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    Yasmin
    Enterprise Structure issues
    Topic posted March 9, 2018 by YasminSilver Trophy: 7,500+ Points, tagged Financials, Fusion, How-To, Orders, Requisition Processing, Setup 
    114 Views, 7 Comments
    Title:
    Enterprise Structure issues
    Summary:
    Enterprise Structure issues BU, LE and Inv. Org.
    Content:
    Hi Experts,
    Need your help 
    1) How can we capture Input Tax Credits (ITC) and claim the same (i.e. the correct Procuring Legal Entity needs to appear on the Purchase Order, and associated Invoices need to have a matching Legal Entity name)
    2) How to configure the enterprise structure so can we purchase by one legal entity on behalf of another legal entity
    3) How can we hold inventory at one location in a single Inventory Organisation
    4) Can we share inventory between legal entities

    Comment

     

    • Shyam Santhanam

      Posting my response here for the benefit of experts in this forum

      Hi Yasmin

      This is a cross functional configuration involving Enterprise structure, procurement, Inventory/Costing/Supply chain financial Orchestration (SFO) and Financials. I can give you an high level starting guidance and help you out further. Would be great if you can share some specific details of the use case here.

      Answers to your questions

      1) The 'sold to legal entity' on the purchase order is the legal owner of the purchase. The 'deliver to inventory org' and its associated legal entity are the owner of the goods or expenses delivered. In most cases, both are same. That means it is a regular purchase. Owner of liability = owner of goods. When AP invoice is matched to the PO or receipt, the 'Sold to LE' on the PO automatically becomes the LE on the invoice header. The taxes that gets defaulted will be based on this LE (on PO/Receipt/Invoice).   

       

      1. For this you would need the 'Sold to LE' <> LE of the destination inventory org to be different. This requires configuration of SFO global procurement agreement (part of inventory management cloud). In this agreement, you set the relationship that says if your Destination LE/Profit center BU/Inventory org is <specific valuee> then the Sold to LE/profit center BU/inventory org will be <different value>. When PO is created, it will call SFO and check for this agreement and based on that it sets the LE and inventory org on PO. Once set of the PO, rest of the flow follows the ownership. Then Trade events are created in receipt accounting, cost accounting. Inter co invoices generated in AR and AP. All this is orchestrated by SFO application.
      2. Not sure I understood this fully. Can you elaborate?
      3.  Each inventory org is tied to a legal entity. The goods in the inventory org belong to the legal entity. So to represent multiple legal ownership in same location, you have to create inventory org per legal entity. We don’t yet support single inventory org holding goods belonging to multiple legal entities. (that’s called internal consignment).

       

      Useful references:

      https://docs.oracle.com/en/cloud/saas/supply-chain-management/r13-update18a/fapma/using-supply-chain-cost-management.pdf (for costing configurations)

      https://docs.oracle.com/en/cloud/saas/supply-chain-management/r13-update18a/fauso/scm-cloud-using-supply-chain-financial-orchestration.pdf (for SFO configurations)

       

      Please review these and we can continue our discussion

      • Yasmin

        Hi Shayam,

        First of all i'd like to thank you so much for your help and support,

        for # 3 "How can we hold inventory at one location in a single Inventory Organisation"

        i mean how can we store inventory items belong to 2 legal entities so we can see the total amount 

        Hope it helps now,

         

        Best regards

         

        Yasmin

        • Yasmin

          can we have "shared warehouse" ?

          • Shyam Santhanam

            When you say 'shared warehouse', i assume a warehouse where goods belong to multiple legal entities? right now we only support supplier consignment, where within an inventory org, we can hold goods belonging to different external suppliers and keep the ownership separate from LE owned goods. 

            • Yasmin

              When you say 'shared warehouse',i  assume a warehouse where goods belong to multiple legal entities? 

              Yes, this is what i mean,

              So if we have 2 different LEs, then they can't access (i.e. view, reserve, send orders) the same warehouse?

               

     

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