What is the difference between Inter-org Transfer & ISO

Can anybody please share the difference between Inter-org Transfer & ISO?
e.g. Legal bounding, accounting entries, traceability, charging to demanding entity/organization...
Also please help me to understand when shall we use which option, and where we can not use which option...
e.g. Inter-org transfer can't be used when material in required in some different LE (Legal entity).

Internal Sales Order (ISO) is the same as the PO and SO creation process which occurs within the Company. It is a process used to request and transfer material from one inventory to another with the Same or Different Operating Unit. This is usually initiated in Oracle Purchasing which creates a Requisition and upon running the Create Internal Sales Order Concurrent program, the order is loaded into the Order Import Tables. The Order Import program is run in the Order Management of the Operating Unit in which the Orders needs to be Created. The Order is then booked and shipped and received in the destination organization. The invoicing activity depends on the company rules.
Inter Org Transfers are the material transfers within two Organizations that are under the same Operating Unit. There is no creation of the sales orders or anything but a regular material transfer from one org to another. The item needs to be defined in both the Organizations. This is usually done to maintain the inventory balances and there is no actual shipping process that is defined for this.

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