PROC S01 Recording (09-May-26)

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Procure to Pay and the Procurement Foundation Setups

Harbor Point Supplies Inc. distributes office furniture and IT accessories to businesses across the United States. Its head office and main warehouse are in Albany, New York.

Today every department buys on its own. Requests come in by email, nobody approves them consistently, suppliers are chosen by habit, and finance often pays invoices for goods that never arrived or arrived damaged.

Harbor Point has bought Oracle Fusion Cloud Procurement. It wants a controlled procure to pay process and, as a first step, the basic structure that purchasing, receiving and payables will run on: the Albany location, a US business unit, an item master and the Albany warehouse.

Harbor Point also plans to open an India office and a UK office in the coming years, and wants to know now how buying and invoicing could be shared between business units once they exist.

Key Business Requirements

Concept explain how Oracle Fusion meets it. Hands-on configure it in your practice instance.

  1. ConceptHarbor Point wants every purchase to follow the same path, from the moment an employee needs something until the supplier is paid and the accounting is posted. List the steps in order and say where in Oracle Fusion each step happens.

    Hint:00:09:54 to 00:20:01, and 00:24:07 to 00:29:03 for the module behind each stepSee solution

  2. ConceptHarbor Point orders 100 office chairs. The supplier delivers 50, and inspection accepts only 30 of them. Finance asks how many chairs an invoice can be paid for under each matching option: two-way, three-way and four-way.

    Hint:00:17:22 to 00:19:40See solution

  3. Hands-onBefore any setup, the system must be ready for the full procurement process. Make sure the Procurement offering and its functional areas are opted in.

    Hint:00:30:47 to 00:35:11See solution

  4. Hands-onCreate the Albany head office and warehouse address as a location named with your initials, for example AB_HPS_LOCATION. Every Harbor Point business unit must be able to use it, it receives deliveries, and there is an office at this address.

    Hint:00:39:51 to 00:47:18See solution

  5. ConceptOnce the India office exists, its address must be visible only to the India business unit, while the Albany address stays visible to every business unit. How is this controlled?

    Hint:00:41:31 to 00:43:09, and 01:27:21 to 01:27:53 for restricting a location to one business unitSee solution

  6. Hands-onCreate Harbor Point’s US business unit, for example AB_HPS_US_BU, using the shared default set. For now this one business unit carries out every business function, posts to the US ledger, and must be tracked as a profit center.

    Hint:00:47:19 to 00:49:42, and 00:49:46 to 00:54:39 for the business functionsSee solution

  7. ConceptAfter the expansion, the India business unit will raise requisitions, the US business unit will create the purchase orders for them, and the UK business unit will process the supplier invoices. Explain how Oracle Fusion lets one business unit work on behalf of another, and whether it matters that the three use different ledgers.

    Hint:00:54:48 to 00:58:14, and 01:33:29 to 01:34:11 for business units in different ledgersSee solution

  8. Hands-onUntil the expansion, the US business unit handles its own customer payments, payables and procurement. Record that in the system.

    Hint:00:58:15 to 01:00:20See solution

  9. Hands-onHarbor Point wants every item defined once in one place and then assigned to the warehouses that stock it. Create that item master as an item organization, for example AB_HPS_ITEM_ORG, where items are both created and have their attributes maintained.

    Hint:01:00:24 to 01:06:19See solution

  10. Hands-onCreate the Albany warehouse as an inventory organization, for example AB_HPS_INV_ORG, in your US business unit, at your Albany location. Its items come from your item master, it keeps the original receipt date when material moves inside the warehouse, and for now it does not track items by rack location.

    Hint:01:06:27 to 01:19:18See solution

  11. ConceptThe warehouse team may later want aisle, row and rack tracking in some storage areas but not in others. Which locator control option supports that, and why must this decision be made carefully before go-live?

