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Supplier Agreements

In this post we will look explore the Supplier Agreement functionality in Oracle Fusion Cloud Procurement.

We will look into and differentiate between different types of supplier agreements. Identify the use case for each type of supplier agreement and finally create different types of supplier agreements.

Supplier Agreement

Supplier agreement is nothing but a long term agreement for the purchase of goods and services between buyer and supplier. In Oracle Fusion Cloud Procurement supplier agreements are of two types:

  1. Blanket Purchase Agreement, commonly known as BPA
  2. Contract Purchase Agreement, commonly known as CPA

Blanket Purchase Agreement

Blanket Purchase Agreement (BPA) includes:

  • terms and conditions
  • details of the goods or services to be purchased from the supplier, and
  • negotiated amounts
  • Can specify standard or consigned goods or services

Though Blanket Purchase Agreement (BPA) includes all the above components, it does not contain delivery dates or individual delivery quantities or amounts.

Contract Purchase Agreement

Contract Purchase Agreement includes:

  • terms and conditions
  • A total negotiated amount
  • Can be created for standard or punchout orders

Though Contract Purchase Agreement (CPA) includes all the above components, it does not include:

  • details of the goods or services to be purchased from the supplier
  • delivery dates or individual delivery quantities or amounts.

Looking on the above description of Blanket Purchase Agreement (BPA) and Contract Purchase Agreement (CPA), if we try to conclude difference between Blanket Purchase Agreement (BPA) and Contract Purchase Agreement (CPA), then the main or major functionality or feature that differentiate the two is- the details of the goods or services to be purchased from the supplier.

Blanket Purchase Agreement (BPA) includes the details of the goods or services to be purchased from the supplier while Contract Purchase Agreement (CPA) did not. Besides this there is no other major difference between Blanket Purchase Agreement (BPA) and Contract Purchase Agreement (CPA).

Roles for Purchasing Agreements

Following job roles needs to be assigned to the user who is supposed to crate and manage purchase agreements for an organization.

  • Buyer
  • Procurement Manager
  • Category Manager
  • Procurement Contracts Administrator

Once the above roles are assigned, obviously, you need to assign data roles that will provide the access to the user.

Purchasing Task and Overview: Agreements

To create or manage agreements, navigate to: Procurement > Purchase Agreements


Blanket Purchase Agreement

To create blanket purchase agreement (BPA), use Create Agreement. A popup window will open to allow you to select agreement style. To create blanket purchase agreement (BPA) select Style as Blanket Purchase Agreement


Blanket Purchase Agreement: Main Tab

Following are the main attributes that buyer has to consider when entering a blanket purchase agreement (BPA).

  • Document Style
  • Business Unit: The Business unit appear here is Procurement BU and not the Requisitioning business unit
  • Supplier, Supplier Site, and Supplier Contact
  • Currency
  • Communication Method
  • Agreement Amount
  • Minimum Release Amount


Blanket Purchase Agreement: Lines

Once header details are captured, buyer has to capture the items and negotiated price as part of blanket purchase agreement (BPA) with supplier.


Blanket Purchase Agreement: Controls Tab

Organization can leverage the attributes available under Controls to create Purchase Order directly against the item requisition using supplier blanket purchase agreement (BPA). Organizations can set up supplier blanket purchase agreement (BPA) so that once the requisitions are approved, it automatically create purchase orders with requisition reference and ready to sent to suppliers.

Controls Tab: Business Unit Access

Being responsible for procurement for an organization, a procurement agent have to mention or add all the requisitioning business units that can procure/purchase using a supplier blanket purchase agreement. Procurement manager can achieve this using the blanket purchase agreement Business Unit Access region, on the Control tab.

Procurement manager should allow all requisitioning business units of the procurement business unit to purchase using the blanket purchase agreement.

In addition to requisitioning business units, organization can also specify the bill-to business unit for purchase orders created for these requisitioning business units.

Also, each requisitioning business unit can retain the authority or responsibility of creating their own purchase orders for the goods and services they are procuring against the blanket purchase agreement. To retain the responsibility of creating their own purchase orders, procurement agent should need to check Order Locally for respective requisitioning business unit.


 Controls Tab: Enabling Order Automation

Organization can create and make supplier blanket purchase agreements to automatically create purchase orders, for approved requisitions, that are sent to suppliers. Oracle fusion has provided the flexibility to control the order creation automation based on organization requirement.

Procurement agent need to enable the option for automatically generate orders, in order creation options. Additionally, organization can enable the auto submission of order approval workflow. Oracle fusion also provides the capability to group multiple requisitions and create common purchase order to achieve the economic benefits from large volume.


Contract Purchase Agreement

To create contract purchase agreement (CPA), use Create Agreement. A popup window will open to allow you to select agreement style. To create contract purchase agreement (CPA) select Style as Contract Purchase Agreement


Contract Purchase Agreement: Main Tab

Following are the main attributes that buyer has to consider when entering a contract purchase agreement (CPA).

  • Document Style
  • Business Unit: The Business unit appear here is Procurement BU and not the Requisitioning business unit
  • Supplier, Supplier Site, and Supplier Contact
  • Currency
  • Communication Method
  • Agreement Amount
  • Minimum Release Amount


Contract Purchase Agreement: Controls Tab

As described under BPA section above, you can leverage the attributes available under Controls to create Purchase Order directly against the item requisition using supplier contract purchase agreement (CPA).

Controls Tab: Business Unit Access


Controls Tab: Enabling Order Automation



Receipt Accounting

Receipt Accounting basically deals with procurement activities or events like purchase accruals and expense accounting. Oracle Fusion Receipt Accounting recognizes the liability to the supplier and creates accruals for receipts destined for inventory or expense. These accrual balances are reconcile against the corresponding invoices from accounts payable by receipt accounting and clears them to inventory valuation.

Receipt Accrual

Receipt accounting creates accrued liability balances for the estimated cost of purchase order receipts, at time when goods are received and delivered to inventory or expense destination.

When we creates actual supplier invoice, Accounts Payable creates the actual supplier liability and clear/offset the accrual balances

Now when we are talking about receipt accruals, there are two ways we can accrue liability:

  1. Accrue at Receipt
  2. Accrue at Period end

Accrue at Receipt

When the business process designed to create receipt accrual at the time of receiving, Receipt accounting creates accruals as soon as receipt has been entered and confirmed in the oracle fusion application.

Receipt Accounting creates or credit the Accrual account and debit the Receiving Inspection account when receipt has been entered in the oracle fusion application. And when receipt is confirmed or delivered, receipt accounting offset or clears the Receiving Inspection and debit the inventory or expense charge account. Hence, summarized accounting captured in the oracle fusion is liability has been accrued and charge account has been debited.

Now once actual supplier invoice is created, accounts payable application clears or offset the accrual account balances and creates the actual supplier liability


Accrue at Receipt Option

The first question comes up when you start setting up receipt accounting, where to setup the receipt accrual option, i.e., accrue at receipt or accrue at period end. One point that you need to keep note of is for inventory items the receipt accounting always performs accrue at receipt. And for expense items the oracle fusion provides the option to setup either you want accrue at receipt or accrue at period end.

Hence, whenever you are receiving the inventory items the system always creates accrual at the time of receipt and for expense items you have to setup the option. Navigate to Setup and Maintenance area and search for “Common Options for Payable and Procurement”


Oracle Fusion also provides you the flexibility to override the receipt accrual option at the time of purchase order creation.


Transfer Receiving Transactions to Costing

Before the receipt accounting creates the receipt accrual, oracle fusion requires to transfer the eligible transactions to costing. That means you have to transfer Receiving transactions to costing to create receipt accounting entries. To transfer the receiving transactions, navigate to scheduled processes and search for “Transfer Transactions from Receiving to Costing”, the process will transfer all the eligible transactions from receiving to costing for receipt accounting.


