Oracle Procurement Cloud: Procurement Implementation 1 - 2

Course Overview
This Procurement Functional Setup course covers the following:
• Introduction to Procurement functional flows
• Introduction to Functional Setup Manager
• Introduction to shared Fusion Applications configurations
• Introduction to common Procurement configurations
• Introduction to setting up, managing, and using the Oracle Fusion Procurement products
Terminology Note
Throughout this course the terms implementation, configuration, and set up are used
interchangeably. The authors acknowledge that from a purely technical point of view these
terms have slightly different meanings. This course addresses concepts and challenges
related to a functional implementation not a technical implementation (install and system
administration for example). Essentially this course is intended for individuals or teams faced
with configuring the application the first time to enable use by functional users.

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In this course the instructor:
• Presents introductory modules
• Imparts information to assist you with the Oracle Fusion Procurement implementation
• Provides review sessions as needed

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Oracle Procurement Cloud: Procurement Implementation 1 - 5
This course refers to both the Oracle Procurement Cloud and the Oracle Fusion Procurement
Applications. When you purchase a SaaS subscription to the Oracle Procurement Cloud, you
receive Cloud-based access to set up and use the Oracle Fusion Procurement Applications.
In this course, all references to the Oracle Fusion Applications are applicable to both SaaS
and on-premise implementations of the Procurement applications.

The decisions about your implementation of Oracle Fusion Applications are affected by your:
• Industry
• Business unit requirements for autonomy
• Business and accounting policies
• Business functions performed by business units and optionally, centralized in shared
service centers
• Locations of facilities

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Oracle Fusion Applications’ strategy sets the new standard for innovation with its complete,
standards-based platform and service-oriented architecture, and is built on two main pillars:
• Complete Solutions: Based on a complete and integrated product strategy. Oracle is
redefining the information technology market by completely engineering information
technology solutions.
• Complete Choice: Based on an open, standards-based product strategy. Offers
customers integrated solutions, with the option of plugging into other Oracle and non-
Oracle solutions on both the Oracle Cloud and On-Premise.
Oracle’s applications strategy adapts quickly to changing business needs while lowering
integration costs and other short and long-term costs.
Oracle Fusion Financials strategy is to provide a:
• Complete and integrated financial management solution that sets the foundation for
good governance and consistent growth while helping today’s fast-growing and dynamic
organizations make better decisions, increase efficiency, reduce costs, and continuously
innovate
• Comprehensive solution that arms finance professionals with the right information at the
right time, increases productivity, and accelerates business performance

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Oracle Fusion Applications has:
• Complete, modular suite of applications including Financials, Human Capital
Management (HCM), Supply Chain, Project Portfolio Management, Procurement,
Customer Relationship Management (CRM), and Oracle Fusion Enterprise Governance,
Risk, and Compliance Management. You have a choice of functionality—whether it is an
individual module, product family, or the complete suite on the Oracle Cloud or On-
Premise.
• Broad scope, with a few exceptions, in terms of global coverage
• Strong support for North America, Western Europe, the large and emerging economies
of the Asia-Pacific region, and the larger economies of Latin America
• A way to work that matches what end users do through role-based dashboards,
embedded business intelligence, and collaboration tools that dramatically increase
productivity and improve decision making

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 • A way to enable companies to implement applications in a modular fashion by using
delivery strategies that meet their enterprise information technology strategy on either
the Oracle Cloud or On-Premise
Important: In the supply chain area, because customers indicated that they were not looking
to transform core manufacturing, Oracle developed a new product called Oracle Fusion
Distributed Order Orchestration that optimizes heterogeneous order capture and fulfillment
environments.
Oracle Fusion Financials help companies meet their obligations in key areas such as:
• Compliance
• Financial Control
• Regulatory Reporting
• Cost Containment
• Risk Management

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Oracle ERP Cloud Services with Oracle Fusion Applications provides:
• Open, standards-based enterprise resource planning applications that function in the
cloud via a web browser
• Broad suite of ERP products including:
- Procurement
- Financials
- Accounting Hub Reporting
- Revenue Management
- Project Management
- Project Financial Management
• Improved performance, lower IT costs, and better analysis and reporting results

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A full implementation of the Oracle Fusion Procurement suite involves many different sets of
setup tasks. In the lessons of this course, we will focus on the following groups of setup tasks:
• Common Applications Configuration for Procurement: Define the configuration for
applications that are leveraged across Fusion products.
• Common Procurement Configuration: Define and maintain setup components for the
common procurement configuration including catalogs, supplier configuration, account
rules, and taxes.
• Purchasing Configuration: Define and maintain setup components for Purchasing,
including procurement business function, requisitioning business function, change order
templates, document styles, and procurement agents.
• Self Service Procurement Configuration: Define and maintain profile options and
category hierarchy for Self Service Procurement. Define and maintain flexfields for
information templates.
• Procurement Suite Configuration: Finally, configure the Procurement application
Supplier Portal, Sourcing, Procurement Contracts, and Supplier Qualification.

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 • Sourcing Configuration: Define and maintain setup components for Sourcing including
negotiation styles, negotiation templates, cost factor lists, and attribute lists.
• Procurement Contracts Configuration: Define and maintain setup components for
Procurement Contracts including the contract terms library and contracts fulfillment.
• Supplier Qualification Configuration: Define and maintain setup components for
Supplier Qualification including qualification areas and qualification models.
Note: This is summary information on the implementation setup tasks and may not exactly
reflect what is covered in the course.

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Related Fusion Application Implementation Resources:
• Oracle Procurement Cloud Implementation Guide
• Oracle Fusion Functional Setup Manager’s User Guide
• Oracle Fusion Applications Installation Guide
Oracle Fusion Applications Administrator and Implementor Roadmap
• Oracle Fusion Applications Common Implementations (My Oracle Support document
1387777.1)
• Oracle Fusion Middleware Enterprise Deployment Guide for Oracle Identity
Management (Oracle Fusion Applications Edition)
• Oracle Fusion Middleware User’s Guide for Oracle Identity Manager
• Oracle Global Human Resources Cloud Implementing Workforce Deployment
Resource Location
• Oracle Help Center (Documentation Center): http://docs.oracle.com/

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Oracle Procurement Cloud: Procurement Implementation 1 - 15
This Procurement course provides a high-level overview or introduction to functionality that is
common to all Fusion Applications and reviewed in greater detail in other Oracle University
courses.

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 Lesson 02 Activities: Oracle
Fusion Procurement and
Oracle Procurement Cloud
Overview

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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Lesson 02 Activities

Distribution
Oracle Procurement Cloud

Ownership
The Job Title [[email protected]?Subject=Practices for Lesson 2:
ED_PracticesByLesson-AutoNum.doc] is responsible for ensuring this document is necessary,
reflects actual practice, and supports corporate policy.

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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Demonstration 2-1: Exploring Fusion Applications

User: Any Fusion Sign-On

1. (N) Oracle Fusion Applications > Welcome page
Observe the overall layout and combination of dashboards.
2. Scroll over the global icons to familiarize yourself with their purpose. Some of the significant
ones:

ₒ Navigator

ₒ Favorites and Recent Places

ₒ Watch List

ₒ Notifications
3. Open the Setting and Actions menu. (N) > (L) your name.
Note that the selections here vary based on your security but important ones are those that
enable personalization of your home page and a direct link to the Fusion Application Help
library.
Click Setup and Maintenance.
4. From the Setup and Maintenance work area, click the Favorites icon.
5. Click Add to Favorites and in the Add to Favorites window enter Setup and Maintenance in
front of Overview in the Name field.
6. Click Save and Close to complete the addition of a new favorite.
During this course you will navigate to that page many times. Now you have a quick way to
find it!
7. Open the Navigator menu. (N) > (I) Navigator.
Note that the selections here vary based on your assigned application roles.
8. Enterprises are embracing more social network based tools for collaboration. Oracle Fusion
was designed from day one to simplify this approach. Employees are connected using chat,
collaboration on day to day tasks, and all within the application itself.

Open the Oracle Social Network pane by using the Social icon .

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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Demonstration 2-2: Exploring Fusion Applications Help
Steps
1. (N) Oracle Fusion Applications > Welcome page
Note the Help icon (the icon with the question mark) to the left of your name.

The Help system can be turned on or off during installation (the default is to be
turned off). If the system is turned on, users can also optionally turn the system off/on for
themselves (if the system is off, help icons do not appear). Users use the help icon in the
navigation bar to turn Help on or off for themselves.
Click the Show Help icon to turn on help.
Click the Help icon for the Notifications region.
2. The Worklist: Notifications and Approvals help window opens. This window displays links to
Help topics related to the Notifications region. Expanding or clicking the link displays the
beginning of the topic. Clicking the More link at the end of the beginning paragraph,
displays the remainder of the topic in an expanded window. Click the Worklist: Highlights
link.

3. If none of the topic links seem to answer your question you can click the More Help link.
This will open the Oracle Fusion Applications Help site and perform a search using the
business process associated with the page you first initiated the help system from.
Click the More Help link.
Note that the Use Applications business process is checked in the Business Processes
menu.
4. Click the All link in the global area. This clears search criteria and presents a search box.
5. Click the Products link in the global area. Note that products are presented segregated by
product families or groups. In this demo you are most interested in the Functional Setup
Manager link within Setup.
Click Functional Setup Manager and then the Manage Application Setup Objects link
from within the Products filter list within the search results page.
6. You can narrow down the number of topics by searching for a term or keyword.
Click the All link in the global area to clear the search criteria.
7. Click the Products link in the global area.
8. Scroll down to the Procurement family and click Self Service Procurement and then the
Create Requisition link from within the Products filter list.
9. Now explore one of the more interesting types of help, the video or demo.
Scroll down to and then click the Placing an Order link.
10. The recorded demo is ready to play. You can control the demo with the standard
Pause/Play, Rewind, Forward, and Restart buttons.
After you have explored enough of the demo, pause it and click the Close Tab icon.
11. Now close Oracle Fusion Applications Help page and look at help available within the
application.
Click the Navigator link.
12. From the Procurement section, click the Purchasing link.

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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13. From the Orders section, click the Create Order link.
14. You want to look at the Style field in Create Orders window.
Point to the terminology icon in front of Style.
15. Observe the definition that appears briefly when you pointed to the icon.
While you are using the Fusion Procurement application to perform the activities in this
course, look for other types of help that are part of the application page.
16. Click the Cancel button.
17. Click Home in the global area.
The Oracle Fusion Applications user assistance supports your learning and is just a few clicks
away!

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

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Oracle Procurement Cloud: Procurement Implementation 3 - 2
Navigation: Navigator > Setup and Maintenance > Getting Started
This lesson introduces you to Oracle Fusion Functional Setup Manager (FSM). After
completing this lesson you will understand how Functional Setup Manager provides a closed
loop, guided process for the entire Oracle Fusion Applications implementation life cycle.
Oracle Fusion Functional Setup Manager is a new application in the Oracle Fusion
Applications suite, which is used to implement all Oracle Fusion Applications offerings. It
provides an end-to-end guided process for managing your functional setup projects
throughout the entire implementation life cycle.

Oracle Procurement Cloud: Procurement Implementation 3 - 3

Self-Service Administration
An integrated, guided process for planning, configuration, implementation, deployment and
maintenance enable management of all aspects of functional setup of Oracle Fusion
applications at the business-user level.
Complete Transparency
Auto-generated, sequential task lists include prerequisites and address dependencies to give
full visibility to end-to-end setup requirements of Oracle Fusion applications.
Configurable and Extensible
Packaged list of tasks for setting up Oracle Fusion applications can be easily configured and
extended to better fit with the business requirements.
Reusable for Rapid Start
Specific implementations can be emphasized to facilitate reuse and rapid start of consistent
Oracle Fusion applications set up across many instances.
Comprehensive Reporting
A set of built-in reports help to analyze, validate, and audit configurations, implementations,
and setup data of Oracle Fusion applications.

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Every phase of the application implementation life cycle is supported by Functional Setup
Manager. Each step builds upon the decisions you made in the previous steps to provide a
fully integrated applications implementation process.
1. Analyze implementation requirements, design, set up, and plan the overall
implementation using Getting Started.
2. Configure applications to match your business requirements by using Configure
Offerings.
3. Generate setup task lists by using Manage Implementation Projects.
4. Enter setup data by using Assigned Implementation Tasks.
5. Export and import setup data from one Oracle Fusion Applications instance to another
by using Manage Configuration Packages.
6. Maintain setup over time by searching and performing tasks from All Tasks.

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Note: You can access some read-only FSM functionality, even if these roles are not
assigned.

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Application Implementation Manager
There are three functional setup manager–related roles that is delivered out of the box.
The Application implementation Manager that is usually responsible for managing the overall
implementation. During the planning phase, they might configure the offerings (which is really
a product family that is implemented as a unit, such as Financials, Procurement, Sales) that
will generate the setup task list. They can then monitor the progress of the implementation.

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Application Implementation Consultant
This is the superuser role for Functional Setup Manager. These individuals have full access to
all functionality supported by Setup Manager.

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Functional Owners
This is a collective term we use to identify the users who are typically responsible for entering
setup data. They are usually from respective lines of businesses and are subject matter
experts in their functional areas. This includes, for example, the financial administrator,
procurement manager, sales operations rep, benefit administrator, and so on.

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Offering, Options, and Features are organized in multi-level hierarchy to help implementers in
making decisions progressively during configuration of offerings. If an implementer decides
certain module or application functionality is not applicable to his implementation, then making
decision on other modules/application functionality that depends on the first one becomes
irrelevant. Functional Setup Manager, therefore, presents the Options and Features in the
context of their parents.

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Navigation: Navigator > Setup and Maintenance > Getting Started
Use Getting Started in the Setup and Maintenance work area to start the planning of an
Oracle Fusion Applications implementation. This self-service portal shows all Fusion
Offerings in a single interface and helps you to analyze setup requirements and prepare for
the decisions you need to make in the later phases of the implementation.
Fusion Offerings
Fusion Offerings are application solution sets representing one or more business processes
and sub-processes that are typically provisioned (installed) and implemented as a unit. They
are the primary drivers of the functional setup of Fusion Applications. Procurement is an
example of a Fusion Offering.

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Offering Options
Each Fusion Offering in general includes a set of core functionality and a set of optional
modules, which are called Options. For example, in addition to core functionality,
Procurement includes optional functionality such as Self Service Procurement and
Sourcing. Since these optional features may not be relevant to all Fusion Procurement
implementations you can selectively choose to implement only those that are applicable to
your business needs.
Offering Features
Fusion Offerings and Options may also include optional or alternative business rules or
processes called features. Your feature selections depend on business requirements to get
the best fit with the offering. For example, Procurement has features such as Centralized
Procurement and Requisitions.

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Navigation: Navigator > Setup and Maintenance > Getting Started > Procurement
Review a set of prepackaged reports by drilling down on any of the Offering icons. These
reports will help you to analyze and plan.

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Available Reports:
• Offering Content Guide: This report shows the business processes and subprocesses
that will be enabled when the offering is implemented.
• Associated Features: This report shows the Options and Features of the offering. Use
this report to decide which, if any, are applicable to your specific implementation and
configure the offerings accordingly.
• Setup Task Lists and Tasks: This report shows the full list of setup tasks, including
prerequisite tasks, which should be performed to set up an offering properly. The report
also shows which setup tasks are conditional (applicable only if certain Options or
Features are implemented). Use this report to understand the full extent of setting up an
Offering and identify the proper subject matter experts who can perform these tasks.
• Related Business Objects: This report shows the full list of setup data, including pre-
requisites, that must be entered before the offering is ready for a transaction. Use this
report to perform appropriate impact analysis and help the functional users gather the
right set of setup data.
• Related Enterprise Applications: This report shows the list of enterprise (Java EE)
applications used by the programs—or user interface’s and web services—used in
entering and exporting/importing setup data. Use this report to help your system
administrator ensure that the needed programs are up and running.

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Oracle Procurement Cloud: Procurement Implementation 3 - 16
Navigation: Navigator > Setup and Maintenance > Configure Offerings
When final analysis of the offerings is complete, use Configure Offerings to select the
Offerings, Options and Features that are applicable to your business needs. Offering Options
and Features are displayed in a multi-level hierarchy to help you to make your configuration
decisions progressively.
Your offering configurations determine how setup and transactional processes will work in
your implementation:
• Setup Processes: Only those tasks needed to implement the selected offerings,
Options and Features will be included in the task list which is automatically generated
during the implementation phase. Therefore, you will get a list of necessary tasks while
irrelevant tasks will be excluded.
• Transactional Processes: Application functionality and controls (such as form region,
table columns, buttons, links) could be displayed or hidden according to your offering
configuration.

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Provisioned
The Provisioned column in Configure Offerings shows whether or not an offering is licensed
and installed. While Functional Setup Manager does not prevent users from enabling
offerings that have not been provisioned, ultimately the users will not be able to perform
the tasks needed to enter setup data for those offerings. When a user starts configuring a
non provisioned offering, Functional Setup Manager shows a warning message explaining the
consequence.
Selecting Feature Choices
If the selected offerings and options have dependent features, the features are applicable
when the corresponding offering or option is implemented. In general, the features are set
with default configuration based on their typical usage. However, you should always review
the available feature choices and change them as appropriate for your implementation.

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Feature Selection Types
A feature will provide one of the following three types of selection choices:
• Yes/No: A single check box is presented, which you will either select or deselect to
specify whether the feature applies or does not apply to your implementation.
• Single Choice: In case of mutually exclusive choices, radio buttons are presented to
allow selection of one and only one of the available choices.
• Multiple Choices: If one or more choices can be applicable to an implementation, then
feature choices are presented as checkboxes allowing users to select all the choices
that apply.

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Oracle Procurement Cloud: Procurement Implementation 3 - 20
Navigation: Navigator > Setup and Maintenance > Manage Implementation Projects
When you are ready to implement an offering, use Manage Implementation Projects to
create an Implementation Project for the offering, which automatically generates a list of
setup tasks needed for implementing the offering.
Implementation Project
An Implementation Project is the list of setup tasks that are needed for specific
implementations of offerings and related options. An Implementation Project is created by
selecting one or more offerings and options. Implementation Projects are also the foundation
for identifying what setup data will be exported and imported, and in which order.

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Oracle Procurement Cloud: Procurement Implementation 3 - 22
Customizing the Implementation Task List (Optional)
Although a comprehensive list of setup tasks is generated automatically, you can further
customize the list by using the “Select and Add” or the “Remove” buttons to address any
exception cases. This is an optional step that you may consider after reviewing the auto-
generated task list and comparing it with their implementation needs.

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Assigning Single or Multiple Users
A single user or multiple users can be assigned to a task. If multiple users are assigned, then
the same due date can be assigned to all of them by selecting the Assign same due date to
all users check box. Alternatively, a different due date could be specified for each assigned
user. Each individual assigned user will be able to perform the task independent of the other
assigned users.
Assigning Users to Task Lists
If users are assigned to a task list, then those users will be assigned to all tasks in all
subsequent child levels of the task list.
Viewing Implementation-Specific Reports
From each level of the implementation task list hierarchy, you can download the following
reports, which show your implementation project specific information:
• Setup Task Lists and Tasks
• Related Business Objects
• Related Enterprise Applications
Adding Notes
Implementation Managers can also add notes to each of the tasks or task lists for future
references. Notes could be in the form of free-format text, an attached file or a URL.

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Oracle Procurement Cloud: Procurement Implementation 3 - 25
Navigation: Navigator > Setup and Maintenance > Assigned Implementation Tasks
The functional users with assigned setup tasks are responsible for performing those tasks to
enter appropriate setup data for the task. When these users sign in to Functional Setup
Manager, the Assigned Implementation Tasks tab of the Overview page opens. The page
will show a list of all tasks from all implementation projects that are assigned to the user. The
user will have full visibility of all their assignments from a single page and can navigate to
every assigned task from the same list.
Performing Tasks
Functional users will enter setup data directly from their list of tasks. The users will first find
the task for which they want to enter data and then click on the corresponding Go to Task
icon. This action will open the user interface for entering setup data for the task. When the
user completes entering data and closes the interface, they will return to the list of assigned
implementation tasks and can continue to perform other tasks from the same task list.
User permission is always validated. When a user performs a task to enter setup data, their
granted permission—at both functional and data levels—will be fully validated before they are
allowed to enter setup data.

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Filters
• Task: The entered value is matched with the assigned task names or the names of the
parent task lists of the assigned tasks and CONTAINS is used as the search operator.
• Due Date: Available options are “All” (also the default setting), which returns tasks with
any due date, or one of the predefined due date periods.
• Status: Available options are the following, in addition to all the valid task statuses:
All = Any task status
All Open (default setting) = Any status other than “Completed”
• Project:
All = All tasks assigned to any implementation project (default setting)
Make a selection: A user can pick from a list of values one of the Implementation Project
names where the user has at least one task assigned.
Setting Task Status
By default the status of all implementation tasks are set to Not Started. When the functional
users start performing their assigned tasks, they can change the task status to In Progress,
and then ultimately to Completed.

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Note: It is recommended that users are encouraged to always change the status to
“Completed” when they have finished a task.
Adding Notes
A user can add a file, URL or free-format text as notes to an assigned task. These notes will
be accessible not only for the user’s own use but also to the implementation manager. If
multiple users are assigned to the task then all of the assigned users will be able to see the
notes.
For example, a user may add a document or URL (such as naming standards or best
practice) primarily for their own reference when performing the task; on the other hand, the
user may also add a free-format text to communicate some information or an issue with the
implementation manager or the co-assignees.

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Oracle Procurement Cloud: Procurement Implementation 3 - 29
Setup Export/Import Web Services
Each Business Object has associated web services to read and write data to the Business
Object. Setup export and import processes use these web services to read setup data during
export and write the same data during import.
Export Scope
Application developers can identify certain Business Objects as Export Scope at design time.
These are typically the Business Objects that are qualifiers of other setup data. If export
scopes are defined, then implementers have the option to use them to filter or segment data
during setup export or import.

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Navigation: Navigator > Setup and Maintenance > All Tasks
This approach is best suited for cases where only one or two setup tasks need to be
performed independent of other tasks to maintain very specific and low risk setup data
change. Functional users, or subject matter experts from specific functional areas, will
typically perform these tasks at the instance where the change is needed including in the
production instance.
Searching by Task Name or Business Object Name
Users search for the task they need to perform by using task name or associated Business
Object name. FSM uses “contains” as the search condition and returns all setup task lists
and tasks that match the criteria.
Performing Tasks from the Search Result
After search results are returned, the user finds the appropriate task and enters setup data
directly from the search results by clicking Go to Task.
Note: User permission is always validated. A user is not allowed to enter any setup data
unless he or she has been granted the correct permissions.

Oracle Procurement Cloud: Procurement Implementation 3 - 31

Navigation: Navigator > Setup and Maintenance > Manage Implementation Projects
When setup data of an existing implementation requires modification that involves significant
numbers of tasks and task lists and/or has high risk implication in many parts of an
application, maintaining those setup changes through Implementation Projects is advisable.
Often the modifications will first be performed in test instance to mitigate risks before applying
to the production system.
Task List–Based Implementation Projects
In these cases, create an Implementation Project without selecting any offerings/options.
Instead, add the tasks and the task lists specific to the needed modification directly to the
Implementation Project. When the Implementation Project is created, its functionality will be
exactly the same as described before.

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Oracle Procurement Cloud: Procurement Implementation 3 - 33
Navigation: Navigator > Setup and Maintenance > Manage Configuration Packages
Almost all Fusion application implementations require moving functional setup from one
instance into another at various points in the life cycle of the applications. Use Manage
Configuration Packages and setup export and import to move setup data.
Configuration Package
A Configuration Package contains the setup export/import definition—or the list of setup tasks
and their associated Business Objects that identifies the setup data to be exported—as well
as the exported setup data. At first when a Configuration Package is created, only the setup
export/import definition is created. After the Configuration Package is exported, appropriate
setup data is added to the Configuration Package using the definition. Therefore, when a
Configuration Package is exported, its setup export/import definition is locked and cannot be
changed.

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Grouping Offerings
There are no hard and fast rules for how many offerings you should include in one
implementation project. The implementation manager should decide based on how they plan
to manage their implementations. For example, if you will implement and deploy different
offerings at different times, then having separate implementation projects will make it easier to
manage the implementation life cycles. Furthermore, the more offerings you include in an
implementation project, the bigger the generated task list will be. This is because the
implementation task list includes all setup tasks needed to implement all included offerings.
Alternatively, segmenting into multiple implementation projects makes the process easier to
manage.
Provisioning
If an offering has NOT been provisioned, you can select it for your implementation project, but
ultimately users will not able to perform the tasks needed to enter setup data for those
offerings until appropriate enterprise applications (Java EE applications) are provisioned and
their location (endpoint URLs) is registered.

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Security Best Practice
For security and audit best practice, implementation users have person records and
appropriate role-based security access. So that appropriate roles can be assigned to
implementation users, you must run the process Retrieve Latest LDAP Changes before you
create implementation users.
Administrator Roles Best Practice
The Application Implementation Consultant role has broad access to all enterprise structures.
This may be fine for experimentation and setting up a pilot environment. This may not be
practical in a full implementation. If you want to limit access to enterprise structures for
specific products, then use the Create Data Roles for Implementation Users task to create a
data role based on a job role, such as the HCM Application Administrator job role.

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Oracle Procurement Cloud: Procurement Implementation 3 - 37
Oracle Procurement Cloud: Procurement Implementation 3 - 38
Oracle Procurement Cloud: Procurement Implementation 4 - 2
A full implementation of the Oracle Fusion Procurement suite involves many different sets of
setup tasks. In this lesson we will focus on the following setup tasks:
• Common Applications Configuration for Procurement: Define the configuration for
applications that are leveraged across Fusion products.
Note: This is summary information about the implementation setup tasks and may not exactly
reflect what is covered in the course.

Oracle Procurement Cloud: Procurement Implementation 4 - 3

Common Applications Configuration
This is the largest group of tasks in the Procurement offering; however, most of the tasks
contained within should have been completed by the Financials implementation team prior to
the Procurement team starting their project.
The following sections of this lesson will focus on enterprise structures, business units, and
reference data sharing. However, in general terms, all the tasks must be performed.
Note that setup tasks and task lists mentioned in this lesson may appear in other offerings
and may already be completed if other applications are implemented.

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Navigation: Navigator > Setup and Maintenance > Manage Implementation Projects >
XXProcurement Implementation > Procurement > Define Common Applications Configuration
for Procurement
Note: In this course, only the common configuration tasks that are considered highly relevant
to Procurement will be discussed. Please refer to the prerequisite courses for details on setup
tasks not discussed.

Oracle Procurement Cloud: Procurement Implementation 4 - 5

Before you implement Oracle Fusion Procurement components, complete prerequisite setup
for related Oracle Fusion applications. Example:
• Users
• Enterprise and HR structures
• Security
• Common reference objects

Oracle Procurement Cloud: Procurement Implementation 4 - 6

The following sections of this lesson focus on reference data sharing, enterprise structures,
security, and approvals for procurement. However, the following table describes, in general
terms, all the tasks you must perform.
Note: Setup tasks and task lists mentioned here may appear in other offerings and may
already be completed if other applications are implemented.
Defining Common Applications Configuration for Procurement
• Define Synchronization of Users and Roles from LDAP: Run a process to populate
the product tables containing user and role information with the users and roles held in
LDAP. This process is always the first implementation task but can also run periodically
to keep the product tables synchronized with subsequent updates to LDAP.
• Define Implementation Users: Create implementation users and roles. Provision
implementation users with job and data roles.
• Define Currencies and Currency Rates: Define the currencies and currency rates that
your organization does business in.
• Define Enterprise Structures for Procurement: Configure your divisions, business
units, and legal entities for Procurement usage.

