Self Service Procurement

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    Ashok
    Part 1: Inventory Organizations, Deliver-to Locations,...
    Topic posted November 16, 2018 by AshokBlack Diamond: 60,000+ Points, last edited November 16, 2018, tagged How-To, Inventory Cloud, Requisition Processing, Setup 
    238 Views, 7 Comments
    Title:
    Part 1: Inventory Organizations, Deliver-to Locations, Subinventories: Interactions in Self Service Procurement Flows
    Summary:
    An overview of how inventory organizations, deliver-to locations, subinventories interact in Self Service Procurement transaction flows
    Content:

    Customers

    A lot of you have recently posted various issues/questions on topics that primarily relate to one idea:

    A better understanding of how the following entities are used in Self Service Procurement flows:

    a) Inventory Organization

    b) Deliver-to Location

    c) Subinventories

    Part 1:

    I am writing this article in the hope that it will clarify a lot of these questions on behavior, interactions and process.

    Part 2:
    I will be discussing why and how an understanding of these interactions is important in the next part. Stay tuned.

    1. Glossary:

    Before we go any further, let us get some terms understood clearly.

    A. Requisitioning BU:

    A business unit that has the business function 'Requisitioning' defined. This is the cornerstone of the Self Service Procurement application. See setup: Manage Business Unit for more details

    B. Inventory Organization:

    In the context of Self Service Procurement, the first thing to note is that the terminology you will see is 'Deliver-to Organization'. This is the inventory organization that carries master items that are then configured as part of catalogs or on master agreements to then make it available for shoppers in the shopping flows. Setup: Manage Inventory Organizations

    NOTE: For the purposes of this article, I will be using the two terms interchangeably

    C. Location:

    This typically represents a physical location where a requester's items ought to be delivered. Setup: Manage Locations

    D. Subinventory:

    A subinventory is a sub entity of an inventory organization. It typically represents a storage facility for items. Subinventories are setup in the context of an inventory organization. Setup: Manage Subinventories and Locators.

    2. Relationships:

    Here is a quick overview of how these entities are related (as far as Self Service Procurement flows go)

    1. A Requisitioning BU is associated with one or more inventory organizations using the Manage Business Unit attribute in the inventory organization setup (See Screenshot A in the attached word document)

    NOTES: One Requisitioning BU can be associated to multiple deliver-to organizations through this setup

    2. A Location is associated to an inventory organization in two ways:

    a) In the Inventory Organization setup, you select a location

    b) In the Manage Locations setup, you can associate that location to a 'default' inventory organization (See Screenshot B in the attached document)

    NOTES: 

    a) These are not reciprocal. One location can be assigned to several inventory organizations via a). But one location can only be assigned one inventory organization via b)

    b)  If no inventory organization is associated to a location in b), that is termed a 'Global Location'.

    3. A subinventory is associated with an inventory organization via Manage Subinventories and Locators setup. One inventory organization can have one or more subinventories associated with it

    4. A deliver-to organization is stamped on a requisition line primarily from the Requisition Preferences setup as follows:

    a) If the Deliver-to Location setup in Requisition Preferences is a 'Global' location, then the default deliver-to organization from the Configure Requisitioning Business Function setup is used

    b) If the Deliver-to Location setup in Requisition Preferences is associated to a deliver-to organization in the Manage Locations setup, then that is used

    NOTE: A requisition on multiple lines can be associated to different Deliver-to Organizations as you can deduce from the above.

    5. The list of subinventories available in the Requisition Preferences page is based on 2 factors:

    a) Until the Deliver-to Location is picked, the list of subinventories will be all subinventories that belong to any deliver-to organization associated with the Requisitioning BU

    b) After a Deliver-to Location is picked, the list of subinventories will be restricted to only those that belong to the deliver-to organization associated with that deliver-to location (See D above)

     

    Comment

     

    • Deepak Padhy

      superb Ashok. thank for posting this.. :)

    • Ashok

      Oh great! I am working on Part 2 in that case :)

      Cheers

      Ashok

    • Ramesh Radhakrishnan

      Thanks Ashok. Good  document!!

    • Sam Crawford

      Hi Ashok, quick question for you, I have a business unit (we can call it 'A-REQ" BU) that rolls up to another BU that is setup to do only requisitioning and receiving.  I have correctly setup the service provider relationship to another BU.

      However, when I go to the Manage Business Unit attribute in the inventory organization setup, my A-REQ BU is not appearing in the LOV.  Would you be able to provide any insight as to why it wouldn't be there?  Thank you

      • Swami Amajala

        Sam, Can you check which business functions are assigned for your BU "A-REQ BU". You would need Materials Management enabled.

    • Sam Crawford

      Thanks Swami, that was the issue.  So in the case of a requisitioning and receiving only BU, it is safe to assume that you will also require Materials Management as well even if you don't intend to use inventory?