Transfer Inventory Transactions to Costing

In addition to transferring the receiving transactions to costing, you have to transfer the inventory transactions to costing also in case on inventory items. Because when you delivered the item to warehouse, the oracle fusion application raises an event for inventory that is subscribed by costing. To transfer the inventory transactions, navigate to scheduled processes and search for “Transfer Transactions from Inventory to Costing”, the process will transfer all the eligible transactions from inventory to costing for cost accounting.


Receipt Accrual Creation

Once all the eligible transactions has been transferred to costing, you are ready to create receipt accrual. Navigate to Costing > Receipt Accounting and click on “Create Receipt Accounting Distributions”



Once “Create Receipt Accounting Distributions” process is completed, go to “Review Receipt Accounting Distributions”


Complete the Receipt Accounting

To complete the receipt accounting, navigate to Costing > Cost Accounting and click on “Create Cost Accounting Distribution”



Once the “Create Cost Accounting Distribution” process is completed, go to “Review Cost Accounting Distribution” to view the accounting distribution.


Extensible Flexfields (EFF) in Oracle Fusion Cloud

Extensible Flexfields (EFF) is just a extension of Dynamic Flexfields (DFF). In other words, Extensible Flexfields (EFF) expand the scale and scope of Dynamic Flexfields (DFF) by adding enhanced features.

Technically, Extensible Flexfields (EFF) decouple the flexfield segment as a single column in transaction database tables to segment values and context and stores them in a child tables. This will provide the implementers/consultants the customizable expandible space to configure an unlimited number of both segments and contexts.

From configuration perspective, Extensible Flexfields (EFF) use context in the same way as Dynamic Flexfields (DFF)  but adding an intermediate layer to support extension. This intermediate layer is Category that will support the context and all the contexts can be organized into a structure and can be displayed based on the usage.

Now let’s take a look into the system to apply the idea discussed above.

Navigate to Setup and Maintenance area and search for Extensible Flexfields1

We will go and create some EFF at sales order header level. Click on “Manage Order Extensible Flexfields” and search for Header Information


Go to Actions > Edit to go inside


On this landing page, you will see the Category – Additional Header Information and all the contexts associated with category. Now click on the Pages tab under Category Details to view the pages displayed and hierarchy on the Sales Order UI.


If you scroll down the above page, then you will find that under Associated context details the context specific segments that is displayed under each page are associated to the page


Now let create one context and context specific segment and create separate page to display under sales order additional information UI.

Click on Manage Contexts to create context



Go to Actions > Create to create a new context


Enter the Context display name and select the behavior. DO NOT CHANGE Code and API name, it should be system populated.

Now associate Context to Category under Context Usage


Click Save and Go to Actions > Create under Context Sensitive Segment to create Segments


I am not detailing on each and every value on segment assuming you are aware of how to create segment. But listing out the important fields:

  • Enter Segment Name. DO NOT CHANGE  Code and API name, it should be system populated.
  • Select Data Type and Table Column
  • Select Value Set
  • Select Display Type

Click on Save and Close


The segment is added to the context. Click on Save and Close to complete the context and context specific segment creation.


Click again on Save and Close to go back to the EFF Main page

Now, till this step it is same as DFF. But to display this segment (EFF) on the sales order additional information UI, we need to perform below steps:

  • Associate the Context to Category

Highlight the “Additional Header Information” Category and click on Actions > Create under Associated Context to associate the context


Search for your context and click on OK and then Apply to associate the context to Category


  • Create Page under Category under which the Context specific Segment is available

Highlight the “Additional Header Information” Category click on Pages under Category: Details


Go to Actions  >Create to create page that represent context specific segment



Enter the Page name same as segment name and DO NOT CHANGE the Code as it is system populated. Always Select Usage as “Additional Header Information”. Click OK


  • Associate the Context to the Page

Go to Actions > Create under Associated Context Details for Page


Search for your context and click on OK and then Apply to associate the page with context.


Click on Save and Close to complete the EFF creation.


Click on Deploy Flexfield to deploy the EFF for sales order


Click OK to complete EFF deployment

Now go to sales order creation UI to view the EFF just created







Importing Orders from External Source System

Generally when working with big customers, they would have requirement to capture sales order coming from external system. Yeah, I know we can capture the sales order using FBDI or webservice and use EFF to mention the respective source system. But to your surprise, oracle fusion cloud has possess the capability to create external source system to capture the sales order. In this article we will learn how to create new source system to capture the sales order.

Creating External Source System

To create new source system we have to leverage the oracle fusion cloud Trading Community Model because oracle fusion cloud source system, for ex: OPS, is predefined in the Trading Community Model and if you require to collect or load sales order from external source system for Oracle Fusion Global Order Promising or Oracle Fusion Order Management, then first you have to define the external source system under Trading Community Model.

To add each external source system navigate to Setup and Maintenance work area and search for “Manage Trading Community Source Systems” page, as shown below.


Click Manage Trading Community Source Systems task to open the page


Go to Actions > Create to add new source system


Enter the Source system name and description and select Type as Spoke. Check all the check box except “Enable for Asset” to allow source system to capture sales order and click on Save and Close. The source system is created under Trading Community Model


Enable External Source System for Order Orchestration

Once external source system is created under Trading Community Model, next step is to make this source system eligible to use in order management to capture sales order. To enable the new source system for order orchestration and planning navigate to Setup and Maintenance work area and search for “Manage Planning Source Systems”


Click on “Manage Planning Source Systems” task to open the page.


Go to Actions > Create to add the newly created source system to enable it for Order Orchestration and Planning


Enter the following information:

Code:- Select the Source System Code from the LOV
Time Zone:- Select from LOV
Version:- this should be – Other – for all external Source Systems. There should only ever be a single source system – Fusion
Order Orchestration Type:- Select either – Order Capture – or – Fulfillment
Check – Collections allowed (You can allow collections for external source systems if you load planning data from files)
Check – Enable data cross-reference

Click on Save and Close to enable the external source system for Order Orchestration and Planning


Enable Organization for Data Collections

Once external source system is created and enabled for  Order Orchestration and Planning, you have to enable organization that will be use for data collections.

To enable Organizations navigate to Setup and Maintenance area and search for “Manage Planning Source Systems”


Click on  “Manage Planning Source Systems” task to open the page


Highlight the row for external source system created and click on Manage Organization List button


Search for your organization and as surprise you will get no result ! The reason for this is that Order Management and GOP expects that an Item Inventory Organization can ONLY be associated/related to One Source System – this is a One To Many Relationship (A single Source System may Fulfill Order Lines from many Item Inventory Organizations).

But don’t worry you will capture the sales order for this new external source system, let’s see next steps.

Create Cross Reference Data for External Source System

To capture sales order for new external source system, first you have to create all the cross reference data to be used by external source system. You need to use Cross Reference Data FBDI with Source and Target values for supported attributes of an fusion source system (OPS).

To check all the supported attributes of an fusion source system (OPS), navigate to Supply Chain Planning > Plan Inputs


Go to Task Panel > Click on Cross Reference Relationships for Collected Data. Search for Attributes for fusion source system (OPS)


Download all the attributes in the excel using the excel icon under Search results and create cross reference data for all these attributes for external source system using Cross Reference Data FBDI.

To load Cross Reference Data, download Cross Reference Data FBDI under Supply chain management from Oracle enterprise repository.


Download the template, open it and populate all the entity and respective attribute values for new external source systems


Create the necessary CSV files for upload.

From the Navigator, use the File Import and Export page to upload the zipped CSV files to the Universal Content Manager.