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• Define Social Networking: Review options related to social networking and update as
necessary.
• Define Security for Procurement: Enable users to perform functions related to their
job roles.
• Define Automated Governance, Risk, and Performance Controls: Define the
controls that automate the analysis of data-related and address-related issues to
mitigate risk and optimize performance of an organization.
• Define Approval Management for Procurement: Define approval routing structures
and controls to match your organization’s needs.
• Define Help Configuration: Define what users can see and do in a local deployment of
Oracle Fusion Applications Help.
• Define Application Toolkit Configuration: Set up Oracle Fusion Application Toolkit
features. These are common across Oracle Fusion applications.
• Maintain Common Reference Objects: Review and manage common objects, for
example profiles and lookups, that affect the functionality and look of applications.
• Define WebLogic Communication Services Configuration: Set up features such as
Click to Dial.

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Oracle Procurement Cloud: Procurement Implementation 4 - 9
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Oracle Procurement Cloud: Procurement Implementation 4 - 11
This figure summarizes the model that the Vision Corporation implementation committee has
designed and uses numerical values to provide a sample representation of that structure.
Note: This diagram was created to illustrate the Vision Corporation Enterprise Structure in the
Oracle Demonstration Solution Services with the following limitations:
• Due to space, only some of the Vision entities are shown. For example, only three legal
entities and four warehouses.
• Version one of the demo environment does not include a shared service center. The one
shown here is for discussion purposes.
• Version one of the demo environment only has data loaded for US1 LE1 and BU US1.
The diagram was expanded to include future data for discussion purposes.

Oracle Procurement Cloud: Procurement Implementation 4 - 12

Note that setup tasks and task lists mentioned in this lesson may appear in other offerings
and may already be completed if other applications are implemented.

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Oracle Procurement Cloud: Procurement Implementation 4 - 14
Note: These steps are performed after installation and provisioning, and before setting up
enterprise structures and implementing projects.
These steps have already been performed in the classroom environment so they are just
briefly discussed here.
Between preparing users and synchronizing users and roles from LDAP, your enterprise
needs to configure offerings and set up task lists. Between synchronizing users and roles
from LDAP and setting up enterprise structures, your enterprise needs to create initial
implementation users.
In Oracle Fusion Applications, you manage users and security through Oracle Fusion Human
Capital Management (HCM) user management flows, which are included in each of the
offering task lists.
However, the HCM task flows require that enterprise structures have been set up, and yet to
add users who can set up enterprise structures you need to have set up HCM. Therefore, you
need to create one or more initial implementation users who have the access needed for:
• Implementation project management
• Initial enterprise structures management
• User management

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Initial Steps
For a standard, full implementation of Oracle Fusion Applications, initial activities are listed on
the following page.

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The initial activities are as follows:
1. The Oracle Identity Management System Administrator user prepares the Oracle Fusion
Applications super user for user management and configuration tasks.
2. The Oracle Identity Management System Administrator user provisions the IT Security
Manager job role with roles for user and role management.
3. The Oracle Fusion Applications super user synchronizes LDAP users with HCM user
management so that users can be provisioned with roles through HCM.
4. The Oracle Fusion Applications superuser signs in to Oracle Fusion Applications and
performs the Create Implementation Users task to create one or more IT security
manager and administrator users provisioned with security administrative
entitlement.
5. The newly created IT Security Manager user signs in to Oracle Fusion Applications and
performs the Create Implementation Users task to create implementation project
managers.
6. The newly created IT Security Manager user signs in to Oracle Fusion Applications and
performs the Create Implementation Users task to create users for enterprise
structure setup, and creates a data role for HCM setup and provisions that role to the
enterprise structure setup users.
Information: The procedures named in this topic for getting started are also presented in
Getting Started with Oracle Fusion Applications: Common Implementation.

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Oracle Procurement Cloud: Procurement Implementation 4 - 18
Note: Depending on the size of your implementation team, you may only need a single
implementation user for security administration, implementation project management,
enterprise structures setup, and application implementation. That single user must then be
provisioned with all indicated roles, and therefore broad access.

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Note that setup tasks and task lists mentioned in this lesson may appear in other offerings
and may already be completed if other applications are implemented.

Oracle Procurement Cloud: Procurement Implementation 4 - 20

Navigation: Navigator > Setup and Maintenance > Manage Implementation Projects >
XXProcurement Implementation > Procurement > Define Common Applications
Configurations for Procurement > Define Enterprise Structures for Procurement
Enterprise Structures Setup
One of the largest of the common applications FSM task groups is used to configure your
divisions, business units, and legal entities for Procurement usage.
Note: Some of the FSM task groups are covered in detail in the prerequisite course Fusion
Applications: Introduction to Financials Implementation. This course discusses some of those
tasks as they relate to the Procurement implementation.

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Every enterprise has three fundamental structures, legal, managerial, and functional, that are
used to describe its operations and provide a basis for reporting. In Oracle Fusion
Applications, these structures are implemented using the chart of accounts and organizations.
Although many alternative hierarchies can be implemented and used for reporting, you are
likely to have one primary structure that organizes your business into divisions, business
units, and departments aligned by your strategic objectives.

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An enterprise consists of legal entities under common control and management.
• When implementing Oracle Fusion Applications you operate within the context of an
enterprise that has already been created in the application for you by a system
administrator.
• An enterprise organization captures the name of the deploying enterprise and the
location of the headquarters.
• There is normally a single enterprise organization in a production environment. Multiple
enterprises are defined when the system is used to administer multiple customer
companies.
• Organization classifications define the purpose of the organization, whether it is a
department, a division, or a legal entity.

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Reference Data
This section presents the key concepts related to the tasks for reference data setup for Oracle
Fusion Procurement:
• Manage Reference Data Sets
• Manage Set Assignments for Set Determinant Type
Reference data sharing facilitates sharing of configuration data such as locations, payment
terms, and supplier site, across organizational divisions such as business units.
As illustrated in the graphic, depending on the requirement (specific or common), each
business unit can maintain its data at a central location, using a set of values either specific to
it or shared by other business units.

Oracle Procurement Cloud: Procurement Implementation 4 - 24

Reference Data Partitions
You can define reference data, and then depending upon the business context, decide how to
divide the data into partitions (reference data sets) appropriate to the organizational entities
that will share the data.
For an organization, you can define reference data sets of the following types:
• Common: Used globally across the organization as a common set. For example, at
Vision Corporation, people can reference payment terms across the enterprise, so you
can create a single set of payment terms and share it across the entire enterprise.
• Shared: Used by a few organizations that work with similar data and therefore share the
sets
• Organization unit-specific: Unique to that organization business unit and not shared
by any other organization within the enterprise. For example, at Vision Corporation,
people can reference supplier sites across the procurement business unit, so you can
create a set of supplier sites that are shared by the requisitioning and invoicing business
units serviced by the procurement business unit.

Oracle Procurement Cloud: Procurement Implementation 4 - 25

Reference Groups
Reference data sets that share common business policies and legal rules are treated in the
same way and are classified into reference groups.

Oracle Procurement Cloud: Procurement Implementation 4 - 26

Determinant Types
The table in the slide documents the association between reference data and reference data
groups with the business unit (BU) determinant. Business units will be discussed in more
detail later in this lesson, for now just be aware that they are used as a reference data
determinant type.
* Payments Terms on the purchase documents are determined by the procurement BU but on
the invoices they are determined by the sold-to BU. In a centralized procurement scenario,
where the procurement BU can be different from the sold-to BU, the payment terms should be
enabled and valid in both the procurement and the sold-to BUs.

Oracle Procurement Cloud: Procurement Implementation 4 - 27

* Client BUs represent business units that perform requisitioning and invoicing functions,
which are serviced by a procurement BU.

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Oracle Procurement Cloud: Procurement Implementation 4 - 29
Oracle Procurement Cloud: Procurement Implementation 4 - 30
Navigation: Navigator > Setup and Maintenance > All Tasks > Manage Locations > Search >

Oracle Procurement Cloud: Procurement Implementation 4 - 31

When you create a location, you must associate it with a set. Only those users who have
access to the set’s business unit can access the location set and other associated workforce
structure sets, such as those that contain departments and jobs.
You can also associate the location to the common set so that users across your enterprise
can access the location irrespective of their business unit. When users search for locations,
they can see the locations that they have access to along with the locations in the common
set.

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Oracle Procurement Cloud: Procurement Implementation 4 - 33
Oracle Procurement Cloud: Procurement Implementation 4 - 34
This slide depicts the Key Product features for the initial configuration of the Fusion Enterprise
Structure.
Oracle uses a guided process to configure and represent the enterprise structures including
divisions, legal entities, jobs, and positions. This guided process is part of the Financials
Rapid Implementation in the Functional Setup Manager feature set.
These Setup tasks and task lists mentioned are mainly part of the Financial set up and may
already be completed if other applications are implemented.
The following describes, in general terms, all the tasks that must be performed. Some of
these tasks have already been discussed in this lesson but are recapped for the sake of
completeness.
When implementing Oracle Fusion Applications you operate within the context of an
enterprise that has already been created in the application for you. This is either a predefined
enterprise or an enterprise that has been created in the application by a system administrator.
An enterprise organization captures the name of the deploying enterprise and the location of
the headquarters. There is normally a single enterprise organization in a production
environment. Multiple enterprises are defined when the system is used to administer multiple
customer companies, for example, multiple tenants, or when a customer chooses to set up
additional enterprises for testing or development.

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Reference Data Sharing
Reference data sharing facilitates sharing of configuration data such as jobs and payment terms, across
organizational divisions or business units. You define reference data sets and determine how the data is
shared or partitioned. Use reference data sets to reduce duplication and maintenance by sharing
common data across business entities where appropriate. Depending on the requirement (specific or
common), each business unit can maintain its data at a central location, using a set of values either
specific to it or shared by other business units.
You can share reference data after it is filtered on the basis of sets. A common reference data set is
available as the default set, which can be assigned to several business units sharing the same
reference data. For commonly used data such as currencies, you can use the common reference data
set and assign it to multiple business units in various countries that use the same currency. In cases
where the default set cannot be assigned to an entity, you can create specific sets. The data set visible
on the transactional page depends on the sharing method used to share reference data.
Enterprise for Financials
The Manage Enterprise HCM Information task includes default settings for your enterprise such as the
employment model, worker number generation, and so on. If you are not implementing Oracle Fusion
Human Capital Management (HCM), then the only action you may need to perform using this task is to
change the enterprise name, if necessary. The other settings are HCM-specific and are not relevant
outside of Oracle Fusion HCM.
Locations: A location identifies physical addresses of a workforce structure, such as a department or a
job. You can also create locations to enter the addresses of external organizations that you want to
maintain, such as employment agencies, tax authorities, and insurance or benefits carriers.
Legal Jurisdictions & Authorities
You are required to register your legal entities with legal authorities in the jurisdictions where you
conduct business. Register your legal entities as required by local business requirements or other
relevant laws. For example, register your legal entities for tax reporting to report sales taxes or value
added taxes.
Legal Jurisdictions and Authorities
Define jurisdictions and related legal authorities to support multiple legal entity registrations, which are
used by Oracle Fusion Tax and Oracle Fusion Payroll. When you first create a legal entity, the Oracle
Fusion Legal Entity Configurator automatically creates one legal reporting unit for that legal entity with a
registration.
Legal Entities
A legal entity is a recognized party with rights and responsibilities given by legislation.
Legal entities have the right to own property, the right to trade, the responsibility to repay debt, and the
responsibility to account for themselves to regulators, taxation authorities, and owners according to
rules specified in the relevant legislation. Their rights and responsibilities may be enforced through the
judicial system. Define a legal entity for each registered company or other entity recognized in law for
which you want to record assets, liabilities, expenses and income, pay transaction taxes, or perform
intercompany trading.
A legal entity has responsibility for elements of your enterprise for the following reasons:
• Facilitating local compliance
• Taking advantage of lower corporation taxation in some jurisdictions
• Preparing for acquisitions or disposals of parts of the enterprise
Isolating one area of the business from risks in another area. For example, your enterprise develops
property and also leases properties. You could operate the property development business as a
separate legal entity to limit risk to your leasing business.

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Role of Your Legal Entities
In configuring your enterprise structure in Oracle Fusion Applications, you need to understand
that the contracting party on any transaction is always the legal entity. Individual legal entities
own the assets of the enterprise, record sales and pay taxes on those sales, make purchases
and incur expenses, and perform other transactions.
Legal entities must comply with the regulations of jurisdictions, in which they register. Europe
now allows for companies to register in one member country and do business in all member
countries, and the US allows for companies to register in one state and do business in all
states. To support local reporting requirements, legal reporting units are created and
registered.
You are required to publish specific and periodic disclosures of your legal entities' operations
based on different jurisdictions' requirements. Certain annual or more frequent accounting
reports are referred to as statutory or external reporting. These reports must be filed with
specified national and regulatory authorities. For example, in the United States (US), your
publicly owned entities (corporations) are required to file quarterly and annual reports, as well
as other periodic reports, with the Securities and Exchange Commission (SEC), who enforces
statutory reporting requirements for public corporations.
Individual entities privately held or held by public companies do not have to file separately. In
other countries, your individual entities do have to file in their own name, as well as at the
public group level. Disclosure requirements are diverse. For example, your local entities may
have to file locally to comply with local regulations in a local currency, as well as being
included in your enterprise's reporting requirements in different currency.
A legal entity can represent all or part of your enterprise's management framework. For
example, if you operate in a large country such as the United Kingdom or Germany, you might
incorporate each division in the country as a separate legal entity. In a smaller country, for
example Austria, you might use a single legal entity to host all of your business operations
across divisions.
Value Sets & Value Set Values
The accounting Key Flexfield is made up of Value Sets. Each Value Set has multiple values
associated with it.
Structures & Structure Instances
A structure identifies the segments that will be used in your accounting flexfield. A structure
can be made up of (not recommended) 30 segments. Each segment has a prompt descriptor,
width, value set, and can have the following labels:
• Primary Balancing Segment
• Cost Center
• Intercompany Segment
• Management Segment
• Natural Account Segment
• Local Use Segment
• Second or Third Balancing Segment
• The structure instance essentially is your chart of accounts & values combined. With
which segment values are required, default segment values, and associated tree codes.
• Note that Flexfields must be deployed as part of your implementation process.

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Account Hierarchies & Publishing
In Fusion, each segment can have one or more hierarchies associated with them. Prior to
defining your hierarchies, it is critical that you understand your requirements for Reporting,
Allocations, Cross-Validation Rules, Segment Value Security, and Revaluations and build
your hierarchies with these requirements in mind. For example, you may want to have
reporting summarized in one way, but you may have security being driven off of a different
hierarchy.
Account Combinations
You have the ability to identify which segment-values can be used in conjunction with one
another as valid combinations.
Cross-Validation Rules
Identifies restrictions that prevent particular account combinations from being newly created
Segment Value Security Rules
Lets you create security rules for chart of accounts segment values
Chart of Account Mappings
Used for mapping from one COA to another, that is, for consolidation or for primary-to-
secondary
Segment Value Attributes
Propagates any changes to the Value Sets to the CCID table
Calendars
Accounting Calendars define your accounting periods from an accounting perspective.
Transaction Calendars are used for Average Daily Balance calculations
Currencies
Currencies to be used in the system, Conversion relationships, and Daily conversion rates

Oracle Procurement Cloud: Procurement Implementation 4 - 38

 • A legal entity is a recognized party with rights and responsibilities given by legislation.
• Legal entities have the right to own property, the right to trade, the responsibility to repay
debt, and the responsibility to account for themselves to regulators, taxation authorities,
and owners according to rules specified in the relevant legislation.
• Their rights and responsibilities may be enforced through the judicial system.
Information: In the diagram in the slide there are two legal entities for Vision USA Inc., which
reflect different local jurisdiction reporting.

Oracle Procurement Cloud: Procurement Implementation 4 - 39

Define a legal entity for each registered company or other entity recognized in law for which
you want to record assets, liabilities, expenses and income, pay transaction taxes, or perform
intercompany trading.
Note that normally the Financials implementation team will perform this task and is discussed
here only to support a clear understanding of the enterprise structure.
Role of Your Legal Entity
The contracting party on any transaction is always the legal entity.
Individual legal entities:
• Own the assets of the enterprise
• Record sales and pay taxes on those sales
• Make purchases and incur expenses
• Perform other transactions
Legal entities must comply with the regulations of jurisdictions in which they register. To
support local reporting requirements, legal reporting units are created and registered.

Oracle Procurement Cloud: Procurement Implementation 4 - 40

Note that setup tasks and task lists mentioned in this lesson may appear in other offerings
and may already be completed if other applications are implemented.

Oracle Procurement Cloud: Procurement Implementation 4 - 41

Oracle Procurement Cloud: Procurement Implementation 4 - 42
Oracle Procurement Cloud: Procurement Implementation 4 - 43
Business Units: Overview
For example, if you run your export business separately from your domestic sales business,
secure the export business data to prevent access by the domestic sales employees. To
accomplish this security, set up the export business and domestic sales business as two
separate business units.

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Business Functions
• Requisitioning
• Procurement
• Receiving
• Invoicing
Business units process transactions by using reference data sets that reflect your business
rules and policies and can differ from country to country. With Oracle Fusion Application
functionality, you can choose to share reference data, such as payment terms and transaction
types, across business units, or you can choose to have each business unit manage its own
data set depending on the level at which you wish to enforce common policies.

Oracle Procurement Cloud: Procurement Implementation 4 - 45

General Business Requirements
• What reporting do you need by business unit?
• How will you structure your ledgers, legal entities, and business unit rollups?
• How can you set up your departments or business unit accounts to achieve
departmental hierarchies that report accurately on your lines of business?
• What reporting do you need to support the managers of your business units, and the
executives who measure them?
• How often are business unit results aggregated?
• What level of reporting detail is required across business units?
Procurement Business Requirements
• What service provider model do you need?

Oracle Procurement Cloud: Procurement Implementation 4 - 46

For example, if a payables invoicing business function is enabled, then it is clear that there
are employees in this business unit that perform the function of payables invoicing, and need
access to the payables invoicing functionality.
Therefore, based on the correspondence between the business function and the job roles,
appropriate data roles are generated automatically. Use Human Capital Management security
profiles to administer security for employees in business units.

Oracle Procurement Cloud: Procurement Implementation 4 - 47

A business unit can perform many business functions in Oracle Fusion Applications.

Oracle Procurement Cloud: Procurement Implementation 4 - 48

Note: A hierarchy definition as described in this slide is not required in the setup of your
applications, but is a recommended best practice.
Information: Prior to Oracle Fusion Applications, operating units in Oracle E-Business Suite
were assumed to perform all business functions, while in Oracle PeopleSoft, each business
unit had one specific business function. Oracle Fusion Applications blends these two models
and allows defining business units with one or many business functions.

Oracle Procurement Cloud: Procurement Implementation 4 - 49

Graphical Representation of Business Unit: Example
For example, your Vision America Company provides:
• Air quality monitoring systems through the division Vision Air Systems
• Customer financing through the division Vision Financial Services
• All within a single legal entity and chart of accounts
The Vision Air Systems division further segments the business into the System Components
and Installation Services subdivisions which are divided by business units:
• System Components by products: Air Compressors and Air Transmission
• Installation Services by services: Electrical and Mechanical

Oracle Procurement Cloud: Procurement Implementation 4 - 50

Oracle Procurement Cloud: Procurement Implementation 4 - 51
Oracle Procurement Cloud: Procurement Implementation 4 - 52
Navigation: Navigator > Setup and Maintenance > All Tasks > Define Business Units >
Search > Assign Business Unit Business Function
Example
The figure provides an example of business function assignment. The Business Unit US1
Business Unit performs the requisitioning, procurement, and invoicing business functions.
US1 Business Unit is enabled as a Procurement business unit, a Requisitioning business unit,
and a Sold-to business unit.

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Service Provider Model
Use the service provider model to centralize the procurement business function. Define
business units with Requisitioning and Payables Invoicing business functions as clients of a
business unit with the Procurement business function.

Oracle Procurement Cloud: Procurement Implementation 4 - 54

Oracle Procurement Cloud: Procurement Implementation 4 - 55
Navigation: Navigator > Setup and Maintenance > All Tasks > Define Business Units >
Search > Manage Service Provider Relationships

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Oracle Fusion supports center-led procurement organizations by supporting any combination
of procurement models.
Whether you want a completely decentralized procurement function where the local regions
source, buy, and pay for their own goods and services, or a dedicated shared service center
or a hybrid where you have centralized sourcing with decentralized buying and payments,
Oracle supports them all.
Note: Center-Led Procurement allows your organization to optimize efficiency, cost savings
and potential tax benefits by decoupling the demand source from where the buying actually
takes place.

Oracle Procurement Cloud: Procurement Implementation 4 - 57

Oracle Procurement Cloud: Procurement Implementation 4 - 58
Oracle Procurement Cloud: Procurement Implementation 4 - 59
Note that setup tasks and task lists mentioned in this lesson may appear in other offerings
and may already be completed if other applications are implemented.

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The other tasks in the Define Facilities list are only required when performing an Oracle
Fusion Materials Management and Logistics implementation:
• Manage Facility Shifts
• Manage Facility Workday Patterns
• Manage Facility Schedules
• Manage Facility Schedule Exceptions

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An inventory organization is a logical or physical entity in the enterprise that is used to store
definitions of items or store and transact items. Configure inventory organizations to describe
distinct entities within the company such as manufacturing facilities, warehouses, or
distribution centers.

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Navigation: Navigator > Setup and Maintenance > All Tasks > Manage Inventory
Organizations > Go To Task button > Create Button
Item Management
• Inventory organizations used for item management, which are the same as item
organizations, store only definitions of items.
• Use inventory organizations for item management when the storage or movement of
inventory does not need to be physically or financially tracked.
For example, in a retail implementation you can create an inventory organization for item
management to store the names of items that are listed by and sold through each retail
outlet, while a different system tracks physical inventory and transactions.
• If it is necessary in the future, you can change an inventory organization’s usage from
item management to item and inventory management in the inventory organization’s
properties.

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Item and Inventory Management
• Inventory organizations used for item and inventory management store and transact
items, in addition to item definitions.
• An inventory organization used for item and inventory management is associated with
one business unit, one legal entity, and one primary ledger.
• Use inventory organizations for item and inventory management when the storage or
movement of inventory needs to be physically and financially tracked.
• Inventory organizations used for item and inventory management can represent facilities
such as manufacturing centers, warehouses, or distribution centers.
• You cannot change an inventory organization’s use from item and inventory
management to item management.

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Oracle Procurement Cloud: Procurement Implementation 4 - 65
Reference Resources
Note: The listed documents are available in the Technology Documentation Library, which you
can access from: http://docs.oracle.com/

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Oracle Procurement Cloud: Procurement Implementation 5 - 2
Navigation: Navigator > Setup and Maintenance > Manage Implementation Projects >
“XXProcurement Implementation” > Procurement > Define Common Applications
Configurations for Procurement > Define Security for Procurement
Note: This course discusses security tasks at a high level. Oracle Fusion Applications
security is covered in detail in the recommended course Fusion Applications: Security
Fundamentals.

Oracle Procurement Cloud: Procurement Implementation 5 - 3

Oracle Procurement Cloud: Procurement Implementation 5 - 4
Note that Procurement does NOT use the standard Oracle Fusion data security model to
secure by business unit. We will discuss how procurement supports this shortly.
Additional Security Concepts
Access Provisioning and Identity Management: Processes for managing user identities,
user accounts, role assignments, and enterprise role definitions.
Segregation of Duties Policies: Prevent or detect unintentional errors and willful fraud by
separating activities such as approving and processing results.
Enforcement across Tools, Technologies, Data Transformations, and Access Methods:
Coordinate transactional and analytical security across all components of a deployment.
Security Reference Implementation: Provides a baseline set of roles, policies, Human
Capital Management (HCM) security profiles, and templates that match the business needs of
most enterprises.

Oracle Procurement Cloud: Procurement Implementation 5 - 5

To understand Oracle Fusion security ask the question “Who can do what on which set of
data?”
• Who: The “who” is the user. A user’s access is based on the definition of the roles
provisioned to the user.
Note: Access is defined as entitlement, which consists of privileges.
• What: The “what” are the abstract operations or entitlement.
• Which: The “which” represents the resources being accessed. For example, view and
edit are actions, and task flows or rows in data tables are resources.

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Oracle Procurement Cloud: Procurement Implementation 5 - 7
One example of Procurement job roles related to purchase order creation. Procurement
agents with of Buyer, Category Manager, or Procurement Manager job roles are typically
responsible for creating purchase orders in the buying organization. Therefore, these job roles
inherit duty roles required for creating purchase orders and authoring contract terms.

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Oracle Procurement Cloud: Procurement Implementation 5 - 9
One example of Procurement duty roles related to purchase order creation. The Purchase
Order Creation Duty allows a procurement agent to create Purchase Orders, Lines, and
Distributions. This includes creation of purchase order line from catalog and creation of
purchase order from requisitions.

Oracle Procurement Cloud: Procurement Implementation 5 - 10

Role definitions consist of a role hierarchy. The setup tasks in the table manage role
hierarchies.

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Oracle Procurement Cloud: Procurement Implementation 5 - 12
Oracle Procurement Cloud: Procurement Implementation 5 - 13
Creating and managing user identities: Includes specifying the name and other attributes
of a user identity
Creating and linking user accounts to user identities: Linking to a Human Capital
Management (HCM) person or a Supplier contact
Managing user access control through user role assignment: Assigning a role manually
to a user or automatically through role provisioning rules
Managing security on workflow approvals and delegated administration of approvals:
Includes having the owner of a sales line of business approve access to sales roles, rather
than having the IT security manager approve such access

Oracle Procurement Cloud: Procurement Implementation 5 - 14

The details of the security reference implementation are presented in the security reference
manual (SRM) for each offering, and can be viewed using the tasks available for managing
roles, templates, and security policies.
All functions and actions in Oracle Fusion Applications that need to be secured are covered
by the security reference implementation. It should not be necessary to create new duty roles,
except in cases where functions are being customized or new functions are being added.
In cases where the predefined security reference implementation does not adequately
represent the needs of your enterprise, you can make changes. For example, a predefined
job role may be too narrowly defined. You can create a new job role and give it a role
hierarchy of fewer or different duty roles than a similar predefined job role, and provision your
newly created job role to users who should have broader access.
Note: The security reference implementation in Oracle Fusion Applications provides a
complete, predefined security implementation that is applicable to the needs of midsized
(generally between 250 and 10,000 employees), horizontal enterprises and can be changed
or scaled to accommodate expansion into vertical industries such as health care, insurance,
automobiles, or food manufacturing.

