different subinventoriesand locators in a single transaction.

Required Setups
1. The items you transfer must exist in both organizations. You can also transfer expense and asset items from one organization to another using intransit inventory.
2. There must exist a shipping network(direct/intransit) between the two organizations.

Accountings
1. Direct Org Transfer
From org -              Inter-org receivables debited
                                                                                   Inv valuation is cedited

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To Org -                  Inv valuation debited
                                                                                    Inter-org payables credited