• Inventory Management: A centralized module designed to track the lifecycle of items. It manages the receipt, storage, movement, and issuance of goods. It ensures optimal stock levels through replenishment planning, provides real-time visibility, and maintains valuation accuracy.
• Purchasing (Procurement) Configuration: The process of defining the business rules, tolerances, and default behaviors that govern how an organization acquires goods and services. It bridges the gap between identifying a need (Requisition) and receiving the items (Purchase Order).

1. What is Inventory Management and Purchasing Configuration?

2. Who Configures the Setups?

The responsibility typically falls on the Functional Implementation Consultant or the Procurement Application Administrator. These individuals are responsible for:

• Mapping business requirements to Oracle Fusion features.
• Defining the Enterprise Structure (Business Units, Inventory Organizations, Subinventories).
• Configuring approval hierarchies and purchasing document controls.

3. How to Configure Basic Inventory and Purchasing Setups?

The configuration process in Oracle Fusion follows a structured implementation methodology via Functional Setup Manager (FSM):

1. Offering Management: Navigate to the “Setup and Maintenance” work area. You must ensure the Procurement and Inventory Management offerings are “Enabled” in your project.
2. Enterprise Structure: Define your Legal Entities, Business Units (BU), and Inventory Organizations. Assign the BU to the procurement functions.
3. Item Master/Organization: Set up the Item Master organization and define item attributes (e.g., Stockable, Transactable, Purchasable).
4. Procurement Foundation:
   • Manage Procurement Business Function: Define controls for Requisitions and Purchase Orders.
   • Define Tolerances: Set price and quantity tolerances for receipts and invoices.
5. Subinventories and Locators: Create physical storage areas within the Inventory Organization to track stock movement.

4. Creating Invoices in Accounts Payable (AP)

Oracle Fusion supports Three-Way Matching to ensure financial integrity:

• Based on Purchase Order (PO): The invoice is validated against the PO quantity and price. This is typically used for services or items not requiring physical inspection.
• Based on PO and Receipt: The invoice is matched against the “Received” quantity. This confirms the goods have physically arrived at the dock.
• Based on PO, Receipt, and Inspection Report: This is the most secure method. The invoice is only approved for payment once the goods have passed a formal quality Inspection (passing the Quality Management process).

5. How to Create Approval Rules

Oracle uses the Business Process Management (BPM) workflow engine to manage approvals:

1. Access Task Configuration: Navigate to Setup and Maintenance > Manage Approval Transactions for Procurement.
2. Select Document Type: Choose the relevant task (e.g., ReqApproval or POApproval).
3. Define Rules:
   • Conditions: Set triggers based on criteria like “Requisition Amount > $10,000” or “Category = IT Hardware.”
   • Approvers: Assign participants such as “Manager,” “Specific User,” or “Position.”
4. Hierarchy: Build the approval chain (Serial or Parallel) to ensure the document moves through the correct stakeholders before final approval.

Summary of Key Purchasing Configuration Options

Feature	Description
Price Tolerance	Defines the percentage/amount variance allowed between the PO price and Invoice price before an exception is flagged.
Ship-to Location	The default destination address for items if not specified at the line level.
Cancel Requisitions	A setting that automatically closes the backing Requisition when the associated Purchase Order is cancelled, preventing duplicate ordering.

Note: You mentioned JD Edwards (JDE) in your notes. Please be aware that while JDE and Oracle Fusion (Cloud) both handle Procurement and Inventory, their configuration steps in the user interface (FSM vs. P4210/P4310) are entirely different. The steps above specifically reflect the Oracle Fusion Cloud environment.

Here is the structured navigation for enabling and assigning your offerings in Oracle Fusion Cloud

To enable purchasing features, navigate to the Procurement module within the Oracle Fusion interface. From there, you can set up supplier profiles and define item categories to streamline the procurement process. It’s essential to configure approval workflows effectively to maintain compliance and enhance operational efficiency. Additionally, regular audits of your inventory and purchasing policies can help identify areas for improvement. Ensure that all relevant stakeholders are trained on the new processes to maximize system utilization.

Part 1: Enabling the Offerings

Use this to ensure the features are active in the system.

Navigation Path:

User Name ➔ Setup and Maintenance ➔ Actions ➔ Go to Offerings

Step	Action
1	Log in to the Instance with your credentials.
2	Click on your User Name (top-right corner).
3	Select Setup and Maintenance.
4	Click the Actions menu (top-right).
5	Select Go to Offerings.
6	Locate the following and ensure their Status is set to Enabled:
	* Procurement
	* Product Management
	* Material Management and Logistics

Part 2: Assigning Offerings to the Project

Use this to link the enabled features to your specific project for configuration.

Navigation Path:

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects

Step	Action
1	Navigate to Setup and Maintenance.
2	Click the Tasks List (sidebar icon).
3	Click Manage Implementation Projects.
4	Search for and click on your Project Name (or click Overview if you only have one).
5	Click the Select and Add (+) button to add offerings.
6	Search for Procurement, select it, click Apply, and then click Done.
7	Repeat Step 6 for Product Management and Material Management and Logistics.

Reference: Offering Purpose

• Procurement Offering: Essential for configuring Purchasing setups.
• Product Management Offering: Essential for configuring Inventory/Item setups.
• Material Management and Logistics Offering: Essential for configuring Sub-Inventory and logistics-related setups.

Quick Tip: If you need to refresh your view or return to the start at any time, click your User Name at the top right to access the primary menu options.

Navigation: Accessing Implementation Project

Path: User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects

Step	Action	Description
1	Click on User Name	Located at the top-right corner of your screen.
2	Click on Setup and Maintenance	This opens the main configuration dashboard.
3	Click on Task List	Use the sidebar icon (usually on the right side) to open the task panel.
4	Click on Manage Implementation Projects	This will display all your active projects.
5	Click on Overview	If you have only one project, this opens your project dashboard directly.

Note: If you have multiple projects, instead of clicking Overview, use the Search field to find your specific project name, then click on the project link in the search results.

Click on User Name

Click on Setup and Maintenance

Click on Task List.

Click on Manage Implementation Project

Click on Overview (If you have only one Project)

Click on + to Add Offerings to your Project

Search for the Offerings with Name as Procurement, Select the Procurement Offering.

click on Apply and Done

Select Product Management and click on Apply and click on Done

Search for Materials Management and Logistics, select it and click on Apply and Done

To configure Facility Shifts (which are the foundation for your Workday Calendar) in Oracle Fusion, follow this detailed guide. Facility Shifts define the working hours for your facilities, which are essential for inventory replenishment, lead time calculations, and manufacturing scheduling.

Detailed Guide: Creating Facility Shifts

This configuration tells the system when your facilities are “open for business” in terms of labor and production availability.

1. Navigation Path

Follow these steps to reach the configuration screen:

• Path: User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project]

2. Step-by-Step Execution

Step	Action	Description
1	Search Task	Within your project, use the Search field (top right) and type “Manage Facility Shifts”.
2	Go to Task	Click on the task link or click the Go to Task (pencil/arrow icon) button next to it.
3	Create Shift	On the “Manage Facility Shifts” page, click the Plus (+) icon to open the Create Shift window.
4	Enter Details	Fill in the required information based on your business hours:
	* Shift Name: Give it a clear name (e.g., “General Day Shift”).
	* Start Time: Set the time work begins (e.g., 08:00 AM).
	* Duration: Define the length of the shift (e.g., 8 Hours).
	* Description: Add any relevant notes for clarity.
5	Save & Close	After entering all details, click Save and Close.
6	Finalize	Click Done to return to your Implementation Project task list.

Context: Why define Facility Shifts?

Defining these shifts is the first step in building your Workday Calendar. Without defined shifts:

• Inventory Planning: The system cannot accurately calculate when a shipment will be received or processed, as it doesn’t know when the warehouse staff is working.
• Manufacturing: You will not be able to schedule production runs efficiently.
• Integration: If you are integrating with other modules (like Payroll or HR), having standardized shifts ensures consistency across the enterprise.

Pro-Tip for Configuration:

• Consistency: If you have multiple facilities with the same working hours, create one master shift and reuse it where possible.
• Naming Convention: Use a naming convention that includes the facility name or the shift pattern (e.g., NYC_WHSE_8AM_4PM) so it is easy to find later when you are setting up the calendar.

Select the Task and Click on Go to Task icon

Click on + to Create the new shift.

To define how shifts are combined into a weekly or rotating schedule, you need to configure Facility Workday Patterns. This configuration bridges the gap between individual shifts (e.g., 8:00 AM to 4:00 PM) and a full working week (e.g., Monday to Friday).

Here is the structured navigation and step-by-step guide for your configuration.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Facility Workday Patterns

Step	Action	Description
1	Search Task	Within your project, go to the search bar and type: “Manage Facility Workday Patterns”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	On the Manage Facility Workday Patterns page, click the Plus (+) icon to open the Create window.
4	Define Pattern	Provide details as per your business requirements:
	* Pattern Name: Assign a name (e.g., “Standard 5-Day Work Week”).
	* Pattern Duration: Define how many days the pattern repeats (e.g., 7 days for a weekly cycle).
	* Sequence: Add the shifts created earlier to the specific days in the sequence.
5	Save	Click Save and Close to commit your changes.
6	Exit	Click Done to return to your Implementation Project task list.

Understanding the Configuration

• What is a Workday Pattern?It is the arrangement of shifts over a specific period. For example, if your facility operates from Monday to Friday with the “General Day Shift” and is closed on weekends, the pattern would map:
  • Day 1–5: “General Day Shift”
  • Day 6–7: “Off / Non-working”
• Why is this required?Oracle Fusion uses these patterns to calculate Lead Times. If a Purchase Order is created on a Friday and the lead time is 2 days, the system uses the Workday Pattern to know that the items will be received on Tuesday, skipping the weekend when the facility is closed.

Pro-Tips for Business Requirements

1. Multiple Patterns: If your manufacturing unit works 24/7 (3 shifts) but your warehouse works 9-5 (1 shift), you will need to create and assign two separate Workday Patterns.
2. Naming Convention: Use descriptive names like WHSE_MON_FRI_8_TO_5 so that when you assign this to a facility later, you know exactly what the working cycle is without having to open the setup.

