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FAQ for Fusion Procurement Setup (Doc ID 1320802.1) To Bottom

In this Document Was this article helpful?

Purpose Yes
No
Questions and Answers
What setups are needed for Purchasing?
Document Details
What setups are needed for Self Service Purchasing?
How are Procurement Business Units defined?
Type:
FAQ
How is SETID concept applied in Procurement? Status:
PUBLISHED
Where is the default Procurement Currency set? Last Major
17­Mar­2014
Update:
How does data flow from one Business Unit to Another? 17­Mar­2014
Last Update:
What Setups are migrated from EBS, Peoplesoft and JDE Applications?
Where are Purchasing and Requisitioning Approvals defined? Related Products
References Oracle Fusion Purchasing
Oracle Fusion Purchasing
Cloud Service
APPLIES TO:
Information Centers
Oracle Fusion Purchasing ­ Version 11.1.1.5.1 and later
No Information Center
Oracle Fusion Purchasing Cloud Service ­ Version N/A and later available for this document.
Information in this document applies to any platform.
***Checked for relevance on 17­Mar­2014***
Document References

No References available for

PURPOSE this document.

This document provides answers to some basic questions about how the setup of Fusion Procurement is done.
Recently Viewed

QUESTIONS AND ANSWERS Receipt Accounting Flow

[1328173.1]
Purchasing Setup of
What setups are needed for Purchasing? Approval Hierarchies
[134947.1]
As shown in Functional Setup Manager, there are two common applications configurations that are needed to lay the foundations Fusion Cost Management:
for the Procurement products. Missing Selected Scope Link
for Assign Business Unit
Business Function
Common Applications Configurations ­ gives all the setups needed outside the Procurement products, such as in SCM, [1988798.1]
HCM, and Financials.
FAQ for Fusion Procurement
Common Procurement Configurations ­ gives setups specific to Procurement product modules, such as Unit of Measure. Setup [1320802.1]
FAQ Business Units
In addition to these common setups for all Fusion Applications, the following lists the main setups specifically for Fusion
[1396083.1]
Purchasing. These are configured separately in the context of one Business Unit at a time.
Show More
Hazard Class and UN Number – specific attributes to use
Purchasing Lines Types – how are items to be procured
Purchasing Document Styles – how do the purchasing documents look and behave
Purchasing Options – various feature options and setups, including setting many default values.
Change Order Templates – what happens when specific fields are changed on a purchasing document
Procurement Agents – who are buyers and what can they see and do

What setups are needed for Self Service Purchasing?

Again, in addition to the common setups for all Fusion Applications, the following lists the main setups specifically for Fusion Self
Service Purchasing. These are configured in the Configure Requisitioning Business Unit page, shown below, and again is purely
done in the context of each Business Unit.

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Key fields here include the Default Deliver­To org, the One­Time Location for non­catalog requests, the default Procurement
Business Unit to use, and some approval tolerance settings for changes.

How are Procurement Business Units defined?

Business Units are not defined explicitly for Procurement, it’s a generic structure to use across all products and features. What
makes a Business Unit suitable for use in Procurement is the assignment of the related Business Functions to it.

1. Business Units are defined in the HCM Application, done in the context of one Enterprise. Here the Manage Business Units
page allows the creation.
2. The second step is in the Assign Business Unit Functions page shows the 4 procurement functions (payables invoicing,
procurement, requisitioning, receiving). Also shows primary ledger and default legal entity (and Currency) that become
mandatory for certain functions. Note: If the Business Unit being setup is going to be used for receiving/holding inventory,
then it also requires the Materials Management Business Function.
3. Thirdly, the Manage Service Providers page sets who is the client Business Unit that will consume each activity assigned.
This is also a required step when the Business Unit is acting as a client of itself (e.g. One business unit acts as both a
Procurement Business Unit as well as Requisitioning Business Unit).

One can either create inventory organization units or reuse ones that are available within the Client BU of the Requisitioning BU.
The inventory organization is assigned to the BU in its own specific setup page.

Another way of assigning Requisitioning BU and SoldTo BU (beyond the Supplier Site assignments table ­ that allows only 1 sold­
to per Requisitioning BU) is via the Transaction Flow setup in SCM. This is in logistics and when setup the relationship between
two BU's it allows the sold­to to show when creating a PO for one procurement BU.

How is SETID concept applied in Procurement?

Each Business Unit has applicable SetID’s available for their own use. Again, this is done in the HCM Application, in the context of
one Enterprise.

In the Manage Business Units page it allows the assignment of all the applicable SetID’s. These form the defaults, since set­
enabled regions on a page allow the selection from other SetID’s should they be available. Procurement supports SetID for only
ShipTo, BillTo and Payment Terms.

Where is the default Procurement Currency set?

Within the Business Unit creation (HCM Core), the Financial Reporting region shows the default Ledger and Legal Entity and here
the default currency is also assigned.

How does data flow from one Business Unit to Another?

Where the SoldTo business unit differs from the Requisitioning Business Unit, it's possible to create a Transaction Flow to
facilitate additional features. Since the Supplier Site assignments table only allows one SoldTo Business Units per Requisitioning
BU, this provides another way of assigning more SoldTo BU’s. The actual setup is done via the Transaction Flow in SCM, as part
of the Logistics product. Once setup the new relationship between two BU's allows the additional SoldTo BU’s to show when
creating an Purchase Order.

In addition, within this relationship setup the From BU (soldTo) is important since this is used as the Inventory Organization that
is passed to the Transaction Account Builder (TAB) to derive the appropriate accounts.

What Setups are migrated from EBS, Peoplesoft and JDE Applications?

Only transaction data will be migrated from Applications Unlimited products, and setup will be required to be completed from
scratch using Functional Setup Manager to help ensure it is complete and accurate.

Where are Purchasing and Requisitioning Approvals defined?

All procurement documents are processed using the respective BPEL process. The actual generation of the list of approvers, the
notifications sent, and final approval actions are all controlled by the Human Workflow component known as Approvals
Management (AMX). For more information see Note 1320368.1 and other specific documents related to Procurement Approvals
and AMX.

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Attachments
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Related
Products
Oracle Fusion Applications > Procurement > Procurement > Oracle Fusion Purchasing > Set Up Procurement­Define Purchasing Configuration
Oracle Cloud > Oracle Software Cloud > Oracle Enterprise Resource Planning Cloud > Oracle Fusion Purchasing Cloud Service > Set Up Procurement > Define Purchasing
Configuration

Keywords
APPROVER; PROCUREMENT; PURCHASING OPTIONS; SET UP PROCUREMENT

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