Go to Actions > Upload to upload zipped csv files. Use the account scm/planningDataLoader/Import to upload the zipped file


Click Save and Close to upload the file


Now, navigate to Supply Chain Planning offering > Plan Inputs


Select the Load Planning Data from Files from task panel


Select the external source system for which you want to create cross reference data and select data file uploaded in the UCM.

Click Submit and review the status of the process

Now, you are ready to create sales order for external source systems using FBDI or webservice.

Oracle Fusion Cash Management – Bank Setup

This tutorial deals with Banking configuration and contains the following:

  1. Bank, Branch, and Account Component
  2. Creating Banks
  3. Creating Branches
  4. Creating Accounts
Bank, Branch, and Account Components

In oracle fusion Banks, branches, and accounts work together to support the real world bank account model. Organization will leverage the model to define and keep track of all bank accounts in one place. In addition, oracle fusion enables the organization to grant bank account access to:

  • multiple business unit
  • multiple business functions
  • multiple users

The above model and functionalities would be leverage by the organization to eliminate the redundant duplicate bank accounts assigned to different business units, when different business units are sharing the same bank accounts.

Creating Banks

Once the organization enterprise structure is ready, the banks and respective accounts can be created. You will define the internal bank account details for your organization and depends on the business functions enabled, these bank accounts are debited when payments are made to the third parties and credited when payments are received from the third parties, on behalf of the organization.

To create banks, navigate to Setup and Maintenance in the FSM and search for Manage Banks


Click on Manage Banks setup task to open the Bank page


Click on Actions drop-down and click on Create Bank to create a new bank for your organization


Enter the Bank details for your bank with Country and bank name is the required field.  Enter the other fields as per your requirements.

Addresses and Contacts are optional. will create as per the organization requirements.


Click on Save and Close to complete the Bank creation process.


Create Bank Branch

Once the bank setup is complete in above step, click on Create Branch button to create the respective bank branches. Alternatively, navigate to Setup and Maintenance in the FSM and search for Manage Bank Branches.

Now, highlight the bank row for which you need to create branches and click on Create Branch button to open the bank branch creation setup page.


The Bank branch setup page will open with Bank and Country defaulted from the Bank.

Enter the Bank Branch detail with Branch name and Routing number is the required field and enter other information as per organization requirements. And, define branch addresses and contacts as needed.


Click on Save and Close to complete the Bank branch creation. You will add more branches by repeating the same steps again.

Create Bank Account

Once the bank branch setup is complete in above step, click on Create Account button to create the respective bank accounts. Alternatively, navigate to Setup and Maintenance in the FSM and search for Manage Bank Accounts.

Now, highlight the bank branch row for which you need to create accounts and click on Create Account button to open the Bank Account creation setup page.


The Bank account setup page will open with Bank and Bank Branch defaulted from the Bank branch setup.

Enter the Bank Account details and,

  • associate it with Legal Entity
  • mention the account type
  • Mention the Account use by checking the required business functions

In General Tab, enters the Cash account assign to this specific bank account, that is used in all the financial transactions.


Click on Business Unit Access tab to assign Bank account to one or many business units that are authorized to use this bank account or cash account for financial transaction purpose.

Click on Actions > Create to assign business unit/s to the bank account.


Assign the business unit intended to use this bank account. The cash account will default from the General tab.

In bottom of page, under Payment document categories by payment method section you will add or assign the Payment method and payment document category used by this bank account when making payments to creditors.

Click on OK to complete the bank account business unit access setup


Click on Save and Close to complete the bank account setup.

The above activity will complete your bank setup and organization will use particular bank and bank account in their transactions.

Oracle Fusion Pricing

In this piece of work, we will learn to create Price list in Fusion Cloud.

Pricing is a part of an Oracle Fusion Order management and is used to price items on Order lines. Oracle Fusion Pricing setup comprise below set of tasks:

  1. Customer Pricing Profile
  2. Pricing Segment
  3. Pricing Strategy
  4. Price List
  5. Pricing Strategy Assignment

Customer Pricing Profile

Customer Pricing Profile is a set of pricing-related attributes that describes a customer’s buying behavior. It is date-effective because the profile of a customer can change over time.

Pricing Segment

Pricing Segment is a grouping of customers who exhibit a common set of characteristics and similar buying behaviors. Pricing segment is used to identifies targeted groups of customers in order to apply specific pricing strategies and leverages extensibility of matrix.

Pricing Strategy

Pricing strategy is the container for the pricing rules – price lists, discount lists, shipping charge lists, cost lists, currency conversion lists, and more. Configurable process to derive the pricing strategy by using:
–Customer pricing profile
–Pricing segment
–Pricing strategy assignment

Pricing strategy defines the approach for achieving a specific goal around selling and pricing products. It contains the group of pricing rules such as price lists, cost lists, discount lists, shipping charge lists, and currency conversion list. Allow to create multiple rules determined by precedence and set business objectives and the default currency.

Price List

Price list is a defined collection of prices for items or services targeted for a set of customers for a specific period of time. Price lists are a means of capturing base list prices and other types of adjustments to arrive at the list price. It support pricing charges (price type, charge type, charge subtype), one-time charges and recurring charges.
Oracle Fusion support multiple types of price lists and identifies the item price by assigning price lists to pricing strategy. Oracle Fusion also support price list import and export capabilities

Pricing Strategy Assignment

Pricing Strategy Assignment is the assignment of pricing segment to pricing strategy. The assignment provides a mechanism to employ different pricing strategies for the same pricing segment in different selling scenarios, using extensibility of the matrix

Pricing an Order

You are the pricing administrator at Vision Corporation and responsible for implementing the pricing for your organization.

Navigate to the Pricing Administration Overview Page, by clicking the Pricing Administration work area link in the navigator.

Create Customer Pricing Profile

  • Click the Tasks panel tab
  • Click the Manage Customer Pricing Profiles link.
  • From the Actions drop-down list, select: Create


  • In the Customer Name field, enter the Customer
  • Complete a customer pricing profile by selecting values for the attributes and dates. Although these are the default values for the attributes, you can define the valid set for your implementation in the pricing lookups. This can be done through the Functional Setup Manager, through the task Manage Pricing Lookups.
  • Click Save and Close


Create Pricing Segment

  • Click the Tasks panel tab
  • Click the Manage Pricing Segment link.
  • From the Actions drop-down list, select: Create


  • Complete the pricing segment by selecting values for the attributes as defined in the customer pricing profile
  • Select Unique Pricing segment value to associate with conditions defined, along with the precedence and date defined. You can define the valid set of pricing segment values for your implementation in the pricing lookups

Create Price List

  • Click the Tasks panel tab, and select: Manage Price Lists
  • From the Actions drop-down list, select: Create


  • Enter the below field values as per requirement:
    • Name
    • Business Unit
    • Start Date
    • Price Type
    • Currency
    • Pricing Charge definition
    • Line Type
    • Calculation method
  • Click on Save and Edit, so that you can add the item and respective price


  • In Price List Lines section, click Actions drop-down list and select: Create


  • Select Item, UOM and Line type
  • Click on Create Charge to add price for item and respective UOM


  • Click on Save to save the price list


  • Once the price list is saved, you have to change the status of Price list from In Progress to Approve by clicking on the Approve button


Your Price list is ready to be used in pricing strategy for pricing an order.

