Overview

Oracle Purchasing Cloud enables you to streamline and automate the procure-to-pay process while enforcing negotiated pricing and terms and ensuring policy compliance.

The cloud application can be configured as per the customer’s requirement to default various attributes on the Purchase Order. The Oracle Purchasing Cloud works at Business Unit level, many attributes default based on the business unit. But in many a case, a business might be associated with more than one Legal Entity. Such scenarios require attributes to be changed/defaulted based on the legal entity to which the transaction pertains to. One of the attributes is the Legal Entity on the Purchase Order header and is also a critical attribute as there might be legal requirement to have the correct legal entity to be populated and printed on the purchase order print which is sent to the suppliers.

Configuration Steps

  1. Perform all the Procurement Setups (Not shown in this post)
  2. For accommodating the requirement of defaulting the correct legal entity on the PO, we would have to create dummy(virtual) inventory organizations. Each organization will be associated to a distinct legal entity.

We would have to create as many virtual inventory organizations same as the number of legal entities. Name                 the inventory organization same as the legal entity name for easier identification.

Inventory Creation1

Inventory Creation2

  1. Identify all the locations which are used as deliver-to location within the business unit.
  2. Segregate the locations based on the legal entity. While defining the locations, populate the corresponding inventory organization on the location setup.

Location Creation1

Location Creation2

  1. In case there are locations which are common between the legal entities, then define them as duplicates by naming the locations appropriately for easy identification and populate the respective inventory organization on each location setup.
  2. As the configurations are complete now, requester would need to login into the Purchase requisition work area and select the correct location in the requisition preferences. User should make sure to select the correct location pertaining to the legal entity in which the purchase order needs to be raised.

Requisition Preference

  1. User can proceed with creating the requisition and the corresponding purchase order will have the correct legal entity populated by the system.
  2. User would need to update the requisition preference and select “location2” for creating purchase requisition pertaining to “LE2”.

If you haven’t already used it, I hope you try this approach. Please share any additional thoughts in the comments below