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Depending on the offering, the Define Data Security activity can include tasks such as the
following:
• Manage Data Access Sets for managing a set of access privileges to one or more
ledgers or ledger sets
• Manage Segment Security for managing balancing or management segment values to
secure data within a ledger
• Manage Role Templates for managing data role templates to update or create new
data roles
• Manage Data Security Policies for managing access to the database resources of an
enterprise
• Manage Encryption Keys for managing encryption keys held in Oracle Wallet to
secure Personally Identifiable Information (PII) attributes

Oracle Procurement Cloud: Procurement Implementation 5 - 16

When business unit and legal employer have been defined as part of setting up enterprise
structures, you define users by using the Manage Users task, or automatically in Human
Capital Management (HCM) when creating person records.

Oracle Procurement Cloud: Procurement Implementation 5 - 17

In Oracle Fusion Applications, identities and users correspond one to one, but not all
identities correspond to a user, and not all users are provisioned with an identity. Some
identities stored in HCM and Trading Community Model may not be provisioned to user
accounts and therefore are not synchronized with Oracle Identity Management (IDM). For
example, a contact for a prospective customer is an identity in Trading Community Model but
may not be provisioned with a user account in IDM. Some users stored in the Lightweight
Directory Access Protocol (LDAP) store may not be provisioned with identities. For example,
system user accounts used to run Web services to integrate third party services with Oracle
Fusion Applications are not associated with a person record in HCM or Trading Community
Model. Some identifying credentials such as name, department, email address, manager, and
location are stored with user data in the LDAP store.
User accounts for some identities that are not employees, such as partner contacts, may be
created in a later transaction using an identity that is already created. Supplier contacts are
created in the Supplier Model, not HCM. Once supplier users are setup, Supplier Model can
be used by internal users to maintain supplier user accounts or supplier users can maintain
their accounts in Supplier Portal.

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Oracle Procurement Cloud: Procurement Implementation 5 - 19
Oracle Procurement Cloud: Procurement Implementation 5 - 20
In order for procurement agents to manage procurement documents and perform other
actions, the following data security setup needs to be completed.
• Procurement agents need to be assigned to procurement business units responsible for
managing the documents and performing the actions.
• Buyers, Category Managers, Procurement Managers and Procurement Contract
Administrators need to be given permission for the action in these procurement business
units.
Example: A buyer is granted permission to Manage Purchase Orders, in order to create,
view, and modify his or her own purchase orders.
• In addition, Procurement Managers can be granted access to other agents’ documents.
The level of access can be controlled based on business needs.
- View access allows the agent to only search and view other agents’ documents.
- Modify access allows the agent to also make and submit changes to the other
agents’ documents.
- Full access allows the agent full control on other agents’ documents, which include
view, modify, as well as control actions like delete, finally close, and cancel.

Oracle Procurement Cloud: Procurement Implementation 5 - 21

Navigation: Navigator > Setup and Maintenance > All Tasks > Manage Procurement Agents > Search >
Go To Task button > Create button > Agent = Your User ID
In order f or procurement agents to manage suppliers agreements, the following data security setup
needs to be done:
• Procurement agents need to be assigned to procurement business units responsible for
managing the agreements.
• Buyers, Category Managers, Procurement Managers, and Procurement Contract Administrators
need to be given permission for the Manage Purchase Agreements action in these procurement
business units, in order to create, view, and modify their own purchase agreements.
In addition, Procurement Managers can be granted access to other agents’ documents. The level of
access can be controlled based on business needs.
• View access allows the agent to only search and view other agents’ documents.
• Modify access allows the agent to also make and submit changes to the other agents’
documents.
• Full access allows the agent full control over other agents’ documents which include view, modify
as well as taking control actions like delete, finally close, cancel.
Procurement Catalog Administrators need to be given permission for the Manage Catalog Content
action in this business unit. This action will allows Procurement Catalog Administrators to add or update
blanket purchase agreement line information as part of the collaborative catalog authoring process.

Oracle Procurement Cloud: Procurement Implementation 5 - 22

Navigation: Navigator > Setup and Maintenance > All Tasks > Manage Procurement Agents >
Search > Go To Task button > Create button > Agent = Your User ID
In order for procurement agents to manage purchase orders, the following data security setup
needs to be done:
• Procurement agents need to be assigned to procurement business units responsible for
managing the purchase orders.
• Buyers, Category Managers, Procurement Managers, and Procurement Contract
Administrators need to be given permission for the Manage Purchase Orders action in
these procurement business units, in order to create, view and modify their own
purchase agreements.
In addition, Procurement Managers can be granted access to other agents’ documents. The
level of access can be controlled based on business needs.
• View access allows the agent to only search and view other agents’ documents.
• Modify access allows the agent to also make and submit changes to the other agents’
documents.
• Full access allows the agent full control on other agents’ documents which include view,
modify as well as taking control actions like delete, finally close, and cancel.

Oracle Procurement Cloud: Procurement Implementation 5 - 23

Navigator > Suppliers > Manage Suppliers > Search for and Edit Supplier > Contacts > Select
and Edit Contact
Supplier data security supports two access levels to control which transactions suppliers can
access:
• Supplier level data access allows the supplier user to access all purchasing documents
that belong to the supplier for which the user is associated.
• Supplier site level data access limits the supplier user to access only the purchasing
documents that contain the specific supplier site(s) for which the user has been granted.
Data access controls are also extended to the supplier. When delegating user administration
to suppliers, supplier users with the Supplier Self Service Administrator job role can set the
access level when creating or maintaining user accounts for their contacts.

Oracle Procurement Cloud: Procurement Implementation 5 - 24

The following tasks provision users with roles:
• Role Provisioning Rules: Manage HCM Role Provisioning Rules task
• Role Provisioning: Manage Users task based on HCM Role Provisioning Rules
Security guidelines:
• Avoid having users entitled to provision roles from being the same users who are
defining those roles.
• Maintain role memberships through role provisioning rules.
- The Manage HCM Role Provisioning Rules task lets you define rules for
provisioning roles to users based on assignment attribute values or CRM party
criteria.
- Supplier Portal provisioning rules apply to users provisioned through the Supplier
application.
• Provision to users only those job roles that are not inherited by data roles you could
provision instead.

Oracle Procurement Cloud: Procurement Implementation 5 - 25

For both automatic and manual role provisioning, you create a role mapping to identify when a
user becomes eligible for a role.
The Provision Roles to Implementation Users task also provisions roles, but provisions roles
only as an initial task when getting started and preparing an implementation user for
enterprise structure setup.

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New Identities
As with new hire, supplier, or partner contact creation, trigger user and role provisioning
events. In addition to user creation tasks, other tasks, such as Promote Worker Transfer
Worker, or user account creation for supplier or partner contacts, result in role provisioning
and recalculation based on role provisioning rules. Deactivating or terminating an identity
triggers revocation of some roles to end all role assignments, but may provision new roles
needed for activities such as pay stub review.
Automatically Provisioned Roles
A role is provisioned to a user automatically when at least one of the user's assignments
satisfies the conditions specified in the relevant role-mapping definition.
Deprovisioning Roles
Automatically provisioned roles are deprovisioned automatically as soon as a user no longer
satisfies the role-mapping conditions. Manually provisioned roles are deprovisioned
automatically only when all of the user's work relationships are terminated; in all other
circumstances, users retain manually provisioned roles until they are deprovisioned manually.

Oracle Procurement Cloud: Procurement Implementation 5 - 27

Segregation of Duties (SOD)
These checks occur when roles are assigned to users, if Oracle Governance, Risk and
Compliance Controls (GRCC) is provisioned in your deployment and the Governance, Risk
and Compliance feature choice is enabled for implementation projects of the offering. The
SOD checks are based on Oracle Application Access Controls Governor (AACG) policies,
and violations can be viewed, managed, remediated using Define Automated Governance,
Risk, and Performance Controls tasks.
Use Oracle Identity Management (OIM) to configure audits of provisioning events.

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Oracle Procurement Cloud: Procurement Implementation 5 - 29
Oracle Procurement Cloud: Procurement Implementation 5 - 30
Oracle Procurement Cloud: Procurement Implementation 5 - 31
Oracle Procurement Cloud: Procurement Implementation 6 - 2
The procurement process can take several forms based on your business practices. But a broad
generalization can be summarized by the graphic in the slide.
There are many “standard” definitions of portions of the procurement process such as Procure-to-
Pay and Source-to-Settle. In reality the actual process is determined by the business requirements
of the enterprise. For the sake of discussion, this course will focus on two process flows that
Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 6 - 3

Navigation: Navigator > Setup and Maintenance > Implementation Projects > “ XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement
Note: This course discusses approval tasks at a high level. Fusion Procurement approvals is
covered in detail in a whitepaper available from My Oracle Support.

Oracle Procurement Cloud: Procurement Implementation 6 - 4

Oracle SOA Suite
• Is a comprehensive software suite used to build, deploy, and manage service -oriented
architectures (SOA)
• Provides a human workflow service that handles all interactions with users or groups in
business processes
Approval management
• Controls workflows for business objects such as purchase orders
• Enables you to define complex, multistage task routing rules
• Integrates with the setup in Oracle Fusion Human Capital Management to derive approvers
based on the supervisory hierarchy
Oracle BPM Worklist provides the user interface for
• Users to access procurement setup tasks assigned to them and perform actions based on
their roles in the workflow
• Implementers to perform approval management setup and to define who should act on which
types of transactions under what conditions

Oracle Procurement Cloud: Procurement Implementation 6 - 5

Information: To access these setup tasks, you need the BPM Worklist Administration Duty
role, which is predefined for the Application Implementation Consultant job role.

Oracle Procurement Cloud: Procurement Implementation 6 - 6

Stage
A stage allows you to organize approval routing rules into logical groupings. Each stage is
associated with a dimension. A dimension contains a set of attributes at a specific purchasing
document level, such as header or lines, which can be used to author routing rules. Approval
actions within each stage must be completed before entering the next stage.
Participant
There can be many participants within a stage. Properties set on the participants determine
whether approvals would be routed in serial or in parallel.
Oracle Fusion Procurement is seeded with one or more participants within each stage to enable
flexibility in document approvals routing.

Oracle Procurement Cloud: Procurement Implementation 6 - 7

The following are two properties defined on a participant:
• Routing Type: The supported routing types are: Serial, Parallel and FYI. FYI participants
cannot directly impact the outcome of a task, but in some cases can provide comments or
add attachments.
• Voting Regime: The supported voting regimes are: Serial, Consensus, and First Responder
Wins.
Rule
Approval rules are routing policies or rules that determine the approvers or FYI recipients for a
business transaction.
• Condition: The IF clauses in an approval rule and evaluated to either true or false. For the
rule to apply to a transaction, all of its conditions must be true. An example of a condition is:
If requisition approval amount is less than 500 USD, or if requisition approval amount is
between 500 USD and 10000 USD.
• Action: Instruction to include a given set of approvers within an approval rule.

Oracle Procurement Cloud: Procurement Implementation 6 - 8

Employee Supervisor Hierarchy
Approvals can be set up to navigate the employee supervisory hierarchy, which is defined in
Oracle Fusion Human Capital Management, up to a certain number of levels. Employees must be
set up with appropriate jobs and supervisors.
Position Hierarchy
You can also choose to route document approvals to navigate the position hierarchy defined in
Oracle Fusion Human Capital Management, until a specified job level is reached. The position
hierarchy must be defined along with corresponding job levels, and the employees must be
assigned the appropriate positions.
Job Levels
Job level routings are based on the supervisory hierarchy defined in Oracle Fusion Human Capital
Management. The approval list will be generated based on the starting person specified in a rule
and continuing until an approver with a sufficient job level is found. The supervisory hierarchy
must be defined along with the corresponding job levels.

Oracle Procurement Cloud: Procurement Implementation 6 - 9

Approvals will be routed to the seeded stages in the following sequence:
• Header Pre-Approval Stage
- Pre-approval stages are used if approvals are required before routing to, for example,
fiscal approvers.
• Header Stage
• Header-Post Approval Stage

Oracle Procurement Cloud: Procurement Implementation 6 - 10

Navigation: Navigator > Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement
The controls on the Configurations tab enable you to:
• Control if tasks should be aggregated
• Set Error Notifications
• Set up assignment and routing policies
• Control if assigned approvers can add additional approvers to the task
• Enable auto-claim
• Indicate if the approval task should be completed when a Reject or Approve action is
performed by a participant

Oracle Procurement Cloud: Procurement Implementation 6 - 11

Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement
Deadlines: Configure when tasks expire, are escalated, or renewed. Expired tasks are
automatically rejected. For example, you can define the expiration policy so that if no one acts
upon a requisition in two weeks, then it expires and the requester needs to resubmit it.

Oracle Procurement Cloud: Procurement Implementation 6 - 12

Navigation: Navigator >Setup and Maintenance > Implementation Projects > "XXProcurement
Implementation" > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement
Notification Settings: Indicates when a user or group is assigned a task or is informed that the
status of a task has changed. Notifications can be sent through email, voice message, instant
message, or SMS. You can also specify different types of participants to receive notifications for
different actions.
You can set up reminders to be sent before task expiration or after task assignment.

Oracle Procurement Cloud: Procurement Implementation 6 - 13

Oracle Procurement Cloud: Procurement Implementation 6 - 14
Approval Groups:
• Can be nested within other approval groups
• Are stored at the server level and not shared across domains. For example, you cannot use
the same group for Financials and Procurement.

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Oracle Procurement Cloud: Procurement Implementation 6 - 16
Oracle Procurement Cloud: Procurement Implementation 6 - 17
Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals

Oracle Procurement Cloud: Procurement Implementation 6 - 18

The following are two properties defined on a participant:
• Routing Type: The supported routing types are: Serial, Parallel and FYI. FYI participants
cannot directly impact the outcome of a task, but in some cases can provide comments or
add attachments.
• Voting Regime: The supported voting regimes are: Serial, Consensus, and First Responder
Wins.
Rule
Approval rules are routing policies or rules that determine the approvers or FYI recipients for a
business transaction.
• Condition: The IF clauses in an approval rule and evaluated to either true or false. For the
rule to apply to a transaction, all of its conditions must be true. An example of a condition is:
If requisition approval amount is less than 500 USD, or if requisition approval amount is
between 500 USD and 10000 USD.
• Action: Instruction to include a given set of approvers within an approval rule.

Oracle Procurement Cloud: Procurement Implementation 6 - 19

Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement

Oracle Procurement Cloud: Procurement Implementation 6 - 20

Note: Purchasing uses one task for both agreements and purchase orders.
Based on your unique business requirements, administrators can choose to send the approval
request to approvers in parallel or in sequence. Approvals can be sought using single approver,
supervisory chain, position, job level hierarchy, or using a list of approvers.

Oracle Procurement Cloud: Procurement Implementation 6 - 21

Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals

Oracle Procurement Cloud: Procurement Implementation 6 - 22

Oracle Procurement Cloud: Procurement Implementation 6 - 23
Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation’ > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals
The attribute can be used as follows:
• User Defined Attribute: Requisition Amount in USD
• Type: Currency based
• Attribute to Convert Type: Approval task attribute
• Attribute to Convert: Requisition Amount
• Convert To: USD
• Conversion Rate Type: Corporate
After you have defined the attribute, then it can be used in the rule condition as follows:
Requisition Amount in USD greater than 500

Oracle Procurement Cloud: Procurement Implementation 6 - 24

Oracle Procurement Cloud: Procurement Implementation 6 - 25
Oracle Procurement Cloud: Procurement Implementation 6 - 26
Oracle Procurement Cloud: Procurement Implementation 6 - 27
Oracle Procurement Cloud: Procurement Implementation 6 - 28
Navigation: Navigator >Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals

Oracle Procurement Cloud: Procurement Implementation 6 - 29

Oracle Procurement Cloud: Procurement Implementation 6 - 30
Navigation: Navigator > Setup and Maintenance > Implementation Projects > “XXProcurement
Implementation” > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals

Oracle Procurement Cloud: Procurement Implementation 6 - 31

Navigation: Navigator > Setup and Maintenance > Implementation Projects > "XXProcurement
Implementation" > Procurement > Define Common Procurement Configuration > Define Approval
Management for Procurement > Manage Requisition Approvals
The approvals UI displays only relevant fields to guide you along the setup of each type of routing
in an action. You can route using approval groups, supervisory hierarchy, job level, position
hierarchy, custom function or single approver.
There are three types of actions:
• Approval Required: The document or object will be routed for approvals.
• Automatic: The document or object can be approved or rejected automatically.
• Information Only: FYI tasks will be sent to notify the specified persons.

Oracle Procurement Cloud: Procurement Implementation 6 - 32

The approvals UI displays only relevant fields to guide you along the setup of each type of routing
in an action. You can route using approval groups, supervisory hierarchy, job level, position
hierarchy, custom function or single approver. Instead of having to know the specific function calls
to use, the UI translates the setup into a syntax that the approval management extension engine
understands.
There are three types of actions:
• Approval Required: The document or object will be routed for approvals.
• Automatic: The document or object can be approved or rejected automatically.
• Information Only: FYI tasks will be sent to notify the specified persons.
You can also choose to route approvals through a specific worker chain by selecting the name of
the worker.
Approval Chain Of
Select the approval chain of the persons within a document. For example, preparer and requester
in purchase requisitions, or a buyer in purchasing documents.
Start With
• Identify the first participant in a list. The Start With attribute can be:
- Manager (Default value):
The value selected in the Approval Chain Of choice list.
- Minimum Job Level:
Indicate the number of job levels that are required to perform the approval action if the
rule applies. For example, using the figure below, if Mary (Job Level 1) submits a
document for approval and the Minimum Job Level is set to 3, then only John Allens
needs to approve.

Top Worker in Hierarchy

• Identify the person at the top of the employee hierarchy, or the top person in the approval
chain. In most cases, this is the CEO.
Include
• Indicates if everyone returned in the list of participants from this action will be included, the
first and last approver from the list will be included, or only the last approver will be included.

Oracle Procurement Cloud: Procurement Implementation 6 - 33

Position Hierarchy
Defined in Oracle Fusion Human Capital Management, positions are defined along with
corresponding job levels, and employees are assigned appropriate positions. For example, the
position Buyer is an instance of a position in the Purchasing Department. The job level of that
Buyer could be any job level assigned to that position.
Position Hierarchy
• Indicates if everyone returned in the list of participants from this action will be included, the
first and last approver from the list will be included, or only the last approver will be included.
Position Chain Of
• Select the approval chain of the persons within a document. For example, preparer and
requester in purchase requisitions, or a buyer in purchasing documents.
Start With
• Identify the first participant in a list. The Start With attribute can be:
- Next Position (Default value):
The value selected in the Approval Chain Of choice list.
- Minimum Job Level:
Indicate the number of job levels that are required to perform the approval action if the
rule applies. For example, using the figure below, if Job Level 1 submits a document for
approval and the Minimum Job Level is set to 3, then only Job Level 3 needs to
approve.
Top Worker in Hierarchy
• Identify the person at the top of the employee hierarchy, or the top person in the approval
chain. In the most cases, this is the CEO.
Include
• Indicates if everyone returned in the list of participants from this action will be included, the
first and last approver from the list will be included, or only the last approver will be included.
Single Approver
Single approver allows you to route the approval to a specific person on the document, or a
specific worker.

Oracle Procurement Cloud: Procurement Implementation 6 - 34

Supervisory Hierarchy
Approval Chain Of
• You can select the approval chain of the persons within a document. For example, preparer
and requester in purchase requisitions, or a buyer in purchasing documents.
• You can also choose to route approvals through a specific worker chain by selecting the
name of the worker.
Start With
• Start With identifies the first participant in a list. The Start With attribute can be:
- Manager (Default value):
The value selected in the Approval Chain Of choicelist.
- Number of Approval Levels:
The number of approvers in the supervisory hierarchy starting with the person specified
in Start With.
Top Worker in Hierarchy
• The Worker in Hierarchy identifies the person at the top of the employee hierarchy, or the top
person in the approval chain. In the most cases, this is the CEO.
User-Defined Routing
You can setup user-defined attributes with custom type. The custom user-defined attributes can
be set up to return a single user, or a list of users to whom human tasks can be routed.

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Oracle Procurement Cloud: Procurement Implementation 6 - 36
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Oracle Procurement Cloud: Procurement Implementation 6 - 39
Oracle Procurement Cloud: Procurement Implementation 7 - 2
A full implementation of the Oracle Fusion Procurement suite involves many different sets of
setup tasks. This lesson will focus on the following groups of setup tasks:
• Common Procurement Configuration: Define and maintain setup components for the
common procurement configuration including catalogs, supplier configuration, account
rules, and taxes.
• Purchasing Configuration: Define and maintain setup components for Purchasing,
including procurement business function, requisitioning business function, change order
templates, document styles, and procurement agents.
Note: This is summary information on the implementation setup tasks and may not exactly
reflect what is covered in the course.

Oracle Procurement Cloud: Procurement Implementation 7 - 3

Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration
Initial setup for this activity is performed by using an implementation task group in Functional
Setup Manager: Define Common Procurement Configuration.
Ongoing maintenance is performed from the Setup and Maintenance work area.

Oracle Procurement Cloud: Procurement Implementation 7 - 4

Setup tasks in Functional Setup Manager under the Define Common Procurement
Configuration task:
• Define Basic Catalogs
• Define Supplier Configuration
• Define Transaction Account Rules
• Define Transaction Taxes
• Manage Hazard Classes
• Manage UN Numbers
• Manage Approved Supplier List Statuses
• Manage Purchasing Profile Options
• Define Common Payables and Procurement Options
Ongoing maintenance tasks under Setup and Maintenance:
• Manage Procurement Agents
• Manage Payment Terms
• Manage Units of Measure
• Manage Carriers
• Manage FOB Lookup
• Manage Freight Terms Lookup
• Define Corporate Procurement Cards

Oracle Procurement Cloud: Procurement Implementation 7 - 5

Oracle Procurement Cloud: Procurement Implementation 7 - 6
Note: Master Item Catalog setup is performed using the Oracle Functional Setup
Manager within the Product Management Offering.

Oracle Procurement Cloud: Procurement Implementation 7 - 7

You can define and manage basic catalogs to organize your items in a structured hierarchy.
You can also associate images and attachments to catalogs and categories to help you
quickly build rich catalog content. Then you can view and navigate catalogs quickly and easily
using images, tree hierarchy and links to locate products of interest.
You can share category and item associations from a source catalog with multiple catalogs,
enabling you to reuse existing data and ease administration of catalogs. You can manage the
catalog mapping between catalog hierarchies, as well as the attributes for the catalog and
categories.
You can use spreadsheet based interface or industry standard open interfaces to import and
export catalog hierarchies speeding up maintenance and administration and sharing of
catalog content. View and navigate deep catalogs quickly and easily using images, tree
hierarchy and links to locate products of interest.
The example shows three different catalogs. Additionally, the Exercise Products Catalog uses
the Product Catalog as its source.

Oracle Procurement Cloud: Procurement Implementation 7 - 8

A key flexfield structure consists of one or more segments. The segment’s (or concatenation
of segments’) values then becomes the identifier for that category. A catalog uses an MCAT
structure to reflect the structure and organization of its categories. In the example, the
Development structure of the MCAT key flexfield is used by the Development catalog and
consists of a single segment. The Product structure allows for three segments levels, and the
Purchasing structure only two. You can either use an appropriate existing key flexfield
structure or you can define a new structure.
You should review any existing catalog structures to determine if there are already structures
that reflect your hierarchy. If there are not, you can define a new structure and structure
instance and use it to model your catalog/category structure.

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Oracle Procurement Cloud: Procurement Implementation 7 - 10
You can gather additional information about your catalogs and categories by defining and
enabling their descriptive flexfields. Descriptive flexfields allow you to obtain extra customized
information about your catalogs and categories. You can then develop custom reports to view
this information.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Define Basic
Catalogs > Manage Catalogs
You configure your master item catalog to affect how the content behaves. The configuration
attributes you specify include:
• Catalog Code: A unique name for the catalog
• Catalog structure: The key flexfield structure used to define the catalog. The structure
you select must be able to support the hierarchical structure you intend to define. That
is, if you intend to have four hierarchical levels in the catalog, the key flexfield structure
must contain four segments.
• Controlled at: Controls how items can be assigned to categories. The first value is
master level, which enables the automatic assignment of items to all child organizations
associated with the master organization, if the current context is a master organization.
The second value is organization level, which assigns the item only to the organization
in the current context.
• Default Category: Any newly created item is automatically assigned to this category.
The automatic assigned is controlled by the functional area.

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 • Catalog content: Controls what content (especially items) can be added to the catalog
and where the content can be added. This attribute has three values:
- Item at leaf levels allows items to be added only to the bottom level categories in
the hierarchy.
- Item at all levels allows items to be assigned to any category in the hierarchy
regardless of level.
- Categories only allows categories to be added only to the catalog.
• Allow multiple item category assignment: When this option is selected, you can
assign an item to one or more categories in the catalog. The default is deselected, which
means that each item can be assigned to only one category in the catalog.
• Enable hierarchies for categories: When this option is selected, you can create a
hierarchy for the catalog. The default is deselected, which means that the catalog
cannot have a hierarchy (that is, there can be no categories within categories), and all
categories are associated with the catalog root.
• Enable automatic assignment of categories: When this option is selected, the catalog
is built by automatically associating all categories, based on matching the catalog
structure value to the category structure value.
Note that Enable hierarchies for categories and Enable automatic assignment of
categories are mutually exclusive.

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Direct Sharing
When using direct sharing, you copy the category information from a category in the Master
Item catalog. You can edit the new category definition and add items to it.
Reference Sharing
When you share a category by reference, you copy the category information and possibly
item data from the shared category. (The example that follows shows both the source
category definition and the source items shared.) You cannot change the information or add
items in the new category since those are controlled in the source category, and any changes
to the source category are reflected in the new category. What types of content (categories
and/or items) you can add are controlled by the Sharing Content value defined to the source
category.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Define Basic
Catalogs > Manage Catalogs
You can perform reference sharing of categories by referencing a category from a designated
source catalog. Three attributes control catalog sharing:
• Source Catalog: A catalog that does not have sharing enabled and from which
categories, category hierarchies, and/or assigned items can be added to the catalog you
are creating
• Sharing Content: Controls what content can be added from the source catalog. This
attribute has three values:
- Categories Only: Only categories without assigned items can be shared.
- Items Only: Only categories with assigned items can be shared.
- Items and Categories: All categories can be shared.

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Note that the term catalog in this slide is not referring to the Procurement shopping catalog
but a container for category codes that just happens to also have been called catalog in
Oracle Fusion Product Management.

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Note: For existing categories to be added to a new catalog, both the “from” catalog and the
new catalog must have the same catalog structure. When adding categories, you can add the
content if the content values for the “from” category and the new category match.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Define Basic
Catalogs > Manage Default Catalogs
In this example, the Purchasing catalog is identified as the default catalog for the Purchasing
functional area.

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Oracle Procurement Cloud: Procurement Implementation 7 - 19
Note: Supplier creation is considered a maintenance task and is described in the Supplier
Management lesson and in an Oracle Fusion Supplier Model help demonstration titled
“Searching and Creating Suppliers.”

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Define Common Procurement Configuration > Define Supplier Configuration > Specify
Supplier Numbering
Note: The next supplier number can be updated at any time, not just during initial setup, if for
example there's ever a need to skip a range of supplier numbers. The application will validate
that the number is not already used.

