This document provides an overview of enterprise structures in Oracle's Procurement Cloud. It defines key concepts like legal entities, divisions, business units, departments, and inventory organizations. It provides examples of how these structures can be configured and related to each other. It also discusses options for shared services models and reference data sharing across business units.

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Procurement Cloud
Enterprise Structures
by PTT
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Fundamental Structures
 Legal Axis
 Business Axis
 Functional Axis
 Legal Structure’s implemented using Legal Entities
 Business structure’s implemented using Divisions & Business Units
 Functional structure’s implemented using Departments
Enterprise Structures

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Enterprise Structures - Elements
 Enterprise
 Division
 Ledger
 Legal Entity
 Business Units
 Departments
 Inventory Organizations
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Division
America’s (North | Latin)
Enterprise
Vision Corporation
Legal Entity
US1 Legal Entity
Ledger
US Primary Ledge
USD | Calendar Year
Division
JAPAC
Ledger
Japan Primary Ledger
JPY | Calendar Year
Ledger
India Primary Ledger
INR | Calendar Year
Division
EMEA
Ledger
France Primary Ledge
EUR | Calendar Year
Legal Entity
FRN Legal Entity
Legal Entity
US2 Legal Entity
Legal Entity
JPN Legal Entity
Legal Entity
IND Legal Entity
Legal Entity
BRAZIL Legal Entity
Enterprise Structures - Example

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Enterprise Structures – Business Units
 Business Unit (BU): A unit of an enterprise that performs one or many business functions which
can be consolidated in both a managerial and legal hierarchy
 Business Functions
 Requisitioning
 Purchasing
 Receiving
 Invoicing
 A Business Unit can be configured for multiple business functions
Business Unit

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Business Unit Functions in the Procure to Pay Flow

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Division
America’s (North | Latin)
Enterprise
Vision Corporation
Legal Entity
US1 Legal Entity
Ledger
US Primary Ledge
USD | Calendar Year
Division
JAPAC
Ledger
Japan Primary Ledger
JPY | Calendar Year
Ledger
India Primary Ledger
INR | Calendar Year
Division
EMEA
Ledger
France Primary Ledge
EUR | Calendar Year
Legal Entity
FRN Legal Entity
Legal Entity
US2 Legal Entity
Legal Entity
JPN Legal Entity
Legal Entity
IND Legal Entity
USA 1
Business Unit
USA 2
Business Unit
IND
Business Unit
FRA 1
Business Unit
JPN
Business Unit
FRA 2
Business Unit
Enterprise Structures - Example

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Procurement Business Unit Models
BU 1
Source
Request Buy Pay
BU 2
BU 3
Decentralized
BU 1
Source
Request Buy Pay
Shared
Service
BU 2
Intercompany
Complete Shared Services
BU 1
Source
Request Buy Pay
Shared
Service
BU 2
Central Sourcing, Local Execution
Separate Procurement & Invoicing
Service Providers
BU 1
Source
Request Buy Pay
Shared
Service
BU 2
Intercompany

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Business Units : Service Provider Model
 The following figure illustrates a scenario where Business Unit
(BU 1) provides Procurement services for Business Unit (BU 2)
 BU 2 performs Requisitioning and Payables Invoicing
business functions.
 The service provider relationship is defined with BU 1 as a
Service Provider for BU 2.
FRA Business Unit
Requisition
Payables Invoicing
Procurement
USA1 Business Unit
Requisition
Payables Invoicing
Procurement
JPN Business
Requisition
Payables Invoicing
Procurement
IND Business Unit
Requisition
Payables Invoicing
Procurement

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IND Business Unit
Requisition
Payables Invoicing
FRA Business Unit
Requisition
Payables Invoicing
USA1 Business
Unit
Requisition
Payables Invoicing
Procurement
UK Business Unit
Procurement
Consumes services
from
Consumes Services
From
Consume Services
From
USA2 Business
Unit
Requisition
JPN Business Unit
Requisition
Payables Invoicing
Business Units : Service Provider Relationships

