Lesson 7: Procure To Pay(P2P) Cycle: Configure Business Unit in Oracle Fusion

Lesson 7: Procure To Pay(P2P) Cycle: Configure Business Unit in Oracle Fusion

Hi friends , so this is the seventh lesson of our Procure To Pay(P2P) configurations learning series in Oracle Fusion. In Lesson 7, we will Discuss and perform the Common Procurement Configurations & setups in Oracle Fusion. In this post , We will be Configure Business Unit in Oracle Fusion for Procurement setup. In last posts , we have created the Location , Business Unit & Inventory Org for Procurement setup in oracle fusion.

Common Procurement Configurations 

In this post , We will Perform the below Common Procurement configuration tasks. We need to perform these below tasks for procurement setups in oracle fusion.

• Create Location ( Completed in Last Posts).
• Create Business Unit ( Completed in Last Posts).
• Create Inventory Org (Completed in Last Posts)
• Configure Business Unit (Will do in this Post).
• Manage Receiving parameters.

Configure Business Unit In Oracle Fusion 

Step 1:- We will be perform these below Three Business Function setup tasks to configure your newly 

created Business Unit: 

i. Configure Procurement Business Function 

ii. Configure Requisitioning Business Function 

iii. Manage Common Options for Payables and Procurement 

Configure Procurement Business Function 

 Search for Task : Configure Procurement Business Function 

Step 2:- Set the scope to your business unit (ABC Business Unit) .

Step 3:- 

Enter the following under “General” section 

  Payment Terms  : Select any of the available options 

  Shipping Method : Select any of the available options 

  Freight Term  : Select any of the available options 

  Inventory Organization : Your Inventory Organization 

  Line Type  : Goods 

  Currency  : USD 

  Conversion Rate Type : Corporate 

Enter the following under Purchasing section  

Maximum File Size Megabytes : 20 MB 

Step 4:- 

Click Save and Close 

 Click OK on confirmation 

Configure Requisitioning Business Function 

Step 5:- Search for Task : Configure Requisitioning Business Function 

Step 6:- 

Click on task Configure Requisitioning Business Function  

Select your Business Unit as Scope

Step 7:- Under Requisitioning section : Default Deliver to Organization: Your Inventory Org  : Line Type: Goods 

Under Purchasing section : Default Procurement BU = Your Business Unit  : Ship to location = Your Location 

Click on Save and Close 

Click OK on the confirmation message 

Manage Common Options for Payables and Procurement

Step 8:-  Search for Task : Manage Common Options for Payables and Procurement

 

Step 9:- 

Enter the following configuration (enter (or) copy/paste and modify as indicated):

Business Unit : Your Business Unit (ABC Business Unit) 

Under Default Distributions Section: Liability    : 990.00.80054400.000.000.000 

Prepayment   : 990.00.80053321.000.000.000 

Conversion Rate Variance Gain : 990.00..50052200.000.000.000 

Conversion Rate Variance Loss : 990.00..80054423.000.000.000 

Discount Taken   : 990.00..34054421.000.000.000 

Miscellaneous   : 990.00..43054431.000.000.000 

Freight    : 990.00..40454444.000.000.000 

Under “Currency Conversion” Section 

Conversion Rate Type  : Corporate 

Realized Gain Distribution : 990.00.60054400.000.000.000 

Realized Loss Distribution : 990.00.60034400.000.000.000 

Under “Expense Accruals” Section Accrue Expense Items: At receipt 

Step 10:- 

Click Save and Close 

Click Below to continue the P2P Cycle.