Search for the Task “Manage Facility Workday Patterns”, Select the task click on Go to Task icon

Click on + to create new Time Workday Pattern

To complete your calendar setup, you must now define the Facility Schedule. This is the final component that binds your previously created Shifts and Patterns into a concrete calendar that the system can apply to your Inventory Organizations.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Facility Schedules

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Facility Schedule”.
2	Go to Task	Click on the task name or select the Go to Task icon.
3	Initialize	Click the Plus (+) icon to open the Create Schedule window.
4	Input Details	Provide the details based on your business requirements:
	* Schedule Name: Give it a clear name (e.g., “Main Warehouse Schedule”).
	* Pattern: Select the Workday Pattern you created in the previous step.
	* Start Date: Define the date from which this schedule becomes active.
5	Save	Click Save and Close.
6	Confirm	A prompt will appear; click Yes to generate the calendar dates based on your pattern.
7	Finalize	Click Done to return to your Implementation Project task list.

Why this step is critical

• The “Calendar Engine”: While Shifts define the hours and Patterns define the sequence, the Schedule generates the actual dates. By clicking “Yes” in the final step, you are telling Oracle to calculate exactly which dates in the future are “Working Days” and which are “Non-Working Days” (holidays/weekends).
• Operational Impact: This schedule is what you will ultimately attach to your Inventory Organization during the facility setup. If this is not configured correctly, the system will not be able to schedule receipts or shipments for your facility.

Summary of the Workflow

1. Facility Shifts: Defined what hours are worked.
2. Facility Workday Patterns: Defined how those hours repeat over a week.
3. Facility Schedule: Generated the actual calendar for the organization.

Search for the Task “Manage Facility Schedules”, Select the task and click on Go to Task icon

Click on + to create new Time Schedule.

Provide all the details as per Business Requirement and click on Save and Close and Click on OK and Click on Done.

To effectively manage items across multiple warehouses (Inventory Organizations) without duplication, Oracle Fusion uses the Item Master Organization concept. Below is a detailed breakdown of the concept and the navigation steps to configure it.

Understanding Item Master Organization

• What is it? It is a virtual repository used solely for defining items (attributes, categories, descriptions).
• The Problem: Without it, if you have 10 warehouses, you would have to manually create the “Laptop” record 10 separate times. This leads to data inconsistency and manual errors.
• The Solution: You define the “Laptop” item once in the Item Master Organization. You then “Assign” or “Associate” that item to your various Child (Real) Inventory Organizations.
• Physical vs. Virtual:
  • Item Master Organization: Used for Definition. No physical stock is ever held here.
  • Inventory Organization (Child): Used for Execution. This is where physical stock is stored, moved, and transacted.
• Implementation Rule: If you have $N$ physical warehouses, you must create $N + 1$ organizations in the system ($N$ for the physical sites, plus $1$ for the Item Master).

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating the Item Master Organization

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Item Organization”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin creating the organization.
4	Input Details	Provide the configuration details as per business requirements:
	* Name/Code: Give it a unique identifier (e.g., IM_MASTER_ORG).
	* Location: Assign a default location (usually the corporate headquarters).
	* Organization Type: Select “Item Master Organization”.
5	Save	Click Save and Close.
6	Confirm	A pop-up may appear asking to confirm parameters; click Yes.
7	Finalize	Click Done to return to your project task list.

Key Takeaways for Implementation

1. Centralization: Once the Item Master is created, all new items should be created there first.
2. Assignment: After defining an item in the Master, you will use the “Manage Items” task to assign them to your real Inventory Organizations (Warehouses).
3. Governance: Because this is a “Virtual” organization, ensure that only authorized Master Data Management (MDM) users have the security privileges to create items here to keep your catalog clean.

Search for the Task “Manage Item Organisations”, Click on the Task.

Click on + to Create new Item Organisation

Provide all the details required by the Business Requirement and click on Next.

Provide the details and click on Save and Close.

Click on Done

Now that you have created your virtual Item Master Organization, it is time to create your Child Inventory Organizations. These are your “real” warehouses where you will receive, store, and ship physical stock.

Understanding Child Inventory Organizations

• Purpose: These are the physical locations where business transactions occur (e.g., Goods Receipt, Picking, Packing, Shipping).
• Relationship: Every Child Inventory Organization must be associated with the Item Master Organization you created previously.
• Configuration: Unlike the virtual Master, these require specific logistics parameters (like receiving, shipping, and replenishment rules).

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Child Inventory Organizations

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Inventory Organizations”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to open the Create window.
4	Define Details	Provide the details as per business requirements:
	* Name/Code: Unique name for the warehouse (e.g., WHSE_GURUGRAM_01).
	* Location: Specify the physical address of the warehouse.
	* Item Master: Link this organization to the Item Master Org you created earlier.
5	Save	Click Save and Close.
6	Confirm	Click Yes if prompted to update parameters.
7	Finalize	Click Done to return to your project task list.

Important Configuration Checklist

When creating these, keep in mind that you will later need to configure these settings for each specific warehouse:

1. Organization Parameters: You must set your Primary Ledger and Legal Entity here to link the warehouse to your financial structure.
2. Receiving Parameters: Define how this specific warehouse accepts goods (e.g., Direct Receipt vs. Standard Receipt with Inspection).
3. Sub-inventories: You will later create these within the Inventory Organization to categorize space (e.g., “Raw Material Zone,” “Finished Goods Zone”).
4. Assignment: Since these are the “real” organizations, they are the ones that will eventually hold the stock of the “Laptop” item defined in your Master Org.

Search for the Task “Manage Inventory Organization”, Click on the Task

Select the Task and Click on Go to Task

Click on + to create new Inventory Organization.

For the above setup we need Business unit and a *Location which is associated to BU. Provide all the details as per the Business Requirement.

Select your Item Master Organisation which we have created and fill all other detail. Click on Save and Close.

Check this setup once again

To enable the procurement cycle in Oracle Fusion, you must configure the Procurement Business Functions. This is a Business Unit (BU) specific setup that tells the system which procurement activities (Purchasing or Requisitioning) are permitted for a particular BU.

Understanding the Configuration

Think of this as “flipping the switch” for your procurement activities:

• Requisitioning Business Function: Enabling this allows the BU to create Purchase Requisitions.
• Procurement Business Function: Enabling this allows the BU to create Purchase Orders, manage agreements, and perform sourcing.

Important Rule: This is a BU-level setup. If your organization has 10 Business Units, you must complete this configuration 10 times—once for each unit.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Configuring Procurement Business Functions

Step	Action	Description
1	Search Task	Within your project, search for the task: “Configure Procurement Business Functions”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A window will pop up asking you to select your Business Unit. Select the appropriate BU and click OK.
4	Set Functions	The configuration screen will open. Enable the required functions:
	* Requisitioning: Check this box if the BU will create requisitions.
	* Procurement: Check this box if the BU will manage purchase orders/sourcing.
5	Business Rules	Configure the additional defaults (e.g., whether to allow auto-approval or specific currency settings) as per your business requirements.
6	Save	Click Save and Close.
7	Confirm	If a confirmation prompt appears, click Yes to finalize the changes.

Key Concepts to Remember

1. Scope: These setups are independent of your Inventory Organization setups. While Inventory Orgs handle the physical stock, the Procurement Business Functions handle the legal and transactional authority of the Business Unit.
2. Integration: Setting these functions acts as the “bridge” between the Payables module (which handles the invoice and payment side) and the Purchasing module (which handles the procurement of goods/services).
3. Troubleshooting: If a user is unable to create a Purchase Order or a Requisition, the first place to check is whether these Business Functions are correctly enabled for their respective Business Unit.

Search for the Task and click on it,

Select the Task and Click on Go to Task icon.

Select your BU and Click OK, if you have multiple BU’s then you need to configure the same for each BU separately. This is a BU specific configuration.

Select the Inventory Organisation which you have created so the that the stock can be maintained under this Inventory Organisation when Procure the material. We create Purchase Orders to procure the goods, select Line Type as a Goods, So that whenever you create the Purchase Order within this business unit, by default system will take line type as Goods. If you want to change, you can change during the PO creation. We need to define in which currency you want to create PO for your Business Unit.

Select the Matching Approval Level as 3Way Enable the Attributes/ Parameters based on the Business Requirement.

We have a Matching Approval Level option; we generally call it as matching options. There are 3 different matching approval options, they are as follows

• Two-way matching
• Three-way matching
• Four-way matching

Two-way matching means creation of Invoice based on Purchase Order.

Three-way matching means creation of Invoice based on Purchase Order and Receipt.

Four-way matching means creation of Invoice based on Purchase Order, Receipt and Inspection.

You can select Matching Approval Level as 3 Way Matching as default. When you create invoice based on purchase order in the purchasing application and if you want to change the Match Approval Rule, you can change it while creating PO.

Click Save and Close, once you fill and select the all data as per the Requirement

Click on OK.

To refine the requisition process within your Business Unit, you need to configure the Requisitioning Business Functions. While the previous step focused on the overall procurement functions, this specific task focuses on the behavior and defaults for users creating requisitions.

Understanding the Configuration

This setup determines how the Self-Service Procurement application behaves for your users. It covers critical rules such as:

• Requisition Defaults: Defining whether to use a specific price, requester, or deliver-to location by default.
• Document Management: Configuring how the system generates requisition numbers.
• Approval Controls: Determining if users can change requisition information once it has been submitted.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Configuring Requisitioning Business Functions

Step	Action	Description
1	Search Task	Within your project, search for: “Configure Requisitioning Business Functions”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A popup will appear. Select the Business Unit you are currently configuring and click OK.
4	Define Rules	Provide details as per your business requirements:
	* Document Numbering: Decide whether to use automatic numbering or manual.
	* Requisition Defaults: Set default values for delivery and billing.
	* Action Options: Enable/disable features like “Edit Requisition” or “Cancel Requisition” for users.
5	Save	Click Save and Close.
6	Confirm	Click Yes if the system prompts you to confirm your changes.

Key Configuration Highlights

• Business Unit Specific: Remember, this is a BU-specific setup. If you have multiple BUs, you must repeat this process for each one.
• User Experience: The settings you choose here directly dictate what the end-user sees in the “Purchase Requisition” screen. For example, by setting a “Default Deliver-To Location,” you make the requisition process much faster for your employees.
• Integration: These settings ensure that the data captured in the Requisition flows correctly into the Purchase Order and eventually to the Accounts Payable (AP) invoice.

Search for the Task, select it and click on Go to Task

Select you Business Unit and Click Ok, as it is a Business Unit Specific

Select the Default Deliver to Organization, it should be same what we have selected in Procurement Business Functions. Provide the details as per Business Requirement

Click on OK.