Create Pricing Strategy

  • Click the Tasks panel tab
  • Click the Manage Pricing Strategy link.
  • From the Actions drop-down list, select: Create


  • Select name, business unit, currency and date to create strategy
  • Click on Save and Edit to assign price list to pricing strategy
  • In the Pricing Rules – Segment Price list section, click on select and add from the Actions drop down


  • Search the price list that you already created
  • Highlight the price list you want to add, and click on Apply and then OK


  • Once the pricing strategy is saved, you have to change the status of Pricing strategy from In Progress to Approve by clicking on the Approve button


Manage Pricing Strategy Assignment

Now, you have created all the components for the pricing to work. Only task you need to perform is to bring together all the components together by mapping Pricing segment to Pricing Strategy


Once Pricing Segment is assigned to Pricing Strategy, you pricing is ready to be used to price an order.

Supply Chain Orchestration Overview in Fusion Cloud

Supply chain orchestration provides the ability to receive supply requests from several sources operating on Oracle Cloud, to launch and manage complex business processes and perform automated change management to match supply & demand.

Below figure provide a complete view of the Supply Chain Orchestration process.

1Supply Chain Orchestration is designed to execute and manage complex, cross-product business processes such as Internal Material Transfer (IMT), back-to-back, and contract manufacturing. Supply Chain Orchestration provides the ability to:

  • Receive supply requests from several Oracle Cloud systems, such as Planning Central, Inventory Min/Max planning, and Global Order Promising (GOP)
    • For demand-specific supply requests, such as back-to-back, SCO combines the demand from Order Management and the supply suggestion from Global Order Promising to create supply documents.
  • Launch and manage complex business processes to create supply in the warehouse that would fill the anticipated demands
  • Perform automated change management to match supply to demand to ensure that quantity and fulfillment dates are automatically balanced
    • In demand-specific supply creation, Enterprises aim not to create excess supply or fall short on orders. Balancing supply with demand on order-by-order basis is important for customer satisfaction and for profitability. The automated exception management capability of Supply Chain Orchestration supports these goals.
  • Provide a 360 degree view of the supply-creation process and the relationship between the various documents of a flow

Detailed Flow of Supply Chain Orchestration Process


Supply Chain Orchestration Functional Overview

The functional components of Supply Chain Orchestration are:

  • Decomposition: Receives supply requests from other systems and invokes a predefined orchestration process to create the supply
  • Orchestration: Executes the predefined process that creates supply.
    For example, the process may call a manufacturing system to create or modify a manufacturing work order, or a purchasing system to create or change the quantity on a purchase order.
  • Business Services: Are invoked to send and receive messages from an execution system.


The overall Supply Chain Orchestration process consists of four major steps:

  1. Receive request to create supply.
  2. Determine which orchestration process to use and launch the process.
  3. Execute the steps of the orchestration process.
  4. Interact with the execution system.
Supply Chain Orchestration Process Overview


Supply Chain Orchestration (SCO) process starts on receiving a supply request. Supply request received via:

  • Planning Central – Standard Orders and Contract Manufacturing
  • Global Order Promising (GOP) and Order Management (OM) – Back-to-Back Supply process and Contract manufacturing
  • Min-Max Planning in Inventory
  • Spreadsheet upload of Internal Material Transfer (IMT) requests


Supply Chain Orchestration receives request to create supply When a supply-requesting system sends a request to Supply Chain Orchestration , the SCO process starts to process the order. The requesting systems include the following:

  • Planning Central: Releases a request for a planned order batch to Supply Chain Orchestration . A batch may include standard make, buy, or transfer orders. It may also include make orders for inventory organizations designated as contract manufacturing organizations.
  • GOP and OM: Demand data for back-to-back orders scheduled by OM are sent to Supply Chain Orchestration .
    • When an order is confirmed, GOP sends the supply data to Supply Chain Orchestration .
    • When a back-to-back order is scheduled by OM, it sends the demand data to Supply Chain Orchestration .
    • SCO matches the data received from GOP and OM, and treats them as one set of data to launch back-to-back processes. These processes could be back-to-back make, buy, or transfer processes.
  • Inventory: Inventory Min/Max planning can result in a make, buy, or transfer request to Supply Chain Orchestration .
  • Manual spreadsheet upload: You can upload transfer order data to send transfer requests to Supply Chain Orchestration .


Supply Chain Orchestration (SCO) process prepares the incoming payload to create supply.

  • Transformation of Supply request for use in execution system
  • Evaluation of execution rules
  • Apply enrichment rules
  • Assign and Launch appropriate supply creation process


After receiving a supply request, Supply Chain Orchestration next step is to prepare the incoming payload to create supply. The following steps are involved:

  1. Attribute mapping: Attributes specific to requesting system are mapped and transformed to execution system attributes. For example, the supplier ID from Planning Central is transformed to Procurement systems supplier ID.
  2. Evaluation of execution rules: Transfer requests are evaluated using the execution rules to determine if they are to be processed as a transfer order or a purchase order. If the decision is to execute it as a standard transfer, then the decision is made whether or not to route it via Order Management.
  3. Supply created: Predefined supply creation process is selected and launched.


Supply Chain Orchestration (SCO) process executes the steps of the launched supply creation process. The process includes:

  • Scheduling of the overall process to determine start and end dates of each process step
  • Identifying and responding to changes in supply or demand
  • Overall progress tracking


After a predefined supply-creation or orchestration process is selected and launched, the process steps are executed. For example, the back-to-back process includes the following steps:

  1. Application calls the procurement system to create a purchase order.
  2. Application calls the inventory system to reserve a purchase order (PO) against the demand.
  3. Supply is received in warehouse.

The orchestration process execution also includes:

  • Process Planning: At launch, the overall process schedule is calculated based on the duration of each constituent task. The start and end dates of each process step are determined.
  • Change Management: In case of changes in supply or demand, the change management system responds and makes adjustments to keep supply and demand in balance.
  • Tracking: The status and state of all execution documents are tracked.


Supply Chain Orchestration (SCO) system interacts with execution systems:

  • Invoke target execution systems
  • Build target specific payload and send to execution systems
  • Receive and process responses from the execution systems


The predefined supply creation or orchestration process interacts with execution systems to create and manage supply:

  • A payload specific to the target execution system is built and sent to the execution system.
  • Updates from the execution system, such as purchase order status change or quantity decrease, are received and passed to the orchestration system for change management.

Overview of Security in Fusion R12

Oracle Financial Cloud Security Methodology

Cloud security methodology can be summarized with the simple statement: “WHO can do WHAT on WHICH set of data.”

  • Who: The user who performs functions in your company, such as an General Accountant.
  • What: Individual actions a user can perform, such as the ability to enter and post journals.
  • Which: The set of data that the user can perform the action on, such as general ledger journals with in your assigned ledger.


Security Reference Implementation

Oracle Financials Cloud comes with a predefined security reference implementation which consists of a baseline set of predefined security definitions and a set of security components which are delivered with the offering or service & used to meet the business needs of most enterprises.

The security reference implementation covers all functions and actions that need to be
secured. The security definitions were based on industry standards. Unless you have
customized existing functions or added new functions, you shouldn’t have to create any new job or duty roles. The implementation includes:
> Complete set of job roles.
> Duty roles and role hierarchy for each job role.
> Privileges granted to job and duty roles.
> Data security policies for each job role.
> Policies that protect personally identifiable information.
> Policies enforced across tools and access methods.
> Segregation of duties policies respected in the design of duties for the job role.
> Segregation of duties conflicts.

The First User

Define at least one implementation user using the Create Implementation Users task at the beginning of the project. The first implementation user is for creating only the initial enterprise structure and is not a real person in HCM. After the initial enterprise structure is complete, you can create additional users in HCM using the Manage Users or Import Worker Users tasks. Your users require that a business unit, legal entity, and other setup be added after the initial implementation. Planning is essential to:
> Analyze the access requirements specific to your organization, understanding who
needs access to what.
> Compare the requirements with the predefined roles in the security reference
implementation, and decide which predefined roles meet your requirements and can be
used as-shipped, and which will require customizations to meet your requirements.
> Certain product areas, such as Accounts Payable and General Ledger, include multiple
roles in the reference implementation. To compare accesses granted to each role, you
can use the Compare Role feature in the Security Console.

