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    Alan
    Deliver-to Location dictates Sold-to Legal Entity?
    Topic posted June 5, 2019 by AlanSilver Trophy: 7,500+ Points, tagged Create Requisition 
    92 Views, 7 Comments
    Title:
    Deliver-to Location dictates Sold-to Legal Entity?
    Summary:
    Deliver-to Location dictates Sold-to Legal Entity?
    Content:

    Can anyone confirm that the Deliver-to Location dictates Sold-to Legal Entity? OR Is there another way to dictate which Sold-to Legal Entity I want to create POs for?

    Thanks!

    -Alan

    Comment

     

    • Suman Guha

      Moved post to the Purchasing forum as Sold-to LE is determined on the Purchase Order.

    • Deepak Padhy

      Hi - The Sold to LE that stamped on PO follows the below hierarchy:

      1) first it checks if any SFO flow exists for the receiving BU and it qualifies the PO or not. If a suitable SFO flow founds then sold to LE is derived from there.

      2) If SFO is not implemented then following below two logic inventory organization is derived:

      --> If PO is being created from a requisition then the inventory organization associated with the deliver-to location of the requisition is used. 

      --> If a backing requisition does not exist then the inventory organization associated with the default ship-to location of the PO is used. If none is found then the deliver-to organization specified on the Configure Requisitioning Business Function page of the requisition BU is used.

      Once the inventory organization is derived then the system finds the LE associated with that inventory organization defined in inventory organization UI and use that LE as Sold to LE in PO.

       

      Hope it clarifies your doubt.

       

      Thanks

      Deepak.

      • Alan

        Hi Deepak, 

        Are you able to explain what the SFO Flow is? I'm not familiar with this term.

        If I wanted to create a new Requisitioning BU and have the Deliver-To Location always default to lets say San Francisco, California, wouldn't that be easier than having the requester choose the Deliver-To Location to make sure the correct Legal Entity is selected?

        Thanks!

        -Alan

        • Manjula Evans

          Hi Alan,

          SFO stands for Supply Chain Financial Orchestration and is used for intercompany transactions that cross ledgers. The short answer to your question about determining the Sold-to LE from a deliver-to location/deliver-to organization is yes, you can do that, but it depends on the setting of the parameter ‘Multiple Legal Entities on Order’ which is found on the Configure Requisitioning Business Function screen. In a decentralized procurement scenario where every LE orders for themselves, this parameter would be set to ‘Error’. This means that the LE is determined from the common deliver-to organization of all schedules in the order. In a centralized procurement scenario, this parameter would be set to either Allow or Warning. In this case, the LE is determined from the Requisitioning Business Unit’s Legal Entity (as defined in the Assign Business Function setup screen).

          We are planning a session on June 20th to talk about the LE & BUs on POs - what their purpose is and how certain business scenarios may impact the way you'd define them. If interested, please plan to attend.

          Thanks,
          Manjula

    • Manjula Evans

      Here is a link to the session planned for this Thursday. If you have any questions you want to pose in advance, please post them in the link provided here: https://cloudcustomerconnect.oracle.com/posts/7358d5f1d9

      • Joëlle Mpinganzima

        Hello Manjula

        Was this session by any chance recorded? I would like to understand this process more and how SFO comes into picture

        Thanks

        • Manjula Evans

          Hi Joelle,

          Yes, the session was recorded. If you go to the link I posted above, you'll see the Replay link to watch the video. You can also download a pdf file of the ppt that was used in the session. Please note that the session did not cover SFO.

          Kind regards,
          Manjula