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Profile lookups allow implementers and administrators to use label values defined to the
application to quickly describe and classify suppliers. These labels exist in the application as
lookups and each lookup can contain one or more values. The types of lookups are shown in
the graphic:
• Supplier Type
• Business Classification
• Tax Organization
• Minority Group
Many standard lookup values are provided by the application as it is installed. Implementers
and administrators should review these values and decide if additional values should be
defined.

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Oracle Procurement Cloud: Procurement Implementation 7 - 23
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Define
Supplier Configuration > Manage Supplier Type Lookup
Note: Until the new label is enabled, it cannot be used. The start and end dates can also be
used to specify a time window of availability.

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Oracle Procurement Cloud: Procurement Implementation 7 - 25
The Manage Supplier Products and Services Category Hierarchy page enables the buying
organization to define a category hierarchy for identifying the products and services
categories that suppliers and prospective suppliers can provide. The distinction being made
here is that a browsing category is the browsing hierarchy used by requesters in Procurement
shopping.
Category Hierarchy
The category hierarchy can be defined with as many levels as needed to capture granular
supplier category classifications. The hierarchy navigation allows supplier users to quickly drill
down and select their applicable categories. When a parent category is selected, the buying
organization assumes that the supplier can provide all the products and services represented
as child categories under that parent category. The two types of categories that are used in
the hierarchy are browsing categories and item categories.
Browsing Categories
Browsing categories, also known as navigation categories, are created to structure the
hierarchy and organize the underlying item categories so that users can navigate and select
the most appropriate categories applicable to the supplier organization. A browsing category
can either be a parent category, or a child to another browsing category.

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Item Categories
Item categories are categories from the Purchasing Catalog used during sourcing activities by
the buying organization to find all suppliers that can provide a given item category. Item
categories cannot be added as a parent category in the hierarchy, they can only be added as
the last level in a branch, also referred to as the leaf level.

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Oracle Procurement Cloud: Procurement Implementation 7 - 28
Oracle Procurement Cloud: Procurement Implementation 7 - 29
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Manage
Procurement Agents > Create
This task was discussed in the lesson titled “Securing Oracle Procurement” and is repeated
here as a reminder of it is importance. Procurement adds the business unit data segmentation
to the role (Buyer for example) by way of this task. In order for procurement agents to manage
procurement documents and perform other actions, this data security setup needs to be
completed.

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Although not a required task group it is one to carefully consider during implementation.

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Purchase requisitions and purchase orders have several accounts stored on them. The three
mandatory accounts are:
• Charge Account: The account against which the money spent is finally withdrawn or
charged
• Variance Account: Certain situations call for variances to be recorded for certain kind
of spending. An entry is created against this account for all such variances. E.g. price
variance between PO and invoice.
• Accrual Account: An intermediary account which records money spent for goods or
services that have been consumed or taken ownership of and that is yet to be invoiced.
An entry against this account is reversed once the money is physically spent or the
invoice is issued.
In addition to these three accounts, there are two other accounts for more advanced
procurement scenarios where there is an intercompany transaction involving a procuring
organization and a destination organization. Namely:
• Destination Charge Account: The charge account belonging to the destination
organization
• Destination Variance Account: The variance account belonging to the destination
organization

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Businesses need to automate the derivation of the mandatory accounts on transactions based
upon their corporate policies. The Subledger Accounting (SLA) engine does that. The
component of the engine which does it is known as Transaction Account Builder or TAB.
That is, TAB is the component of Subledger Accounting which is solely responsible for
building or defaulting the accounts on a transaction such that appropriate accounting entries
can be created for the appropriate transaction accounts.
TAB Structure
• Transaction Account Definition: Grouping of accounting rules used to derive the
accounts for an application
• Transaction Account Type: The various kinds of accounts that can be derived for a
given transaction
• Account Rule: The way accounts are derived based on source values and specific
conditions
• Sources: Pieces of transaction information that can be used to derive default accounts
• Mapping Sets: The way to derive either code combinations or individual segment
values based on the value of an input source

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Reference:
Transaction Account Builder Oracle Fusion Procurement (white paper on My Oracle Support)
Subledger Accounting is part of the Oracle University “Oracle Financials Cloud: Financials
Implementation” course.

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There are several other business objects that have a few predefined values, can be
configured during implementation, or can be managed on an ongoing basis when the
application is in use.

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Define payment terms to determine due dates, discount dates, and other installment details
for supplier invoices. Payment terms are used to automatically create installments on an
invoice with up to three levels of discount. You can define payment terms to create multiple
installments and multiple levels of discounts. You can share payment terms across business
units through set assignment.
When you create the payment terms installments, you specify two basic criteria: how the
payment amount is determined, and how the payment date is determined.

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Payment Amount
When specifying the payment amount due, you can specify either a percentage of the total
amount or a fixed amount of the total.
Payment Due Date
When specifying the payment due dates, you have four options from which to choose:
• Calendar: You can choose a Payables calendar. You assign a due date that falls within
the same period as the invoice date.
• Fixed Date: You can specify a fixed date for the due date.
• Days: You can specify a number of days between the invoice date and the due date.
Day of the Month
You can specify a particular day of the month (you can use 31 to indicate the last day of the
month for months with less than 31 days). If you use the Day of Month method, you can also
use the Months Ahead field to specify how the application should calculate the date. If the
invoice date falls on or after the date of the month selected, the due date is forwarded to the
next month (if you specify a 0 Months Ahead). If you specify a Months Ahead value of 1, the
due date is moved to the date two months away (the first month after the next month).

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Manage
Payment Terms

Discounts
For each installment line, you can specify up to three levels of discount (screen shot below
shows only the first two). For each discount, you specify the discount percentage and whether
the discount date is based on a number of days from the invoice date, or a particular day of
the month. If you select the day of the month method, you can optionally choose whether the
discount date is moved to a subsequent month (0 = that date in the following month. 1 = that
date two months away).

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Oracle Procurement Cloud: Procurement Implementation 7 - 39
A unit of measure standard conversion specifies the conversion factor by which the unit of
measure is equivalent to the base unit of measure.
This table lists examples of unit of measure classes, one unit of measure included in each
class, the base unit of measure for the unit of measure class, and the conversion factor
defined for the unit of measure.

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A shipping method is defined for every carrier. You must define and activate a shipping
method after creating a carrier. After a shipping method is created, it is assigned to one or
more organizations. The organization can then use the carrier and shipping method
combination to deliver shipments to and from its warehouses. The active status of the
shipping method indicates that it is in use by the selected carrier in all assigned organizations.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Manage
Procurement Document Numbering
You can configure document number generation for all Procurement document types; such
as, requisitions, purchase orders, negotiations, and qualifications from a single user interface.
These document numbers can be configured to suit a variety of business needs using prefix,
suffix and minimum digits. Minimum digits allows you to define fixed length document
numbers by padding the number from the sequence with leading zeroes.

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Oracle Procurement Cloud: Procurement Implementation 7 - 46
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Common Procurement Configuration > Define
Purchasing Configuration Tasks
Initial setup for this activity is performed using an implementation project. Ongoing
maintenance is performed from the Setup and Maintenance work area.
Key setup tasks in FSM under Define Purchasing Configuration:
• Manage Purchasing Line Types
• Manage Document Styles
• Manage Change Order Templates
• Configure Procurement Business Function
• Configure Requisitioning Business Function
Ongoing maintenance tasks are:
• Define Master Items for Procurement
• Manage Buyer Assignment Rules
Note that Define Master Items for Procurement is needed only when you are also using
Oracle Fusion Inventory and Cost Management.

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Oracle Procurement Cloud: Procurement Implementation 7 - 49
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Purchasing
Document Configuration > Manage Purchasing Line Types

Goods line types let you order, receive and invoice based on the quantity of goods provided.

Services line types let you order, receive and invoice based on the value of the service
provided.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Purchasing
Document Configuration > Manage Purchasing Line Types

You can also define extra lines types to streamline your procurement operations. You can use
these line types to default category, UOM, and matching values for the line.

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Oracle Procurement Cloud: Procurement Implementation 7 - 52
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Purchasing
Document Configuration > Manage Document Styles
Through reusable document styles, organizations can turn on or off various procurement
features, thereby simplifying the user interface. In addition, document styles provide the ability
to define purchasing document names that align more closely with the naming conventions of
your organization's business. When a purchasing document is created using a document style
disabled features are hidden. For example, if price breaks are not allowed on the document
style then agreements using this style will not display the price break region.
Document Style: Key Concepts
• You can create a document style for a specific purchase basis such as goods or
services.
• You can choose the line types the style supports.
• You can specify the display names to be used with any or all of the document types,
purchase order, purchase agreement, or contract agreement.
• You can enable the style from blanket purchase agreements and contract purchase
agreements.

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Note: One noteworthy style that is seeded with the Oracle Fusion Purchasing application is
the Standard style. This style has the least restrictive setup; it is enabled for all document
types, supports all purchase basis options, supports all line types, and has price breaks
enabled.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Purchasing
Document Configuration > Manage Change Order Templates
A change order template is a set of guidelines that enables an organization to specify what
constitutes a change to a procurement document during the course of its life cycle. A
document change can be internal or external.
Internal Change Order
This is a type of change order that modifies an attribute or attributes that may not be relevant
to the supplier as defined in the change order template. Examples include changes to a
descriptive flexfield or a certain category of attachments. These are also referred to as
administrative changes. Typically this will be a buyer or requester initiated change order.
External Change Order
This is a type of change order that modifies an attribute or attributes that may be relevant to
the supplier as defined in the change order template. Examples include changes to price,
amount, or contract terms. This is also referred to as a supplier facing change order. In
commercial organizations these types of changes are referred to as an amendment and in a
Federal organization they are called MODs or modifications.

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You can create a change order template for each document type (purchase order, blanket
purchase agreement, contract purchase agreement). For each template, you select which
fields can be modified. Which fields are appropriate for the change order depends on what
kind of document type the change template is used with.

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A descriptive flexfield:
• Is optional
• Provides a way to capture additional information for display and reporting
• Consists of one or more segments
• Segments appear to end users as additional fields in the application user interface.
A descriptive flexfield value set:
• Is optional
• Is associated to a particular flexfield segment
• Contains lists of predefined values that users pick in a descriptive flexfield
• Can be used to validate user entries

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Purchasing descriptive flexfields can be defined to extend attributes on:
• Purchase Orders: Header, line, schedule, and distribution levels
• Blanket Purchase Agreements: Header, line, price break, and item attribute levels
• Contract Purchase Agreements
• Purchasing Document Notification Controls
• Approved Supplier List Entries: Header, supplier-item attribute, and source document
levels
• Purchasing Line Types
• Document Types
• Procurement Agents

Related Resources
Oracle Fusion Applications Common Implementation Guide
Oracle Fusion Applications Extensibility Guide
Oracle Fusion Applications Developer’s Guide

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Oracle Procurement Cloud: Procurement Implementation 7 - 59
The setup tasks that follow are marked to indicate R = Required, O = Optional or Not
Required.
• Manage Item Profile Options (R)
• Manage Units of Measure (R)
• Manage Product Value Sets (R)
• Manage Product Child Value Sets (R)
• Manage Operational Attributes Groups (O)
• Manage Lifecycle Phases (R)
• Manage Default Item Class (R)
• Manage Item Class (O)
• Manage Item Statuses (O)
• Manage Item Types (O)
• Manage Cross Reference Types (O)
• Manage Item Descriptive Flexfields (O)
• Manage Item Revision Descriptive Flexfields (O)
• Import Items (O)

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 • Monitor Item Imports (O)
• Manage Related Item Subtypes (R)
• Manage Item Revision Descriptive Flexfields (O)
• Manage Item Relationship Descriptive Flexfields (O)
• Manage Trading Partner Descriptive Flexfields (O)
Note: Creating master inventory items training is available in the “Oracle Fusion Product
Information Management” course and it is described in the Oracle Fusion Application Help
topics for Product Model. See: “Item Purchasing Specifications.”

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With Oracle Fusion Product Model you can:
• Access and Search Product Master Data
• Analyze Product and Service Master Data
• Manage Imports
• Define Items
• Define Catalogs
• Manage Product Attachments
• Manage Product Bundles and Structures
• Define Product Structures
• Manage Product Relationships and Associations
• Manage Product Revisions
• Manage Product Specifications
• Manage Trading Partners’ Products
• Release Product to Market
• Obsolete Products and Services

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With Oracle Fusion Product and Catalog Management you can:
• Define New Item Requests
• Define Products
• Define Product Rules
• Manage Item Versions
• Standardize Product and Service Data
• Define and Manage Product Change Orders
• Manage New Product Definition and Approval
• Manage Product Mass Updates
• Manage Product Packs
• Manage Product Security
• Manage Supplier Collaboration
With Oracle Fusion Product Hub you can:
• Define Advanced Catalogs
• Set Up Product Source Systems
• Define Data Quality for Products
• Manage Import Batches
• Cleanse Product and Service Data
• Standardize Product and Service Data
Note: All Product Model features are also available in Product and Catalog Management and
in Product Hub. All Product and Catalog Management features are also available in Product
Hub.

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• Global descriptive flexfields are always displayed.
• Context sensitive flexfields are displayed based on the context specified on the
requisitioning BU’s requisitioning configuration.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Requisition
Configuration > Manage Requisition Descriptive Flexfields
Related Resources
• Oracle Fusion Applications Common Implementation Guide
• Oracle Fusion Applications Extensibility Guide
• Oracle Fusion Applications Developer’s Guide

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Oracle Procurement Cloud: Procurement Implementation 7 - 69
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Business
Function Configuration > Configure Procurement Business Function
As part of setting up a procurement business unit, organizations need to define the
corresponding procurement configurations. You use the Configure Procurement Business
Function page for setting up those configurations or options.
• Each procurement business unit has its own configuration.
• Settings for purchasing transactions
• Settings for sourcing transactions

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Configure Procurement Business Function settings include:
• Terms: Such as the payment terms and the FOB
• Document defaults: Such as the line type and the currency
• Document controls: Such as whether to allow retroactive pricing when price changes
on a blanket agreement, how to group requisition and requisition lines, and whether to
display best prices in blind negotiations

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Some document layouts are seeded with the Oracle Fusion Purchasing and Oracle Fusion
Sourcing applications. The seeded document layouts and seeded change order templates will
be used as the default layouts and change order template in a new procurement business unit
configuration.

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Purchasing
• The terms and conditions are configurable for each Procurement business unit.
• General terms and conditions are sent along with these purchasing documents:
- Purchase Orders
- Blanket Purchase Agreements
- Contract Purchase Agreements
• No terms and conditions are seeded with the Oracle Fusion Purchasing application.
Sourcing
• The terms and conditions are configurable for each Procurement business unit.
• Terms and conditions are presented to users before they respond to a negotiation for
the first time.
• General terms and conditions are presented with these negotiation types:
- Auctions
- RFIs
- RFQs
• No terms and conditions are seeded with the Oracle Fusion Sourcing application.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Business
Function Configuration > Configure Requisitioning Business Function
As part of setting up a requisitioning business unit, you must define the corresponding
requisition business configuration.
• Each requisitioning business unit has its own configuration.
• Settings for requisition creation
• Settings for purchase orders created in this requisitioning business unit
Requisitioning
Configurations include fundamental settings such as the next requisition number to use, how
requisitions are grouped in requisition import and whether approvals need to be restarted from
the beginning if approvers modify the requisition. As each requisition line requires a deliver-to
location ID, the One-Time Location field identifies the deliver-to location that will be
associated with a requisition line if a requester specifies a one-time address.

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Purchasing News
Content can be setup to broadcast announcements or information to requesters in each
requisitioning business unit. This content will be available on the Shop page.
Context Values for Requisition Descriptive Flexfields
If you need to extend their requisitions to include descriptive flexfields, you can specify the
descriptive flexfield context for the requisition header, line, and distribution levels on this page
as well.
Purchasing
Purchasing related configuration is also defined for each requisitioning business unit. This
includes settings such as the Next Purchase Order Number to use and price change
tolerance thresholds.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Define Common Options
for Payables and Procurement > Manage Common Options for Payables and Procurement
The “Manage Common Options for Payables and Procurement” task enables the implementer
to configure options that are used by features throughout the procure-to-pay business flow.

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Key Concepts
• Liability: Default liability distribution for an invoice, unless a supplier site assignment
has a different value
• Prepayment: Default distribution for a prepayment invoice, unless a supplier site
assignment has a different value
• Bill Payable: Default bill payable distribution, unless a supplier site assignment has a
different value
• Conversion Rate Variance Gain and Conversion Rate Variance Loss: Conversion
rate variance gains or losses for inventory items or expense items that were accrued on
receipt. Variance is calculated between the invoice and either the purchase order or the
receipt, depending on how you matched the invoice. These distributions do not record
variances for expense items that were not accrued on receipt.
• Discount Taken: Discounts taken on payments if you allocate discounts to a single
distribution
• Miscellaneous: Distribution for invoice lines with a type of Miscellaneous. If you do not
enter a value, miscellaneous charges are prorated across invoice item lines.

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 • Freight: Freight for an invoice. You can override this distribution during invoice entry. If
you do not enter a freight distribution, freight charges are prorated across invoice item
lines.
• Prepayment Tax Difference: Tax amount difference between a prepayment and the
invoices that it is applied to. These differences are usually due to changes in tax rates
between prepayment and invoice creation times. This distribution is used only if the
Applied Amount Handling option on the tax record is set to “Recalculate.”
Note that Transaction Account Builder, a feature that is part of the Financials Subledger
Accounting module, can be configured to override any of these defaults based on rules that
you create.

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Automatic Offset by Primary Balancing Segment
For this method, Payables uses the invoice liability distribution and overrides the primary
balancing segment with the one from the charge distribution to build the liability entry line
account. The resulting journal entry is balanced by the primary balancing segment. The
invoice distribution combination provides the primary balancing segment value and the liability
distribution on the invoice header provides the remaining segment values.

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Require conversion rate entry
Require a conversion rate whenever you enter an invoice or a payment in a currency other
than the ledger currency. If you maintain daily rates, the rate is automatically populated based
on the date and the rate type that you enter. If daily rates do not exist for the date and rate
type, and if this option is enabled, you cannot enter or save the transaction.
If the conversion rate type is User, then you must always enter a conversion rate. You cannot
create accounting entries or pay foreign currency invoices without conversion rates.
If you do not enable this option, after you have entered invoices or created payments, you
can enter conversion rates manually or by running the Apply Missing Conversion Rates
program.
Conversion rate type
Specify the default conversion rate type when you enter invoices or create payments. You can
change the conversion rate type at invoice entry or payment creation time.
Realized gain and loss distributions
Specify the realized gain and loss accounts for payments. If a conversion rate changes
between the time the invoice is entered and the time of payment, the realized gain or loss is
calculated and recorded to these accounts.

Oracle Procurement Cloud: Procurement Implementation 7 - 86

Note: Accrue at receipt should not be used with budgetary control.

Oracle Procurement Cloud: Procurement Implementation 7 - 87

Self-Billed Invoices
• Evaluated Receipt Settlement (ERS) invoices that are automatically created by the Pay
on Receipt process in Oracle Fusion Receiving
• Debit memos that are automatically created from a return to a supplier transaction in
Receiving
Setting automatic invoice numbering options for self-billed invoices:
• Gapless invoice numbering: Enable gapless invoice number generation.
• Buying Company Identifier: Enter an identifier to use as part of the automatically
generated invoice number.

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Oracle Procurement Cloud: Procurement Implementation 7 - 89
• Manage Buyer Assignment Rules
• Define Receiving Parameters for Procurement
• Additional Purchasing Related Setup

Oracle Procurement Cloud: Procurement Implementation 7 - 90

This feature allows businesses to set up structured rules that drive automatic routing of
requisition lines to the most appropriate buyer for processing. These buyer assignment rules
are created based on key attributes of the requisition line such as the commodity being
purchased, supplier, project, or requisition line amount.
To help the organizations do the initial setup and perform the ongoing maintenance of these
rules, you can upload and modify the rules through a user friendly spreadsheet.

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Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Purchasing Configuration > Manage Buyer
Assignment Rules
A buyer assignment rule can be created based on a list of predefined requisition line
attributes. These attributes are:
• Requisitioning BU
• Commodity
• Deliver-to Organization
• Project
• Supplier
• Non-catalog Request
• Exceeds Line Amount
• Procurement BU
Here, a commodity can be either a category as entered in a requisition line, or it can be a
group of categories as defined in the Procurement category hierarchy.

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Oracle Procurement Cloud: Procurement Implementation 7 - 93
Navigation: Navigator > Setup and Maintenance > Implementation Projects > XXProcurement
Implementation > Procurement > Define Receiving Configuration for Procurement > Manage
Receiving Parameters
Considerations
• If you originally allow manual entry and switch to automatic entry, make sure to enter a
Next Number that is higher than the highest number you assigned manually.
• If you choose Automatic receipt number entry, you can generate only numeric receipt
numbers, but you can still import either numeric or alphanumeric values from another
purchasing system.
• If you import purchasing documents from a foreign system that references alphanumeric
numbers, you must choose Alphanumeric as your number type, regardless of your
numbering method.

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Oracle Procurement Cloud: Procurement Implementation 7 - 95
Oracle Procurement Cloud: Procurement Implementation 7 - 96
Oracle Procurement Cloud: Procurement Implementation 7 - 97
Multiple clients can be serviced by such procurement business units (BU) using shared
contents.
Examples of such shared content are:
• Supplier/Supplier Site assignment relationship
In order to use the procurement BU as a shared service center, a supplier site needs to
be created for this procurement BU. In addition, the site needs to be assigned to the
requisitioning BU. This is accomplished by adding a new site assignment to the supplier
site with the requisitioning BU as the client BU.
• Purchasing Agreements
Agreements can be created for the procurement BU set up as above. BU assignments
can be setup such that requests from multiple requisitioning BUs can be fulfilled by the
same procurement BU.
• Smart Forms
Smart Forms can be created in a procurement BU and shared by multiple requisitioning
BUs serviced by the procurement BU. Content security is used to make the smart form
available to particular requisitioning BUs.

Oracle Procurement Cloud: Procurement Implementation 7 - 98

In order to meet legal requirements for trading, businesses are sometimes required to setup
subsidiaries in some countries although their primary operations are located elsewhere.
Setting up of subsidiaries and trading by way of those subsidiaries also often allow
businesses to take advantage of available tax favorable regimes.
To facilitate buying by way of subsidiaries, the purchase order’s sold-to BU can be different
from the requisitioning BU. The system automatically adjusts to the optimum sold-to BU
based on there requisitioning BU and the supplier site.

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Oracle Procurement Cloud: Procurement Implementation 7 - 100
Oracle Procurement Cloud: Procurement Implementation 7 - 101
Oracle Procurement Cloud: Procurement Implementation 7 - 102
Supplier B2B Integration
Oracle B2B Gateway is the infrastructure that supports communication of transactions with
trading partners (like suppliers or customers), whether inbound or outbound. To transact
electronically with suppliers, the Oracle B2B Gateway must be configured to receive or send
XML documents for a supplier site. Similarly, the supplier site must be configured to
communicate with the Oracle B2B Gateway. When a supplier site is configured for B2B
transactions, the implementer defines the supplier site as a Trading Partner in the Oracle B2B
Gateway. The implementer then defines the Trading Partner definitions specifying a value for
the Partner Identifier type: B2B Supplier Site Code, then enters the same value in the Supplier
Site page. The configuration is then cross-referenced in the Supplier Site page. The B2B
Supplier Site Code on the supplier site must be identical to the trading partner identifier
populated in Oracle B2B to establish the mapping.
Related Resources
• Oracle Fusion Middleware User’s Guide for Oracle B2B 11g

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Oracle Procurement Cloud: Procurement Implementation 7 - 104
Oracle Procurement Cloud: Procurement Implementation 7 - 105
Oracle Procurement Cloud: Procurement Implementation 8 - 2
With the use of Oracle Fusion Supplier Model, information about your suppliers is integrated
and streamlined within the Oracle Fusion Procurement suite. Supplier information can be
easily accessed at any point in the procurement process. You can view and use supplier
information in Purchasing when you create purchase documents. When creating a
negotiation, you can search on supplier information to decide who to invite to the negotiation.
You can send contract terms from Procurement Contracts for suppliers to review. With
Supplier Qualification, you can maintain information on supplier certifications and evaluations.

Oracle Procurement Cloud: Procurement Implementation 8 - 3

Supplier Model provides the Supplier Administrator with a streamlined user interface to gain
visibility into supplier information facilitating tasks ranging from new supplier profile creation,
routine profile maintenance, to event driven administrative responsibilities such as approving
new registration requests, handling profile change requests, or updating expiring
classifications. In addition, Supplier Management contains reports that highlight supplier
issues requiring attention and provides easy access to maintain and update supplier records.
Supplier Model provides a centralized tool to create and maintain your:
• Supplier information
• Supplier addresses
• Supplier sites
• Supplier contacts

Oracle Procurement Cloud: Procurement Implementation 8 - 4

(N) > (H) Suppliers
The Supplier Work Area Overview page is the home page to perform day-to-day supplier
maintenance and administration activities.
It provides a consolidated view of administrative tasks needing attention. In addition, the
Overview page contains reports that highlight supplier issues requiring attention and provides
easy access to maintain and update supplier records.

Oracle Procurement Cloud: Procurement Implementation 8 - 5

(N) > (H) Suppliers > (H) Manage Suppliers > search “supplier name” > (H) “supplier name”
The Edit Supplier page provides easy access to view and maintain existing supplier
definition. In addition to high-level business information, you can also manage:
• General and high-level business information
• Financial information for the supplier such as tax and payment method detail.
• Supplier products and services, and any applicable business classifications
• Supplier sites and addresses
• Supplier contact information
• Any qualifications that apply to the supplier

Oracle Procurement Cloud: Procurement Implementation 8 - 6

(N) > (H) Suppliers > (H) Manage Suppliers > search “supplier name” > (H) “supplier name” >
(T) Address/(T) Site
From the Edit Supplier page, you can easily view and maintain supplier sites and addresses.
Once you define the supplier addresses, you can create the supplier sites and link them to the
addresses. You can create a supplier address and then immediately create the sites that use
that address. You can also easily propagate profile definitions across multiple procurement
business units.
When you create a supplier site, you can specify the site purpose, for example. You can also
define site attributes used by the transactions that process against this site such as invoicing
and receiving. Also you can define attributes for purchasing and payment activities.

Oracle Procurement Cloud: Procurement Implementation 8 - 7

(N) > (H) Suppliers > (H) Manage Suppliers > search “supplier name” > (H) “supplier name” >
(T) Contacts
Use the Edit Contact page to maintain contact personal information. You can also associate
an address with a contract. In the User Account region, you can specify the application user
ID, the roles, and security information.
Note that contact maintenance can be performed from the supplier side as well. Supplier
users with the proper authorization can create new contacts for their own company. They
cannot edit existing users.