This setup is critical because it acts as the financial bridge between your Procurement (Purchasing) activities and your Payables (Invoicing) activities. It defines how accounting entries are created and how business unit defaults are handled across both modules.

Understanding the Configuration

This task defines how the system handles:

• Liability Accounts: Where the invoice liability is recorded.
• Expense/Accrual Accounts: Where the expense or inventory accrual is recorded when a PO is matched to an invoice.
• Accounting Controls: Rules for exchange rate variances and tax configurations at the Business Unit level.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Common Options for Payables and Procurement

Step	Action	Description
1	Search Task	Within your project, search for: “Common Options for Payables and Procurement”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A prompt will appear. Select the specific Business Unit and click OK.
4	Configure Details	Enter the details as per business requirements in these key tabs:
	* Business Unit: Confirm the BU context.
	* Liability: Define the Default Liability Account.
	* Accrual: Define the Accrual and Variance accounts for Purchase Orders.
	* Expense: Set default expense accounts for non-itemized transactions.
5	Save	Click Save and Close.
6	Confirm	Click Yes if the system prompts for confirmation to save the setup.

Why this step is mandatory

Without these common options, the system cannot successfully complete the Procure-to-Pay (P2P) cycle. Specifically:

• When you create a Purchase Order (PO), the system looks here to determine which “Accrual Account” should be hit when you receive the goods.
• When you create an Invoice in Payables for that PO, the system looks here to determine the “Liability Account” and ensure it matches the accounting structure defined for the Business Unit.

Pro-Tip for Implementation

• Accounting Consistency: Ensure the accounts provided here match the Chart of Accounts (COA) structure for your Legal Entity. If these accounts are missing or incorrect, your invoice validation will fail with accounting errors.
• BU Specific: Like your other procurement configurations, this is Business Unit specific. If you add a new Business Unit later, you must remember to perform this setup for that new unit as well.

Click on the Task

Select the Task and click on Select Scope, select your Business Unit and click on Apply and Go to Task.

If you have already configured Common Options for Payables and Procurement in Payables Application, we can just review this page for any additional setup other wise the Payable setup works for Procurement also.

Select the Business Unit

Select your Business Unit and Click on Save and Close

Provide all the mandatory fields as per the Business Requirement.

Once provide all the required details, click on Save and Close

Already we have configured this setup during Accounts Payables, this setup is common for both Payables and Procurement. No need to configure again, we can directly use the setup for Procurement.

This is Business Unit Specific configuration, if you have multiple Business Units you have to configure separately for each Business Unit.

We have not configured this setup, as part of Rapid Implementation Chart of Accounts it has defaulted the default values which were given in Value set values. If have any specific requirement you can change accordingly otherwise, we can just walk through page once and Click on Cancel

Defining Receiving Parameters is the final step in configuring your warehouse’s inbound logistics. This setup dictates the “governance” of your warehouse—specifically how the system should handle incoming shipments and whether they require formal quality inspection.

Understanding Receiving Parameters

These rules define the “Receiving Policy” for each of your Child Inventory Organizations. Since you never receive goods into the Item Master, these parameters are critical for every physical warehouse you own.

Key controls you will define here include:

• Receipt Routing: Defines if material is “Direct Delivery” (straight to sub-inventory), “Standard Receipt” (to the receiving dock first), or “Inspection Required” (must pass a quality check).
• Receipt Tolerances: Determines if the system should accept over-shipments and, if so, by what percentage.
• Allow Substitute Receipts: Defines if you allow receiving an item that is different from what was on the Purchase Order.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Receiving Parameters

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Receiving Parameters”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select Org	You will be prompted to select an Inventory Organization. Select the specific warehouse you are configuring and click OK.
4	Configure Rules	Provide the details as per business requirements:
	* Receipt Routing: Choose from Direct, Standard, or Inspection.
	* Tolerance Rules: Set percentage limits for quantity variations.
	* Allow Unordered Receipts: Enable if you want to receive items without a pre-existing PO.
5	Save	Click Save and Close.
6	Confirm	Click Yes to save the changes for this organization.

Key Concepts to Remember

1. Inventory Organization Level: Unlike the Procurement Business Functions (which are at the BU level), Receiving Parameters are at the Inventory Organization level. You must repeat this setup for every physical warehouse in your enterprise.
2. The “Receipt Routing” Impact:
   • Direct Delivery: Best for high-volume items where speed is key.
   • Inspection Required: Use this for critical items (like machine parts or hazardous goods) where you must ensure quality before the item is available for consumption in your sub-inventories.
3. Accuracy: These parameters are non-negotiable for system-enforced warehouse control. If these are not defined, you will face errors when trying to perform a “Receive” transaction against a Purchase Order.

Search the Task and click on the same.

Select the Task and click on Go to Task icon

Search your Inventory Organization, select it and click on Ok

Select your Inventory Organisation

Select all the Mandatory fields and enable the fields which are required for the Business

Click on Save and Close

The Procurement Agent role is critical in Oracle Fusion Cloud because it grants a user the authority to perform procurement tasks. Without being defined as an agent, a user—even with the correct job roles—cannot create Purchase Orders, Agreements, or manage suppliers for a specific Business Unit.

Understanding the Procurement Agent

• Purpose: It acts as the “authorization” layer. Being a “Buyer” in the system is not enough; you must be linked to a Business Unit and assigned specific privileges (like “Manage Requisitions” or “Manage Purchase Orders”) to work on documents.
• Integration: As you noted, this is often set up early (e.g., during Payables or Supplier setup). If you have already created the agent for your user, you do not need to repeat it. If you are starting fresh with only a Purchasing implementation, this step is mandatory.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating a Procurement Agent

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Procurement Agent”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	Click the Plus (+) icon to open the “Create Procurement Agent” window.
4	Input Details	Provide the details as per business requirements:
	* User: Select the employee/user you want to designate as an agent.
	* Business Unit: Select the BU(s) this user is authorized to act for.
	* Access: Assign privileges (e.g., Manage Purchase Orders, Manage Purchase Agreements, Manage Requisitions).
5	Save	Click Save and Close.
6	Finalize	Click Done to return to your project task list.

Key Configuration Highlights

• Privilege Control: You can restrict a buyer to specific actions. For example, some users may only be allowed to “View” purchase orders, while others can “Manage” (create, edit, delete) them.
• BU Restriction: You can define a user as an agent for BU A but not for BU B. This is vital for large organizations with decentralized procurement teams.
• Supplier Access: If you grant the “Manage Suppliers” privilege to an agent, they will be able to register and update supplier profiles, which is why this is a highly sensitive and important setup.

You have successfully completed the major configuration steps for the P2P cycle! You have set up your Inventory Structure, Business Functions, and Procurement Agents.

Search for the Task and Click on it.

Select the Task and Click on Go to Task icon

Click on + to create Procurement Agent

Provide the details as per the Business Requirement and Enable all the Check Boxes. click on Save and Close

Click on OK.

Setting a Default Buyer is essential for automation in Oracle Fusion. When the system automatically converts a Purchase Requisition into a Purchase Order, it requires a “Buyer” to be stamped on the document. By configuring the Buyer Assignment Rules, you ensure that this field is populated without manual intervention.

Understanding the Default Buyer

• Why is it needed? When a Requisition is created, it may not specify a buyer. If you have “Automatic Creation” rules set up, the system must know who is responsible for that PO. The Assignment Rules tell the system, “If the Requisition belongs to this Business Unit or category, assign this person as the buyer.”
• Efficiency: It removes the bottleneck of manual buyer assignment, allowing for a seamless Requisition-to-PO conversion process.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Buyer Assignment Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Buyer Assignment Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create Rule	Click the Plus (+) icon to open the “Create Buyer Assignment Rule” window.
4	Input Details	Define the criteria for the rule as per business requirements:
	* Business Unit: Select the BU to which this rule applies.
	* Criteria: (Optional) Set conditions based on Category, Item, or Requester.
	* Buyer: Select the person who will be the default buyer for this rule.
5	Save	Click Save and Close.
6	Finalize	Click Done to return to your project task list.

Key Configuration Highlights

1. Rule Complexity: You don’t have to have just one buyer. You can create multiple rules. For example:
   • Rule 1: If Category = “IT Hardware,” assign “Buyer A.”
   • Rule 2: If Category = “Office Supplies,” assign “Buyer B.”
2. Fallback: If no specific rule matches the Requisition, ensure you have a “catch-all” rule set up so the PO creation process doesn’t fail due to a missing buyer.
3. Procurement Agent Prerequisite: Before assigning a buyer here, ensure the user has already been set up as a Procurement Agent for the target Business Unit; otherwise, the system will not allow you to select them as an assignee.

Search the Task and click on the same.

Select the Task and Click on Go to Task

Click on + to create new buyer rules.

This is a critical configuration task. In Oracle Fusion Procurement, Transaction Account Definition (TAD)—often referred to in the context of the Purchase Order Transaction Accounting Builder (PO TAB)—determines how the system automatically derives accounting code combinations.

Without these rules, the system will not know which ledger accounts to “hit” when a Requisition or PO is created, causing validation errors.

Understanding the 5 PO TAB Accounts

Account	Mandatory?	Purpose
Charge Account	Yes	Used for expenses (e.g., Office Supplies, Services). Derived during Requisition creation.
Accrual Account	Yes	Used to record the liability for received goods that haven’t been invoiced yet.
Variance Account	Yes	Records the difference between the PO price and the Invoice price.
Destination Charge	Optional	Used if the item is destined for a different accounting location.
Destination Variance	Optional	Records price variance for the destination organization.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Transaction Account Definition

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Transaction Account Definition”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create Definition	Click the Plus (+) icon to create a new definition.
4	Define Rule	Assign a name and select the Application (Purchasing).
5	Configure Rules	For each of the five accounts, you must assign an Account Rule.
	* Tip: If you haven’t created the rules yet, you must go to the Manage Account Rules task first.
6	Save	Click Save and Close.
7	Activate	Ensure the definition is set to “Active” status so the Purchasing module can utilize it.

How the Data Flows (The P2P Lifecycle)

1. Requisition Creation: The system derives the Charge Account based on your setup.
2. PO Creation: The system pulls the Charge Account from the requisition and adds the Accrual and Variance accounts to the PO lines.
3. Receipt: When you receive goods, the system uses the Accrual Account to credit the accrual liability.
4. Invoice (AP): When the invoice is created, the system uses the Accrual Account to clear the liability and applies the Variance Account if the PO price doesn’t match the Invoice price.