    Hint:01:13:50 to 01:15:50, and 01:31:44 to 01:32:28 for changing it laterSee solution

  12. Hands-onInside the Albany warehouse, create two storage areas: one for finished goods and one staging area where goods wait before they are shipped. Both store items, are asset subinventories and allow all transactions.

    Hint:01:56:21 to 01:58:15, and 01:58:20 to 02:04:07 for creating themSee solution

Your Task

  • For each Concept requirement, write a short solution: which Oracle Fusion feature meets it and how. Nothing needs to be set up in the instance for these in this session.
  • For each Hands-on requirement, configure it in your practice instance. Start your setup names with your own initials, for example AB_HPS_LOCATION, so they do not clash with other learners in the shared instance.

Solution hints are hidden so you can attempt the case first. Ready to check your approach? Show solution hints

Solution by Requirement

  1. ConceptThe procure to pay cycle, in order:
    • Requisition: the employee requests the item or service, quantity and date in Self Service Procurement
    • Requisition approval: routed to approvers, configured with the Manage Requisition Approvals task in Setup and Maintenance
    • Supplier onboarding: the buyer brings new suppliers in through supplier registration
    • Sourcing: the buyer sends a negotiation such as an RFQ (or an RFI to gather information), suppliers respond, and the buyer awards the best response
    • Purchase order: created in Purchasing, either from the requisition or as a standalone purchase order
    • Receipt: the goods are received in Receiving
    • Invoice and payment: the supplier invoice is matched and paid in Payables
    • Accounting: the transactions are posted to the ledger
    00:09:54 to 00:20:01 00:24:07 to 00:29:03

    Not every company uses every step. When a suitable supplier already exists, the buyer creates the purchase order directly without sourcing. 00:14:46 to 00:15:17

    Back to question 1

  2. ConceptThe match approval level decides which quantities the invoice is compared with before it can be paid, within tolerance:
    • Two-way: purchase order and invoice. Up to 100 chairs (ordered).
    • Three-way: purchase order, receipt and invoice. Up to 50 chairs (received).
    • Four-way: purchase order, receipt, quantity accepted at inspection and invoice. Up to 30 chairs (accepted).
    00:17:22 to 00:19:40

    Back to question 2

  3. Hands-on

    Review the Procurement opt-in 00:31:20 to 00:32:16

    Navigation Setup and Maintenance > Go to Offerings > Procurement > Opt In Features

    • Select the Procurement offering and click Opt In Features 00:32:49 to 00:33:11
    • Check that the offering and the functional areas the business needs are enabled, for example Suppliers, Self Service Procurement, Receiving and Payables, then click Done 00:34:16 to 00:35:11

    Opt-in is global. In the shared practice instance Procurement is already on: review it, and do not turn off anything that is already on.

    Back to question 3

  4. Hands-on

    Create the location 00:39:51 to 00:41:02

    Navigation Setup and Maintenance > Procurement > Manage Locations > Create

    • Location Set: Common Set; Name: your location name, for example AB_HPS_LOCATION; Code: a unique code of your own; Status: Active 00:43:09 to 00:43:39
    • Country: United States, then an Albany, New York street address and ZIP code. City and state fill in from the ZIP code. 00:43:39 to 00:44:32
    • Keep Ship-to Site, Receiving Site and Office Site set to Yes 00:44:32 to 00:45:55
    • Click Save, then Submit, and search for your location to check it is Active 00:46:00 to 00:47:18

    Back to question 4

  5. ConceptThrough reference data sets. A location belongs to a Location Set. Albany goes in the Common Set, which every business unit can use. For the India address, create a set specific to the India business unit and assign the India location to that set, so only that business unit sees it. 00:41:31 to 00:43:09 01:27:21 to 01:27:53

