Once you approve inventory sourced requisition lines, Purchasing translates the requisition into an internal sales order, providing the link between the requestor’s requirement and the physical demand against inventory. You run two separate batch processes to create the internal sales order from the approved requisition:

• Create Internal Sales Orders.
• Order Import.

Create ISO
Purchasing uses location associations to create internal sales orders from internal requisitions for a given deliver–to location. When you associate a customer and customer site with a location and then enter an internal requisition with that location as the deliver–to point, Purchasing uses the associated customer and customer site on the internal sales order that it creates. The associated customer site becomes the ship–to site for Order Management’s ship confirmation.

Internal orders are automatically scheduled by setting the Schedule Ship Date on the sales order to the Need–by Date from the requisition. If you specify a subinventory on the internal requisition line, Order Management reserves the goods and uses only the specified subinventory for allocation. If the goods do not exist at the specified subinventory, Order Management backorders them, even if they do exist in another subinventory.