Oracle Procurement Cloud: Procurement Implementation 8 - 8

When you begin a business relationship with a supplier, the supplier usually has a provisional
status. For a provisional supplier, the amount of inf ormation you need is typically less than the
amount of inf ormation you need f or a supplier with whom you conduct in-depth procurement
transactions such as ordering, invoicing, or purchasing. The level of review and oversight needed
f or a potential supplier is also typically less than that required by a contracted supplier. An ef f icient
way of addressing the need f or dif ferent levels of supplier inf ormation is to provide two statuses
f or the suppliers:
• Provisional status allows a restricted level of access to the application capabilities.
• Full status allows access to a more complete range of capabilities.
Provisional Suppliers: Suppliers can ask to be registered with the application either
independently by accessing the buying company's registration web page, or they can be
registered internally. In either case, the registration requests go to the supplier manager f or review
and approval. Upon approval, the supplier becomes a prospective supplier. Prospective suppliers
have a restricted level of access. They can participate in supplier qualif ication initiatives and view
and respond to negotiations.
Spend Authorized Suppliers: If the category manager decides to award business to a
prospective supplier, that supplier will need to be authorized to conduct spend transactions with
the buying organization bef ore a purchase document can be created f or that supplier. Spend
authorization requires a more complete level of inf ormation about the supplier and is subject to
approval by the supplier manager. Af ter the supplier is approved f or spend operations, they have
access to all the normal capabilities of the application.
Oracle Procurement Cloud: Procurement Implementation 8 - 9
There are several ways a new supplier can be registered with the application. You can create
internal registration requests from:
• Supplier Model
• Purchasing
• Self Service Procurement
• Sourcing
In each case, you can register the supplier as either prospective or spend authorized.
Suppliers themselves can create a registration request. They can request that their company
be registered as prospective or spend authorized. In all cases, the registration request must
be approved by a Supplier Administrator. There are more details on configuring the
registration process later in this lesson.

Oracle Procurement Cloud: Procurement Implementation 8 - 10

Practice: Making your sign-on a Procurement Agent
Demo: Creating Supplier
Practice: Creating Supplier
Demo: Additional Supplier Definition Tasks
Practice: Additional Supplier Definition Tasks
Demo: Internal Registration Flows

Oracle Procurement Cloud: Procurement Implementation 8 - 11

The Supplier Portal provides suppliers a quick glance across transaction flows and highlights
urgent tasks which are relevant to a user's job role.
The transactional tabs offer consolidated reporting views across different business objects
which provide quick visibility to recent business activity. The watch list on the Summary tab
provides users with a one-stop shop for all the key tasks that need to be performed and
important inquiries that need monitoring

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Supply Portal allows both the buyer and supplier organizations to easily view and manage
typical business transactions.
Supplier Portal is integrated with all the procurement application so that buyer contacts have
view and act on the most up-to-date data from the supplier company.
Supplier Portal provides supplier contacts with a single point of for viewing and managing the
different types of transaction data flowing between them and the buying company.

Oracle Procurement Cloud: Procurement Implementation 8 - 13

As a tool for both the buying company and the supplier company, Fusion Supplier Portal
provides significant benefits.

Oracle Procurement Cloud: Procurement Implementation 8 - 14

Initial setup for these activities are performed using two implementation task groups in
Functional Setup Manager:
• Define Supplier Configuration (covered earlier)
• Define Supplier Portal Configuration
Ongoing maintenance is performed from the Setup and Maintenance work area

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(N) > (H) Setup and Maintenance > (T) All Tasks > (S) “define supplier configuration” >
expand (F) Define Supplier Configuration
The Supplier Model setup and implementation task groups were covered in an earlier lesson.
Supplier Model implementation includes:
• Supplier numbering
• Various lookup values
• Products and services hierarchy
• Flexfields and value sets
This lesson however, presents more detailed information on configuring the supplier
registration process.

Oracle Procurement Cloud: Procurement Implementation 8 - 16

(N) > (H) Setup and Maintenance > (T) All Tasks > search “configure procurement business
function” > (I) Configure Procurement Business Function > (M) “procurement BU” > OK
For each BU, you can define two webpages for supplier self-service registration:
• One page is used to submit prospective supplier registration requests.
• The other page is used to submit spend authorized supplier registration requests.
On the Configure Procurement Business Function page, you specify the URL for each of the
pages. Supplier registration requests must be approved by a Supplier Administrator.

Oracle Procurement Cloud: Procurement Implementation 8 - 17

(N) > (H) Setup and Maintenance > (T) All Tasks > search “configure supplier registration” >
(I) Configure Supplier Registration
For each of the two types of registration webpages (prospective and spend authorized), you
can specify what functionality you enable and what information suppliers must provide when
registering. Organization details and contacts are always required with registration requests.
Other information can be optional (enabled) or required.
For each registration request source—sourcing, internal, or supplier self-registered—you can
specify a default business relationship, prospective or spend authorized.

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(N)> (H) Setup and Maintenance > (T) All Tasks > search “define supplier portal
configuration” > expand (F) Define Supplier Portal Configuration
You perform most of the Supplier Portal implementation using the tasks contained in the
Define Supplier Portal Configuration task group in Fusion Setup Manager (FSM). You can
also use the FSM task groups to maintain Supplier Portal setup information.

Oracle Procurement Cloud: Procurement Implementation 8 - 19

Supplier User Provisioning refers to the process of establishing the appropriate access for
supplier users to Oracle Fusion Supplier Portal. It enables the buying organization to create
and maintain user accounts, job roles, and data access controls for its supplier users.
A key feature of Oracle Fusion Supplier Portal allows certain supplier users to assume the
responsibility for user account management on behalf of the buying organization by creating
and maintaining user accounts for their fellow employees. The buying organization maintains
control by granting access to these trusted suppliers, who then provision the appropriate roles
to their fellow workers. This significantly reduces the administrative burden on the buying
organization. The following job roles are involved in the supplier user provisioning flow:
• Supplier Administrator: This is a buyer role. Users are responsible for maintaining
supplier profile information and administering user accounts for supplier contacts.
• Supplier Self Service Administrator: This is a supplier job role. Users with this role
maintain contact profiles and provision user accounts to their fellow employees.
Note: Supplier self service administrators can only provision roles they themselves have
been granted by the supplier administrator.
• Supplier Self Service Clerk: This is also a supplier job role. Users with this role
maintain contact profiles and request user accounts for their fellow employees.

Oracle Procurement Cloud: Procurement Implementation 8 - 20

Default role sets can be established which expedite supplier user account requests by
allowing the buying organization to identify the minimum set of job roles that a supplier
contact can be granted. The administrator can define defaults for users of Fusion Supplier
Portal and Fusion Sourcing. When new suppliers of these products are created, they are
automatically assigned these default roles. This prevents approvers from having to explicitly
review and assign job roles for each user account request.

Oracle Procurement Cloud: Procurement Implementation 8 - 21

(N) > (H) Setup and Maintenance > (T) All Tasks > search “define supplier portal
configuration” > expand (F) Define Supplier Portal Configuration > (I) Manage Supplier User
Roles
You can use the Manage Supplier User Roles page to specify which roles the self service
administrator can provision to other supplier users by selecting the roles in the Allow
Supplier to Provision column. Note that Self Service Administrators cannot provision roles
that they do not have granted to them. (Setting up a self service administrators is typically a
part of the general set up for the new supplier.)
Also on this page you can specify which roles make up the default role sets for new Supplier
Portal and Sourcing users. The new Supplier Portal users are created when the self service
administrator or the self service clerk create new users. The default Sourcing roles are used
when category managers create a new user during the prospective supplier creation and
registration process.

Oracle Procurement Cloud: Procurement Implementation 8 - 22

There are two additional tasks which you may choose to perform:
• Creating and modifying supplier portal messages
• Setting up the supplier news functionality
Use the Manage Messages page to create and edit custom messages in the message
dictionary, as well as edit predefined messages. Do not delete predefined messages unless
you are sure that they are not used anywhere. Refer to the Oracle Fusion Applications
Developer’s Guide.
On the Specify Supplier News Content, you can communicate with users of Supplier Portal.
The content you enter hear shows up in the Supplier News region of the user’s Supply Portal
work area.

Oracle Procurement Cloud: Procurement Implementation 8 - 23

Oracle Procurement Cloud: Procurement Implementation 8 - 24
Oracle Procurement Cloud: Procurement Implementation 8 - 25
Oracle Procurement Cloud: Procurement Implementation 9 - 2
Procurement Life Cycle
The procurement process can take several forms based on your business practices. But a broad
generalization can be summarized by the above graphic.
There are many “standard” definitions of portions of the procurement process such as Procure-to-
Pay and Source-to-Settle. In reality the actual process is determined by the business requirements
of the enterprise. For the sake of discussion in this course we will focus on two process flows
which Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 9 - 3

Navigation: Navigator > Purchasing
Purchasing Work Area: Key Features for Buyers
• Visibility to outstanding workload
• Easy to monitor transaction exceptions
• Easy to initiate simple actions on transactions

Oracle Procurement Cloud: Procurement Implementation 9 - 4

Oracle Procurement Cloud: Procurement Implementation 9 - 5
Oracle Procurement Cloud: Procurement Implementation 9 - 6
Oracle Procurement Cloud: Procurement Implementation 9 - 7
Navigation: Navigator > Purchasing > Create Agreement > Blanket Purchase Agreement > Create
When to Use a Blanket Purchase Agreement
Blanket purchase agreements allow you to negotiate stable, long-term contracts while maintaining
flexible delivery schedules and order quantity commitments. You typically create blanket purchase
agreements when you know the details of the goods or services you plan to buy from a specific
supplier, but you do not yet know delivery schedule details. You can use blanket purchase
agreements to specify negotiated prices for your items before actually purchasing them.
You normally create a blanket purchase agreement to document a long -term supplier agreement.
The negotiated goods or services can optionally become part of the Procurement catalog.

Oracle Procurement Cloud: Procurement Implementation 9 - 8

Fields on Main Tab of Blanket Purchase Agreement
Required Fields
• Procurement BU: The procurement business unit that will own and manage the supplier
agreement through its life cycle
• Buyer: The defaulted buyer is the employee name associated with the user name of the
person creating the purchase order.
• Currency: The functional currency defaults. Use the Currency button to change the
functional currency if you are using multiple currencies.
Key Fields
• Start Date: The date this agreement becomes effective
• Supplier: The list of values on the Supplier field contains active suppliers.
• Supplier Site: The list of values on the site field contains active sites that are designated as
purchasing sites
• Supplier Contact: Choose a contact using the list of values if contacts are defined and no
contact defaults.
• Communication Method: Communicate your purchase orders and agreements along with
any amendments, attachments, contract terms, and contractual deliverables to suppliers
using print, fax, or email.
• Agreement Amount: The amount you expect to buy from the supplier over the lifetime of
the agreement
• Payment Terms: Choose one of the defined payment terms which can indicate multiple
installments and multiple levels of discounts.
• Pay on Receipt: Also known as self billing, invoices are automatically created using a
combination of receipt and purchase order information.
Fields of Note
• Minimum Release Amount: Minimum amount for any purchase order against this
agreement
• Description: You can enter comments in the 240 character description field. Although the
description does not print on the printed purchase order, suppliers can use it if they have
access to the system with Oracle Supplier Portal.
• Required Acknowledgement: Supplier must acknowledge the pricing and terms of this
agreement before it can be approved.
• Shipping Method: Preferred shipper for goods ordered against this agreement
• Freight Terms: Choose one of the defined freight terms for goods ordered against this
agreement.

Oracle Procurement Cloud: Procurement Implementation 9 - 9

Navigation: Navigator > Purchasing > Create Agreement > Blanket Purchase Agreement > Create
> Controls
Controls
These attributes determine how this blanket purchase agreement is going to behave when
transacted against. For example, the automation settings enable touchless buying.
Enabling Order Locally forces a purchase order created against this agreement to use the
procurement business unit associated with the requisitioning business unit thereby sourcing
globally and ordering locally.
You can have notifications sent to you for expiring agreements and when released amounts need
your attention.

Oracle Procurement Cloud: Procurement Implementation 9 - 10

Fields on Controls Tab of Blanket Purchase Agreement
Required Fields
• Requisitioning BU: The procurement business unit that will own and manage the supplier
agreement through its life cycle
Key Fields
• Order Locally: Used to configure what business processes the requisitioning business unit
will outsource. If checked, the Requisitioning BU outsources only the business processes
related to negotiating and administering the agreement with the supplier, but still owns the
business processes related to creating and administering its own purchase orders for
commodities it is buying off the agreement.
• Automatically generate orders: When a requisition is approved for an item on this
agreement, automatically create a purchase order for that item.
• Automatically submit for approval: When automatically generating orders, automatically
submit those orders for approval.
• Group requisitions: Allow consolidation of requisition lines from across multiple requisitions
into a single purchase order.
• Group requisition lines: Group requisition lines into the same purchase order line.
(Grouped by Line type, Item, Category, UOM, and source agreement or optionally by Need -
by date, Ship-to location, and ship-to organization.)
Fields of Note
• Apply price updates to existing orders: Allow the Launch Retroactive Price Update
process to apply price changes from a blanket purchase agreement to purchase order lines
created referencing the agreement line.

Oracle Procurement Cloud: Procurement Implementation 9 - 11

Navigation: Navigator > Purchasing > Create Agreement > Blanket Purchase Agreement > Create

Oracle Procurement Cloud: Procurement Implementation 9 - 12

Line Fields on Main Tab of Blanket Purchase Agreement
Blanket purchase agreement lines include details of the goods or services to be purchased from
the supplier. The line does not contain delivery dates or individual delivery quantities or amounts.
Required Fields
• Type: Allows you to differentiate purchases for various commodities such as goods and
services
• Description: You must enter either an Item identifier or a description of the goods or
services.
• Category Name: Select the purchasing category of the item you want to purchase.
• UOM: Select the Unit of Measure for the commodity.
• Price: Enter a price per unit for the commodity.
Key Fields
• Expiration Date: Date this line is no longer effective
Fields of Note
• Supplier Item: Item identifier that the supplier uses for this commodity
Line Actions
• Add from Catalog: Browse or search the Procurement catalog and select an item for this
line.
• Upload Lines: Create lines from a file created by the supplier or your organization. Note that
with this action you can download an Oracle defined template that enables direct upload.

Oracle Procurement Cloud: Procurement Implementation 9 - 13

Navigation: Navigator > Purchasing > Create Agreement > Blanket Purchase Agreement > Create
> Lines: Edit

Oracle Procurement Cloud: Procurement Implementation 9 - 14

Purchasing > Create Agreement > Blanket Purchase Agreement > Create > Lines: Edit

Oracle Procurement Cloud: Procurement Implementation 9 - 15

Oracle Procurement Cloud: Procurement Implementation 9 - 16
Navigation: Navigator > Purchasing > Create Agreement > Contract Purchase Agreement >
Create
When to Use a Contract Purchase Agreement
You create contract purchase agreements with your suppliers to agree on specific terms and
conditions without indicating the goods and services that you will be purchasing. A contract
purchase agreement is an agreement between you and a supplier for unspecified goods or
services. This agreement may include terms and conditions, committed amount and an effective
and expiration date. Contract purchase agreements are referenced on standard purchase order
lines. Oracle Purchasing monitors the amount you have spent against contract purchase
agreements.
An important use of a contract purchase agreement is to automate orders for a supplier that you
punch out to, enabling requesters to order directly from that suppliers online catalog. You might
also want to automate orders for non-catalog requests from a fairly specific supplier.

Oracle Procurement Cloud: Procurement Implementation 9 - 17

Fields on Main Tab of Contract Purchase Agreement
Required Fields
• Procurement BU: The procurement business unit that will own and manage the supplier
agreement through its life cycle
• Buyer: The defaulted buyer is the employee name associated with the user name of the
person creating the purchase order.
• Currency: The functional currency defaults. Use the Currency button to change the
functional currency if you are using multiple currencies.
Key Fields
• Start Date: The date this agreement becomes effective
• Supplier: The list of values on the Supplier field contains active suppliers.
• Supplier Site: The list of values on the site field contains active sites that are designated as
purchasing sites.
• Supplier Contact: Choose a contact using the list of values if contacts are defined and no
contact defaults.
• Agreement Amount: The amount you expect to buy from the supplier over the lifetime of
the agreement
• Payment Terms: Choose one of the defined payment terms which can indicate multiple
installments and multiple levels of discounts.
• Pay on Receipt: Also known as self billing, invoices are automatically created using a
combination of receipt and purchase order information.
Fields of Note
• Minimum Release Amount: Minimum amount for any purchase order against this
agreement
• Description: You can enter comments in the 240 character description field. Although the
description does not print on the printed purchase order, suppliers can use it if they have
access to the system with Oracle Supplier Portal.
• Shipping Method: Preferred shipper for goods ordered against this agreement
• Freight Terms: Choose one of the defined freight terms for goods ordered against this
agreement.

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Navigation: Navigator > Purchasing > Create Agreement > Contract Purchase Agreement >
Create > Controls
Note that the Order Creation Options for the contract purchase agreement include the additional
automation options for automatic sourcing and punchout requests.

Oracle Procurement Cloud: Procurement Implementation 9 - 19

Fields on Controls Tab of Contract Purchase Agreement
Required Fields
• Requisitioning BU: The procurement business unit that will own and manage the supplier
agreement through its life cycle.
Key Fields
• Enable automatic sourcing: Allow orders to be automatically generated from requisitions
sourced to this contract purchase agreement
• Punchout requests only: Only punchout requisitions are allowed for automatic sourcing.
• Automatically generate orders: When a requisition is approved for an item on this
agreement, automatically create a purchase order for that item.
• Automatically submit for approval: When automatically generating orders, automatically
submit those orders for approval.
• Group requisitions: Allow consolidation of requisition lines from across multiple requisitions
into a single purchase order.
• Group requisition lines: Group requisition lines into the same purchase order line.
(Grouped by Line type, Item, Category, UOM, and Source Agreement). Optionally group by
Need-by Date, or Ship-to Location and Organization.)

Oracle Procurement Cloud: Procurement Implementation 9 - 20

Oracle Procurement Cloud: Procurement Implementation 9 - 21
Supplier Agreement Roles and Duties
In a buying organization, procurement agents with job roles of Buyer, Category Manager,
Procurement Manager or Procurement Contract Administrator are typically the ones responsible
for creating supplier agreements. Therefore these job roles inherit duty roles required for creating
supplier agreements.
Procurement Contract Administrators and Procurement Managers, in addition to these duty roles,
also inherit Contract Terms Authoring (Override) duty role, which provides them the additional edit
capabilities on contract terms such as, ability to add non standard clauses, edit protected clauses
and remove mandatory clauses.
Procurement Catalog Administrators inherit the Purchase Agreement Changes as a Catalog
Administrator duty role that enables them to upload files to add catalog content or edit catalog
content online on draft agreements that have been transferred to them by the procurement agent.
From the supplier organization, Supplier Sales Representatives inherit the Purchase Agreement
Changes (Supplier-facing) duty role that enables them to upload files to add catalog content or
edit catalog content online on draft agreements that have been transferred to them by the
procurement agent.

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Procurement agents need the Purchase Agreement Creation Duty to create or update
Agreements, transfer them to Suppliers or Catalog Administrators for catalog content authoring,
submit agreements for approval, and cancel them prior to approval when necessary.
Catalog Administrators need the Purchase Agreement Changes as Catalog Administrator Duty for
catalog content authoring on draft agreements transferred to them by the procurement agent.
Supplier Sales Representatives need the Purchase Agreement Changes (Supplier -facing) Duty for
catalog content authoring on draft agreements transferred to them by the procurement agent.

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Contract Tasks
Procurement agents need the Contract Terms Authoring (Template Only) duty role to apply a pre -
approved contract template on agreements and to view contract terms.
The Contract Terms Authoring (Override) duty provides Procurement Contract Administrators with
additional edit capabilities on contract terms such as, the ability to add non -standard clauses, edit
protected clauses, and remove mandatory clauses.

Oracle Procurement Cloud: Procurement Implementation 9 - 24

Oracle Procurement Cloud: Procurement Implementation 9 - 25
Oracle Procurement Cloud: Procurement Implementation 9 - 26
Oracle Procurement Cloud: Procurement Implementation 10 - 2
Procurement Life Cycle
The procurement process can take several forms based on your business practices. But a
broad generalization can be summarized by the above graphic.
There are many “standard” definitions of portions of the procurement process such as
Procure-to-Pay and Source-to-Settle. In reality the actual process is determined by the
business requirements of the enterprise. For the sake of discussion, his course will focus on
two process flows that Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 10 - 3

Key Functionality of Self Service Procurement
Catalog Management
Purchasable content is made available for shopping from internal and external sources based
on the organization’s needs. Catalog content can be shared across multiple requisitioning
business units without duplicating the content.
Shopping
The process where users search for, compare, and select items that they need to purchase.
They can also navigate to punch out to either supplier-hosted or marketplace-hosted catalogs
to shop. When found, the items can be quickly added to a requisition.
Review and submit requisition
Requesters review, enter quantities, billing information, and delivery information on the
requisition, and then submit it for approval.
Approval and order creation
Requisitions are routed to approvers based on predefined business rules. Orders are created
from the approved requisition.

Oracle Procurement Cloud: Procurement Implementation 10 - 4

Navigation: Navigator > Setup and Maintenance > Implementation Projects >
“XXProcurement Implementation” > Procurement
Define Self Service Procurement
This lesson covers the tasks in FSM for Define Self Service Procurement configuration, and
then describes catalog content setup and maintenance from the Catalogs work area in Self
Service Procurement.

Oracle Procurement Cloud: Procurement Implementation 10 - 5

Oracle Procurement Cloud: Procurement Implementation 10 - 6
Oracle Procurement Cloud: Procurement Implementation 10 - 7
Oracle Procurement Cloud: Procurement Implementation 10 - 8
Adding Attributes
Attributes first need to be set up in the Descriptive Flexfields application, and the catalog
administrator specifies the DFF context on the Create and Edit Information Template page to
apply the list of attributes.
For example, the catalog administrator sets up a context Business Cards Marketing, with the
following context sensitive fields:
• Job Title
• Organization
• Office Location
When creating an information template, the catalog administrator can then specify context
Business Cards Marketing in the Attribute List field, which will associate the attributes to the
information template.
Notes
• The maximum number of attributes that can be created for an information template is
fifty.
• Existing information attributes are maintained as attachments downstream, such as in
Purchasing.

Oracle Procurement Cloud: Procurement Implementation 10 - 9

Supported Attributes
The following attribute types are supported by DFFs:
• Text: Text attributes can be setup using DFF to be added to an information template.
For example, the procurement catalog administrator can create an information template
called Business Card Information USA to be used for collecting related information when
ordering business cards. Examples of text typed fields are Name, Title, Address and so
on.
• Number: Procurement catalog administrators can create number typed attributes using
DFFs, to be used in an information template. For example, Zip Code, Telephone, and
Area Code.
• Standard Date: Standard Date Time and Time: Procurement catalog administrators are
able to define date format attributes in DFFs, to be used in an information template. This
allows for automatic date formatting according to globalization requirements, since
09/01/2007 may mean September 1, 2007 in the US, but January 9, 2007 in others.
• List of Values: Value sets can be added to Information Templates through DFFs as List
of Values. Implementing attributes as List of Values allows enforcement of values that
can be populated in these fields. For example, as part of an address, the Country field
can be implemented as list of values (LOV) containing only countries that are applicable.
• Choice Lists: Choice lists make use of value sets as well, similar to List of Values.
End Dates
Procurement Catalog Administrators can specify an End Date on an information template. An
information template is inactive if the system date is more than or equal to the End Date.
When an information template is inactive, it will no longer be applied when items (to which this
information template is assigned) are added to the requisition. Requisitions created with lines
that are associated to this information template will continue to display the information
template information.
For incomplete requisitions, the inactive information templates are no longer available at the
time the requisition is retrieved.
For copied and withdrawn requisitions, information templates are also no longer available if
the information template is inactive at the time the requisition is copied or resubmitted.

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Oracle Procurement Cloud: Procurement Implementation 10 - 11
Defining a category hierarchy is optional. You may decide to implement a category hierarchy
at any stage of the product implementation and may choose what categories should be
enabled for browsing. There is one Procurement Catalog Category Hierarchy per instance.
The category hierarchy can be defined with as many levels as needed to capture granular
supplier category classifications. The hierarchy navigation allows users to quickly drill down
and select their applicable categories.
The two types of categories that are used in the hierarchy are browsing categories and item
categories
Browsing Categories
Browsing categories are also known as navigation categories. They define the category
hierarchy for category browsing. The category hierarchy helps users browse for catalog items.
Browsing categories can be either a parent or child to another category, but cannot contain
any items. Browsing categories are optional and companies can decide what categories
should be enabled for browsing.
You can associate catalogs (local, punchout, informational) and smart forms to the browsing
categories. When a user navigates to the category, the associated content type will be
displayed.

Oracle Procurement Cloud: Procurement Implementation 10 - 12

An alternative to setting up browsing categories is to tag punchout, informational, and smart
forms with keywords, so that users can find them when performing basic search.
Item Categories
Item categories are used to group items for various reports and programs. A category is a
logical classification of items that have similar characteristics. For Procurement, every item
must belong to an item category. Item categories are the categories defined for the catalog
associated with the Purchasing Functional Area.

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Oracle Procurement Cloud: Procurement Implementation 10 - 14
Hierarchy with Associated Catalog Content
When the user associates the punchout, informational, local, and smart form to a category,
the system travels up and down the tree to associate the punchout, informational, local and
smart form with all the browsing and purchasing categories of the same branch. Item master
items, and agreement items are indexed with their corresponding purchasing categories. For
example, in the illustration, when the user navigates down the branch from Information
Technology browsing category to the Computer Servers purchasing category, the search
results will always include the Dell USA punchout, which is associated with Computers. The
system associates the punchout catalog Dell USA with the categories of the same branch as
Computers which are Information Technology, Components for Information Technology,
Computers, and Computer Servers.
The informational catalog How to Request Computer Services is associated with the browsing
category Information Technology. As the user navigates the branch of Information
Technology, the Informational Catalog is seen at the level of Information Technology,
Components for Information Technology, System Cards, Computers, Memory Module Cards,
and Computer Servers.

Oracle Procurement Cloud: Procurement Implementation 10 - 15

Local catalog items also show up during browsing. Using the example in the figure in the
slide, items in BPAs with suppliers Techworks or Zones Corporate that are tied to the
purchasing categories Memory Module Cards or Computer Servers will show up as the user
navigates down the Information Technology branch, based on the content available to the
user via content zone.
The procurement catalog index is automatically updated after any changes to the hierarchy
are saved.

Oracle Procurement Cloud: Procurement Implementation 10 - 16

Oracle Procurement Cloud: Procurement Implementation 10 - 17
Catalog Setup and Maintenance tasks include the following:
Define and Manage Catalog Category Hierarchy
Category hierarchy in the Setup Manager was covered, but it is also available for setup and
maintenance from the Catalog work area. Catalog administrators most likely will access it
from the Catalog work area, both are represented in the flow.
Manage Agreements
The Agreement Loader is used to upload agreement lines in bulk using a data file.
Define Supplier Content Map Sets
Map sets are sets of mappings for category, UOM, supplier, and supplier sites.
Define Local, Punchout, and Informational Catalogs
The three different types of catalogs are used for shopping.
Define Information Templates
Information templates are used to enhance smart forms by adding attributes, default values
and field validation rules to the form.