    Back to question 5

  6. Hands-on

    Create the business unit and assign its business functions 00:47:38 to 00:48:13

    Navigation Setup and Maintenance > Procurement > Manage Business Unit > Create

    • Name: for example AB_HPS_US_BU; Default Set: Common Set, then Save and Close 00:48:15 to 00:49:20
    • Open Assign Business Unit Business Function, choose your business unit with Select and Add, then Save and Close 00:50:48 to 00:51:15
    • Select every business function in the Enabled column 00:51:19 to 00:52:20
    • Primary Ledger: the US ledger that already exists in the instance. The legal entity fills in. 00:52:52 to 00:53:17
    • Select Below legal entity, which marks the business unit as a profit center, then Save and Close 00:53:16 to 00:54:06

    Back to question 6

  7. ConceptThis is the shared service center model. Each business unit gets only the business functions it performs: Requisitioning in India, Procurement in the US, Payables Invoicing in the UK. Then Manage Service Provider Relationships records, for the India business unit, which business unit is its procurement service provider (US) and which is its payables service provider (UK). The US business unit then handles purchase orders on behalf of India. 00:54:48 to 00:58:14

    Different ledgers are not a problem: each business unit posts to its own primary ledger, and the service provider relationship still lets one business unit work for another. 01:33:29 to 01:34:11

    Back to question 7

  8. Hands-on

    Record the service provider relationships 00:58:20 to 00:58:33

    Navigation Setup and Maintenance > Procurement > Manage Service Provider Relationships

    • For your business unit, keep your own business unit as the service provider for customer payments, payables and procurement, then click Save and Save and Close 00:58:40 to 01:00:20

    Back to question 8

  9. Hands-on

    Create the item master organization 01:02:08 to 01:02:55

    Navigation Setup and Maintenance > Procurement > Manage Item Organizations > Create

    • Name: for example AB_HPS_ITEM_ORG; Organization: a unique code of your own 01:02:55 to 01:03:28
    • The business unit is optional for an item organization. The trainer selects your business unit, then clicks Next. 01:03:31 to 01:04:16
    • Item Master Organization: your own item organization; Item Grouping Behavior: Definition organization, then Save and Close 01:04:49 to 01:05:24

    Oracle recommends a single item master, kept separate from the organizations that store and transact items.

    Back to question 9

  10. Hands-on

    Create the inventory organization 01:07:03 to 01:07:50

    Navigation Setup and Maintenance > Procurement > Manage Inventory Organizations > Create

    • Name: for example AB_HPS_INV_ORG; Organization: a unique code of your own 01:07:52 to 01:08:13
    • Management Business Unit: your business unit; Location: your location; Legal Entity: the legal entity of your business unit. The Profit Center Business Unit fills in because you selected Below legal entity. Click Next. 01:08:12 to 01:09:16
    • Item Master Organization: your item organization; Item Grouping Behavior: Definition organization 01:09:23 to 01:11:08
    • Schedule: an existing operations schedule 01:11:08 to 01:12:02
    • Select Use Original Receipt Date 01:12:32 to 01:12:46
    • Locator Control: No locator control 01:13:50 to 01:15:50
    • Save and Close, then search by your organization code 01:18:42 to 01:19:18

    Back to question 10

  11. ConceptSelect Locator control determined at subinventory level on the inventory organization. Each subinventory then decides its own locator control, so some can track aisle, row and rack while others do not. The other options apply one rule to the whole organization: No locator control, Previously defined locator control (pick a predefined locator) and Dynamic entry locator control (pick or create a locator during the transaction). 01:13:50 to 01:15:50

    Decide it before go-live. In the recording the system refuses to alter it once subinventories exist, and Oracle allows a subinventory’s locator control to change only when it has no pending transactions and no on-hand quantity. 01:31:44 to 01:32:28

    Back to question 11

  12. Hands-on

    Create the two subinventories 01:58:20 to 01:59:13

    Navigation Setup and Maintenance > Manufacturing and Supply Chain Materials Management > Configure Subinventories

    • Select your inventory organization, then Create New Subinventory 01:59:30 to 01:59:49
    • Subinventory: for example AB_FG, described as finished goods; Subinventory Type: Storage 01:59:55 to 02:01:05
    • Material Status: Active; select Asset Subinventory 02:01:05 to 02:03:16
    • Click Submit and Create Another, then create the staging subinventory, for example AB_STAGE, the same way: Storage, Active, Asset Subinventory. Then Submit and Close. 02:03:16 to 02:04:07

    Session 1 creates both as storage subinventories. A receiving subinventory, used to inspect goods before they are put away, comes in a later session.