Function And Data Security

Oracle Financials Cloud uses role-based access control (RBAC). Your application is secure as delivered and you will provide function and data access through roles that you assign to users. Function security allows you to access:
> A page or a specific object.
> Functionality within a page, including services, screens, and task flows.
Data security consists of privileges conditionally granted as:
> Data security policies carried by roles.
> Human Capital Management (HCM) security profiles.

For example, a job role can enable users to work with journals. A data role in an upgraded
implementation that inherits the job role can provide access to the journal data within a ledger.
The data role General Accounting Manager – US inherits functionality from the General
Accounting Manager job role and it enables users to perform general ledger duties in the US ledger.

Types of Roles

Three role types can be assigned to users. These enterprise roles, also called external roles, are:
• Abstract roles: Represent people in the organization independent of the jobs they perform, such as employee or line manager.

Abstract role• Job roles: Represent jobs that users perform in an organization, such as Accounts Payable manager.

job Roles• Duty role: Logical collection of privileges that grant access to tasks that someone performs as part of a job, such as processing payables invoices or posting journals.

duty roles

• Data roles: Data roles is Combination of worker’s job and the Data/Security Profiles. You define the data scope of a Data role in one or more HCM security profiles. You define all HCM data roles locally and assign them directly to users.

Data role

Assign these roles directly to users:
• Job roles: You can also create custom job roles.
• Abstract roles: All users are likely to have at least one abstract role that provides access
to a set of standard functions, such as expense reporting or procurement. You can also
create custom abstract roles. In addition, the Employee role is important to assign to a
user as it allows users to submit ESS jobs, among other general functions that an
employee would have.
Assign these roles to Job and Abstract roles, not directly to users:
• Duty roles: You can also create custom duty roles.

Job Roles, Duty Roles and Privileges


Role Inheritance

Role inheritance is a key concept in the security model. The figure illustrates the hierarchy of job and duty role inheritance which are used as the building blocks in Oracle Cloud Security.


Almost every role is a hierarchy or collection of other roles.Job and abstract roles inherit duty roles and Duty roles can inherit other duty roles. You can also assign privileges directly to job, abstract, and duty roles. The diagram now shows Data Role added to secure User to the UK Set of Data in the UK Ledger for General Accountant Job role.


New Data Security in R12

Does not use data role templates
> Assigns users directly to the job roles and to the appropriate data sets.
> Uses the new Manage Data Access for Users page.

Security Console Replacing APM and OIM


The Security Console is an easy-to-use administrative interface that you access by selecting Tools -Security Console on the home page or from the Navigator. You use the Security Console for most role-management tasks. For example, use the Security Console to:

  • Review predefined job, abstract, and duty roles.
  • Create and manage custom job, abstract, and duty roles.
  • Typically, you copy a predefined role and use it as the basis for a custom role.
  • Review the roles assigned to users.
  • Compare roles.
  • Simulate the Navigator for a user or role.

Simplified experience for the IT Security Manager. Use Security Console for all tasks:

  • User Account Management
  • Role Management
  • Edit, Copy, Compare, Simulate
  • Functional and Data Security Policies
  • Role Hierarchy Management
  • User Name / Password policies
  • User Lifecycle Management
  • Certificate Management

To access the Manage Data Access for Users page, navigate to Setup and Maintenance > Manage Data Access for Users task. You use the Manage Data Access for Users task to assign users to data scopes, like Business Units, Ledgers, and Asset Books. You can access this task from the Setup and Maintenance work area.
You assign data scopes to users by role, and you can only assign data scopes to roles a user
has been provisioned.
You can also import assignments from a spreadsheet. By clicking on the Authorize Data
Access button in the Manage Data Access page, you can download a spreadsheet which you
can use to import the data assignments. You can prepare the data from another source, such as your legacy system, and populate the spreadsheet, then import.

Drop Shipment in Oracle Fusion


Drop shipment is a process where the products are shipped from an organization’s supplier directly to the customer without physically receiving the materials into the organization facility.


  1. Your customer places and order with you
  2. The oracle Fusion system automatically places an order with your supplier
  3. Your supplier ships directly to customer

Functional Flow

  • A sales order is created and scheduled on DOO workbench.
  • A fulfillment line is sent for promising.
  • Order promising engine determines drop-ship as the fulfillment option based on sourcing rules and availability, buy from sourcing rules that are assigned to a customer or assigned to a geographical region are interpreted as drop-ship sourcing rules.
  • DOO creates the requisite drop-ship purchase order with the PO having drop ship customer and drop ship customer site populated.
  • Drop Ship PO Schedule Number is populated on the fulfillment line which indicates that the purchase order is reserved to the fulfillment line under consideration.
  • Purchase order is sent to Supplier for fulfillment.
  • Fulfillment Line status is Awaiting Shipping.
  • Supplier ships goods against the purchase order and creates advance shipment notice (ASN).
  • Receiving records a logical receipt for ASN and notifies Order Management.
  • Order Management gets details about the shipment from Receiving.
  • Fulfillment Line status is Shipped.
  • Order Management sends request to Receivables to bill the customer.
  • Fulfillment Line status is Awaiting Billing.
  • Receivables creates an invoice and notifies Order Management.
  • Fulfillment Line status is Billed.
  • Order Management closes the fulfillment line once customer is billed.

Setup Tasks

  • Manage Items


Item must be purchasable in requisition organization and list price must be defined if there is no Blanket agreement.

  • Manage Sourcing Rules


Sourcing Rule must be type global and mention the supplier details withing Buy From source type.

  • Manage Drop Ship Financial Flows


Controls communication of ownership change by specifying Supplier ownership change event and associate Selling BU with Receiving trade organization.

  • Item Validation Organization for Drop Ship

For any source system which supports drop shipments, a drop ship validation organization must be specified. Only one drop ship validation organization can be specified for each source system.


Drop ship validation organization must be the item master for a source system

  • Mange Order Management Parameters


You need to define preparer/buyer name for procurement activities. Parameter required for sending purchase request to Procurement..

  • Manage Suppliers and Supplier Sites


Define your requisitioning business unit at supplier and specify the purchasing business function this supplier site provides to client business unit.

  • Manage Agreements


Define Blanket Purchase agreement and enable to automate purchase order creation from requisition and submission for approval.

  • Once the Drop Ship setup tasks are completed you have to refresh the GOP data store by running below processes sequentially:
  1. Run ESS job the “Collect Planning Data” to collect data for scheduling.
  2. Run the ESS job “Refresh and Start the Order Promising Server “

Drop Ship execution

Create a sales order in Order management using “Create Order”. Navigate to Fulfillment Lines and schedule the sales order. Based on Order promising engine’s recommendations, Order Management will create a drop ship purchase order.



