A supply request has been received in supply chain orchestration. Both organizations belong to the same legal entity and they do not have a buy-sell relationship between them. Which type of…

Question

Options

• ATransfer Order
• BPurchase Requisitions
• CPurchase Order
• DSales Order

• A
  82% (47)
• B
  11% (6)
• C
  2% (1)
• D
  5% (3)

Explanation

Transfer Order is correct because it is the execution document used for internal inventory movement between two organizations within the same legal entity when no buy-sell (financial) relationship exists. It simply transfers stock from a source org to a destination org without triggering procurement or invoicing processes.

Why the distractors are wrong:

• B. Purchase Requisition is a pre-procurement document requesting that a purchase be initiated - it isn't an execution document and implies an external or intercompany buying need.
• C. Purchase Order is used when a buy-sell relationship exists (e.g., purchasing from an external vendor or a separate legal entity); the question explicitly rules this out.
• D. Sales Order is a seller-side document that records a revenue-generating transaction - also inappropriate where no commercial relationship exists between the orgs.

Memory tip: Think of it this way - if the two orgs are on the same team (same legal entity, no buy-sell), you just transfer the goods internally. The moment money or a formal trade relationship enters the picture, you need POs and SOs.

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