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Division
America’s (North | Latin)
Enterprise
Vision Corporation
Legal Entity
US1 Legal Entity
Ledger
US Primary Ledge
USD | Calendar Year
Division
JAPAC
Ledger
Japan Primary Ledger
JPY | Calendar Year
Ledger
India Primary Ledger
INR | Calendar Year
Division
EMEA
Ledger
France Primary Ledge
EUR | Calendar Year
Legal Entity
FRN Legal Entity
Legal Entity
US2 Legal Entity
Legal Entity
JPN Legal Entity
Legal Entity
IND Legal Entity
USA 1
Business Unit
USA 2
Business Unit
IND
Business Unit
FRA 1
Business Unit
JPN
Business Unit
FRA 2
Business Unit
UK Business Unit
Centralized Procurement | Shared Service Center
Enterprise Structures - Example

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Division
America’s (North | Latin)
Enterprise
Vision Corporation
Legal Entity
US1 Legal Entity
Ledger
US Primary Ledge
USD | Calendar Year
Division
JAPAC
Ledger
Japan Primary Ledger
JPY | Calendar Year
Ledger
India Primary Ledger
INR | Calendar Year
Division
EMEA
Ledger
France Primary Ledge
EUR | Calendar Year
Legal Entity
FRN Legal Entity
Legal Entity
US2 Legal Entity
Legal Entity
JPN Legal Entity
Legal Entity
IND Legal Entity
USA 1
Business Unit
USA 2
Business Unit
IND
Business Unit
FRA 1
Business Unit
JPN
Business Unit
FRA 2
Business Unit
UK Business Unit
Centralized Procurement | Shared Service Center
Enterprise Structures - Example

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USA
Business Unit
US Sales
Department
US Marketing
Department
US East
Cost Center
US West
Cost Center
USA
Business Unit
USA
Distribution center
APAC
Distribution Center
US Warehouse
Seattle
US Warehouse
Atlanta
India
Business Unit
Japan
Business Unit
India Warehouse
Mumbai
Japan Warehouse
Tokyo
Common Item Master
Departments Structure Inventory Organizations Structure
Enterprise Structures – Example

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Enterprise Structures - Example

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Reference Data Sharing
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Cloud
US Legal Entity
OU East OU West
Payment Terms
• 2/10 Net 30
• Net 15
• Net 30
• Net 45
Payment Terms
• 2/10 Net 30
• Net 15
• Net 30
• Net 45
Setup Data NOT sharable across BUs (formerly OUs)
Examples:
• AP Payment Terms
• AR Transaction Types
• Customer Account Sites
• Locations
EBS

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Reference Data Sharing - Examples
Reference Data Set Types
 Common
 Shared
 BU specific

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Enterprise Structures Comparison
Compare*
Cloud E-Business Suite PeopleSoft
Enterprise Ultimate Legal Entity , Business Group Company
Division - -
Business Unit Operating Unit Business Unit
Department HR Organization Department
Legal Entity Legal Entity Company
Reference Data Set - SetID
*not an exact one-to-one mapping

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Procurement Cloud
Useful Resources
• Related Value Sets
• Prevent GL Period Closure when Open Subledgers Exist (extended to Cost Management & Assets)
• Reporting Web Studio
• Accounting Automation
• Allocation Rule Name as Reconciliation Reference
• Spreadsheet based Clearing Account Reconciliation
• Multiple Segment Tracking for Revaluation Gain / Loss (up to 5 segments including BSVs)
• Reverse Journal Batch
Complete list of features at Oracle Cloud Release Readiness

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 Oracle Documentation
 Cloud Customer Connect
 Oracle Cloud Applications
 Procurement Release Readiness
 Procurement Certification Details | 1Z0-1065-20
 PTT Workshop Schedules – List of all Workshops (Partner Trainings)
Support Note ID’s
• Fusion Procurement Master Content (Doc ID 2572812.2)
• Oracle Procurement Cloud and Fusion Procurement - Listing Of All White Papers (Doc ID 2177707.1)
Procurement Cloud
Useful Resources