Oracle Procurement Cloud: Procurement Implementation 10 - 18

Define Smart Forms
Smart forms are used to easily collect required information to create noncatalog requests.
Define Content Zones
Content Zones are used to secure catalog content. When the content is defined and
associated to content zones accessible to one or more users, the system will present the
available content based on content security, matching keyword or a category when the user
browses or searches the catalog.
Dependencies on Upstream L2 Detailed Business Processes
• Manage Product/Service Data: Purchasing categories and master items need to be
created before creating procurement catalog category hierarchy and local catalog
content.
• Manage Supplier Agreements: Agreements need to be created before setting up local
catalog content.
• Manage Supplier Information: Suppliers need to be created before setting up
punchout catalogs and smart forms.
Additional Activity Needed Outside of Application Setup Manager
• Manage Procurement Content.
• Set up and maintain procurement content including local content, supplier web stores,
smart forms, public shopping list, and informational web resources.
• Organize and secure the content.

Oracle Procurement Cloud: Procurement Implementation 10 - 19

Navigation: Navigator > Procurement > Catalogs
This lesson reviews Catalog tasks in the following order:
• Manage Agreements
• Manage Supplier Content Map Sets
• Manage Catalogs
• Manage Public Shopping Lists
• Manage Information Templates
• Manage Smart Forms
• Manage Content Zones
Catalog Category Hierarchy can be created and managed from both FSM and from the
Catalogs work area. The Manage Catalog Category Hierarchy task was covered earlier this
lesson in the Defining Self Service Procurement Configuration task group in FSM.

Oracle Procurement Cloud: Procurement Implementation 10 - 20

A map set is defined in a procurement BU, and ADFdi (Application Development Framework
Desktop Integration) templates are used to upload the mappings into the system. The ADFdi
templates are created in Microsoft Excel 2007 spreadsheets. The spreadsheet can be sent to
supplier to allow them to populate the external values. The Map Set template is launched from
the Manage Supplier Content Map Sets page.
The procurement catalog administrator can map content (values for category, UOM, supplier
and supplier site) received from supplier to internal values used by the application. ADFdi
provides online integration to allow selection of internal values.
After being created, a map set can be associated with punchout catalogs, or selected for use
when uploading agreements lines through the agreement loader. In the case where a map set
is intended for use with an agreement, or for association with a catalog that punches out to a
supplier site that sells only the supplier’s own products, only the Category and UOM maps will
be relevant. In the case where a map set is meant to be associated with a catalog that
punches out to an aggregator site (for example, Oracle Exchange), all four maps, Category,
UOM, Supplier, and Supplier Site, will become relevant in the mapping process.
For each procurement BU, an existing map set can be set as the Default map set.

Oracle Procurement Cloud: Procurement Implementation 10 - 21

ADFdi allows suppliers who do not have access to the procurement application to still be able
to provide their data to the catalog administrator. In addition, it allows catalog administrator to
take advantage of Excel’s capabilities and functionalities for manipulating large amounts of
data.
Using Supplier Content Map Sets with Agreement Loader
A map set can be used when uploading agreement lines. The applicable attributes that can
be mapped are category and unit of measure. The values as stated in the upload file are
considered external values in this mapping process. When uploading agreement lines, the
user can indicate if mapping should be applied to map the external value to a corresponding
internal value for the attribute.
If the user chooses to apply mapping, a map set must be specified.
1. If a default map set is setup for the procurement BU, the value is defaulted. The user
can override the value.
2. If no default map set is set up for the procurement BU, the user must then select a map
set.
The following steps are used to determine a mapped internal value for the attribute:
1. If a map set is specified, the map set will be searched during the mapping process to
identify a matching external value to the attribute being mapped. If a match is found, the
mapped internal value is used for further processing.
2. If the external value is not found in the specified map set, the default map set for the
Procurement BU of the agreement line will be searched for a matching external value. If
a match is found, the mapped internal value is used for further processing.
3. If the external value is still not found in the default map set, then the external value is not
mapped, and is used as is for further processing.

Oracle Procurement Cloud: Procurement Implementation 10 - 22

Oracle Procurement Cloud: Procurement Implementation 10 - 23
Oracle Procurement Cloud: Procurement Implementation 10 - 24
Oracle Procurement Cloud: Procurement Implementation 10 - 25
Oracle Procurement Cloud: Procurement Implementation 10 - 26
Oracle Procurement Cloud: Procurement Implementation 10 - 27
Information Templates are created in a Procurement BU and are available to Requisitioning
BUs serviced by that Procurement BU. In the event where a Requisitioning BU is serviced by
multiple Procurement BUs, and more than one service provider had assigned an information
template to an item or category, applicable information templates from all service provider
Procurement BUs will be returned.
Information templates are available to the preparer if the items or smart forms that the
information templates are associated with are available to the preparer.
Procurement catalog administrators can define a unique information template name so they
are easily identifiable in a smart form.
For example, more than one procurement BU can maintain information templates to collect
business card information. The same Display Name, Business card information, can be used
on these information templates to indicate the purpose of these templates when displayed in
Oracle Fusion Self Service Procurement. Procurement Catalog Administrators can also define
an information template section description or instruction text providing preparers with specific
instructions on how to fill out the form.

Oracle Procurement Cloud: Procurement Implementation 10 - 28

Oracle Procurement Cloud: Procurement Implementation 10 - 29
A catalog administrator can perform the following customizations for a smart form:
• Provide an instruction text to assist the requester in completing the request.
• Define default values, such as supplier, agreement, price.
• Specify if an attribute can be updated by the requester in Self Service Procurement.
• Specify an image that will be displayed for the smart form in catalog browsing.
• Assign information templates to the smart form to collect additional information from the
requester.
• Associate the smart form with item or browsing categories for catalog browsing.
• Add attachments.

Oracle Procurement Cloud: Procurement Implementation 10 - 30

Oracle Procurement Cloud: Procurement Implementation 10 - 31
Oracle Procurement Cloud: Procurement Implementation 10 - 32
Administrators first define the catalog content and then make the content available to a user
or groups of users through content zones.
Content types secured by content zone:
• Local Catalogs
• Punchout Catalogs
• Informational Catalogs
• Smart Forms
• Public Shopping Lists
After being defined, administrators associate content to content zones, which are made
accessible to one or more users either directly, or through requisitioning BUs.
Note: Users will not have access to content that is not associated to a content zone.
There are two types of content zones:
• Requisitioning: Applies when users are shopping in self service procurement with the
intent of creating requisitions, or when buyers are replacing requisition lines while
processing requisition.
• Procurement: Applies when buyers are searching the catalog with the intent of adding
items to blanket agreement or to a purchase order; it is also applicable when the catalog
administrator is creating or maintaining a public shopping list.
Oracle Procurement Cloud: Procurement Implementation 10 - 33
The following security options are available depending on the content zone usage:
Secured by requisitioning BU: This option is available when the content zone is used for
requisitioning, which means that it applies to buyers processing requisitions, self-service
requesters and advanced procurement requesters. It will be accessible to those requesters
who have access to any of the requisitioning BUs assigned to the content zone, and to the
buyers when they update lines of requisitions from requisitioning BUs assigned to the content
zone.
Secured by worker: This option is always available for procurement or for requisitioning. The
content zone will be accessible only to those workers assigned to the content zone.
Available to all procurement users: This option is available when the content zone is used
for procurement, which means that it applies to users managing purchase orders,
agreements, or public shopping lists. It will be accessible to all users who have access to the
procurement business unit of the content zone.

Oracle Procurement Cloud: Procurement Implementation 10 - 34

Oracle Procurement Cloud: Procurement Implementation 10 - 35
Oracle Procurement Cloud: Procurement Implementation 10 - 36
Oracle Procurement Cloud: Procurement Implementation 10 - 37
Oracle Procurement Cloud: Procurement Implementation 10 - 38
Oracle Procurement Cloud: Procurement Implementation 11 - 2
Procurement Life Cycle
The procurement process can take several forms based on your business practices. But a broad
generalization can be summarized by the graphic.
There are many “standard” definitions of portions of the procurement process such as Procure-to-
Pay and Source-to-Settle. In reality the actual process is determined by the business requirements
of the enterprise. For the sake of discussion in this course we will focus on two process flows
which Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 11 - 3

Oracle Procurement Cloud: Procurement Implementation 11 - 4
As you learned in the lesson about managing catalogs, the catalog structure allows users to
search for all content regardless of how the content is grouped.
Requesters can find what they need, place and orders quickly, and buy more off -contract items.

Oracle Procurement Cloud: Procurement Implementation 11 - 5

Navigation: Navigator > My Information > Procurement > Purchase Requisitions
Catalog Superstore
Users can shop for items made available from internal and external sources based on the
organization’s needs. Catalog content can be shared across multiple requisitioning business units
without duplicating the content.
Shopping Results
Requesters search for, compare, and select items that they need to purchase. They can also
navigate to punch out supplier-hosted or marketplace-hosted catalogs to shop.
Requesters can quickly select items to add to a requisition. Before submitting for approval, they
can enter quantities, billing information, and delivery information.

Oracle Procurement Cloud: Procurement Implementation 11 - 6

Catalog Search
Requesters can search for items in the local catalog, punchout catalogs, or can search for
punchout items locally and then navigate to item details on the supplier punchout site.
Requesting New Suppliers
Requesters can request new suppliers during requisition creation and initiate the new supplier
approval process for that supplier.
Submitting Requisitions
When the requester submits the requisition, it immediately goes through the appropriate
approvals. Approvals are either predefined, or setup by your company. You will learn more about
defining approvals in another lesson of this course.

Oracle Procurement Cloud: Procurement Implementation 11 - 7

Line Management
Buyers can return one or more lines without returning the entire requisition. Requesters can also
withdraw one or more lines while others continue to be processed.
Reassigning Requisitions
Buyers can reassign requisitions to other buyers.
Updating Requisitions
If an employee leaves the company, managers can perform a mass-update of that employee’s
requisitions to assign a different requester.

Oracle Procurement Cloud: Procurement Implementation 11 - 8

Oracle Procurement Cloud: Procurement Implementation 11 - 9
Oracle Procurement Cloud: Procurement Implementation 11 - 10
This practice takes you through managing requisitions.

Oracle Procurement Cloud: Procurement Implementation 11 - 11

Oracle Procurement Cloud: Procurement Implementation 12 - 2
Procurement Life Cycle
The procurement process can take several forms based on your business practices. But a broad
generalization can be summarized by the graphic.
There are many “standard” definitions of portions of the procurement process such as Procure-to-
Pay and Source-to-Settle. In reality the actual process is determined by the business requirements
of the enterprise. For the sake of discussion in this course we will focus on two process flows
which Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 12 - 3

Navigation: Navigator > Purchasing
Purchasing Work Area: Key Features for Buyers
• Visibility to outstanding workload
• Easy to monitor transaction exceptions
• Easy to initiate simple actions on transactions

Oracle Procurement Cloud: Procurement Implementation 12 - 4

Oracle Procurement Cloud: Procurement Implementation 12 - 5
Oracle Procurement Cloud: Procurement Implementation 12 - 6
 The structure of an Oracle Purchasing purchase order consists of four major components.
Header
Each purchase order has a header that provides the supplier’s name/number and address
(through sites), basic ship-to and bill-to addresses (through locations) and a status.
Lines
Goods or services ordered are listed on the Lines region, including quantities, price, need -by date,
notes to supplier and price reference information. You can order system items or one -time items (a
category and description). Even companies who are not inventory-focused can benefit from
defining system items to reduce data entry requirements for their staff.
Schedules
Use the Schedules region to specify inventory organizations, ship-to locations and the date you
want your supplier to deliver the items on the purchase order line. A purchase order line with a
quantity of six items can, for example, have two scheduled shipments on separate dates.
Distributions
Use the purchase order Distributions region to enter distribution information for purchase order
shipments or to view distributions that Purchasing has automatically created for you. You can
enter multiple distributions per shipment line. You can also view the on-line requisitions included
on the purchase order or enter information about paper requisitions in this window.

Oracle Procurement Cloud: Procurement Implementation 12 - 7

Navigation: Navigator > Purchasing > Create Order > Purchase Order > Create
Overview of Standard Purchase Orders
You generally create standard purchase orders for one-time purchases of various items when you
know the details of the goods or services you require, including costs, quantities, delivery
schedules and accounting distributions. Each standard purchase order line can have multiple
shipment schedules, and you can distribute the quantity of each shipment across multiple charge
accounts, projects, tasks and requesters.
Binding Agreement
The original copy of the purchase order you send to your supplier is a legal offer to buy. A binding
purchase contract does not exist until the supplier accepts your offer either by performing the
contract (by delivering commodities) or formally accepting the offer by contacting you verbally or in
writing. You can record acceptances on behalf of your suppliers or they can do it using Oracle
Fusion Supplier Portal.

Oracle Procurement Cloud: Procurement Implementation 12 - 8

Fields on Main Tab of Purchase Order
Required Fields
• Procurement BU: The procurement business unit that will own and manage the supplier
agreement through its life cycle
• Buyer: The defaulted buyer is the employee name associated with the user name of the
person creating the purchase order.
• Currency: The functional currency defaults. Use the Currency button to change the
functional currency if you are using multiple currencies.
Key Fields
• Sold-to Legal Entity: The legal entity that is liable for the purchase order amount
• Bill-to BU: The business unit that processes supplier invoices for the purchase order
• Supplier: The list of values on the Supplier field contains active suppliers.
• Supplier Site: The list of values on the site field contains active sites that are designated as
purchasing sites.
• Supplier Contact: Choose a contact using the list of values if contacts are defined and no
contact defaults.
• Communication Method: Communicate your purchase orders along with any amendments,
attachments, contract terms, and contractual deliverables to suppliers using print, fax, or e -
mail.
• Payment Terms: Choose one of the defined payment terms which can indicate multiple
installments and multiple levels of discounts.
• Pay on Receipt: Also known as self billing, invoices are automatically created using a
combination of receipt and purchase order information.
Fields of Note
• Description: You can enter comments in the 240 character description field. Although the
description does not print on the printed purchase order, suppliers can use it if they have
access to the system with Oracle Supplier Portal.
Source Agreement: Supplier agreement that this purchase order is sourced to (was
automatically created based on).
• Required Acknowledgement: Supplier must acknowledge the pricing and terms of this
purchase order before it can be approved.
• Shipping Method: Preferred shipper for goods ordered on this purchase order
• Freight Terms: Choose one of the defined freight terms for goods ordered on this purchase
order.

Oracle Procurement Cloud: Procurement Implementation 12 - 9

Navigation: Navigator > Purchasing > Create Order > Purchase Order> Create > (T) Lines
Line Fields on Main Tab of Purchase Order
Purchase order lines include details of the goods or services to be purchased from the supplier.
Unlike supplier agreements, the line does contain delivery dates, individual delivery quantities,
and amounts.
Required Fields
• Type: Allows you to differentiate purchases for various commodities such as goods and
services
• Description: You must enter either an Item identifier or a description of the goods or
services.
• Category Name: Select the purchasing category of the item you want to purchase.
• UOM: Select the Unit of Measure for the commodity.
• Price: Enter a price per unit for the commodity.
Key Fields
• Need-by Date: Date that the commodities of this line are required
• Expiration Date: Date this line is no longer effective
Fields of Note
• Supplier Item: Item identifier that the supplier uses for this commodity
Oracle Procurement Cloud: Procurement Implementation 12 - 10
Navigation: Navigator > Purchasing > Create Order > Purchase Order> Create > (T) Schedules
Schedule Fields on Main Tab of Purchase Order
A purchase order schedule specifies the quantity, ship-to location, date you want your supplier to
deliver the items on a purchase order line, and country of origin for the items. Use the Schedules
tab or page to enter multiple shipment schedules for standard purchase order lines.
Shipping and Delivery
Each purchase order line has one or more due dates and external delivery locations carried on a
schedule. Create a schedule for each unique delivery address and due date. The critical
information for a single schedule defaults from the line. For additional schedules the key delivery
attributes are ship-to location, quantity, and required date.
Billing
As with the delivery information, if a further breakdown of the billing information is required
additional schedules may have to be created for a purchase order line. For additional schedules
the key billing attributes are approval matching and invoice matching.

Oracle Procurement Cloud: Procurement Implementation 12 - 11

Navigation: Navigator > Purchasing > Create Order > Purchase Order> Create > (T) Distributions
Distribution Fields on Main Tab of Purchase Order
A purchase order distribution specifies how the purchase order schedule is to be charged to the
organization. The purchase order Distributions tab or page is used to enter distribution information
for purchase order schedules or to view distributions that were automatically created for you. You
can enter multiple distributions per schedule.
Billing
Enter the purchasing accounts. When you save your changes in this window, the application
automatically creates the following accounts for each distribution:
• PO Charge Account: The account to charge for the cost of this item in the purchasing
operating unit
• PO Accrual Account: The payables accrual account in the purchasing operating unit
• PO Variance Account: The invoice price variance account in the purchasing operating unit

Oracle Procurement Cloud: Procurement Implementation 12 - 12

Navigation: Navigator > Purchasing > Manage Orders > Search > (Select Purchase Order) > View
Details
Navigation: Navigator > Purchasing > Recent Documents: Refresh > (Select Purchase Order) >
View Details

Oracle Procurement Cloud: Procurement Implementation 12 - 13

Oracle Procurement Cloud: Procurement Implementation 12 - 14
Purchase Order Creation
There are three main ways to create a purchase order:
1. Manual Entry: Created by a buyer, without a requisition
2. Process Requisition: Buyer intervention is required to process a requisition that is not
processed automatically.
3. Automatic: Created automatically from a requisition. No buyer intervention is required. A
supplier agreement must be set up for automated processing.
Additional ways to create purchase orders include:
• Import orders
• Create a duplicate copy of an existing order
• Order created from the outcome of a sourcing negotiation

Oracle Procurement Cloud: Procurement Implementation 12 - 15

Navigation: Navigator > Purchasing > Process Requisitions > Search > (Select Requisition) > Add
to Document Builder
The Process Requisitions page allows you to access and aggregate existing requisition demand
to create purchase orders.
By using entered or saved search parameters, you can quickly select all requisition lines that meet
the unique set of criteria of your procurement needs. After you have identified the appropriate
requisition lines it is a simple task to add them to the document builder and create your purchase
order.

Oracle Procurement Cloud: Procurement Implementation 12 - 16

Procurement agents with Job roles of Buyer, Category Manager, Procurement Contract
Administrator or Procurement Manager are typically responsible for creating purchase orders in
the buying organization. Therefore these job roles inherit duty roles required for creating purchase
orders and authoring contract terms.
Procurement Contract Administrators and Procurement Managers, in addition to these duty roles,
also inherit Contract Terms Authoring (Override) duty role. This provides them additional edit
capabilities on contract terms, such as the ability to add non standard clauses, edit protected
clauses and remove mandatory clauses.
These roles need to be explicitly granted to users as appropriate.

Oracle Procurement Cloud: Procurement Implementation 12 - 17

The Purchase Order Creation Duty allows a procurement agent to create Purchase Orders, Lines,
and Distributions. This includes creation of purchase order line from catalog and creation of
purchase order from requisitions.
Procurement agents need the Contract Terms Authoring (Template Only) duty role to apply a pre -
approved contract template on Orders and to view contract terms.
The Contract Terms Authoring (Override) duty provides Procurement Contract Administrators with
additional edit capabilities on contract terms such as, the ability to add non -standard clauses, edit
protected clauses and remove mandatory clauses.

Oracle Procurement Cloud: Procurement Implementation 12 - 18

Oracle Procurement Cloud: Procurement Implementation 12 - 19
Key Features
• Initiator sensitive approval routing
• Execute Orders/ Agreements while changes are pending
• Configurable amendment vs. administrative changes
• Supplier rejections during acknowledgment
• Revert to previously approved version
• Complete Document Change History

Oracle Procurement Cloud: Procurement Implementation 12 - 20

Navigation: Navigator > Purchasing > Manage Orders > Search
A separate change order document allows for requesting changes, communicating them and
soliciting approvals and acceptances without affecting the order currently in service.
There is always a live version of the order that remains available for downstream consumption
even while a proposed change is being processed. This is especially important when changes to
legal terms and conditions are being proposed. This kind of change typically involves multiple
rounds of review from multiple parties and takes a while before they get processed. Non
availability of an order during this period may lead to delay in receiving and payments, as well as
incremental communication and administrative costs.

Oracle Procurement Cloud: Procurement Implementation 12 - 21

Navigation: Navigator > Setup and Maintenance > All Tasks > Manage Change Order Template >
Purchase Order Change Order Template
A change order document can include changes to multiple attributes in multiple sections of the
order. Change orders having only changes with which a supplier need not be bothered, should not
be communicated to the supplier or require their formal acknowledgment, before the changes get
implemented. These types of changes are more administrative in nature and should not cause a
formal revision of the order, such as changing accounting information on orders or changing
attributes governing receiving controls on orders.
When it comes to identifying changes for attributes which are purely administrative, versus
changes which require supplier communication and revision of an order, businesses tend to have
differing requirements. The set of attributes in each class may vary widely from one business to
another.
Change order templates provide flexibility to businesses, by allowing them to identify those
specific attributes on an order which should be communicated to a supplier and a formal revision
tracked.

Oracle Procurement Cloud: Procurement Implementation 12 - 22

These audit trail pages provide drill downs to:
• View changes proposed on the change order
• View actions performed on the change order
• Compare to original document

Oracle Procurement Cloud: Procurement Implementation 12 - 23

Procurement agents with Job roles of Buyer, Category Manager, Procurement Contract
Administrator or Procurement Manager are typically responsible for creating purchase orders in
the buying organization. These job roles inherit duty roles required for creating purchase orders
and authoring contract terms.
Procurement Contract Administrators and Procurement Managers, in addition to these duty roles,
also inherit Contract Terms Authoring (Override) duty role. This provides them additional edit
capabilities on contract terms, such as the ability to add non standard clauses, edit protected
clauses and remove mandatory clauses.
These roles need to be explicitly granted to users as appropriate.

Oracle Procurement Cloud: Procurement Implementation 12 - 24

Oracle Procurement Cloud: Procurement Implementation 12 - 25
Oracle Procurement Cloud: Procurement Implementation 12 - 26
Oracle Procurement Cloud: Procurement Implementation 13 - 2
Procurement Life Cycle
The procurement process can take several forms based on your business practices. But a
broad generalization can be summarized by the graphic.
There are many “standard” definitions of portions of the procurement process such as
Procure-to-Pay and Source-to-Settle. In reality the actual process is determined by the
business requirements of the enterprise. For the sake of discussion in this course we will
focus on two process flows which Oracle refers to as Procure to Pay and Sourcing.

Oracle Procurement Cloud: Procurement Implementation 13 - 3

Oracle Self-Service Procurement includes self-service requisitioning and receipt applications
that help control employee spending. Oracle Self-Service provides a web-based shopping
system that allows employees to create, manage, receive and track their own orders while the
Purchasing department retains central control.
Easy ordering and seamless workflow provide better service, while non-sourced or off-catalog
spending gets the attention it needs from buying professionals.
Requesters can then easily acknowledge the receipt of their orders using the self-service
receipt feature.

Oracle Procurement Cloud: Procurement Implementation 13 - 4

Navigation: Navigator > Procurement (under My Information) > Receipts

Oracle Procurement Cloud: Procurement Implementation 13 - 5

Oracle Procurement Cloud: Procurement Implementation 13 - 6
Oracle Procurement Cloud: Procurement Implementation 13 - 7
Navigation: Navigator > Procurement (under My Information) > Receipts
Required Fields
• Requester: The individual creating and submitting a request for goods or services
• Entered By: The person who created the requisition
Fields of Note
• Requisition: The identifier of the Procurement document used to request the purchase
of goods or services
• Items Due: The items that are due to be received as of the date
• Requisitioning BU: The business unit in which the requisition was created
• Purchase Order: A commercial document that is used to request a seller to supply a
product or service in return for payment
• Supplier Item: The supplier’s item number for these goods or services from the
purchase order line schedule

Oracle Procurement Cloud: Procurement Implementation 13 - 8

Navigation: Navigator > Procurement (under My Information) > Receipts > Select requisition
line > Receive

Oracle Procurement Cloud: Procurement Implementation 13 - 9

Navigation: Navigator > Procurement (under My Information) > Receipts > Manage Receipts
Fields of Note
• Receipt: Number that acknowledges that a supplier shipment was received in the
warehouse
• Requisition: The identifier of the Procurement document used to request the purchase
of goods or services
• Items Received: Receipts entered as of this date range
• Requisitioning BU: The business unit in which the requisition was created
• Purchase Order: A commercial document that is used to request a seller to supply a
product or service in return for payment

Oracle Procurement Cloud: Procurement Implementation 13 - 10

Oracle Procurement Cloud: Procurement Implementation 13 - 11
Note: Duty Roles listed here are related to this specific activity and do not necessarily
encompass all the duty roles defined for this job role.

Oracle Procurement Cloud: Procurement Implementation 13 - 12

Oracle Procurement Cloud: Procurement Implementation 13 - 13
Oracle Procurement Cloud: Procurement Implementation 13 - 14
Oracle Procurement Cloud: Procurement Implementation 13 - 15
Oracle Procurement Cloud: Procurement Implementation 14 - 2
Fusion Supplier Qualification Management enables you to evaluate suppliers according to a
set of predefined criteria to meaningfully support the procurement function within your
organization. The procurement process within your buying organization can then be driven
based on the qualification status of a supplier.
For example, in order for a supplier to perform a service or deliver goods, that supplier might
need to meet a certain set of qualifying criteria. These criteria could relate to basic profile-type
information, such as the supplier’s geography or financial viability, the supplier’s ability to
produce a product, its classifications (such as minority/woman-owned), status of green
initiatives, or formal certifications such as ISO 9000.
The process of supplier qualification includes defining the qualification requirements that a
supplier should meet, prequalifying the supplier based on a less stringent set of requirements,
qualifying the supplier by performing required verifications and audits, and assessing and
maintaining supplier qualification.

Oracle Procurement Cloud: Procurement Implementation 14 - 3

Fusion Supplier Qualification provides a framework for organizing, capturing, and leveraging
information about a supplier.
Many organizations do not track potentially important information about a supplier’s
capabilities, certifications, or performance history and therefore have poor visibility to that
important information asset.
Other organizations may have corporate policies or regulatory requirements for tracking and
certifying certain supplier characteristics or capabilities, but the process may be ad hoc,
unstructured, and fragmented.
Or the organization may have the data somewhere, but it might not be easy to locate, access
and maintain. The Supplier Qualification solution allows you to define and organize the
information you need in a way that makes sense for your organization.

Oracle Procurement Cloud: Procurement Implementation 14 - 4

Fusion Supplier Qualification Management provides benefits to your qualification lifecycle
management:
• Improve: Support the end-to-end supplier management process and improve supplier
relationship by communicating your business requirements to the supplier and allowing
suppliers to prove their eligibility.
• Support: Supplier preference programs such as utilizing diverse suppliers within the
supply chain. It also supports sourcing decisions such as awarding business to qualified
suppliers. This helps generate better results from sourcing activities
• Manage: Mitigate risks by managing supplier compliance and preventing disruption in
your supplier chain. For example, suppliers must meet certain minimum economic,
environmental and social performance standards in order to qualify for business.
• Unify: Ensure all qualification information required for key business decisions is easily
available via a single source.