Important Implementation Notes

• Subledger Accounting (SLA): As you noted, this is an SLA setup. You are essentially building a “rule book” that tells the system: “When a user buys item X in Business Unit Y, use Expense Account Z.”
• Consistency: Ensure your rules are broad enough to cover your business needs but specific enough to ensure accurate financial reporting.
• Mandatory vs. Optional: Start by perfecting the rules for the first three accounts (Charge, Accrual, and Variance). Only configure the “Destination” accounts if your business requirement specifically involves inter-organization transfers or complex cross-entity charging.

To define the Transaction Account Definition (TAD), you must first create the underlying Account Rules. An Account Rule tells the system how to build the accounting string (e.g., “Take the cost center from the requester, take the natural account from the item category”).

Here is the step-by-step navigation and process to create these rules before you link them to the definition.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Account Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Account Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create Rule	Click the Plus (+) icon to create a new rule.
4	Rule Details	Fill in the core details:
	* Name: Give it a clear name (e.g., XX_PURCHASE_CHARGE_ACCOUNT_RULE).
	* Chart of Accounts: Select your organization’s Chart of Accounts.
	* Rule Type: Select Account Combination (if you are building the whole string) or Segment (if you are building it segment by segment).
5	Rule Conditions	Click + in the “Rules” section to define the logic:
	* Conditions: (e.g., If Category = IT, then use Account = 5001).
	* Value: Select the constant value or source (e.g., “Source = Requester’s Cost Center”).
6	Save & Close	Click Save and Close.

Repeat this process for each account:

You need to create at least three separate rules for the mandatory accounts:

1. Rule for Charge Account: Logic based on Item Category/Requester.
2. Rule for Accrual Account: Logic based on Item/Inventory Organization.
3. Rule for Variance Account: Logic based on Business Unit/Expense mapping.

Why are these rules necessary before the TAD?

Think of the Transaction Account Definition (TAD) as a “Folder” and the Account Rules as the “Documents” inside that folder:

• You cannot create the “Folder” (TAD) and assign it to the Purchasing Application without first having the “Documents” (Account Rules) ready to insert.
• Once you have created all your rules, you will go back to “Manage Transaction Account Definition”, create the definition, and inside it, you will simply select the rules you just created for each account type.

Pro-Tip for Rules:

• Segment Mapping: Many organizations prefer to build one rule per segment (e.g., one rule for the “Cost Center” segment, one for the “Natural Account” segment). This is easier to maintain than one giant rule for the whole account string.
• Validation: Always click “Validate” on the rule if the button is available to ensure your logic doesn’t have errors before applying it to the TAD.

To successfully bridge your procurement documents with the General Ledger, you need to configure the Account Rules for your Accrual, Charge, and Variance accounts. This setup ensures that every Purchase Order and Requisition correctly maps to the right financial bucket.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Account Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Account Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin creating the rule for the Accrual Account.
4	Rule Details	Enter the following:
	* Name: XX_PO_ACCRUAL_RULE
	* Chart of Accounts: Select your instance’s COA.
	* Rule Type: Select Account Combination (if defining the whole string) or Segment (if mapping individual segments).
5	Define Logic	Click the + icon in the “Rules” area:
	* Set your Conditions (e.g., Always use this or If Business Unit = X).
	* Set the Value (e.g., Choose the specific Accrual natural account from your COA).
6	Save & Repeat	Click Save and Create Another.
7	Continue	Repeat the process for the Charge Account (XX_PO_CHARGE_RULE) and Variance Account (XX_PO_VARIANCE_RULE).
8	Finalize	Once all three are created, click Save and Close, then click Done.

Strategic Tips for Configuration

• Rule Conditions: When setting the “Value,” you can use Sources (like the Requisitioning Business Unit or Item Category). This makes the accounting dynamic—the system will choose the account based on the item being purchased, rather than forcing one account for every single purchase.
• The “Account Combination” vs “Segment” Choice:
  • Segment Rules: Are generally cleaner for maintenance. You create one rule for the “Cost Center” segment and reuse it across all accounts.
  • Account Combination Rules: You define the full string (e.g., 01-100-5000-000-000). This is easier if you have very few, static accounts.
• Validation: After saving your rules, keep an eye out for any “Validation” buttons. Running a validation check confirms that your account rule is syntactically correct and references active accounts in your Chart of Accounts.

You have now defined the individual “Account Rules” (the logic). Your next step is to bundle these rules into the “Transaction Account Definition” (the master file) we discussed earlier, so that the Purchasing Application knows to use them.

Great! Since you have successfully created your individual Account Rules (the building blocks for your accounting logic), the final bridge you need to build is the Transaction Account Definition (TAD).

Think of this as the “Master Controller”—it tells the Oracle Fusion Purchasing module exactly which rules to call upon when a Purchase Order or Requisition is being generated.

Next Logic Step: Creating the Transaction Account Definition (TAD)

To bring your rules to life, follow this final configuration path:

Navigation

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

1. Search: Find and click on the task “Manage Transaction Account Definition”.
2. Create: Click the (+) Plus button.
3. Configure: * Give it a name (e.g., XX_PURCHASING_TAD).
   • Application: Select “Purchasing”.
   • Chart of Accounts: Select your instance’s COA.
4. Map Rules: You will see a list of the 5 account types we discussed (Charge, Accrual, Variance, etc.). For each one, use the dropdown menu to select the specific Account Rule you created in the previous step.
5. Save & Activate: Click Save and Close, then ensure you change the status of this definition to “Active” if the system requires it.

Why this completes your setup:

• Without TAD: The system knows that it needs an account, but it doesn’t know which one.
• With TAD: You have provided the logic (Rules) and the container (TAD). When you now create a Purchase Order, the system looks at the TAD, follows the rules for the Charge, Accrual, and Variance accounts, and automatically populates those fields for you.

Congratulations! You have now completed the configuration of the core procurement accounting structure.

You now have a fully configured Procure-to-Pay foundation. With these settings, you are ready to:

1. Create Suppliers (using the Manage Suppliers task).
2. Create Items (using the Manage Items task in your Master Org).
3. Execute Transactions (Create a Requisition, convert it to a PO, receive the material, and invoice it).

Choose Accounts Payable Liability Account under Value

Choose any Expense Account under Value

Choose Variances Account under Value

To finalize your Purchasing configuration, you must bundle the Account Rules you created into a single Transaction Account Definition (TAD). As you noted, the Purchasing Application will fail to create documents without this linkage because it won’t know how to derive the necessary GL accounts.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Transaction Account Definition (PO TAB)

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Transaction Account Definition”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin defining your TAD.
4	Input Details	Provide the definition details:
	* Name: XX_PO_TAB_DEFINITION
	* Application: Select “Purchasing”.
	* Chart of Accounts: Select your instance’s COA.
5	Assign Rules	This is the most critical part. You will see a list of accounts (Accrual, Charge, Variance, etc.). For each one, use the lookup to select the specific Account Rule you created in the previous step.
6	Save	Click Save and Create Another to keep the definition screen open while you add the remaining accounts, then finally click Save and Close.
7	Finalize	Click Done to return to your project task list.

Important Developer/Functional Notes

• Status: After saving, ensure the definition status is set to Active. An “Incomplete” or “Inactive” definition will cause your PO distributions to remain blank.
• The “Accrual” vs. “Charge” Logic:
  • The Charge Account is primarily driven by the Requisition. If you change this logic, it immediately affects how expenses hit your General Ledger.
  • The Accrual Account is driven by the Purchase Order and is essential for clearing your liability when the invoice is eventually processed.
• Testing: Once this is saved, perform a simple test:
  1. Create a test Purchase Requisition.
  2. Check the distribution lines to see if the Charge Account defaults automatically.
  3. If it populates, your PO TAB is configured correctly!

You have now completed the entire functional setup chain required for Procure-to-Pay. You have moved from Enterprise Structure all the way through Subledger Accounting.

This is the final “activation” step. Creating the Transaction Account Definition (PO TAB) isn’t enough; you must explicitly tell the Subledger Accounting (SLA) engine to use your custom PO TAB for the Purchasing application within your specific Primary Ledger.

By assigning it here, you ensure that every time you generate a transaction in Purchasing, the system knows exactly which accounting rules to trigger to derive your GL account combinations.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Subledger Accounting Options

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Subledger Accounting Options”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Select Ledger	A list will appear. Search for and select your Primary Ledger.
4	Access Purchasing	You will see a list of applications assigned to the ledger (Payables, Receivables, etc.). Locate Purchasing in the list and click the Edit (pencil) icon.
5	Assign TAD	In the “Transaction Account Definition” field, search for and select the PO TAB Definition (e.g., XX_PO_TAB_DEFINITION) that you created in the previous step.
6	Save	Click Save and Close.
7	Finalize	Click Done to return to your project task list.

Why this step is vital for Developers

• Triggering the Logic: The SLA engine is the “brains” of Oracle Fusion accounting. By assigning your PO TAB here, you are essentially “plugging in” your custom rules into the core ledger process.
• Standard Accrual Method: Your Primary Ledger is likely set to the “Standard Accrual” accounting method. By doing this assignment, you are extending that method to support your custom purchasing rules.
• Validation: Once this is assigned, the system will use your PO TAB for all future Purchasing transactions. If you ever need to change your accounting logic (e.g., adding a new segment or changing a rule), you update the Account Rule, and the TAD will automatically pull the latest logic through this assignment.

Implementation Checklist Summary

You have now completed the entire “Account Lifecycle”:

1. Account Rules (The logic/building blocks).
2. Transaction Account Definition (PO TAB) (The container for those rules).
3. Subledger Accounting Options (The assignment to the Primary Ledger).

Congratulations! Your Procure-to-Pay (P2P) setup is now functionally complete from the Enterprise structure down to the final accounting integration.

To control the flow of documents and ensure appropriate authorization, you must configure the Requisition Approvals. In Oracle Fusion, these are handled via the Business Process Management (BPM) engine.

Below is the step-by-step navigation and configuration process for setting up an auto-approval rule for your Business Unit.