Sales Order Creation in Fusion

Core Transaction Flow

Sales Order Creation:

Sign in to Fusion Financials application


R11 Landing Page


Navigator > Order Managment

Click on Order Management3

Create Order

Click on create order4

Enter Customer details in the sales order form5

Enter Sales Person


In Order Lines Search for the Item Add Quantity and click on Add to add the item to Order Lines


Add the Item to Order lines


Once the Lines are added to the order Go to Shipping Details

In General Tab enter the required mandatory fields


Shipping Tab


In Supply tab Select the Warehouse from LOV


Go to Billing and Payment Details

Select Bill To Location, Bill To Contact and Payment Terms


Click on the down arrow in the lines and select Edit Accounting and Invoicing Rules


Accounting Rule = Immediate

Invoice Rule = Advance Invoice


Once all the details are entered in the Sales Order click Submit

Notice that the Status is changed to Created in Order Lines15


To Check the Process

Go to task -> Manage Orchestration Process  Search with the Order Number to see the Orchestration Process


Once clicked on Search the page will display all the details of the Order Process  To see the Orchestration Process Click on the Orchestration Process Number


Clicking on Orchestration Process Number will take you to the Orchestration Process where we can notice the Task and Status of the Order


The above order status shows Task Progress is completed for Schedule and Reserve and the Next Step is Ship

Shipping Process

To do Shipping goto Go to Warehouse Operations and Select Pick Wave


Click on Create Pick Wave

In Create Pick Wave

Enter Order Type = Sales Order

Order = 11003 (Search from LOV)

Enter Shipping Method and Click on Release Now


Once Release now is clicked a pop up opens with Pick Wave Confirmation Details stating Number of Pick Slips generated.21


To see the Pick Slip go to Scheduled Process and select Print Pick Slip Report process and check the output


Confirm the Pick Slips

Go to Pick Slips and Click on Pick Slip Number


Select the Line for Ready to Confirm and then select Confirm and go to Ship Confirm


Ship Confirm

Enter the Shipping Method, Gross Weight and Volume

Check the Line details and click Ship Confirm


Once Ship Confirm is clicked a pop up shows the Confirmation for the same


Ship Confirm triggers 2 more reports in Scheduled Process i.e. Print Packing Slip Report and Print Bill of Lading Report


Once the Ship Confirm is done Navigate to Order Management and check the status of the Sales Order

Status will be in Awaiting Billing, if the status is in Shipped Click on Refresh and that will update the status


Create Invoice

Once the Sales Order is Shipped now Invoice needs to be created for the same, to Create the Invoice go to Scheduled Process

Navigator -> More -> Scheduled Process



Select Distributed Order Orchestration in Transaction Source


Enter a Specific Sales Order number if required


After the Successful run the output can be found in import AutoInvoice Execution Report


Once the Import AutoInvoice Ran successfully without errors we can go to Receivables Bill to check the created Invoice

View Invoice

Navigation Receivables -> Billing



In Manage Transactions Search with Date or Transaction Source


And find for the Invoice using the Reference number i.e. Sales Order Number



Creating Catalog in Fusion

In this article we will focus on Basic catalog creation in oracle fusion application and also look into the changes oracle introduce in latest release R12.

Define Basic catalog


A catalog is a collection of item categories, which are to be defined in instance, that is used to classify items. Organization can organize the categories into a hierarchy the represents a taxonomy. Fusion will allows to create new item categories only in the context of a catalog. Organization can add existing categories or create new categories to one or more catalogs.

You can set the Catalog Content value to Items at all levels which allows items to be assigned to any level within the category hierarchy, not only to the leaf levels.

Catalogs are created at instance level and assigned to business functional area.

Catalog Components: How the catalog works


A catalog, as discussed above, is a collection of categories that are organized to define a classification of items. The top most level of a catalog is the catalog root. All categories for the first level in the category hierarchy are associated with the catalog root through the catalog category association component.


A category is used to classify or segregate items in a different areas/categories used by an organization to classify items. In other words, category is a component of a catalog that represents item classification defined by the categories in the catalog. Organization can associate a as many as categories to a catalog.

Functional Area

Functional area represents the business functions that is enabled and require item complete the business processing cycle. Like, Purchasing, Inventory, Order Management, etc. Organization required to assign catalog to all the functional areas that needs item for transaction processing. Catalog might be unique for each functional area or organization will use common catalog for all the functional areas depending on the business needs.


An item represents the products or services offered by an organization. To purchase or sell an Item, it must be assigned to the catalog assigned to respective functional area. Further, item must be assigned to catalog category to represents item classification.

Create Catalog

To Create Basic catalogs, one must navigate to FSM and search for the Task “Define Basic Catalogs”. Expand the task to view below Task List.


Tasks present in the Task list are:

  •          Manage Product and Child Value Sets
  •          Manage Key Flexfield for Catalog
  •          Manage Catalog descriptive Flexfield
  •          Manage Category Descriptive Flexfields
  •          Create Catalog
  •          Manage Default Catalogs
We are not creating any descriptive Flexfield in our case, as DFF is specific to business scenario and required to capture additional information.

Product Value Sets

As categories are created as Key Flexfields in fusion, organization need to define value sets. While defining value sets, you need to provide Module Name. User need to provide “Item catalog”. This module represents the Items/Products related activity.

Navigate To: Implementation Project > Procurement > Define Common Procurement Configuration > Define Basic Catalogs > Manage Product and Child Value Sets


Key Flexfield for Catalog

After defining the value sets, organization needs to define flex field structures to create catalog. Product Model is the relevant application and Item Catalogs is the relevant module. User needs to click on Manage Structures and create a new structure.

Navigate To: Implementation Project > Procurement > Define Common Procurement Configuration > Define Basic Catalogs > Manage Key Flexfield for Catalog

Defining a key Flexfield structure in Fusion is a three step Procedure.

  1. Define Structure


To define structure, user need to create segment. While creating segment user will assign the value set created in previous step to one of the attribute.


Once user has created all the segments required, the structure is ready with these segments.42. Define Structure Instance

After creating a structure, user needs to create a structure instance. While defining structure instance, user need to associate the structure (defined in the previous step) with the Structure Instance. Segments in the structure will default including the value Set.


73. Deploy Flexfield

Once the structure instance definition is completed, user need to deploy it. Without deploying a Flexfield, organization cannot use it for transaction. Once the flexfield is deployed, a category structure definition is complete.


Create Catalog

After creating the catalog structure in previous steps, organization will define its catalog that is mapped to structure defined.

Navigate To: Implementation Project > Procurement > Define Common Procurement Configuration > Define Basic Catalogs > Manage Catalog


Once the catalog is ready, an organization will decide and create the categories required in context of a catalog. The categories created can be shared across multiple catalogs.


Default catalog

Finally, an organization catalog and category is ready to use with item. But before organization will create new item assigned to category, it needs to assign the catalog to business functional area. To assign the catalog to business functional area:

Navigate To: Implementation Project > Procurement > Define Common Procurement Configuration > Define Basic Catalogs > Manage Default Catalogs


Now, organization is ready to create an item for its operations.

Create Item

Create and item and assign catalog and category to classify item. Assignment to catalog and category is required also to make sure item is available for specific business operation, like purchasing, inventory, etc.


Making the Life Easier – R12

The above process requires to perform by an organization to create catalog. But here is the BIG change introduced by Oracle in R12, that removes the multiple steps require to create a catalog. In R12, user just needs to perform 1 single step to create catalog, i.e., “Define Functional Area catalogs”.

So, the multiple steps of R11:

  •          Manage Product Value Sets
  •          Manage Key Flexfield for Catalog
  •          Manage Catalog descriptive Flexfield
  •          Manage Category Descriptive Flexfields
  •          Create Catalog
  •          Manage Catalogs

zipped into a single step in R12:

  • Define Functional Area catalogs

Navigate To: Implementation Project > Procurement > Define Common Procurement Configuration > Define Functional Area catalogs > Manage Functional Area catalogs


So, now multiple questions/arguments coming into your mind, saying that this task is same as “Manage Default Catalogs” in R11. Yes, you are correct but all the flexfields dependency has been removed by oracle. Also, no need to create/define catalog and category first and then assign it to business functional area. Now in R12 at one single common task, user will create and assign catalog to business functional areas.