Oracle Procurement Cloud: Procurement Implementation 14 - 5

(N) > (H) Suppliers > (H) Manage Suppliers > search “supplier name”
The information obtained by Supplier Qualification processes becomes a part of the supplier
record for a supplier. In addition to viewing the standard supplier information available in
Supplier Model such as addresses, sites and contacts the Qualifications tab on the main
Supplier record shows the qualifications and assessments that are in effect for that supplier.
You can see from the screen shot some example qualification areas and a qualification model
that could be plausibly be set up in an implementation. In the Assessment region, the
assessment named Supplier Assessment was generated from an assessment model called
Supplier Assessment. The model name is used as the name of the assessment. Similarly,
each of the qualifications shown represents was generated using a qualification area with the
same name.
Much of the product implementation is involved in defining the structures that are later used to
gather, organize, and synthesize this supplier information, achieving the results shown here.

Oracle Procurement Cloud: Procurement Implementation 14 - 6

The first step in the supplier qualification process is to identify all the requirements that
different suppliers would need to satisfy for various levels of qualifications. These
requirements could focus on various aspects of the supplier including understanding the
supplier’s organization, its business, its customer base, its financial health, its procurement
processes, and other similar aspects. Additionally based on the type of goods or services the
supplier provides to the organization there could be additional requirements for the supplier
around manufacturing processes, quality control, standards certifications, licenses,
insurances.

Oracle Procurement Cloud: Procurement Implementation 14 - 7

A question is a information requirement from the buying organization. Supplier Qualification
allows you to capture these requirements in the form of questions that are stored in he
Question Library.

Oracle Procurement Cloud: Procurement Implementation 14 - 8

A Qualification Area is a group of related questions used to evaluate a particular aspect of the
supplier. Using the questions defined in the Question Library, you can create qualification
areas that contain the questions needed for qualifying a particular aspect of a supplier.
Here is an example of a qualification area for financial viability that includes relevant
questions to gauge the financial viability of a supplier. Similarly, the environmental compliance
qualification area includes questions to verify if the supplier follows policies that are
environmentally friendly.

Oracle Procurement Cloud: Procurement Implementation 14 - 9

Supplier Qualification lets you qualify your supply base based on your organization’s
requirements. You define questions, qualification areas and qualification models upfront to
qualify or assess your suppliers. Your organization’s business requirements are captured in
the form of questions, and questions are grouped together into various qualification areas.
The qualification areas are used to create qualifications for evaluating various aspects of
suppliers. A qualification model contains one or more qualification areas, and is used to
assess suppliers overall.
The first step in qualifying suppliers is to identify and capture all the requirements that the
suppliers may need to satisfy to be qualified. Each requirement is defined as a question in the
question library. The questions in the question library are reusable and available to other
supplier qualification managers.
Once the business requirements have been captured in the question library, you create a
qualification area. A qualification area is a collection of related questions that you use to
qualify suppliers for a specific aspect. You then use these qualification areas to qualify your
suppliers based on your business needs.
To assess your suppliers overall, you create a qualification model. A qualification model
consists of one or more qualification areas with the questions included in it that are needed to
assess suppliers. A Qualification model can be global, meaning available to all business units,
or it can be catered to a specific business unit.

Oracle Procurement Cloud: Procurement Implementation 14 - 10

A Qualification is an instance of a qualification area with an assignment of a supplier or
supplier/supplier site combination. It is in the context of a procurement business unit, and
carries an outcome that can be used for search purposes.

Oracle Procurement Cloud: Procurement Implementation 14 - 11

This is an example of the financial viability qualification for supplier Acme Corp. Based on the
supplier’s response to questions included in the financial viability qualification area, this
qualification has been assigned an outcome of Qualified.

Oracle Procurement Cloud: Procurement Implementation 14 - 12

An initiative encapsulates the end-to-end qualification process of qualifying a supplier. An
initiative represents an entity that brings multiple qualifications, for one or more suppliers
based on one or more qualification areas, initiated in a single process together for managing
and tracking of these qualifications as a group. Similarly an initiative can also bring multiple
assessments, for one or more suppliers based on a qualification model, initiated in a single
process together for managing and tracking of these assessments as a group.

Oracle Procurement Cloud: Procurement Implementation 14 - 13

Fusion Supplier Qualification supports provides functionality to support the entire supplier
qualification cycle:
1. A qualification manager initiates the qualification process by creating an initiative.
2. A supplier contact or an internal responder responds to questions they may receive in
the form of a questionnaire.
3. The qualification manager reviews the supplier or internal responder response and
accepts the response or request for more information from the responder.
4. One or more evaluation team members assess responses received from the supplier
and internal responder and assign an outcome to the qualification.
5. The qualification manager monitors the status of qualifications, keeps track of new
information available and re-qualifies the suppliers on an as-need basis.

Oracle Procurement Cloud: Procurement Implementation 14 - 14

Oracle Procurement Cloud: Procurement Implementation 14 - 15
(N) > (H) Setup and Maintenance > (T) All Tasks > search “Define supplier qualification
configuration” > expand (F) Define Supplier Qualification Configuration
The slide shows the configuration tasks that are available from Functional Setup Manager.

Oracle Procurement Cloud: Procurement Implementation 14 - 16

Copy of previous slide to simulate animation.

Oracle Procurement Cloud: Procurement Implementation 14 - 17

(N) > (H) Setup and Maintenance > (T) All Tasks > search “define supplier qualification
configuration” > expand (F) Define Supplier Qualification Configuration > (I) Manage Subject
Lookup/(I) Manage Standards Organization Lookup
You define subjects by using the “Manage Subject Lookup” task in FSM, and standards
organization using the “Manage Standards Organization Lookup” task based on your
organization’s needs. When you create a question, qualification area, or qualification model,
you associate a subject and / or standards organization with it. You can later search
questions, areas and models using the subject and standards organization.

Oracle Procurement Cloud: Procurement Implementation 14 - 18

These tasks were covered in detail during the demo. See Appendix for screenshots.

Oracle Procurement Cloud: Procurement Implementation 14 - 19

You can define some outcome values (questions, areas) when you define the object. These
outcomes apply only to that object. However, you define the evaluation outcomes for
assessments using Functional Setup Manager.

Oracle Procurement Cloud: Procurement Implementation 14 - 20

(N) > (H) Setup and Maintenance > (T) All Tasks > search “define supplier qualification
configuration” > expand (F) Define Supplier Qualification Configuration > (I) Manage
Assessment Outcome Lookup
When you evaluate a supplier using a Qualification model, you specify an assessment
outcome to communicate your evaluation decision. These assessment outcomes must be
defined before you can use them to evaluate a supplier using the qualification model. You can
decide on the number of outcomes and the outcome names based on your organization’s
need, and use the Fusion Setup Manager to define them in the application. The set of
assessment outcomes defined is available for assessments for that procurement business
unit independent of the qualification model used for creating the assessment.

Oracle Procurement Cloud: Procurement Implementation 14 - 21

You can extend the data model using descriptive flexfields and can configure associated
value sets here.

Oracle Procurement Cloud: Procurement Implementation 14 - 22

You can configure error messages to add company-specific text or instructions.

Oracle Procurement Cloud: Procurement Implementation 14 - 23

(N) > (H) Setup and Maintenance > (T) All Tasks > search “manage procurement document
numbering”
You can have custom document number for all the initiatives, qualifications and assessments
created, based on your organization’s needs. You can define the desired numbering using the
Manage Procurement Document Numbering page. The setup also allows you to specify a
prefix and a suffix as part of the numbering. This numbering must be defined for each
procurement business unit.
This task is a basic procurement implementation tasks and is often performed when
implementing another procurement product.

Oracle Procurement Cloud: Procurement Implementation 14 - 24

(N) > (H) Setup and Maintenance > (T) All Tasks > search “manage procurement agent”
You configure the procurement agent’s access to procurement activities, such as managing
supplier qualifications for a business unit. The key elements for defining agent security are
enabling agent access to specific activities or document types, and setting the access level to
other agent’s documents. Note that an agent can perform all actions on their own documents
as long as they have procurement BU access.
For supplier qualification, you need to allow the agent to perform the Manage Supplier
Qualifications activity for a given business unit. In addition to this, you can set the access level
for other agents’ documents as None, View or Full:
• None means the agent cannot access documents owned by other agents.
• View allows the agent to search and view other agents’ documents.
• Full enables the agent full control of other agents’ documents which include view, edit,
delete, cancel.
This task is a basic procurement implementation tasks and is often performed when
implementing another procurement product.

Oracle Procurement Cloud: Procurement Implementation 14 - 25

Oracle Procurement Cloud: Procurement Implementation 14 - 26
Oracle Procurement Cloud: Procurement Implementation 14 - 27
The following screen highlights are included for reference. They display screens from which
you create your qualification building blocks.

Oracle Procurement Cloud: Procurement Implementation 14 - 28

(N) > (H) Supplier Qualification > (H) Manage Question > (I) Create
Questions are the building blocks of Supplier Qualification product. You define the following
when you create a question:
• Question Name and the text of the question
• Question Level to indicate if a question applies to supplier or supplier site
• Responder Type to indicate whether a supplier contact or an internal evaluator should
reply to the question
There are various question types supported in the system:
• Text entry
• Multiple Choice with single selection
• Multiple Choice with multiple selection
You can attach supporting documents for your responders or for internal evaluators. You can
categorize questions based on classification information such as Subject or Standards
Organization. This will not only help you find a question easily, it makes it easier to organize
questions

Oracle Procurement Cloud: Procurement Implementation 14 - 29

(N) > (H) Supplier Qualification > (H) Manage Questions > (I) Create > enter question
information > (I) Add Result > Edit Questioning Branching
For multiple choice questions, you may specify follow-up questions that should be asked of
the responder based on his or her response to a previous question. For example, when a
supplier is responding to a questionnaire, if the supplier answers Yes to the Workplace
Hazards question, then you can ask a question related to hazardous activities. A certain
response can present one or more follow-up questions to the responders. To add a question
as a follow-up question to the question branching, it should already be created and available
in the question library.

Oracle Procurement Cloud: Procurement Implementation 14 - 30

(N) > (H) Supplier Qualif ication > (H) Manage Questions > (I) Create > Map to supplier attribute
checkbox > search f or Supplier Prof ile Attribute
The Supplier Prof ile maintains inf ormation such as corporate details, income tax details,
certif ications about a supplier and its sites. Supplier Qualif ication lets you map questions to
supplier prof ile inf ormation. For profile attributes that have pre-def ined set of values in the
Supplier Prof ile, the acceptable responses are populated automatically for you. Depending on the
supplier prof ile attribute to which you map the question, Question Type and Response Type are
def aulted f or you and cannot be changed.
Some of the attributes you can map to f or the Corporate Prof ile are:
• Tax Organization Type
• Supplier Type
• Current Fiscal Year’s Potential Revenue
Attributes you can map f or Income Tax are:
• State reportable
• Tax Reporting Name
• Name Control and Verif ication Date

Oracle Procurement Cloud: Procurement Implementation 14 - 31

Supplier Site attributes include:
• Shipping Method
• Payment Terms
• And Payment Methods

Oracle Procurement Cloud: Procurement Implementation 14 - 32

(N) > (H) Supplier Qualification > (H) Manage Questions > (I) Create > Map to supplier
attribute checkbox > (M) Category
In addition to mapping to supplier profile attributes, you can map your question to a supplier’s
business classification.
To solicit the latest certification information and use it for qualifications, you create a question
and map it to a certain business classification. Certifying agencies set up for the selected
business certification are displayed in the acceptable responses section. You narrow down
the list of agencies if needed. For example, if you would like to qualify mid-west suppliers
certified as Small Business, then you map your question to Small Business and delete west
coast and east coast agencies from acceptable responses.
When a business classification question is presented to a supplier on a questionnaire,
supplier can update any existing certificates or add new certificates. Once the qualification
manager reviews the questionnaire response, the certification information is updated in the
response repository as well as on the supplier profile.

Oracle Procurement Cloud: Procurement Implementation 14 - 33

(N) > (H) Supplier Qualification > (H) Manage Qualification Areas > (I) Create
A qualification area is a grouping of related questions that help you identify the requirements
for a specific aspect of a supplier. You select a procurement business unit which will use this
area for qualifying suppliers. Alternatively, you can mark the area as global, meaning all
business units can use this area for qualification process.
You add pre-defined questions from the question library to the area. If you do not find a
question you are looking for in the question library, you can create a new question and add it
to the qualification area while you are creating the area itself.
A qualification outcome is a possible evaluation outcome assigned to a supplier for a given
qualification area to indicate the extent of requirements that the supplier met during the
qualification process. One of these outcomes is assigned to suppliers during the evaluation
process.
The Qualification area level indicates if the area can be used for qualifying both supplier sites
as well suppliers, or if it is available for qualifying supplier sites only. Also, you set up
expiration reminders to track and manage expiring qualifications ahead of time.

Oracle Procurement Cloud: Procurement Implementation 14 - 34

(N) > (H) Supplier Qualification > (H) Manage Qualification Models > (I) Create
A qualification model contains zero or more qualification areas which form the basis for
overall evaluation of a supplier. You select a procurement business unit which will use this
model for assessing suppliers. You can also make the model available to other procurement
business units. Alternatively, you can mark the model as global, meaning all business units
can use this model for assessment process.
You add pre-defined qualification areas to the model. You can also define a new area and
add it to the qualification model.
Qualification model level indicates if the model can be used for assessing both supplier sites
as well suppliers or if it is available only for assessing supplier sites. You set up expiration
reminders to track and manage expiring assessments ahead of time.

Oracle Procurement Cloud: Procurement Implementation 14 - 35

The following screen highlights are included for reference. They demonstrate screens from
which you conduct supplier qualification tasks.

Oracle Procurement Cloud: Procurement Implementation 14 - 36

(N) > (H) Supplier Qualification > (H) Create Initiative
An initiative is the main tool you use to create, manage, and track your qualifications and
assessments of your suppliers. When you launch your initiative, its questionnaires are sent to
its suppliers and internal responders for their responses. As soon as responders have
submitted their responses, you can review the responses and either approve or reject them.
You can use the supplier's qualification and assessment outcome in many ways when
performing procurement activities.
There are two kinds of initiatives: qualification initiatives and assessment initiatives.
Qualification initiatives are used to evaluate a particular function, capability or aspect of a
supplier, while assessment initiatives provide a more thorough and comprehensive evaluation
of the supplier.
You build you Initiative using set up objects that are already predefined in the system:
• Questions
• Qualification
• Qualification
You specify the suppliers to which this initiative is targeted. For each supplier, you specify a
supplier contact and possibly and internal responder.

Oracle Procurement Cloud: Procurement Implementation 14 - 37

(N) > (H) Supplier Qualification > (H) Manage Initiatives > (I) Monitor > (B) Review and
Accept (Supplier Response)
Before responses (internal or supplier) can be evaluated, you must review and accept them.
While you are reviewing the response, you can return the response if you need a clarification
or the response is incomplete. When you are satisfied with the response, click Accept.

Oracle Procurement Cloud: Procurement Implementation 14 - 38

(N) > (H) Supplier Qualification > (H) Manage Initiatives > (I) Monitor > (B) Review and
Accept (Supplier Response) > (B) Accept > (B) OK > (B) Evaluate Qualification
After you have accepted the response, you can evaluate it. On the Evaluate Qualification
page, you can view the status and information about all the qualifications. If there is a prior
qualification for this supplier you can see the prior outcome. During the evaluation stage, you
• Set an outcome value
• Set a beginning date for when the qualification comes into effect for this supplier.
• Set expiration alert values.
When you are finished, click Finalize.

Oracle Procurement Cloud: Procurement Implementation 14 - 39

(N) > (H) Supplier Qualification > (H) Manage Initiatives > (I) Monitor > (B) Review and
Accept (Supplier Response) > (B) Accept > (B) OK > (B) Evaluate Assessment
For an assessment initiative, once you have evaluated all the qualifications, you can evaluate
the assessment. On the Evaluate Assessment page, you can view the status and information
about all the qualifications. If there is a prior assessment for this supplier you can see the prior
outcome. Like qualifications, when evaluating an assessment you must:
• Set the assessment outcome
• Set a beginning date for when the assessment comes into effect.
• Set the expiration reminder values.
When you are finished, click Finalize.

Oracle Procurement Cloud: Procurement Implementation 14 - 40

Oracle Procurement Cloud: Procurement Implementation 15 - 2
With the use of Oracle Fusion Sourcing, negotiation information is integrated and
streamlined within the Oracle procurement process. Oracle Fusion Procurement suite. With
Self Service Procurement, you can find requisitions to create your negotiation and when you
have completed your award, you can generate purchasing documents for further
processing. When creating a negotiation, you can surface contract terms from Procurement
Contracts for suppliers to review. With Supplier Qualification, you can search for qualified
suppliers when you are inviting suppliers to a negotiation.

Oracle Procurement Cloud: Procurement Implementation 15 - 3

Oracle Fusion Sourcing: Smarter Negotiations
Oracle Fusion Sourcing delivers the structure, tools and information you need to maximize
the value of supplier negotiations, you can negotiate enforceable agreements that comply
with policies and deliver realized savings. You can use negotiations in Fusion Sourcing to
manage your Request for Quote, Request for Information, or Reverse Auction processes.
Oracle Fusion Sourcing also provides you with award analysis tools that allow you to quickly
determine the best award decision for your business based on factors such as price, quality
and value.

Oracle Procurement Cloud: Procurement Implementation 15 - 4

The total life cycle of a sourcing business process begins with identifying sourcing
opportunities and key suppliers to defining and executing the plan. Sourcing enables
companies to make buying decisions as part of an overall strategy for achieving business
goals, with a view toward building long-term relationships with key suppliers.
Oracle Fusion Sourcing in the Cloud will help you to automate your sourcing practices to
drive down your total cost, while at the same time delivering improved efficiencies.

Oracle Procurement Cloud: Procurement Implementation 15 - 5

You can collaborate across your organization and with suppliers on negotiation events.
Fusion Sourcing provides tools such as Online Messaging and the Oracle Social Network to
help facilitate the collaboration and communication of all parties involved. When it comes to
creating an event like a Request for Quote or Reverse Auction, the process is made much
easier by providing negotiation templates that you can reuse and having a guided
negotiation creation process. You can keep track of all Sourcing events with the Calendar
and Recent Activity. Fusion Sourcing also provides powerful Award Analysis tools when it
comes time to make the final award decision. Oracle Sourcing provides:
Simple Event Creation
• Guided Navigation
• Negotiation Templates
• Negotiation Styles
Easy Collaboration
• Oracle Social Network
• Online and Off Line Bid Submission and Analysis
• Online Messaging

Oracle Procurement Cloud: Procurement Implementation 15 - 6

Straightforward Oversight
• Negotiation Calendar
• Recommended Actions
• Award Analysis

Oracle Procurement Cloud: Procurement Implementation 15 - <#>

(N) > (H) Negotiations
You can use the Negotiation Overview to view information that is important to daily sourcing
activities, for example:
• You can easily view recent activity and ongoing events.
• You can use your negotiation calendar to see the status of your negotiations that are
in progress.
• You can easily manage draft negotiations.

Oracle Procurement Cloud: Procurement Implementation 15 - 8

(N) > (H) Negotiations > (H) Create Negotiation > create negotiation pop-up
Sourcing provides many features to provide a flexible and easy process for creating
negotiations.
• Negotiation Styles simplify the data requirements and functionality.
• Guided negotiation process streamlines negotiation creation.
• Negotiation templates allow for reuse of best practices.
• Support for three different types of negotiation: auction, RFQ, RFI
• Support for different purchase document outcomes: standard purchase order, blanket
purchase agreement, contract purchase agreement

Oracle Procurement Cloud: Procurement Implementation 15 - 9

(N) > (H) Negotiations > (H) Create Negotiation > Create Negotiation pop-up (Type = RFI)
You can use the Request for Information (RFI) negotiation type when you want to get
information from your suppliers. A request for information (RFI) is a standard business
process whose purpose is to collect written information about the capabilities of various
suppliers. An RFI is primarily used to gather information to help make a decision on what
steps to take next. In addition to gathering basic information, an RFI is often used as a
solicitation sent to a broad base of potential suppliers for the purpose of conditioning
suppliers’ minds, developing strategy, building a database, and preparing for an RFP, RFQ,
and so on.

Oracle Procurement Cloud: Procurement Implementation 15 - 10

(N) > (H) Negotiations > (H) Create Negotiation > Create Negotiation pop-up (Type = RFQ)
A request for quotation (RFQ) is a standard business process whose purpose is to invite
suppliers into a bidding process to bid on specific products or services. You can use the
Request for Quote (RFQ) negotiation type for complex procurement negotiations such
negotiations having many lines or lines with detailed price adjustments (for example price
breaks). You can also use RFQs for negotiations with extended response windows such as
government negotiation that must be conducted according to legal guidelines. Specialized
response rules allow you to control the quoting process.

Oracle Procurement Cloud: Procurement Implementation 15 - 11

(N) > (H) Negotiations > (H) Create Negotiation > Create Negotiation popup (Type =
Auction)
You can use the auction negotiation type for a variety of procurement situations such as
negotiations having a limited number of lines or negotiations that have a shorter response
time line. The shorter window for suppliers to submit their responses leads to more
competitive behavior based on price. In Oracle Fusion Sourcing, you can define additional
auction controls such as setting up Auto Extensions (where the system can automatically
extend the auction based on specified criteria) or stagger the closing of lines.

Oracle Procurement Cloud: Procurement Implementation 15 - 12

Oracle Fusion Sourcing’s intuitive user experience also benefits suppliers. A comprehensive
overview of sourcing activity makes it easy for suppliers to understand current status and
take action. Support for commonly used applications, such as spreadsheets, makes
submitting bid responses very straightforward. And Oracle Fusion Sourcing even offers
embedded online training that makes it easy for suppliers engage in every part of the
sourcing processes.

Oracle Procurement Cloud: Procurement Implementation 15 - 13

Sourcing provides many displays you can use to monitor a negotiations progress. These
displays are updated in real time. You can access a negotiation’s displays by clicking on the
Monitor icon for that negotiation on the Negotiation Overview. With the Negotiation Monitor,
you can:
• Improve visibility with real time access to supplier activity
• Provide multiple embedded analytics for graphical view of activities and projected
savings
• Allow category managers to take action directly from the live negotiation monitor

Oracle Procurement Cloud: Procurement Implementation 15 - 14

Manually compiling and comparing supplier proposals is time consuming and can lead to
poor sourcing outcomes. Fusion Sourcing’s Award Analysis provides powerful tools so you
can perform “what if” analysis on different award scenarios and determine the best way to
allocate your business among suppliers. Sourcing provides you with many different award
options. You can award a negotiation to a single supplier, award different lines to different
suppliers, and split a lines business among multiple suppliers.

Oracle Procurement Cloud: Procurement Implementation 15 - 15

Sourcing provides robust displays and graphs that allow you to perform in-depth analysis of
the supplier responses you receive for a negotiation. You can analyze supplier response
data using side-by-side and graphical comparisons. These analysis tools let you experiment
with different award scenarios, as a result you can quickly determine the best award for your
business based on multiple metrics like price, quality, and value

Oracle Procurement Cloud: Procurement Implementation 15 - 16

There are several processes that potentially involve much date entry or manipulation. For
these tasks you can use Sourcing’s spreadsheet capability. This allows you to download a
spreadsheet and enter the necessary data and then upload the spreadsheet back into the
application. Spreadsheets allow you to perform these data heavy tasks offline.
• Upload requirements to streamline negotiation creation
• Allow suppliers flexibility to respond offline using familiar tools
• Spreadsheet formatting support list of values, optional versus required fields, color
coding

Oracle Procurement Cloud: Procurement Implementation 15 - 17

Your application may use the approval management system to track and manage approvals
of both your negotiation document and your award decisions. You can approve the
negotiation document, the negotiation award, or both. When approvals are used, internal
reviewers view and OK the details of the negotiation document and the final award decision.
When the negotiation document requires approval, it can be automatically submitted for
approval when you publish the document. For award approval, you submit the award for
approval after you have saved your award decision and prior to generating purchasing
documents.
Whether a document or award needs approval depends on the approval rules. For example,
a negotiation could be subject to approval because it includes items from a particular
category, or an award decision could need approval because the award amount is over a
certain limit.

Oracle Procurement Cloud: Procurement Implementation 15 - 18

A surrogate response is a negotiation response that you enter on behalf of a supplier
company. This feature allows suppliers who are not able to directly enter a response online
to still participate in the negotiation.
Supplier companies may submit their responses using different communication methods
such as faxing or mailing paper documents, emailing PDF documents or spreadsheets.
Once you receive the supplier response, you enter this response in the application as a
surrogate response. Surrogate responses are handled by the application the same as
responses entered by suppliers with online access.

Oracle Procurement Cloud: Procurement Implementation 15 - 19

Throughout a negotiation, there may be times when you need to communicate with the
buying organization or other suppliers (if allowed by the type of negotiation) to provide
additional information or request clarification. You can use online messaging for these
communications.
You can participate in multiple online conversations within the context of a negotiation. All
messages you initiate are addressed to the buying organization and can be viewed by all
members of the buying organization who are also participating in the negotiation. You can
reply to message you are sent by an individual participant of the buying organization.

Oracle Procurement Cloud: Procurement Implementation 15 - 20

Government organizations and departments as well as other public sector enterprises such
as banks often follow a two-stage RFQ process. This process involves the submission of
two separate sealed quotes: one contains what is termed the technical quote, and the other
contains what is called the commercial quote. The technical quote includes supplier
responses to questions pertaining to the technical aspects that are used by the sourcing
organization to evaluate the technical feasibility and the capacity of the suppliers. The
commercial quote addresses the issues of price and other factors associated with the
execution of the sourced items. The technical quotes are opened and evaluated first to
determine a list of qualified suppliers, and only then are the commercial quotes of the
qualified suppliers opened and evaluated.
This two stage process is prevalent among some public sector and many government
organizations where it is sometimes mandated by law that the buying organization offer the
tender or sourcing contract to the lowest price bid from the qualified bidders. The buying
organization initially assesses the suppliers to be technically qualified before their price
quotes are unsealed and evaluated. This is done to ensure no bias in awarding the contract.

Oracle Procurement Cloud: Procurement Implementation 15 - 21

Oracle Procurement Cloud: Procurement Implementation 15 - 22
You use the Functional Setup Manager to implement your Sourcing product. There is a task
group called Define Sourcing Configuration that contains the implementation tasks you use
to set up Sourcing. There are initial implementation tasks you perform in FSM when first
setting up Sourcing. You can also use FSM to perform ongoing maintenance tasks after you
have implemented Sourcing.

Oracle Procurement Cloud: Procurement Implementation 15 - 23

(N) > (H) Setup and Maintenance > Manage Implementation Projects > Search on
“implement project name” > Procurement > Define Sourcing Configuration
The setup and maintenance tasks are contained in the Define Sourcing Configuration task
group.

Oracle Procurement Cloud: Procurement Implementation 15 - 24

If the majority of the negotiations that category managers create contain the same features,
for example, line attributes, price breaks, cost factors, response controls; or negotiation data
such as negotiation lines, invited suppliers, or values for certain fields, you may want to
create a negotiation template they can use each time they create a new negotiation. A
template specifies the target negotiation type (auction, RFQ, RFI) and negotiation outcome.
Using a template saves time by streamlining the creation process. When category
managers create new negotiations using templates, they use the template as a shell for the
negotiation. They add to and edit details of the negotiation as necessary, and then publish
the negotiation.

