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    Gopinath Kartheesan
    Question on Centralized Procurement (with BUs across...
    Topic posted June 16, 2017 by Gopinath KartheesanBronze Trophy: 5,000+ Points, tagged How-To, Orders, Setup 
    663 Views, 13 Comments
    Title:
    Question on Centralized Procurement (with BUs across ledgers) and Invoicing+Payments in a common ledger
    Summary:
    We are planning to use Multiple ledgers in US to separate the Joint ventures vs the main entities by managing them in separate ledgers. But we would like to create a shared procurement services
    Content:

    I have a question on Shared services procurement with the below scenario that we are trying to accomplish. Could you please let us know if this is possible or if there's an alternative on what we are trying to accomplish?

    Here is the Scenario

    Problem Summary
    ---------------------------------------------------
    Trying to setup shared service procurement and not able to select proper Bill-To on the Supplier Master

    Problem Description
    ---------------------------------------------------
    We have three BUs
    1. OC Centralized Procurement BU
       a. Acting as centralized procurement BU
       b. No Ledger/LE attached to this BU
    2. OC Enterprises BU (in US and assigned to Ledger 1)
       a. Responsible for AP invoicing and payments
       b. Ledger: Controlled Entities USD
       c. LE: OC Enterprises, Inc. (Delaware)
    3. OC at Legacy Health (JV) BU (in US to manage their Joint Venture companies and assigned to Ledger 2)
       a. Requisitioning and receiving BU
       b. Ledger: Non-Controlled Entities USD
       c. LE: OC at Legacy Health, LLC

    Problem: trying to create supplier with following attributes
    . OC Centralized Procurement BU as Procurement BU on Supplier
    . OC Enterprises BU as Bill-To-BU
    . OC at Legacy Health (JV) BU as Client BU (not getting an option).

    How can we associated the Client BU as Joint venture BU so that we can create the Requisitions in OC at Legacy Health JV BU, Purchase orders in Centralized Procurement BU and then Invoicing + Payments in OC Enterprises BU

    Any help would be appreciated

    Thanks

    Gopi

    Comment

     

    • Kathy Myers

      Gopi -

      Please make sure you have setup the Service Provider Relationship so that you have the Procurement BU tied to both the OC Enterprises BU and the OC at Legacy Health (JV) BU, then when you create the site you will create the site in the procurement BU, you will then have two site assignments, one that has the client and bill to BU both as OC Enterprises BU and then another site assignment that has the client BU as OC at Legacy Health (JV) BU and the bill to bu as OC Enterprises BU. This setup will then allow you to create the requisition in OC at Legacy Health (JV) BU which will then create a PO in the with the  OC Centralized Procurement BU and on the PO you will see that the bill to BU as OC Enterprises BU.

      Hope that helps

    • Gopinath Kartheesan

      Thanks Kathy for the quick turn around.  Actually we have completed the setups you mentioned below but it's failing in the last setup.  I have also attached the screenshots for your reference.  Could you please let us know what we are missing to complete the last step?

      Please make sure you have setup the Service Provider Relationship so that you have the Procurement BU tied to both the OC Enterprises BU and the OC at Legacy Health (JV) BU - DONE

      , then when you create the site you will create the site in the procurement BU - DONE, you will then have two site assignments, one that has the client and bill to BU both as OC Enterprises BU - DONE

      and then another site assignment that has the client BU as OC at Legacy Health (JV) BU and the bill to bu as OC Enterprises BU. - This is Failing as we are not able to select the Bill to BU as OC Enterprise BU. 

      I have attached the setup document with the screenshots.  If you can review and let me know, it would be great.

      Thanks Kathy

      Regards

      Gopi

    • Gopinath Kartheesan
    • Kathy Myers

      Oh sorry, I now see that your ledgers are different between your Bill to and your Client BU.  I am only familiar with doing this when the ledgers are the same between the client and bill to BUs..sorry that I missed that in your initial data points.

    • Ivan Pena

      Hi Gopi,

      To close the loop, what you describe is only supported if the BUs belong to the same ledger.

      Ivan

    • Ivan Pena

      Hi Stephen,

      It's not on the product roadmap. You could implement supply chain financial orchestration to achieve this, but I'd not recommend going down that route unless you need to support financial orchestration flows to meet other requirements.

      https://docs.oracle.com/cloud/latest/scmcs_gs/FAIMS/FAIMS1925804.htm

      Ivan

      • Stephen Manning

        Thanks Ivan,

        So staying away from supply chain orchestration; since we can't have a cross-ledger service provider relationship at the beginning of the payables process our enterprise structure would need a dedicated Shared Service BU that will handle the entire PO to Payment flow after requisition and then intercompany gets the financials entries back to the requisitioning BU after payment?

        Referencing: Oracle Fusion Applications Setting Up a Minimal Enterprise Structure to Support Procurement Shared Services - Page 5

      • Stephen Manning

        Also, when an unmatched invoice comes into the shared services center how do you get it to hit the right BU? It seems like we would still need the payables service provider relationship to be setup?

        • Ivan Pena

          Hi Stephen,

          Your understanding is correct. For unmatched invoices, you need to ensure you pick the correct balancing segment values for the charge and liability accounts, so that IC entries are created if needed. 

          Ivan

           

          • John Tolmachoff

            Give this is about 1.5 years old, has there been any changes the direction of the Ledger to BU relationship?  I am in a situation looking for the same solution, where we will have more than one ledger, driven by multiple countries.  We are looking for the procurement shared service.  

             

            Regards

            JT

          • John Tolmachoff

            Give this is about 1.5 years old, has there been any changes the direction of the Ledger to BU relationship?  I am in a situation looking for the same solution, where we will have more than one ledger, driven by multiple countries.  We are looking for the procurement shared service.  

             

            Regards

            JT