Click on edit for any of the business functional area and user will land on the below page


Item and Inventory Organization in Oracle Fusion

Inventory Organization

Warehouses , storage facilities and distribution centers are configured as inventory organizations in Oracle Fusion. Inventory organizations in Oracle Fusion are:

• Managed by a business unit, with the materials management business function enabled.
• Mapped to a legal entity and a primary ledger.

There are two types of inventory organizations: Storage facilities and Manufacturing facilities.

Storage and manufacturing facilities are related to organization entities through a business unit that manufactures, stores and distributes the goods through one or many factories, warehouses, and distribution centers. To enable movement of material in the organization, the material parameters are set enabled for both type of facilities, . The respective business unit must have the Materials Management business function enabled. Oracle Fusion Applications allows multiple inventory organizations to be assigned to one business unit.

Distribution Center as an Inventory Organization
In Oracle Fusion, an organization distribution center can store items/inventory that is the responsibility of different business units. To make this situation feasible, organization will assign an inventory organization to each business unit to represent items/inventory in the distribution center. The multiple inventory organizations that are representing the items/inventory are mapped to the same location to justify that multiple inventory organization are a part of the same or common distribution center.

Legal Entities Own Inventory Organizations
Though the storage or manufacturing facility are related to organization entities through a business unit, a legal entity owns the inventory located in a storage or manufacturing facility. This ownership is assigned through the relationship of the inventory organization representing the inventory and the legal entity assigned to the inventory organization. The legal entity assigned to the inventory organization shares the same primary ledger as the inventory organization’s business unit.

The inventory is tracked in the inventory organization owned by the legal entity of which the business unit is part. All transactions are accounted for in the primary ledger of the legal entity that owns the inventory.

Facility Schedules Are Associated with Inventory Organizations

A prerequisite to defining an inventory organization is to define a facility schedule. Oracle Fusion Applications allow you to associate an inventory organization with a schedule.

Facility schedules allow creating workday calendars for inventory organizations that are used in the Oracle Fusion Supply Chain Management product family. For example, use workday calendars in the scheduling of cycle counts and calculating transit time.

Note: You cannot change an inventory organization to an item organization.

Item Organization: Explained

Oracle fusion item organization used to defines an item when inventory balances are not stored and inventory storage or inventory movement is not reflected in the Oracle Fusion Applications. For example, a retail organization would use an oracle fusion item organization, just to know the items that are listed by and sold through each retail outlet even though inventory and transactions are recorded in another system. In Oracle Fusion Customer Relationship Management (CRM), item organizations are used to define sales catalogs.

  • Items belong to an item organization.
  • Item attributes that are associated with financial and accounting information are hidden from the item if it exists within the item organization.
  • Item organizations can be changed by administrators to an inventory organization by updating the necessary attributes.

Note: There is no difference in the way items are treated in these two types of organizations except that there cannot be any financial transactions in the downstream applications for items that are assigned to an item organization.

Now, let’s understand to create Item and Inventory Organization in Oracle Fusion.

1. To create Inventory Organization, use following tasks:
Setup and Maintenance > Manage Inventory Organizations

onv org

  • Usage determines if organizations is item or inventory

inv org1

Enter parameters required, as needed, for your Inventory organization.

inv org2

2. To create Item Organization, use following tasks:
Setup and Maintenance > Manage Item Organizations

Usage determines if organizations is item or inventory

item org

Fusion Receivable Quick Setup

This article provides you a quick setup for Fusion Receivables without spending hours going through numerous pages of user/implementation guides. Doing this quick setup allows you to create customer, create invoice and receiving payments/create deposit. In nutshell, enable organization to use out of box fusion receivable functionality.

Before starting with Fusion receivable quick setup, GL enterprise structure should exist in place. Once the GL enterprise structure ready, first step is to create Business unit with Receivable business function.


Once the Receivable business unit is ready, the very first step is to define receivable system options.

System Option

Define Receivables system options to define your Receivables environment. The various settings in Receivables system option will decide the way Receivables perform various activities in Oracle Fusion for a given business unit.

You have to do due diligence on below considerations before defining the system options:

  1. Salesperson
  2. Tax
  3. Discounts
  4. Decimal rounding
  5. Invoice delivery
  6. Late charges
  7. Interest invoice
  8. Receipt/Deposits
  9. Accounting

During Receivables setup, you specify your accounts,customer & invoice parameters, and how the AutoInvoice and Automatic Receipts programs operate.

Navigation: Financials > Define Receivable Configuration > Manage Receivable System Options

system options

Receivable Activity

Setup the receivables activities to default accounting information for each corresponding activity occurs in receivables. The various activities performed in receivable are, such as miscellaneous cash, discounts, late charges, adjustments, and receipt write-off applications, Bank Error,Credit Card Chargeback/refund, Earned Discount, Payment Netting, Prepayment, unearned Discount.

Navigation: Financials > Define Receivable Configuration > Common Accounts Receivable Configuration > Manage Receivable Activities


 Fusion will provide you various options to define the activity accounting:

  1. define constant value
  2. derive the account from Invoice
  3. derive the account from Salesperson…. and more.

depends on your business requirement, you will define the various activity accounting.

Transaction Type

Transaction type is one of the indispensable setup task for receivables. Transaction type helps to define and control the accounting for various receivable transactions, like Invoice, debit memo, credit memo, on-account credits and chargebacks, organization create in Receivables.

Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Transaction Type

txn type

As highlighted, using Transaction types organization will control whether the transaction entries update the customer balances and whether Receivables posts these transactions to the general ledger.

Transaction Source

  • Control Transaction batching and numbering
  • specify default transaction type
  • Select validation options for imported transactions
  • Assign batch sources to invoices, debit memos, credit memos & on-account credits

Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Transaction Source

txn source


Fusion AutoAccounting is one of the most critical receivable setup task. Autoaccounting specify, how to determine the default general ledger accounts for transactions that the organization is entering manually or importing using AutoInvoice. Organization must define AutoAccounting before entering any transactions in Oracle Fusion Receivables. While entering or updating transactions, user can override the default general ledger accounts that AutoAccounting creates.

Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage AutoAccounting Rules


Payment Terms

Oracle Fusion Receivables require to define standard payment terms for customers. Organization will be able to create payment terms that include discount percent for early payment and also allow to assign multiple discounts to each payment term line. Fusion receivables also allow organization to define proxima payment terms to pay regular expenses like rent, credit card bills and telephone bills that occur on the same day each month. Organization will also create split payment terms for invoice installments that have different due dates.

Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Receivable Payment Termspayment terms

Remit To Address

Remit-to addresses will let your customers know where to send payment for the invoices. Fusion Receivables use remit-to-addresses to default remit-to information when organization enter the receivable transactions.

If organization is using AutoInvoice but have not defined a remit-to address for a location, AutoInvoice will reject all invoices for which it could not determine a remit-to address. However, if organization don’t want to define remit-to address for each location, then organization will set up one remit-to address with a default assignment. Oracle Fusion Receivables will then use this remit-to-address for all locations. This ensures that AutoInvoice will not reject invoices because it could not determine a remit-to address.

Navigation: Financials > Define Receivable Configuration > Define Customer Billing Configuration > Manage Remit to Addresses

remit ti add

Receipt Class and Methods

Oracle Fusion Receivables require receipt classes and receipt methods to process customer payments. Receipt classes helps in identifying the required processing steps for customer receipts to which user assign receipt methods with this receipt class. The processing steps include confirmation, remittance, and clearance. Receipt methods will derive accounting for receipt entries and applications, determine customer remittance bank account information, and configure automatic receipt processing and fund transfer error handling.