Oracle Procurement Cloud: Procurement Implementation 15 - 25

(N) > (H) Setup and Maintenance > Manage Implementation Projects > Search on
“implement project name” > Procurement > Define Sourcing Configuration > Manage
Negotiation Styles
A negotiation style is a tool users can use to streamline the creation of negotiation. When
you create a negotiation style, you select which negotiation features to include and/or
omit. A negotiation style therefore only displays the creation features necessary to create
the particular type of negotiation. Any features not needed by the negotiation are not
displayed using that negotiation style.
For example, the style being created above does not provide instructions on the different
edit pages. It also does not use requirements or a collaboration team. It does not support
cost factors or price tiers, and omits procurement contract deliverables.
Additionally, you can create negotiation styles for use with any negotiation type (RFQ,
auction, or RFI), or create a negotiation style and enable it only for a particular negotiation
type.

Oracle Procurement Cloud: Procurement Implementation 15 - 26

(N) > (H) Setup and Maintenance > Manage Implementation Projects > Search on
“implement project name” > Procurement > Define Sourcing Configuration > Manage
Requirement Section Lookup > (I) Go to task
When creating new lookups, you must specify both internal and display information:
• Lookup code: The internal designator for the lookup value
• Display sequence: The position in the list of values
• Enabled: Whether the lookup value is available for use
• Start date: The date the lookup value becomes available for use
• End date: The date the lookup value becomes unavailable for use
• Meaning: The value name that is displayed to users
• Description: The description displayed to users
• Tag: An optional name for use in searching
Until the new lookup value is enabled, it cannot be used. The start and end dates can also
be used to specify a time window of availability.

Oracle Procurement Cloud: Procurement Implementation 15 - 27

Cost factors identify additional costs in addition to response price (the price offered by the
supplier for one unit of the line item/service). Using cost factors allows buyers to identify and
take into account these additional costs when negotiating with suppliers. These can include
tangible costs, such as transportation or storage, or intangible costs, such as the risk
associated in dealing with a new supplier.
Cost factors are defined as either a:
• Fixed amount for the entire line
• An amount for each unit
• A percentage of the line price (price * quantity)
Several related cost factors can be defined to a cost factor list. The list of cost factors can
then be applied to a particular negotiation line within the sourcing document.

Oracle Procurement Cloud: Procurement Implementation 15 - 28

When creating attribute lists, you can first define Attribute Groups which would be logical
names for groups of attributes. When you create your attribute list you can assign attributes
to groups.

Oracle Procurement Cloud: Procurement Implementation 15 - 29

Line attributes make your negotiation line more descriptive and can also be used to ensure
that all responses submitted for the line include specific details not included elsewhere in
the line information. You can define line attributes at the line, lot, lot line, and group line
levels. When defining attributes, you must enter or select values for the following:
• Attribute: The name of the attribute as it appears to the supplier
• Response: Values can be: Display Only, Optional, or Required
• Value Type: The data type allowable for responses, for example, text, numbers (digits
with decimals allowed), date, or URL
• Target: A target value for the attribute
• Weight: An indication of the attribute’s importance relative to the other attributes
• Acceptable Values: A list of allowable response values
• Score: For each acceptable value, a score denoting the desirability of that value
among the other acceptable values

Oracle Procurement Cloud: Procurement Implementation 15 - 30

There are many situations during the life cycle of a negotiation when the applications
generated notifications and sends them to appropriate participants. For example, when you
invite a supplier to a negotiation, the application sends a notification to the contact you
specify in the negotiation document. This notifications invites the supplier contact to
participate in the negotiation. Or if the category manager who created the negotiation closes
it early, notifications are sent to the participants.
There are many notifications which the application creates. If you wish to use only a subset
of the notifications, you can indicate the ones you wish to use by subscribing to those
notifications. The notifications to which you don’t subscribe are not generated by the
application.

Oracle Procurement Cloud: Procurement Implementation 15 - 31

Oracle Procurement Cloud: Procurement Implementation 15 - 32
Oracle Procurement Cloud: Procurement Implementation 15 - 33
Oracle Procurement Cloud: Procurement Implementation 15 - 34
Oracle Procurement Cloud: Procurement Implementation 16 - 2
Enterprise Contract Management is the foundation on which you construct your procurement
contracts.
• It allows an organization to manage the entire life cycle of a contract, from setting up
contract policies and standards, to creating, approving, monitoring, and closing
contracts.
• Contract Wizard and Contract Expert make it easy to create, edit, and validate contracts.
• Existing contracts are centrally stored for ease of use and management.
• Contract Terms Library contains standard clauses, terms templates, and business rules.
• You can download contracts, terms, and conditions for offline reviewing.
• Authors can check for deviations, validate and submit the contract for approval.

Oracle Procurement Cloud: Procurement Implementation 16 - 3

With the use of Oracle Procurement Contracts, information is integrated and streamlined
within the Oracle Fusion procurement process.
With Self Service Procurement, you can find requisitions to create your negotiation and when
you have completed your award, you can generate purchasing documents for further
processing. When creating a negotiation, you can surface contract terms from Procurement
Contracts for suppliers to review. With Supplier Qualification, you can search for qualified
suppliers when you are inviting suppliers to a negotiation.

Oracle Procurement Cloud: Procurement Implementation 16 - 4

Enterprise Contracts allows you to manage the entire contract process from setting up
contract policies and standards, to creating contracts, approving, monitoring, and contract
closeout.
1. Objects stored in the terms library enable the standardization of contract building blocks.
Rules and procedures can control how these objects can be combined.
2. Standard clauses, terms templates, and business rules are set up in the Contract Terms
Library simplify contact authoring. With policies in place, the legal language on a
contract can be quickly created from approved templates, expediting contract creation
and approval.
3. Contract reviews can be conducted offline using Microsoft Word. Contract authors can
check for deviations from standards, validate and submit the contract for approval.
4. Ongoing monitoring and analysis can be performed by contract administrators, legal or
finance.
5. Contracts can be amended post approval. The application tracks all modifications,
amendments, and provides important information for audit and search.
6. Contract expiry notifications let you proactively manage renewals, or conduct closeout
audits to ensure all obligations have been met. Negotiation history and execution notes
captured throughout the contract lifecycle provide valuable information during renewals
or closeout.
Oracle Procurement Cloud: Procurement Implementation 16 - 5
Procurement Contracts provides many features to support the contracting needs of your
procurement environment.
Single Contract Repository
• Multiple contract types
• Contracts stored in a single, secure, searchable database
• Automatic approvals
• Managed renewals
Standards-Based Authoring
• Standard clauses, policy rules, templates
• Deviations reporting
• Content management
Contract Compliance
• Master Agreement with multiple purchasing systems
• Multiple suppliers on a single contract
• Integration with Purchasing and Sourcing

Oracle Procurement Cloud: Procurement Implementation 16 - 6

In addition to accessing authoring functionality through the ECM Contracts link, you can
access contracts from Procurement applications to search for and add contract terms from the
Contracts and Terms library.
In Purchasing, you can use the Contract Terms tab on the Edit Document window to add
contract information.
In Sourcing, you can use the Contract Terms train stop when creating or editing a
negotiation.
Regardless of the location from which you are accessing Procurement Contracts, the
authoring functionality is the same.

Oracle Procurement Cloud: Procurement Implementation 16 - 7

Clause: A clause is the most basic unit of a structured contract. A clause consists of a title
and text that typically correspond to a particular legal idea of the contract. A standard clause
is an existing, approved clause that is in the Terms Library.
Section: A section is simply a collection of clauses that are grouped together for
organizational purposes on the contract.
Terms Template: A terms template is a collection of sections and clauses that form the
boilerplate for a new contract.
Variable: A variable is a placeholder in a clause definition that gets replaced by a value
whenever the clause is used.
Rule: A rule is a conditional expression defined and associated to a terms template that can
conditionally modify the base contract. The source of the data for the rule can be structured
data in the system or the answers to questions provided by the user
Contract Expert: The Contract Expert is an optional tool that you can set up to handle asking
the questions of the user and then taking the appropriate action to the draft contract such as
adding a conditional clause based on a rule.

Oracle Procurement Cloud: Procurement Implementation 16 - 8

You have two tools available when creating contracts.
• You can use the standard Enterprise Contracts Management Create Contract navigation
to access the full range of options available.
• You can also use the Contract Wizard to streamline the contract creation process.
Contract Wizard provides a guided creation environment that is good for creating quick
and simple contracts. It hides some of the options and actions from the user in order to
make the process as easy as possible.

Oracle Procurement Cloud: Procurement Implementation 16 - 9

The standard process you use to create a contract includes the steps shown. Note that not all
steps are required for all contracts.
1. Access Contracts and select the type of contract you want to create.
2. Enter contract header details.
3. Depending on the contract type, you can:
- Add contract lines
- Author contract terms and review contract deviations
- Create contract deliverables
4. Validate the contract and correct any errors.
5. Submit contract for approval.
6. Optionally apply digital signatures

Oracle Procurement Cloud: Procurement Implementation 16 - 10

Oracle Procurement Cloud: Procurement Implementation 16 - 11
Oracle Procurement Cloud: Procurement Implementation 16 - 12
There are two roles required when implementing Procurement Contracts:
Supplier Contract Administrator: A Procurement or legal professional responsible for
authoring legal terms and conditions on buy-side contracts. The Supplier Contract
Administrator may also be a Buyer.
Business Practice Director: The person responsible for maintaining official clause language
and contract building blocks in the Contract Terms library.

Oracle Procurement Cloud: Procurement Implementation 16 - 13

The slide lists the three areas where you can perform setup tasks for Procurement Contracts.

Oracle Procurement Cloud: Procurement Implementation 16 - 14

Several of the implementation tasks for Procurement Contracts are performed in the Common
Application task group which was discussed earlier in this course. The Assign Business Unit
Business Function is an important task and is normally performed much earlier and completed
before you begin implementing Procurement Contracts. Also approval management is
performed earlier.

Oracle Procurement Cloud: Procurement Implementation 16 - 15

Several of the implementation tasks for Procurement Contracts are performed during the set
up for Enterprise Contracts.

Oracle Procurement Cloud: Procurement Implementation 16 - 16

Set business unit level options for contract terms library that are common to buy and sell
intent contracts (customer and supplier contracts) and that are specific to buy intent contracts
(supplier contracts) only.
For the Contract Terms Library in each business unit, you can:
• Enable clause and template adoption
• Set the clause numbering method
• Enable the Contract Expert feature
• Specify the layout for printed clauses and contract deviation reports

Oracle Procurement Cloud: Procurement Implementation 16 - 17

On the Manage Contract Role Sources page:
1. Select the party role and set its buy and/or sell intent sources. For example, in buy intent
or supplier contracts, you would want business units as source for customers and in sell
intent or customer contracts, you would want TCA (Trading Community Architecture )
customer parties as source for customers
2. Add the contact role.
3. Enter the sell-intent contact source or the buy-intent contact source or both. Which
contact sources you can enter depends on the party source settings for the party role.

Oracle Procurement Cloud: Procurement Implementation 16 - 18

Optionally, you can define risks that you can use to help classify the riskiness of contracts.
The risks defined here can be selected in contract authoring flows to associate risk to a
contract.

Oracle Procurement Cloud: Procurement Implementation 16 - 19

Define buy or sell intent contract types of class “Enterprise Contracts,” buy intent contract
types of class “Agreements,” or sell intent contract types of class “Partner Agreements” for the
entire enterprise or for a set of business units. Partner Agreements do not allow lines and are
typically created from PRM application as part of partner program enrollment flow.

Oracle Procurement Cloud: Procurement Implementation 16 - 20

Here is a list of sources and their usage for procurement contract line types:
• Buy agreement, free-form: Enables entry of items not tracked in inventory for
purchasing. You can create master agreements in the purchasing application from lines
of this type.
• Buy agreement, item: Enables entry of inventory items for purchasing. You can create
master agreements in the purchasing application from lines of this type.
• Buy intent, free-form: Enables entry of items not tracked in inventory for purchasing.
You can create purchase orders in the purchasing application from lines of this type.
• Buy intent, item: Enables entry of inventory items for purchasing. You can create
purchase orders in the purchasing application from lines of this type.

Oracle Procurement Cloud: Procurement Implementation 16 - 21

The Define Procurement Contracts Terms Library Configuration implementation task
group allows you to define and maintain setup components for Procurement Contracts objects
contained in the contract terms library. The slide shows the FSM tasks used to create objects
in the terms library.

Oracle Procurement Cloud: Procurement Implementation 16 - 22

The Manage Contract Clause Types page allows you to extend the list of available clause
type designations you can use when building your contract.

Oracle Procurement Cloud: Procurement Implementation 16 - 23

Navigator > Contract Management > Terms Library
The configuration tasks are also available from Enterprise Contracts Management.

Oracle Procurement Cloud: Procurement Implementation 16 - 24

(N) > (H) Terms Library(H)
You use the Terms Library page to create and manage the objects created and stored in the
Terms Library. The links to access the pages used to create objects are listed in the Tasks
pane.

Oracle Procurement Cloud: Procurement Implementation 16 - 25

Oracle Procurement Cloud: Procurement Implementation 16 - 26
Oracle Procurement Cloud: Procurement Implementation 16 - 27
Your may want to refer to use these screenshots in the authoring flow for making notes as
your instructor demonstrates the create flow.

Oracle Procurement Cloud: Procurement Implementation 16 - 28

(N) > (H) Contracts
The Overview page provides quick access to your contract management tasks.
• The Worklist shows any recent tasks that need your attention.
• The Pending Approval region allows you to monitor the progress of contracts that are in
the process of being approved.
• In the Contracts and Deliverables regions, you can search for and display contract
objects you need to view or manage.
• You use the links in the task bar to perform typical actions for you contracts.

Oracle Procurement Cloud: Procurement Implementation 16 - 29

(N) > (H) Contracts > (H) Create Contract
You can create a contract by using
• Create Contract action from the search results or task pane
• Duplicate Contract action from the search results
In the Create Contract pop-up, you enter
• Enter the business unit
• Legal entity
• Contract type
• Contract number
• Primary partner Effective start and end dates

Oracle Procurement Cloud: Procurement Implementation 16 - 30

On the contract Header tab, add additional information depending on the contract type you
selected. This may include:
• Additional contract parties and contacts
• Information about possible contract risks and their probability
• Contract documents
• List of related contracts
• Information about interactions with the contract parties
• Notes

Oracle Procurement Cloud: Procurement Implementation 16 - 31

If you need to add additional parties to the contract, you can use the Edit Contract: Parties
page. Party roles provide a way for you to specify the roles of different parties in the contract.
The application comes with the following predefined party role names. You can add additional
lookup codes in Oracle Fusion Functional Setup Manager (FSM) by selecting the Manage
Contract Party Roles task.
Contact roles specify the roles party contacts play in the contract. Your application comes with
a set of predefined contact roles You can set up additional contact roles for use with different
parties in the contract.
In the section on implementing Contracts, you will see how to add additional contract parties
and roles.

Oracle Procurement Cloud: Procurement Implementation 16 - 32

If the Lines tab is visible, you can use the Create Line pop-up to add contract lines to specify
the items you are purchasing. Depending on the contract type, you may be able to enter one
or both of the following types of lines:
• Item: For purchasing items tracked in inventory based on the item master associated
with the contract. Select the item from the list of inventory items and enter effective
dates for the line.
• Freeform: For purchasing items that are not tracked in inventory. Enter the name and
description of the service, and enter effective dates for the line.

Oracle Procurement Cloud: Procurement Implementation 16 - 33

Use the Line Details page to enter unit of measure, unit price, and quantity for the line. The
line amount gets auto-populated. For a fixed price service line, enter just the line amount. You
can save your line definition and add another, or return to the header display.

Oracle Procurement Cloud: Procurement Implementation 16 - 34

Moving on to the Contract Terms template, you click Add Contract Terms to search for and
add the appropriate contract terms template. The template you select controls the type and
amount of data and attributes you must create during the creation process.

Oracle Procurement Cloud: Procurement Implementation 16 - 35

Some contract terms templates require you to run the Contract Expert feature to determine if
additional clauses must be added. You can tell if you must run Contract Expert because the
Clauses tab includes the Contract Expert Last Run indicator above the contract terms
preview region.
When you run Contract Expert by selecting the Run Contract Expert action, Contract Expert
may ask you to enter values for contract variables and to answer questions. If you do not run
Contract Expert on a contract that requires it, then you receive an warning message during
contract validation.
Contract Expert suggests additional standard language based on the business rules set up in
Terms Library.
To run the Contract Expert, click the Run Contract Expert icon.

Oracle Procurement Cloud: Procurement Implementation 16 - 36

Depending on the template rules, you may need to enter values for some variables. If so,
Contract Expert will prompt you for a value for the attribute.

Oracle Procurement Cloud: Procurement Implementation 16 - 37

You may also be prompted to answer any questions defined to the template. If so, you will be
prompted. You can also check for any clauses Contract Expert suggests might be appropriate
for this template.

Oracle Procurement Cloud: Procurement Implementation 16 - 38

Once you upload your edited contract, you can check the changes you made on the Review
Changes page.

Oracle Procurement Cloud: Procurement Implementation 16 - 39

The clause deviations represent any deviations from the standard legal language that was
originally available in the terms template applied to the contract.
The policy deviations denote any deviations from company policies. Contract Expert rules can
be set up to define policy deviations.
Some of the common clause deviations are:
• Standard clauses you added, edited, or deleted
• Alternate clauses you selected to replace the standard clauses
• Nonstandard clauses you created for this contract
• Missing clauses recommended by Contract Expert
• Outdated clause versions.
To run the Contract Deviations check, select the Review Contract Deviations option from the
Actions menu.

Oracle Procurement Cloud: Procurement Implementation 16 - 40

On the Review Contract Deviations page, you can view both policy or clause deviations.
Contracts determines if your contract deviates from company policies by evaluating the
variable values in your contract and the answers you give to any questions presented during
authoring.
Contract Terms Library administrators create and maintain the rules for checking policy
compliance using Contract Expert rules. Different rules can apply for each contract terms
template.
You can add any details that the contract approver might want to know, in the Approval
Abstract.
Finally, you can download the Contract Deviations Report and viewed as a rtf file during
contract authoring. It is also available in pdf format in the contract approval notification details
UI: the approver views the contract deviations before approving the contract.

Oracle Procurement Cloud: Procurement Implementation 16 - 41

Once you have created and verified your contract, you submit it for approval. On the Contract
Details page, click the Submit button, then Submit Contract.

Oracle Procurement Cloud: Procurement Implementation 16 - 42

Once you have submitted the contract for approval, it shows up in the worklist of all the
approvers.

Oracle Procurement Cloud: Procurement Implementation 16 - 43

You can view the details of the contract from the approval notifications. You can also view the
contract preview and deviations report available as attachments.

Oracle Procurement Cloud: Procurement Implementation 16 - 44

Contract Wizard walks you through the contract creation flow by providing a train stop
controlled process covering the creation steps just covered. It guides you from the current
step you are working on to the next available step in the process. Using the wizard, you can
easily move between the steps and to correct any previous errors. As you work your way
through the train stops, you can enter the details your contract needs and skip any steps that
are not applicable.

Oracle Procurement Cloud: Procurement Implementation 16 - 45

Oracle Procurement Cloud: Procurement Implementation 17 - 2
You have seen the evolution of systems and technology go from the mainframe to client-
server to the Internet. Today the evolution continues to applications delivered as a service
through the cloud.
Cloud computing makes it possible to reduce the amount of resources spent on maintaining
current systems and can actually help transform your business and the cloud promises:
• Lower IT spend
• Greater agility
• More innovation
Why Procurement in the Cloud?
• Easy to buy: Predictable per-user-per-month pricing with no hardware to buy or set up
• Easy to adopt: Consumer-based user experience without IT bottlenecks,
customizations, or complex provisioning
• Easy to grow: Part of a modular suite that runs on public cloud, private cloud, on-
premise or any combination that meets your needs

Oracle Procurement Cloud: Procurement Implementation 17 - 3

You have several options for deploying Procurement in the Cloud. The first to consider is
Procure to Pay in the Cloud.
If you are replacing your entire Procure-to-Pay process, you can deploy Oracle Fusion
Procurement and Payables in the Cloud. It is important to understand that the entire Procure
to Pay process (including Payables) should be deployed in the Cloud together to ensure data
integrity and minimize integration complexity. With Procure to Pay in the Cloud, the integration
involves bringing financial transactions into your legacy General Ledger (GL to GL).

Oracle Procurement Cloud: Procurement Implementation 17 - 4

Another option for co-existence is to maintain your Procurement and Financials systems, but
deploy Oracle Fusion Sourcing, Procurement Contracts and/or Supplier Qualification in the
cloud.
The advantage of this model is that you can defer a costly upgrade of your entire
Procurement system, while taking advantage of the latest features and functions around
Negotiations, Contracts and Qualifying Suppliers.
For integration, you can refer to the Sourcing and Contracts Integration Options white paper
for more information.
Reference
Procurement Sourcing and Contracts Integration white paper available:
https://support.oracle.com/epmos/faces/DocumentDisplay?id=1956769.1

Oracle Procurement Cloud: Procurement Implementation 17 - 5

Fusion applications are built with Oracle’s Application Development Framework (ADF). This
allows for many methods of integration with other applications including: ADF Services
(commonly referred to as web services), Spreadsheet Integration, File-Based Data Import,
and Reporting Tools.
A web service provides a standardized way of integrating two web-based applications. A web
service is a program that can be accessed remotely using different XML-based languages.
ADF Services simplify integration by enabling XML data exchange between different
applications and different platforms.
Spreadsheet integration through ADFi or other methods enables the use of familiar
spreadsheet tools such as Excel. ADF Desktop Integration (ADFdi) is part of the ADF
framework and enables desktop integration with MS Excel spreadsheets to manage large
volume data uploads into Fusion Applications.
File Based Data Import (FBDI) is another option for getting information into your Fusion
applications. For applications deployed in the public cloud, in the absence of a delivered web
service, the currently available option is file based integration to transfer files to a location that
the source system can consume.
Reporting tools can be used to extract data from Fusion applications for further analysis and
import data into external systems via XML, Excel or other file types. Oracle Transactional
Business Intelligence (OTBI) Reporting can be used to extract data for import into your
external systems.
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Oracle Enterprise Repository Link: https://fusionappsoer.oracle.com/
The Oracle Enterprise Repository (OER) for Oracle Fusion Applications is an online resource
for discovering Oracle Fusion Applications metadata. You can use OER to find information on
the integration assets that are available for particular objects and processes across Fusion,
including those relating to Oracle Fusion Sourcing and Oracle Fusion Procurement Contracts.
OER will always contain the most recent information on what is available. As time passes,
you should consult OER for the most currently available assets (and any new updates) prior
to beginning an integration project. Oracle expects that new assets will become available over
time.
Examples of the types of assets that you can discover within OER include:
• Web services
• File-based data integrations
• View objects
• Interface table definitions
• Sample templates
• Data model diagrams

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Oracle Procurement Cloud: Procurement Implementation 17 - 8
This is an integration scenario for a customer who has decided to implement Fusion Sourcing
in the Cloud while maintaining their existing legacy Procure-to-Pay system. With this example,
the customer can take advantage of all the Cloud Sourcing functionality without having to
replace their larger Procure-to-Pay system. As an implementation consultant, it is very
important to research the customer’s existing business process and figure out the best way to
integrate the two systems.
There are several potential integration areas with Fusion Sourcing in the Cloud and your
legacy system.
• When creating a negotiation, you can bring in information from other sources to create
the content of the negotiation.
• After an award decision has been finalized, you can pass award information to your
Purchasing system for execution.
• For reference data, you can decide how to import and maintain information such as your
suppliers and items based on your business process.
When integrating Fusion Sourcing, choose the integrated option that best fits the volume and
frequency of events that your organization conducts.

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One option to bring in negotiation information from another source system is to utilize the web
service for negotiation creation in Fusion Sourcing. In the Oracle Enterprise Repository
(OER), you can find the information for the negation creation ADF service called “Supplier
Negotiation.”
Another option is to create negotiations in Sourcing. copy/paste information into rich text
boxes. and use the delivered Excel uploads throughout the negotiation creation process. For
a large number of requirements (such as questions asked to suppliers in an RFP), Fusion
Sourcing provides a spreadsheet upload capability. You can take questions from your existing
documents, copy them into the formatted spreadsheet template, and easily import them into
the negotiation.
Similarly, if a negotiation has a large number of negotiation lines, you can enter negotiation
line information such as item description, pricing, and so on in the formatted spreadsheet and
upload the spreadsheet into the negotiation. The spreadsheet upload capabilities make the
process of creating negotiations simple and efficient in Sourcing.

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Another source of negotiation lines can be Requisition lines from your source purchasing
system. If you have a large number of requisition lines that you want to consolidate and bring
into a negotiation, you can use the “Supplier Negotiation” web service.
Or you may want to consider leveraging the requisition import capabilities available with
Fusion Purchasing. Requisition lines targeted for negotiation from your source purchasing
system may be imported into Purchasing using the Requisition Import program. Requisition
Import can process excel, XML and flat file formats. You can select to consolidate requisition
lines according to your business needs in the process requisitions workbench. After you have
identified and selected the requisition lines for negotiation, you can easily create the
negotiation lines in Fusion Sourcing.
It is important to consider that this process is useful if there is a high volume of requisition
lines that need to be consolidated and then undergo negotiation events. However, this
process requires more master data synchronization into Fusion to recreate the requisitions.
Depending on the volume of information being brought into the negotiation, you may consider
consolidating demand from your source system and creating negotiations directly in Sourcing
as described earlier.

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Once you have conducted a negotiation with your suppliers, analyzed supplier responses and
determined how to award your business, you can finalize your award decision. You may need
to create the award decision in your existing purchasing system for execution.
The simplest approach is to manually create the purchase order or blanket purchase
agreement in each instance of your purchasing execution system based on your Fusion
Sourcing award decision. You can use the Award Analysis spreadsheet in Fusion Sourcing as
a summary of your award decision or build a report with award information with OTBI or BI
Publisher. For an integrated approach, you can create a file with award information in a format
that can be processed by your existing purchasing system.
Another option is to create your purchase orders or blanket purchase agreements in Fusion
Purchasing automatically from Fusion Sourcing. Once the purchasing documents are created
in Fusion Purchasing, you can use reporting tools to push the data to your existing purchasing
system. With this method, you would use the standard award process to create the PO or
BPA from Fusion Sourcing into Fusion Purchasing and then use reporting tools to generate
data that can be consumed by your existing execution systems.
Overall, you should assess the volume and frequency of events to determine the best way to
execute your award decision.

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Reference data (such as item and supplier details) is the supporting information necessary for
Fusion Sourcing to be able to function according to your organization’s business process.
Reference data is typically maintained on a periodic basis and should be kept synchronized
with the source system of record.
The integration methods you use for reference data depend on the type of organization,
business needs, and deployment method (that is, public cloud, private cloud, or on-premise).
For some organizations, reference data with a large volume and frequency of changes may
require building direct system to system integration to keep information synchronized.

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