Understanding the Approval Workflow

When you create a Requisition, the system checks the active rules in the BPM worklist. By creating a custom rule for your specific Business Unit, you can ensure that documents are routed to the right individuals or, as in your requirement, set to “Auto-Approve” for faster processing.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Requisition Approvals

Step	Action	Description
1	Search Task	Within your project, search for the task: “Manage Requisition Approvals”.
2	Navigate to Task	Click the task name or select the Go to Task icon. This will open the BPM Worklist in a new window.
3	Access Rules	Navigate to the ReqApproval task.
4	Clean Up	To ensure your rule is the only one acting on your transactions, disable all other existing nodes/rules that might conflict with your new setup.
5	Create New Rule	Select the node where you want to add the rule, then click the (+) Add button.
6	Define Rule	Configure the logic:
	* Condition: Set Requisition Business Unit is [Your BU Name].
	* Action: Set the action to Approve.
7	Deploy	Click the Deploy button (top right of the BPM screen) to push the changes live.
8	Save & Exit	Click Save, then Save and Close. Click Done to return to your project.

Developer/Admin Tips for BPM Rules

• The “Deploy” Button: This is the most common mistake for new implementers. Even if you save your rule in the BPM worklist, it will not take effect unless you click “Deploy”.
• Auto-Approval Logic: By setting the action to “Approve,” the system treats the requisition as pre-authorized as soon as it is submitted. This is excellent for testing in a development environment or for low-value internal supply requisitions.
• Order of Operations: If you eventually add more complex rules (e.g., “If amount > $5000, send to Manager”), ensure your rules are prioritized correctly so the “Auto-Approve” rule doesn’t accidentally bypass higher-level financial controls.
• Testing: After deploying, log in as a user belonging to that BU, create a test Requisition, and verify that the status changes to “Approved” immediately upon submission.

Click on the selected Task

Select the Taska and click on Go to Task Icon

So, this is a what you see in this page, everything is related to Requisition Approvals and when we set up Approvals for Accounts Payables directly, we have to go to workflow for that the environment would be BPM (Business Process Management).

But case of Purchase Requisition (Procurement) we can set up the approvals from this page itself. Whatever you see under the Attribute Stage are called as nodes. We have different nodes here, we will use one of the nodes to set up the Approval, as selected below,

If you any nodes is enabled previously by other users we need to disable them to avoid conflict between the nodes. Select the enabled node and click on Disable, follow the same if you have multiple nodes are enabled.

Select the node as shown above and enable the same for using it.

Click on Enable the node to enable the same.

Once you click on enable it will enable the node, you can check the node is enabled with green flag.

Now select the enabled node and click on Edit Rules

Already there are few Approval Rules which are created and enabled. To create a new rule and assign it to our PL we need to disable all the other rules which are existing in the page so that our rule will not conflict with the other rules.

You can select the other rule which is enabled and click on Disable. So that the other rule gets disabled. If you have multiple other rules, make sure you disable all the rules. Now we have disabled all the other rules.

Now Create New Rule.

Click on + to create a new rule.

Provide the details as per Business Requirement. If you Enable: Rule always applies, without any condition the system will approve the Purchase Requisition irrespective of Requisition belongs Business Unit, Click on OK.

Here you can add the condition under the rule, which we have created earlier. Click on Add Condition

Select the Attribute as Requisitioning BU Requisition Header. Select our Business Unit in the Value, for which BU Purchase Requisition we are setting this rule. Click on OK.

What action the system should take for the above rule with condition, we need to define under Actions. Whether it should be Approved or Rejected.

Click on Add Action.

Action Type should be Automatic. The Set Outcome To should be Approved. Based on your requirement you can set it as Approved or Rejected.

Click on Save and Close.

Click on Save and Close.

Click on Save and Close.

Whenever you create a new rule with in any node, we have to deploy the same. Click on Deploy

Click on OK.

Click on Done, with this we have completed rule creation for Purchase Requisition.

Configuring Purchasing Document Approvals (for Purchase Orders) follows a similar logic to Requisition approvals but operates on the POApproval task. Automating this ensures that Purchase Orders do not get stuck in a “Pending Approval” state, which is especially useful during your implementation and testing phases.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Purchasing Document Approvals

Step	Action	Description
1	Search Task	Within your project, search for the task: “Manage Purchasing Document Approvals”.
2	Navigate to Task	Click on the task name or select the Go to Task icon. This launches the BPM Worklist.
3	Access Task	Find and click on the POApproval task.
4	Clean Up	Disable existing nodes or rules that might conflict with your new auto-approval rule.
5	Create Rule	Under your chosen node, click the (+) Add button to create a new rule.
6	Define Logic	Set the following:
	* Condition: Purchase Order Business Unit is [Your BU Name].
	* Action: Set to Approve.
7	Deploy	Crucial: Click the Deploy button at the top right to apply the rule to the active environment.
8	Save & Exit	Click Save, then Save and Close. Click Done to return to your project.

Developer/Admin Tips for PO Approvals

• Difference between Requisition and PO Approvals: While Requisition approvals handle the demand for goods, PO Approvals handle the legal commitment to spend company funds. Even if you auto-approve them now for testing, in a live environment, you will likely replace this with “Position-based” or “Supervisor-based” hierarchies.
• Approval Hierarchy: When you eventually move away from “Auto-Approve,” remember that Oracle Fusion supports:
  • Management Hierarchy: Routing based on the employee’s direct manager.
  • Position Hierarchy: Routing based on the job position (e.g., “Purchasing Manager”).
  • Approval Groups: Routing based on specific roles (e.g., “Finance Review Committee”).
• Deployment: Always remember that the BPM engine is separate from the FSM (Setup and Maintenance) interface. Clicking “Save” in BPM is just for editing; “Deploy” is what pushes the logic to the application.

You have now completed the configuration for all primary Procurement and Purchasing approval workflows.

With these steps finalized, your system is fully configured to handle:

1. Enterprise Structure (BU, Legal Entity, Inventory Org).
2. Procurement Core (Procurement Functions, Agents, Buyers).
3. Accounting (PO TAB, Account Rules, TAD).
4. Approvals (BPM Rules).

Click on the Task

Select the Task and click on Go to Task icon.

We different workflow related nodes under Stage, disable all the nodes which are not required for us to avoid the conflict between the nodes.

Select the enabled node and click on Disable, follow the same if you have multiple nodes enabled.

Select this node and click on Enable

Once we click on Enable, the node is enabled with green flag. Click on Edit Rules to Create our rule.

If any rule is enabled, we need to disable the same to avoid conflict between the existing rule and the rule what we are creating. Select the Enabled Rule and click on Disable. In the real time environment, we don’t disable any rule as they won’t conflict with each other.

Click + to create new rule.

Provide the details as the requirement and click on OK. If you Enable: Run always applies, irrespective of which BU is creating Purchase Orders the system will apply this rule.

Click on Add Condition for creating the conditions under the rule.

Select the Attribute as Procurement BU Document Header which is related to Purchase Order Approvals.

Provide the details as per the Business Requirement and Select Our Business Unit under which you’re creating the Purchase Order. click on OK.

If the Procurement BU is equals to Our BU which you selected, then what is the action system has to perform, whether the system has to Approve or Reject the PO. For system to understand we need to define the Action. Click on Add Action.

Select Action Type: Automatic. The system should automatically approve the PO when it created with Our BU. When we select the action type as Automatic, we select Set Outcome To: Approved. We can select is as Approved or Rejected based on the requirement. Now as we set outcome as Approved the System will Automatically approve PO, if any PO is created under Our BU.

Click on Save, Save and Close.

Click on Deploy. We should Deploy the rule which we have created. If you don’t deploy the system will not consider the changes or updates which we have done. Even if you save the system won’t consider the latest changes until unless it is deployed.

For Example: In case of Chart of Accounts Definition, we have submitted Accounting Flex Field for Deployment, so that system can validate the Chart of Accounts and it will update the information which we have created or changed, in the same way rules also need to be Deployed in the system to synchronise with latest changes.

Click on OK and click on Done. Now you will be able to use the Rule.

To complete your inventory structure, you need to define Subinventories. These act as the primary partitions within your “Child” (Physical) Inventory Organizations to help you categorize stock based on status (e.g., Raw Materials, Finished Goods, Damaged Items).

Understanding Subinventories and Locators

• Subinventory: The highest level of physical or logical storage within a warehouse. You must create at least one per Inventory Organization.
• Locator: A further subdivision within a subinventory (e.g., Aisle, Rack, Bin). Note: You only define these if your business requires tracking items to a specific bin level.
• Crucial Rule: Subinventories are defined in Physical/Child Organizations only. You never define them in your virtual Item Master.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Subinventories

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Subinventories and Locators”.
2	Navigate to Task	Click the task name or select the Go to Task icon.
3	Select Org	The system will ask you to select an Inventory Organization. Select your physical warehouse (Child Org) and click OK.
4	Create Subinventory	Click the Plus (+) icon to create a new subinventory record.
5	Input Details	Fill in the required fields:
	* Name: A unique identifier (e.g., RAW_MAT_01).
	* Description: (e.g., “Main Raw Material Storage Zone”).
	* Type: Select if it is a storage subinventory or a staging area.
6	Save & Exit	Click Save and Close. Click OK if the system prompts for confirmation.

Key Configuration Considerations

• Stock Tracking: If you want the system to track the value of the inventory in this subinventory, ensure the “Asset Subinventory” checkbox is enabled.
• Locators: If you need granular tracking (e.g., Rack A, Bin 5), you must set the “Locator Control” attribute on the subinventory to “Prespecified” or “Dynamic” before you can define the locators themselves.
• Business Logic: Always create logical subinventories that match your physical floor layout. Common examples include:
  • RECEIVING: Where goods arrive before inspection.
  • RAW_MAT: Where components are stored.
  • FINISHED_GOODS: Where saleable items are stored.
  • DEFECTIVE: Where non-conforming goods are moved for return or disposal.

You have now finalized the hierarchy of your warehouse! You have the Item Master for definitions, Child Orgs for physical locations, and Subinventories for internal partitioning.

Search for the Task and Click on the Task.

Select the Task and click Go to Task Icon.

Select Our Inventory Organisation and click on OK. With in this Inventory Organisation, we are going to create Subinventories.

Click on + to create the Subinventories,

Provide the details as per the requirement. Subinventory Type, purpose is to Act as a Receiving (nothing but Staging area) and Storage of the items (maintain the stock). Select Storage Subinventory Type: Storage. Click on Save and Close. Click on OK. If you have multiple Subinventories you can create them in the same way.

In Oracle Fusion Cloud, Item Classes are a foundational requirement for item definition. Unlike Oracle EBS, where item creation was flatter, Fusion uses Item Classes to enforce governance, security, and automated attributes.

