Procure r to pay

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Enterprise Structure Modeling Options
Procure to Pay

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Option 1: Centralized Requisitioning, Procurement, Payables, Materials Management (PC BU <>
Management BU)
2
LE1 LE2 LE3
Service BU 1
Business Functions
Requisitioning
Materials Management
Payables
Procurement
Default LE
US GAAP Primary
Inventory
Org 1
Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management*
Profit Center 2
Below LE: Y
Business Functions
Materials
Management*
Management BU
Profit Center 3
Below LE: Y
Business Functions
Materials
Management*
Supplier Site Assignment
Procurement BU: Service BU1
Requisition BU Payables BU
Service BU1 Service BU1
All Legal Entities Serviced by one Payables BU
*Profit Center Business units are BU that rolls up to one legal entity. Such business unit is the management owner of revenue and costs generated by the associated inventory organizations.
Generally there is a manager with P&L responsibility for such profit center. There are no additional setups involved in Payables or purchasing involving the profit center BU. These are light weight tracking entities. However,
these can be used to model inter or intra company supply chain flows using transfer pricing. They need ‘Materials Management’ function just to enable ‘Below LE’ flag on the definition. Enabling the flag sets it up as profit center.
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

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Option 2: Centralized Procurement, Payables, Decentralized Requisitioning, Materials
Management (PC BU = Management BU)
3
LE1 LE2 LE3
Service BU1
Business Functions
Payables
Procurement
Default LE
US GAAP Primary
Inventory
Org 1 Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management
Requisitioning*
Profit Center 2
Below LE: Y
Business Functions
Materials
Management
Requisitioning*
Management BU
Management BU
Profit Center 3
Below LE: Y
Business Functions
Materials
Management
Requisitioning*
Management BU
Supplier Site Assignment
Procurement BU: Service BU 1
Requisition BU Payables BU
Profit Center 1 Service BU1
Profit Center 2 Service BU1
Profit Center 3 Service BU1
All Legal Entities Serviced by one Payables BU
*Profit Center Business units are BU that rolls up to one legal entity. Such business unit is the management owner of revenue and costs generated by the associated inventory organizations.
Generally there is a manager with P&L responsibility for such profit center. There are no additional setups involved in Payables or purchasing involving the profit center BU. These are light weight tracking entities. However,
these can be used to model inter or intra company supply chain flows using transfer pricing. They need ‘Materials Management’ function just to enable ‘Below LE’ flag on the definition. Enabling the flag sets it up as profit center.
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

4. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |
Option 3A: Centralized Procurement, Semi Centralized Payables, Requisitioning, Materials
Management (PC BU <> Management BU)
4
Supplier Site Assignment
Procurement BU: Service BU 1
Requisition BU Payables BU
Service BU2 Service BU2
Service BU3 Service BU3
LE1 LE2 LE3
Service BU 2
Business Functions
Payables
Requisitioning
Materials Management
Default LE
US GAAP Primary
Inventory
Org 1 Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management*
Profit Center 2
Below LE: Y
Business Functions
Materials
Management*
Management BU
Profit Center 3
Below LE: Y
Business Functions
Materials
Management *
Management BU
Service BU 1
Business Functions
Procurement
Service BU 3
Business Functions
Payables
Requisitioning
Materials Management
Default LE
Service Provider Relationship
Provider: Service BU1
Client BU: Service BU2
Service Provider Relationship
Provider: Service BU1
Client BU: Service BU3
Subset of Legal Entities serviced by different Payables BU
*Profit Center Business units are BU that rolls up to one legal entity. Such business unit is the management owner of revenue and costs generated by the associated inventory organizations.
Generally there is a manager with P&L responsibility for such profit center. There are no additional setups involved in Payables or purchasing involving the profit center BU. These are light weight tracking entities. However,
these can be used to model inter or intra company supply chain flows using transfer pricing. They need ‘Materials Management’ function just to enable ‘Below LE’ flag on the definition. Enabling the flag sets it up as profit center.
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

5. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |
Option 3B: Semi Centralized Procurement, Payables, Requisitioning, Materials Management (PC
BU <> Management BU)
5
Supplier Site Assignment
Procurement BU: Service BU 1
Requisition BU Payables BU
Service BU2 Service BU2
Service BU3 Service BU3
LE1 LE2 LE3
Service BU 2
Business Functions
Procurement
Payables
Requisitioning
Materials Management
Default LE
US GAAP Primary
Inventory
Org 1 Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management*
Profit Center 2
Below LE: Y
Business Functions
Materials
Management *
Management BU
Profit Center 3
Below LE: Y
Business Functions
Materials
Management *
Management BU
Service BU 3
Business Functions
Procurement
Payables
Requisitioning
Materials Management
Default LE
Subset of Legal Entities serviced by different Payables BU
*Profit Center Business units are BU that rolls up to one legal entity. Such business unit is the management owner of revenue and costs generated by the associated inventory organizations.
Generally there is a manager with P&L responsibility for such profit center. There are no additional setups involved in Payables or purchasing involving the profit center BU. These are light weight tracking entities. However,
these can be used to model inter or intra company supply chain flows using transfer pricing. They need ‘Materials Management’ function just to enable ‘Below LE’ flag on the definition. Enabling the flag sets it up as profit center.
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

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Profit Center 3
Below LE: Y
Business Functions
Materials
Management
Option 3C: Semi Centralized Procurement, Payables, Requisitioning (Only Expense Destination Purchase,
No Inventory Management)
6
Supplier Site Assignment
Procurement BU: Service BU 2
Requisition BU Payables BU
Service BU2 Service BU2
Service BU3 Service BU3
LE1 LE2 LE3
Service BU 2
Business Functions
Procurement
Payables
Requisitioning
Materials Management
Default LE
US GAAP Primary
Inventory
Org 1 Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management
Profit Center 2
Below LE: Y
Business Functions
Materials
Management
Management BU Management BU
Service BU 3
Business Functions
Procurement
Payables
Requisitioning
Materials Management
Default LE
Subset of Legal Entities serviced by different Payables BU
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

7. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |
Option 3D: Semi Centralized Payables (Non-PO, Expense only invoices)
7
LE1 LE2 LE3
Service BU 2
Business Functions
Payables
Default LE
US GAAP Primary
Inventory
Org 1 Inventory
Org 2
Inventory
Org 3
Profit Center 1
Below LE: Y
Business Functions
Materials
Management
Profit Center 2
Below LE: Y
Business Functions
Materials
Management
Management BU
Profit Center 3
Below LE: Y
Business Functions
Materials
Management
Management BU
Service BU 3
Business Functions
Payables
Default LE
Subset of Legal Entities serviced by different Payables BU, but there is no hard grouping of LE to BU. It’s a manual process to ensure which BU processes invoices for which LE
General Recommendation:
1 Ledger and 1 FIN BU, Multiple LEs per country

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Payables and Payments business functions
• Within a Ledger
– Payables BU can also perform Payment function for its invoices
– Payables BU can let a central Payments BU to pay on-behalf of multiple legal entities.
• Across Ledger
– Centralized Payment is not supported
8