Navigation: Financials > Define Receivable Configuration > Define Customer Payments > Manage Receipt Classes and Methods

receipt class

Receipt Sources

Oracle Fusion Receivable require receipt sources to provide default values for the receipt class, payment method, and remittance bank account fields for customer receipts user has added to a receipt batch. Fusion receivables allow to accept these default values or enter new ones. Receipt batch sources can use either automatic or manual batch numbering.

When user select a receipt batch source to enter customer receipts, fusion receivables automatically uses the Cash, Unapplied, Unidentified, On-Account, and Earned and Unearned Discount account information organization assigned to the payment method for this batch source. The payment method accounts for the receipt entries and applications user make using this receipt batch source.

Navigation: Financials > Define Receivable Configuration > Define Customer Payments > Manage Receipt Source

receipt source

Once the organization has competed the above Fusion receivables setup tasks, they are ready to.

If we summarize, then below fusion receivables setup tasks are required to create basic transaction using out of the box fusion receivable functionality:

  1. System Option
  2. Receivable Activity
  3. Transaction Type
  4. Transaction Source
  5. AutoAccounting
  6. Payment Terms
  7. Remit-to-Addresses
  8. Receipt Classes and Methods
  9. Receipt Sources

Once the above receivable setup tasks are completed, create customer and you are ready to create basic receivable transaction using out of the box fusion receivable functionality.

Fusion Procurement Business Unit Configuration and Service Provider Model

The Procurement in Oracle Fusion is based on the Service Provider Model by outsourcing the procurement business activities.

Requisitioning business unit is responsible to identify the other business units as its outsourced service providers to perform the procurement business function on its behalf. Define your business unit with requisitioning business function as client of procurement business unit with the procurement business function. The procurement business unit is responsible for supplier negotiations, supplier site maintenance, and purchase order processing on behalf of client business units, that is, your requisitioning business unit. Assign your client or requisitioning  business unit to the supplier site maintained by the service providers or procurement business unit, using supplier site assignment.

To understand in detail the service provider or centralized procurement model, please read our earlier post on “Centralized Procurement in Oracle Fusion”. In this article, we focus on creating the Procurement business unit, assigning the required business function and using the service provider model.

Create Procurement Business Unit

To create Procurement Business Unit, Navigate to: Procurement > Define Common Applications Configuration for Procurement > Define Enterprise Structures for Procurement > Define Organization Structures for Procurement > Define Business unit for Procurement > Manage Business Unit

Procuremetn BU

Click on “Manage Business Unit” task

create BU

Click on Create icon

create bu2

Input the name of business unit, select default set and Click on save and Close. Procurement Business unit created in the system and now, we need to assign the required business function to this business unit to make it as procurement business unit.

Assign Business Unit Business Function

In Oracle Fusion, a business unit will perform one or many business functions, a blend of Oracle EBS (where operating unit will perform all business function) and Peoplesoft (where each business unit will perform only one business function).

To assign procurement business function, Navigate to: Procurement > Define Common Applications Configuration for Procurement > Define Enterprise Structures for Procurement > Define Organization Structures for Procurement > Define Business unit for Procurement > Assign Business Unit Business Function

business fucntion1

Click on “Assign Business Unit Business Function” task.

buysiness function2

Select the Scope and Click on Apply and Go to task

business function3

Select your business unit and click on Save and Close.

business function4

To make your business unit as procurement business unit, you need to assign all the above highlighted business function.

Understanding Fusion Procurement Service Provider Model

The business unit you created above with all the procurement business function is Client Business unit, that needs various services like negotiating with clients, creating requisiton, PO, making payment to supplier, etc.

First you will go and view your business service clients. Navigate to: Procurement > Define Common Applications Configuration for Procurement > Define Enterprise Structures for Procurement > Define Organization Structures for Procurement > Define Business unit for Procurement > View Service Clients

service client1

Click on “View Service Clients” task, select the scope and click on Apply and Go to Task.

service client2

In “View Service Clients”, you will see the client business unit for Procurement and Payment business functions.

Now, you will go to “manage Service Providers” to view the business unit that provide the procurement and payment business services to the client business unit.

Navigate to: Procurement > Define Common Applications Configuration for Procurement > Define Enterprise Structures for Procurement > Define Organization Structures for Procurement > Define Business unit for Procurement > Manage Service Provider Relationships

Service provider1

Click on task, select Scope and click on Apply and Go to Task.

service provider2

In Service Provider Relationship, fusion allows you to define the business unit that will provide procurement and payment services to the client business unit.

Using the above Service provider relationships, organization will be able to centralize its procurement activities like negotiating with supplier to crack the best deal and at same time payment is controlled by respective client business unit.


Fusion Chart of Accounts

In this article we will see how to create chart of account step by step in Fusion Financial Application. But before creating chart of accounts, we try to understand the basic need for chart of accounts.

Why do I need a chart of accounts ?

Organization create Ledger to record all the financial transactions and use ledger (financial transactions) to report their P&L, Balance sheet, and other boardroom financial reports. The various financial reports, in turn, makes the management or strategy team to take various important decisions. Like, after looking on the financial data (coming from the ledger) and related analysis, an organization takes the decision to sold off its Loan division and put more investment in Trading division.

But what makes the Ledger capable to calculate/derive the profit, loss, asset, liability & owner equity across the financial calendar for various companies, business, departments within an organization.

Ledger is build of Segments. Each segment represents or capture the each level of business hierarchy, organization used to record and report financial numbers to measure company performance. For example, XYZ Bank wants to know the performance of company, region, division, product, department. Hence, the ledger should comprise five segments and each segment represent the each level in business hierarchy, that makes the ledger capable to provide various financial reports to an organization indicating the performance of, each division across region, each product within division, cost incurred by various departments, etc.  The combination of these segments is called as GL Code Combination and each transaction in the ERP system gets accounted using a GL Code Combination. Each company, division, product, etc. is represented by the Segment values created under respective segment. These segment values enable the organization to investigate its business operations at granular level, depending upon the segment structure created. Therefore, deciding on the segment structure is the indispensable building block of chart of accounts. The ledger will record & report the financial numbers based on the segment structure created in the system.

Chart of Account Design in Fusion

Let’s say after a careful observation of your reports and discussion on the deficiency in current reporting structure, organization finalize the below components to record any financial transaction in the books of account.

  1. Company
  2. Department
  3. Cost Center
  4. Natural Account
Value set

Chart of account value set created to represent each segment used in an organization financial hierarchy for reporting purpose.

Create 4 value set for each of the CoA components, as shown below.

Navigation: Financials > Define Common Application Configuration for Financials>Define Enterprise Structure for Financials>Define Financial reporting Structures>Define Chart of Accounts>Manage Chart of Account Value Sets


CoA Structure

After creating the value set, you will map each value set to the Fusion Segments and assign the appropriate segment label as per the requirement.


Once you assign segment and segment label to all the Value set, your CoA Structure is ready.


CoA Structure Instance

Once your CoA Structure is ready, you can create multiple CoA instance out of that, if there is multiple ledgers(Book of Accounts) and each ledger has some specific need as per the company requirement.

You will decide out of 5 value set defined, which one is required to enter. Let’s say if there are 2 separate ledgers used by organization for its North America and South America region. North America ledger require to track each financial transaction by Cost Center, but South America ledger do not require Cost center due to business nature. Then, organization will create once CoA structure but use 2 separate CoA structure instance out of that.

While creating CoA structure instance, as soon as, you select CoA Structure system displays all the value sets under CoA structure, then you decide which value set or segment you need and select accordingly.



Once you have completed the CoA Structure instance, your CoA are ready to deploy in system for use.

Click on “Deploy Flexfield” to deploy the Chart of Accounts.


Once the deployment status for Accounting Flexfield is Deployed, that means, system is ready to create value set values and use these values to create financial transaction.