Your customer wants to transfer material from facility A to facility B. They are using the interorganization transfer to perform the transaction in the system. Their requirement is "whenever…

Question

Options

• AManage Interorganization Markup
• BManage Transfer Pricing Rules
• CManage Cost Plus Pricing
• DManage Cost Organization Relationships
• EManage Organization Relationships

• A
  2% (1)
• B
  3% (2)
• C
  5% (3)
• D
  78% (45)
• E
  12% (7)

Explanation

Manage Cost Organization Relationships (D) is correct because this is where Oracle Fusion Cost Management allows you to define the financial terms between two cost organizations - including specifying a transfer pricing markup percentage. When you link the cost organizations associated with Facility A and Facility B here, you can configure that interorganization transfers carry a cost-plus markup (e.g., 5%), making Facility B absorb that additional amount upon receipt.

Why the others are wrong:

• A (Manage Interorganization Markup) - Not a real, distinct task in Oracle Fusion; markup is configured within Cost Organization Relationships, not a standalone screen.
• B (Manage Transfer Pricing Rules) - Transfer pricing rules define the method (e.g., predefined price, cost plus), but assigning that rule to a specific org-to-org relationship with a percentage is done in Cost Organization Relationships.
• C (Manage Cost Plus Pricing) - Not a standalone Oracle Fusion task; "cost plus" is a type of transfer pricing, not its own setup screen.
• E (Manage Organization Relationships) - This handles logistics parameters like transit lead time and intransit accounts between inventory orgs, not the financial/cost markup.

Memory tip: Think "Cost = money, Organization Relationships = who pays whom." Whenever the scenario involves how much one facility charges another (markup, percentage, pricing basis), the answer lives in Cost Organization Relationships - not plain Organization Relationships.

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