What causes a part to be moved to Internal Order Transit?

There are other details related to the Inventory Transaction that will help with this.  Internal Order Transit is an in between area for site to site transactions.  The transaction is occurring by a person not an order, so have you found out which user is doing the transaction and trace out what steps they are doing?  

Site

User

Inventory Location

All of those details should be connected to each transaction as well as the underlying financial postings which should allow backtracing how things are getting there.  Order will only come into play for this transaction if it is initiated through the intersite process using connected customer order and purchase orders between sites.

Thank you Shawn. We did discover that if an order line does not have a Location No provided then the parts are moved to internal order transit. Do you know of any other scenarios or causes for parts to be moved to internal order transit?

Intersite setup between sites

Transport tasks between sites

Move to Location where the locations are between sites

Issue to a shop order with part from another site directly

….might be others, I don’t know where there is a definitive list actually.

Inventory Part in Internal Order Transit is used when you are doing inter-site trade within the same company. It is used to keep track of the inventory value during the transportation as we are still owning the inventory. So examples of use cases:

• Delivery of internal customer order to other site in the same company
• Return of material from the receipt to other site in the same company
• Direct delivery of internal customer orders e.g. demand site source from supply site , supply site delivers directly to internal och external customer
• Perhaps more scenarios?

Then at receipt you “consume” the material from internal order transit e.g. at receipt of internal PO, at receipt of internal RMA, at register direct delivery, more (?).

In IFS Cloud we have a new use case for a new concept for stock movement with transportation called Shipment Order. The Shipment Order is also using the internal order transit. 

Currently all the inventory is aggregated no matter which order that delivered. For the future R&D are looking into possibility of keeping track of the orders as well in the internal order transit. Not sure if and when? So in the future it might be that you see the order on the INTORDTR transaction?

Inventory Part in Internal Order Transit is not used for transport task and move inventory part. Could be a bit confusing but there we have a different transit handling by tracking it in a transit quantity field in inventory part in stock.

Hope this clarified this a bit?

Best Regards

Fredrik

Hi @hmccabe,

This INTORDTR - Move to Internal Order Transit due to issue transaction is posted due to an increase in the qty of the certain part in the Internal Order Transit. As explained above also, this increase of qty in Internal order Transit is happened due to inter-site movements through internal orders.

When the qty of part is delivered from the delivering site through the internal customer order, SHIPTRAN - Ship Customer Order Internal Transit transaction is posted. And that qty is delivered to the Internal order Transit, so the qty in the Internal Order Transit is increased by that amount and the INTORDTR - Move to Internal Order Transit due to issue transaction is posted at the same time (Created Date and Created Time is same in the inventory transactions). But, the INTORDTR transaction does not contain an order reference or location because it is just an increase in the transit, not in the inventory stock, and that’s why its direction is also 0.

And when that qty is received through the internal PO, we have the ARRTRAN - Arrival Inventory Internal Transit transaction. But, we can receive qty as partial qty at different times or also we can receive qty taken into transit from other orders as well, and that’s why transit qty and INTORDTR transaction does not contain order reference.

So, the SHIPTRAN, INTORDTR and ARRTRAN transactions are connected to each other, but not the ARRTRAN transaction not necessarily, because internal PO receipt can be received from the transit at partial quantities and from other lot/batches.

If you want to track the INTORDTR transaction on from which internal CO, that has been posted, you can search for the Created  Date and Created Time for the same part, and qty and lot batch number (if any) in that INTORDTR transaction, and you’ll get the related SHIPTRAN transaction which contains the internal CO number.

Hope this helps.

Thanks,

Thank you so much for your replies. It really helps.

We never knew about this until recently So there are a lot of parts that have been in Internal Order Transit for a long time. Too many to try to determine how they got there. So we don’t know which Purchase Orders to receive them on. It seems to be a bit of a mess.

Any suggestions for how we can “clean up” the parts in our Internal Order Transit?

@hmccabe 

When I had to go through cleaning this up, I first determined which items were real inventory that was physically between sites and hand had a valid PO waiting to be received on the demand end of the trail.  I separated these out and made sure the folks doing the receiving used the right RMB function to do the receipt so they didn’t extend the problem.

Then I created a financial project that was the same on both sites so that I could use that as part of the cleanup.  (I actually had 4 sites that were mixed together, so four projects, but you get the idea).

I then took the list of remaining parts that I suspected were wrong and made both sites do a physical inventory of those parts in both sites (not on system, but on a spreadsheet), that gave me an idea of which way the inventory needed to go and what to do with it when it got there.  Was I receiving phantom inventory that had already been used or was I receiving real inventory that was putting the count back to right?  It matters in the cleanup.

Then I went through part by part and typically created a dummy PO to receive the part then issued it out to the project.  Sometimes after receiving in one site, I had to just move it back to the originating site, it just depended on where my count was off and what my final good count was in each site.  I was careful not to just scrap these parts because then I couldn’t keep track of what was done in which site.  

When I finished going through all of the parts and cleaning them up, I tallied the cost of the ‘lost’ parts and turned it over to finance, it was over $80K worth of parts.  That got enough attention that the various managers paid more attention to the process and I turned it over to a cost/inventory accountant who was responsible for monitoring and making sure inventory didn’t sit there more than a week or 10 days.  

The one complaint I have is the Inventory in Internal Transit overview doesn’t contain date or order information, so it is super difficult to trace the problem ones.  I created a quick report that traced the items back to the last inventory transaction from the same site with the same quantity to help monitor.

The sad thing is….writing this reply made me go look and realize that the person who was supposed to monitor this has left the company and no one is doing it now, so I see a large mess in ours again.  

Ignorance is bliss…...

Thank you for all of the responses. They are very helpful. One additional question.

When parts are delivered on an Inter-Site customer order, are the quantities in the Inventory Part in Internal Order Transit always increased by the delivery quantity? And do all of the Inter-Site PO Lines have to be received from Internal Order Transit? In other words, is there a scenario where delivering lines on an Inter-Site customer order will not affect the Internal Order Transit quantities? 

When parts are delivered on an Inter-Site customer order, are the quantities in the Inventory Part in Internal Order Transit always increased by the delivery quantity?

Yes

And do all of the Inter-Site PO Lines have to be received from Internal Order Transit? 

Yes

In other words, is there a scenario where delivering lines on an Inter-Site customer order will not affect the Internal Order Transit quantities? 

No, not if you want to do it correctly