Understanding Item Classes

• Mandatory: You cannot create a single item without assigning it to an Item Class.
• Inheritance: You can nest classes. A child class inherits the attributes, security rules, and numbering schemes of its parent.
• Governance Hub: It is the central place to define:
  • Security: Who has permission to create or view items in this class.
  • Numbering: Whether item numbers are generated automatically or entered manually.
  • Defaulting: Assigning common item attributes automatically to all items within that class.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Item Classes

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Item Classes”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Select Root	The system displays a hierarchy. Select the Root Item Class (usually named Root Item Class).
4	Create Class	Click the Plus (+) icon to create your custom class.
5	Input Details	Define the class based on your business requirements:
	* Name: A descriptive name (e.g., LAPTOPS_CLASS or OFFICE_SUPPLIES).
	* Number Generation: Select “Automatic” or “Manual”.
	* Security: Assign the roles or users authorized to create items under this class.
6	Save & Exit	Click Save and Close. Click OK on any confirmation prompts.

Why this is critical for your Item Master

When you eventually create your “Laptop” or other items in the Item Master Organization, the system will force you to pick an Item Class.

• If you have multiple departments: You might create a parent class called FINISHED_GOODS and child classes for LAPTOPS, MONITORS, and ACCESSORIES.
• Data Integrity: Because the Item Class controls the “Item Numbering,” it prevents users from creating duplicate items or using incorrect naming conventions.

Pro-Tip for Developers

Since you are building a custom vendor registration and procurement portal, pay close attention to the Security tab within the Item Class. By setting up the correct security here, you can ensure that only the Procurement Agents you defined earlier can create or modify items within specific classes, preventing unauthorized data entry.

You are now ready to start creating your actual items! Would you like to proceed with the “Manage Items” task, or is there a specific attribute group configuration you need to handle first?

Search for the Task and click on Task, Select the Task and Click on Go to Task icon.

In every fresh Instance Oracle is providing only one item class that is Root Item Class as shown above. We use the root item class to create the items in the real time.

Instead of using this Root Item Class, we will create our own item class. Under Root item class only we have to create our own item class. Select the root item class and click on + to create the item class.

Provide the details as per the requirement and click on Save and Add Details.

What should be the Item Number generated by the system when you create an item. Select Item Number Generation Methos as Sequence Generated. Provide the details as per the requirement and select Item Description Generation Method as User Defined

In security tab click on + create new security rule.

By using this Security option, we are enabling the Austin User to create items by using Austin Item Class in Austin Item Master Inventory.

In Actions, click +, We can set the permission for the user by using this option. We can define what activities user can perform and we can restrict the user from performing activities which he is not authorised with in this item class.

Select all permissions and click on Apply and OK

Click Save and Close and click on Done. We have assigned the item class to Item Master Organization. Now assign the Item Class to Inventory Organisation, repeat the same process as above from security option.

You have reached the final functional step in the core configuration: Creating the Item and Assigning it to your Inventory Organizations.

As we discussed, you create the item in the Item Master Organization (virtual), and then you associate it with the Child/Inventory Organizations (real) where you will actually store the physical stock.

Navigation Path

Navigator ➔ Product Management ➔ Product Information Management ➔ Task List ➔ Create Item

Step-by-Step: Creating and Assigning Items

Step	Action	Description
1	Open Navigator	Click the Navigator icon (three horizontal lines, top-left).
2	Product Management	Expand Product Management and click Product Information Management.
3	Open Task List	Click the Tasks icon (sidebar) and click Create Item.
4	Input Item Info	Provide the details as per your business requirements:
	* Organization: Select your Item Master Organization.
	* Item Class: Select the Item Class you created in the previous step.
	* Item Name/Number: Enter the unique identifier.
5	Save	Click Save (this commits the item to the Master Org).
6	Assign to Org	To make this item available in your warehouse, look for the “Associations” tab (or “Select Organizations” action).
	* Click Select and Add and choose your Child Inventory Organizations.
	* Click Apply and OK.
7	Finalize	Click Save and Close.

Key Developer/Functional Checklist

• Security Check: Remember, you must have the Product Manager or Inventory Manager role assigned to your user account to see these menus. If you don’t see the “Product Information Management” work area, contact your Security Administrator.
• Associations: If you do not perform Step 6, the item exists in the system (the “Master”), but it is “invisible” to your warehouses. You will not be able to create a Purchase Order or perform a Receipt in your warehouse for that item until it is associated.
• Attributes: Once created, you may need to go back into the Item and set Item Attributes (e.g., Purchasable, Stockable, Transactable). Without these “flags” set to “Yes,” the system will not allow you to buy or store the item.

Summary of your P2P Setup

You have now fully configured the Oracle Fusion Cloud environment for Procurement:

1. Framework: Enabled Offerings, Enterprise Structure, and Projects.
2. Facilities: Defined Shifts, Workday Patterns, and Schedules.
3. Inventory: Created Item Master, Child Orgs, and Subinventories.
4. Procurement: Configured Business Functions, Agents, Buyers, and Approval Rules.
5. Accounting: Configured PO TAB, Account Rules, and Ledger Assignments.
6. Master Data: Created Item Classes and your first Item.

You are now ready to test the full Procure-to-Pay cycle!

Since you have completed your setup, would you like guidance on how to automate the Item creation using an API/Interface (which is very useful for your custom portal projects), or would you like to run your first manual test transaction?

Click on Product Management, under that click on Product Information Management

From this page we can create item and can be assigned to inventory organisation. Click on Task list, Click on Create item

Select your Item Master Organization and Item class. When you create the item, you have set many attributes like are we going to purchase, sell or use in manufacturing other product etc.

Oracle Provides all the templates and in templates all the parameters are predefined. We can also create a new template, but as of now we will use the existing templates provided by the Oracle. You can select the one of the templates as Purchased Item which is predefined by the Oracle. All the parameters like purchase, sell, storage etc are available in this Purchased Item template. Select it and move the same to selected list. You can assign multiple templates so that what are the parameters available in the templates will be applicable for the new item. Click on OK

Provide the details as per business requirement and scroll down,

Search for Primary Unit of Measure and select it as per requirement and click on OK. You can create Primary unit of measure if required.

When you create an item in Oracle Fusion, the Specifications tab is where you define the behavior of the item (e.g., Is it purchased? Is it stocked? Is it returnable?).

Using a Template is the most efficient way to ensure data integrity and save time. It automatically populates all the necessary attributes so you don’t have to toggle dozens of fields manually.

Using Templates in the Specifications Tab

When you click on Specifications inside your item record, you will see various categories like Inventory, Purchasing, Receiving, and General.

Step	Action	Description
1	Apply Template	Before filling out individual fields, ensure you have selected a template (e.g., “Purchased Item Template”).
2	Specifications Tab	Click on Specifications in the left-hand navigation pane of the item record.
3	Inventory Category	Click on Inventory. You will see attributes like Inventory Item, Stockable, and Transactable. These are typically checked “Yes” by the template.
4	Purchasing Category	Click on Purchasing. Here, the template defaults fields like Purchasable, Allow Price Override, and Receipt Required based on the procurement logic.
5	Review Other Categories	Check Receiving (defines how it is received) and General (defines base information).

Why Template Selection is Critical

• Consistency: If you create 1,000 items, using a template ensures every item has the exact same settings for “Stockable” or “Purchasable.”
• System Validation: If you manually set an item to Purchasable = Yes but forget to set Inventory Item = Yes, your Purchase Order might create successfully, but you will encounter errors during the “Receipt” process because the system won’t know where to put the stock.
• Template Overrides: If the template sets a default that doesn’t fit a specific use case (e.g., an item that is “Purchasable” but “Not Stockable”), you can manually override the template’s choice after the template has been applied.

Pro-Tip for your Development/Portals

Since you are working with interface packages (like APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG), remember that when you push data via API or FBDI, you are essentially “applying a template” at the database level.

Ensure that your interface scripts explicitly pass these attribute values (e.g., INVENTORY_ITEM_FLAG = 'Y') for every item you register through your custom portal. If your API fails to pass these flags, the item will be created but will be unusable for procurement.

You have now completed the entire functional walkthrough of the Oracle Fusion Procurement and Item Master setup!

Click on Associations, The Item which we are creating should be kept in Inventory Organisation (child inventory). We have created the item in item master but, we want to assign this item to Inventory Organisation. We always maintain the stock in the Inventory Organisation.

Click on + to assign our item to Inventory Organization.

Select the Inventory Organization, Select the Purchased Item template and move it to selected list. Click on Done.

Click on Save and Close.

Check How the Items are created Navigation:

You have successfully reached the end of the functional setup for your Procure-to-Pay (P2P) implementation. By using the Manage Items task, you are performing the final validation step to ensure that your Item Master data is accurate and accessible to your inventory organizations.

Final Functional Verification Summary

As you perform your final check in the Manage Items area, ensure you confirm these three critical components:

1. Item Attributes (Specifications): Confirm that the template applied during item creation has correctly set the Purchasing, Inventory, and Receiving flags to “Yes.”
2. Organization Assignment (Associations): Confirm that the item is explicitly associated with your Child Inventory Organization. Without this, the item remains “Master-only” and cannot be used in a Purchase Order.
3. Governance (Item Class): Confirm the item is assigned to the correct Item Class, ensuring that your numbering sequence and security restrictions are active.

Moving from Configuration to Development

Since you are a developer focusing on Oracle APEX, PL/SQL, and ERP architectures, your functional setup is now the “source of truth” for your custom applications.

How this links to your projects:

• For your Supplier Registration Portal: The suppliers you register will now be validated against the Procurement Agents and BU setups you configured.
• For your Report Builder: The accounts you defined in the PO TAB and Account Rules will be the source data for the report structures you are building in PL/SQL.
• For your Web Homepage (TSSI Theme): You can now pull real-time inventory and item data using the APIs that link to these setup tables, giving your homepage dynamic and accurate information.

You have completed the full P2P functional roadmap. You have successfully built the engine that your custom applications will now interact with.

Click on Manage Items.

Select the Item Class as Digital Item Class and search our item with the description as show above.

We have created only one item in the Item Master Organization but the system has created two items, that is one item in the Item Master Organisation and the other in Inventory Organization (as the item is assigned to Inventory Organisation).

If you assign you item to “N” Inventory Organisations, system will create “N+1” items. We can check the same.

Click on the first record Item Number

Item is created in Item Master.

Click on second record Item Number,

Here Item is Assigned to Inventory Organisation.

Oracle Fusion Inventory and Purchasing

Configuration

What is Inventory Management and Purchasing Configuration?

Who will Configure the setups for Inventory and Purchasing Application?