    Back to question 12

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Chapter Markers       ⟶       

0:01 – 1: Session Introduction and Overview       ⟶       

4:29 – 2: Accessing Recordings and Resources       ⟶       

7:15 – 3: Q&A and Support Channels       ⟶       

11:00 – 4: Approval Process for Requisitions       ⟶       

14:30 – 5: Purchase Order Creation       ⟶       

19:40 – 6: End-to-End Procurement Cycle Summary       ⟶       

24:07 – 7: Modules in Oracle Fusion Procurement       ⟶       

29:14 – 8: System Configuration and Setup       ⟶       

35:16 – 9: Enabling Redwood UI       ⟶       

39:53 – 10: Creating and Managing Locations       ⟶       

47:37 – 11: Business Unit Creation and Management       ⟶       

51:36 – 12: Enabling Business Functions       ⟶       

54:46 – 13: Creating Service Provider Relationships       ⟶       

1:00:27 – 14: Introduction to Item Organization Management       ⟶       

1:06:27 – 15: Establishing Inventory Organizations       ⟶       

1:19:24 – 16: Q&A Session on Inventory Management       ⟶       

1:23:12 – 17: Clarifying Item Organization and Master Relationships       ⟶       

1:28:47 – 18: Understanding Contracts in Procurement       ⟶       

1:36:51 – 19: Exploring Legal Entity Changes in Procurement       ⟶       

1:40:19 – 20: Addressing Inventory Location Assignments       ⟶       

1:44:28 – 21: Migration from Classic to Redwood UI       ⟶       

1:47:28 – 22: Custom Fields in Redwood UI       ⟶       

1:50:12 – 23: Benefits of Migrating to Redwood       ⟶       

1:53:55 – 24: Understanding Item Organization Terminology       ⟶       

2:04:44 – 25: Creating Sub Inventories       ⟶       

2:07:39 – 26: Asset vs. Expense Inventory Items       ⟶       

Chapter Markers
0:01 – 1: Session Introduction and Overview
4:29 – 2: Accessing Recordings and Resources
7:15 – 3: Q&A and Support Channels
11:00 – 4: Approval Process for Requisitions
14:30 – 5: Purchase Order Creation
19:40 – 6: End-to-End Procurement Cycle Summary
24:07 – 7: Modules in Oracle Fusion Procurement
29:14 – 8: System Configuration and Setup
35:16 – 9: Enabling Redwood UI
39:53 – 10: Creating and Managing Locations
47:37 – 11: Business Unit Creation and Management
51:36 – 12: Enabling Business Functions
54:46 – 13: Creating Service Provider Relationships
1:00:27 – 14: Introduction to Item Organization Management
1:06:27 – 15: Establishing Inventory Organizations
1:19:24 – 16: Q&A Session on Inventory Management
1:23:12 – 17: Clarifying Item Organization and Master Relationships
1:28:47 – 18: Understanding Contracts in Procurement
1:36:51 – 19: Exploring Legal Entity Changes in Procurement
1:40:19 – 20: Addressing Inventory Location Assignments
1:44:28 – 21: Migration from Classic to Redwood UI
1:47:28 – 22: Custom Fields in Redwood UI
1:50:12 – 23: Benefits of Migrating to Redwood
1:53:55 – 24: Understanding Item Organization Terminology
2:04:44 – 25: Creating Sub Inventories
2:07:39 – 26: Asset vs. Expense Inventory Items
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