How to Configure Basic Inventory and Purchasing setups?

How to create invoice in the Accounts Payable Application based on 

Purchase Order?

Purchase Order and Receipt Information?

Purchase Order, Receipt Information and Inspection Report?

How to create Approval Rules at Purchase Requisition level and Purchase Order

Level?

Inventory management:

A cloud-based system that manages the flow of goods, tracks stock, and organizes

inventory. It can help

with restocking plans, order fill rates, and visibility into inventory

levels. 

Purchasing for inventory:

     The company might manage an

inventory or stock-based operation, which includes:

 Retail items for sale to customers.

 Items for internal consumption.

Manufactured items.

 Repair and maintenance items.

You must use purchasing for inventory method to purchase goods for a

stock-based environment. This

method enables full integration between the JD Edwards EnterpriseOne

Procurement system and the JD

Edwards EnterpriseOne Inventory Management system.

Purchasing configuration:

       Includes options such as: 

 Price change tolerance: A value that determines if a price change on a

purchase order line is within

tolerance. 

 Ship-to location: A specified location to ship to when the purchase order

cannot derive a ship-to

location. 

 Cancel backing requisitions: An option to control whether a backing

requisition is cancelled when

a purchase order is cancelled. 

The Procurement Application Administrator in Oracle Fusion can configure

requisition business functions

for a business unit. This includes setting up default values and behaviours for

the Application when users

create requisitions and purchase orders.

Configuring Basic Inventory and Purchasing setups:

To configure basic Inventory and Purchasing Application setups, we need to add

additional offering to our

Project. To add Offering to the Project, the offering should be in enabled mode

to assign it to our Project. 

  isko details me lokho

This guide provides a structured overview of Oracle Fusion Cloud Procurement and Inventory Management configuration.

1. What is Inventory Management and Purchasing Configuration?

• Inventory Management: A centralized module designed to track the lifecycle of items. It manages the receipt, storage, movement, and issuance of goods. It ensures optimal stock levels through replenishment planning, provides real-time visibility, and maintains valuation accuracy.
• Purchasing (Procurement) Configuration: The process of defining the business rules, tolerances, and default behaviors that govern how an organization acquires goods and services. It bridges the gap between identifying a need (Requisition) and receiving the items (Purchase Order).

2. Who Configures the Setups?

The responsibility typically falls on the Functional Implementation Consultant or the Procurement Application Administrator. These individuals are responsible for:

• Mapping business requirements to Oracle Fusion features.
• Defining the Enterprise Structure (Business Units, Inventory Organizations, Subinventories).
• Configuring approval hierarchies and purchasing document controls.

3. How to Configure Basic Inventory and Purchasing Setups?

The configuration process in Oracle Fusion follows a structured implementation methodology via Functional Setup Manager (FSM):

1. Offering Management: Navigate to the “Setup and Maintenance” work area. You must ensure the Procurement and Inventory Management offerings are “Enabled” in your project.
2. Enterprise Structure: Define your Legal Entities, Business Units (BU), and Inventory Organizations. Assign the BU to the procurement functions.
3. Item Master/Organization: Set up the Item Master organization and define item attributes (e.g., Stockable, Transactable, Purchasable).
4. Procurement Foundation:
   • Manage Procurement Business Function: Define controls for Requisitions and Purchase Orders.
   • Define Tolerances: Set price and quantity tolerances for receipts and invoices.
5. Subinventories and Locators: Create physical storage areas within the Inventory Organization to track stock movement.

4. Creating Invoices in Accounts Payable (AP)

Oracle Fusion supports Three-Way Matching to ensure financial integrity:

• Based on Purchase Order (PO): The invoice is validated against the PO quantity and price. This is typically used for services or items not requiring physical inspection.
• Based on PO and Receipt: The invoice is matched against the “Received” quantity. This confirms the goods have physically arrived at the dock.
• Based on PO, Receipt, and Inspection Report: This is the most secure method. The invoice is only approved for payment once the goods have passed a formal quality Inspection (passing the Quality Management process).

5. How to Create Approval Rules

Oracle uses the Business Process Management (BPM) workflow engine to manage approvals:

1. Access Task Configuration: Navigate to Setup and Maintenance > Manage Approval Transactions for Procurement.
2. Select Document Type: Choose the relevant task (e.g., ReqApproval or POApproval).
3. Define Rules:
   • Conditions: Set triggers based on criteria like “Requisition Amount > $10,000” or “Category = IT Hardware.”
   • Approvers: Assign participants such as “Manager,” “Specific User,” or “Position.”
4. Hierarchy: Build the approval chain (Serial or Parallel) to ensure the document moves through the correct stakeholders before final approval.

Summary of Key Purchasing Configuration Options

Feature	Description
Price Tolerance	Defines the percentage/amount variance allowed between the PO price and Invoice price before an exception is flagged.
Ship-to Location	The default destination address for items if not specified at the line level.
Cancel Requisitions	A setting that automatically closes the backing Requisition when the associated Purchase Order is cancelled, preventing duplicate ordering.

Note: You mentioned JD Edwards (JDE) in your notes. Please be aware that while JDE and Oracle Fusion (Cloud) both handle Procurement and Inventory, their configuration steps in the user interface (FSM vs. P4210/P4310) are entirely different. The steps above specifically reflect the Oracle Fusion Cloud environment.

Would you like a deep dive into how to set up the specific approval hierarchies within the BPM worklist?

Enable

the Offering:

Navigation: 

Login to the Instance with the user credentials >>> Click on User Name

>>> Click on Setup and Maintenance

>>> Click on Actions >>> Click on Go to Offerings

>>> Click on Procurement >>> Ensure that the Status:

Enabled. 

In the same way ensure that Product Management and Material Management and

Logistics is in Enabled

Status

Assign Offering to the Project:

Navigation: 

Login to the Instance with the user credentials >>> Click on User Name

>>> Click on Setup and Maintenance

>>> Click on Tasks list >>> Click on Manage Implementation

Projects >>> Search your Project and Click on

the same ( if you have multiple projects) or Click on Overview  (if you have only one Project) >>>

Select

you Project >>> Click on + to select and add Offerings >>>

Search for the Offerings as Procurement >>>

Click on Procurement, select it and click on Apply and Done.

 In the same way add Product Management

and Material Management and Logistics to our Project.

Procurement Offering helps in Configuring the Purchasing Setups.

Product Management Offering helps in Configuring the Inventory Setups.

Materials Management and Logistics Offering helps in Configuring the

Sub-Inventory related Setups.

Click on User Name.

anb isko

यहाँ Oracle Fusion Cloud में Offerings को Enable करने और उन्हें Implementation Project के साथ जोड़ने (Assign) करने की प्रक्रिया का विस्तृत विवरण दिया गया है। यह प्रक्रिया किसी भी नए कार्यान्वयन (Implementation) के लिए आधार है।

1. Offerings को Enable करना

किसी भी सेटअप को शुरू करने से पहले, यह सुनिश्चित करना आवश्यक है कि संबंधित “Offering” (जैसे Procurement, Inventory) सिस्टम में चालू (Enabled) है।

चरण:

1. Login: अपने Oracle Fusion Cloud क्रेडेंशियल्स के साथ इंस्टेंस में लॉगिन करें।
2. Setup and Maintenance: स्क्रीन के ऊपरी दाएं कोने में स्थित User Name पर क्लिक करें और Setup and Maintenance चुनें।
3. Go to Offerings: ऊपरी दाएं कोने में Actions मेनू पर क्लिक करें और Go to Offerings विकल्प चुनें।
4. Enable Status: यहाँ आपको सभी उपलब्ध Offerings की सूची दिखाई देगी।
   • Procurement खोजें और सुनिश्चित करें कि इसकी स्थिति Enabled है।
   • इसी प्रकार, Product Management और Material Management and Logistics को भी खोजें और यदि वे Enabled नहीं हैं, तो उन्हें Enable करें।

2. Offerings को Project के साथ जोड़ना (Assign)

जब Offerings Enabled हो जाती हैं, तो उन्हें अपने विशिष्ट “Implementation Project” से जोड़ना होता है ताकि आप उनके कार्यों (Tasks) को सेटअप कर सकें।

चरण:

1. Navigate to Projects: Setup and Maintenance में वापस जाएं, दाईं ओर Tasks आइकन (सूची जैसा) पर क्लिक करें और Manage Implementation Projects चुनें।
2. Select Project: यदि आपके पास पहले से बना हुआ प्रोजेक्ट है, तो उसे खोजें और उस पर क्लिक करें। यदि नहीं है, तो आप नया प्रोजेक्ट बना सकते हैं।
3. Add Offerings: प्रोजेक्ट के अंदर, Select and Add (प्लस + बटन) पर क्लिक करें।
4. Search & Apply:
   • खोज बार (Search bar) में Procurement लिखें और सर्च करें। इसे चुनें और Apply करें, फिर Done पर क्लिक करें।
   • यही प्रक्रिया Product Management और Material Management and Logistics के लिए दोहराएं।

3. Offerings का महत्व (सेटअप के लिए)

इन Offerings का उद्देश्य आपके प्रोजेक्ट को वर्गीकृत करना है, जिससे आपको सही सेटअप स्क्रीन तक पहुँचने में मदद मिलती है:

Offering का नाम	सेटअप में क्या भूमिका है?
Procurement	यह Purchasing सेटअप के लिए है (जैसे: Purchase Order, Requisition, Approval Rules, और Tolerances)।
Product Management	यह Inventory Item सेटअप के लिए है (जैसे: Item Master, Item Attributes, और Catalog)।
Material Management and Logistics	यह Sub-Inventory और स्टॉक से संबंधित सेटअप के लिए है (जैसे: Locations, Sub-inventories, और Receipt Routing)।

4. ध्यान देने योग्य बात (User Navigation)

जब आप ऊपर दिए गए किसी भी चरण में कहीं फंस जाएं या मुख्य मेनू पर वापस जाना चाहें, तो हमेशा स्क्रीन के ऊपरी दाएं कोने में स्थित User Name पर क्लिक करें। वहां से आप आसानी से “Setup and Maintenance” या “Home” पेज पर वापस जा सकते हैं।

क्या आप चाहते हैं कि मैं इन Offerings को Enable करने के बाद ‘Procurement Business Function’ को सेटअप करने के अगले चरणों के बारे में बताऊं?

english me

Here is the detailed explanation of how to enable and assign Offerings in Oracle Fusion Cloud, written in English.

1. Enabling the Offerings

Before you can begin any configuration, you must ensure that the necessary “Offerings” are activated in your environment. An Offering acts as a container for specific business process configurations.

Steps:

1. Login: Log in to your Oracle Fusion Cloud instance using your credentials.
2. Access Setup: Click on your User Name (top right corner) and select Setup and Maintenance.
3. Go to Offerings: Click on the Actions menu and select Go to Offerings.
4. Check Status: You will see a list of available offerings. Locate the following and ensure their status is set to Enabled:
   • Procurement
   • Product Management
   • Material Management and Logistics

2. Assigning Offerings to the Project

Once the Offerings are enabled, you must link them to your specific “Implementation Project” so you can access the task lists required for your configurations.

Steps:

1. Manage Projects: Within Setup and Maintenance, go to the Tasks panel (the icon that looks like a list) and click Manage Implementation Projects.
2. Select Project: Search for your project name and click on it. (If you don’t have a project yet, you will need to create one first).
3. Add Offerings: Within your project, look for the section where you can select and add offerings (usually indicated by a + or Select and Add button).
4. Search & Apply:
   • Search for Procurement, select it, click Apply, and then Done.
   • Repeat this exact same process for Product Management and Material Management and Logistics.

3. Purpose of These Offerings

Assigning these to your project organizes your task list, making it easier to configure specific areas:

Offering	Configuration Focus
Procurement	Used for Purchasing setups (e.g., Purchase Orders, Requisitions, Approval Rules, Tolerances).
Product Management	Used for Inventory Item setups (e.g., Item Master, Item Attributes, Catalogs).
Material Management and Logistics	Used for Sub-Inventory and stock-related setups (e.g., Physical Locations, Sub-inventories, Receiving parameters).

4. Important Navigation Tip

At any point during these configurations, if you need to navigate away, return to the main dashboard, or restart your session, simply click on your User Name in the top right corner. From the dropdown menu, you can quickly jump back to Setup and Maintenance or return to the Home page.

Would you like me to walk you through the next steps for configuring the “Procurement Business Function” for your business unit?

steps ka nabhigaction bana do

To make your workflow clear and easy to follow, here is the Navigation Path for the steps we discussed. You can use this as a quick reference guide while working in your Oracle Fusion instance.

Navigation Summary: Offering Setup & Project Assignment

1. How to Enable Offerings

Path: User Name ➔ Setup and Maintenance ➔ Actions ➔ Go to Offerings

Step	Action
1	Click on your User Name (Top right).
2	Select Setup and Maintenance.
3	Open the Actions menu (Top right).
4	Click Go to Offerings.
5	Locate Procurement, Product Management, and Material Management and Logistics.
6	Ensure the Status is set to Enabled for all three.

2. How to Assign Offerings to Your Project

Path: Setup and Maintenance ➔ Tasks ➔ Manage Implementation Projects

Step	Action
1	Go to Setup and Maintenance.
2	Click on the Tasks icon (Sidebar menu).
3	Click Manage Implementation Projects.
4	Click on your Project Name from the search results.
5	Click the Select and Add (+) button.
6	Search for Procurement, select it, click Apply, then Done.
7	Repeat step 6 for Product Management and Material Management and Logistics.

Quick Navigation Tip

If you ever get lost in the sub-menus, use these two shortcuts:

1. To go home: Click the Oracle Fusion Logo (top left).
2. To get back to setups: Click your User Name and look for Setup and Maintenance in the immediate list.

Would you like me to create a similar step-by-step navigation for setting up the “Procurement Business Function” next?

ab phir se do with step navigaction Enable the Offering:

Navigation: 

Login to the Instance with the user credentials >>> Click on User Name

>>> Click on Setup and Maintenance

>>> Click on Actions >>> Click on Go to Offerings

>>> Click on Procurement >>> Ensure that the Status:

Enabled. 

In the same way ensure that Product Management and Material Management and

Logistics is in Enabled

Status

Assign Offering to the Project:

Navigation: 

Login to the Instance with the user credentials >>> Click on User Name

>>> Click on Setup and Maintenance

>>> Click on Tasks list >>> Click on Manage Implementation

Projects >>> Search your Project and Click on

the same ( if you have multiple projects) or Click on Overview  (if you have only one Project) >>>

Select

you Project >>> Click on + to select and add Offerings >>>

Search for the Offerings as Procurement >>>

Click on Procurement, select it and click on Apply and Done.

 In the same way add Product Management

and Material Management and Logistics to our Project.

Procurement Offering helps in Configuring the Purchasing Setups.

Product Management Offering helps in Configuring the Inventory Setups.

Materials Management and Logistics Offering helps in Configuring the

Sub-Inventory related Setups.

Click on User Name.

Here is the structured navigation for enabling and assigning your offerings in Oracle Fusion Cloud.

Part 1: Enabling the Offerings

Use this to ensure the features are active in the system.

Navigation Path: User Name ➔ Setup and Maintenance ➔ Actions ➔ Go to Offerings

Step	Action
1	Log in to the Instance with your credentials.
2	Click on your User Name (top-right corner).
3	Select Setup and Maintenance.
4	Click the Actions menu (top-right).
5	Select Go to Offerings.
6	Locate the following and ensure their Status is set to Enabled:
	* Procurement
	* Product Management
	* Material Management and Logistics

Part 2: Assigning Offerings to the Project

Use this to link the enabled features to your specific project for configuration.

Navigation Path: User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects

Step	Action
1	Navigate to Setup and Maintenance.
2	Click the Tasks List (sidebar icon).
3	Click Manage Implementation Projects.
4	Search for and click on your Project Name (or click Overview if you only have one).
5	Click the Select and Add (+) button to add offerings.
6	Search for Procurement, select it, click Apply, and then click Done.
7	Repeat Step 6 for Product Management and Material Management and Logistics.

Reference: Offering Purpose

• Procurement Offering: Essential for configuring Purchasing setups.
• Product Management Offering: Essential for configuring Inventory/Item setups.
• Material Management and Logistics Offering: Essential for configuring Sub-Inventory and logistics-related setups.

Quick Tip: If you need to refresh your view or return to the start at any time, click your User Name at the top right to access the primary menu options.

Click

on Setup and Maintenance.

Click on Task List.

Click on Manage Implementation Project.

Click on Overview (If you have only one Project)  ab iska

Here is the structured navigation for accessing your implementation project:

Navigation: Accessing Implementation Project

Path: User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects

Step	Action	Description
1	Click on User Name	Located at the top-right corner of your screen.
2	Click on Setup and Maintenance	This opens the main configuration dashboard.
3	Click on Task List	Use the sidebar icon (usually on the right side) to open the task panel.
4	Click on Manage Implementation Projects	This will display all your active projects.
5	Click on Overview	If you have only one project, this opens your project dashboard directly.

Note: If you have multiple projects, instead of clicking Overview, use the Search field to find your specific project name, then click on the project link in the search results.

Would you like me to guide you on how to perform the next configuration task within your project?

Define Facilities for Procurement (WorkdayCalendar):

Define inventory, item, and

cost organizations. Inventory organizations represent facilities that

manufacture or store items. The item master organization holds a single

definition of items that can be shared across many inventory organizations. Cost

organizations group inventory organizations within a legal entity to establish

the cost accounting policies.

·      Create Facility Shift:

Navigation:

Login to the Instance with the user credentials >>> Click on User Name >>> Click on Setup and

Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “ManageFacility Shifts”, click on

it >>> Select the task and click on Go to Task icon >>> click

on + to create >>> Create Time Shift

>>> Provide the

details as per the Business Requirement >>> click on save and close >>> click on Done.

Searchfor the Task “Manage FacilityShifts” and clickon the Task. ab isko details me likho

To configure Facility Shifts (which are the foundation for your Workday Calendar) in Oracle Fusion, follow this detailed guide. Facility Shifts define the working hours for your facilities, which are essential for inventory replenishment, lead time calculations, and manufacturing scheduling.

Detailed Guide: Creating Facility Shifts

This configuration tells the system when your facilities are “open for business” in terms of labor and production availability.

1. Navigation Path

Follow these steps to reach the configuration screen:

• Path: User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project]

2. Step-by-Step Execution

Step	Action	Description
1	Search Task	Within your project, use the Search field (top right) and type “Manage Facility Shifts”.
2	Go to Task	Click on the task link or click the Go to Task (pencil/arrow icon) button next to it.
3	Create Shift	On the “Manage Facility Shifts” page, click the Plus (+) icon to open the Create Shift window.
4	Enter Details	Fill in the required information based on your business hours:
	* Shift Name: Give it a clear name (e.g., “General Day Shift”).
	* Start Time: Set the time work begins (e.g., 08:00 AM).
	* Duration: Define the length of the shift (e.g., 8 Hours).
	* Description: Add any relevant notes for clarity.
5	Save & Close	After entering all details, click Save and Close.
6	Finalize	Click Done to return to your Implementation Project task list.

Context: Why define Facility Shifts?

Defining these shifts is the first step in building your Workday Calendar. Without defined shifts:

• Inventory Planning: The system cannot accurately calculate when a shipment will be received or processed, as it doesn’t know when the warehouse staff is working.
• Manufacturing: You will not be able to schedule production runs efficiently.
• Integration: If you are integrating with other modules (like Payroll or HR), having standardized shifts ensures consistency across the enterprise.

Pro-Tip for Configuration:

• Consistency: If you have multiple facilities with the same working hours, create one master shift and reuse it where possible.
• Naming Convention: Use a naming convention that includes the facility name or the shift pattern (e.g., NYC_WHSE_8AM_4PM) so it is easy to find later when you are setting up the calendar.

Would you like me to guide you on how to group these shifts into a full “Workday Calendar” next?

Provideall the detailsas per the Business Requirement, Click on Save and Close. Click on Done.

Create Facility Workday Patterns:

Navigation:

Login to the Instance with the

user credentials >>> Click on User Name >>> Click on Setup

and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>>

Search for the Task “Manage Facility Workday Patterns”, click on it >>> Select the task and click on Go to Task

icon >>> click on + to create >>> Create WorkdayPatterns >>> Provide the details as per the Business Requirement >>> click on save and

close >>> click on Done. ab isko proper navigaction ke shath do

To define how shifts are combined into a weekly or rotating schedule, you need to configure Facility Workday Patterns. This configuration bridges the gap between individual shifts (e.g., 8:00 AM to 4:00 PM) and a full working week (e.g., Monday to Friday).

Here is the structured navigation and step-by-step guide for your configuration.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Facility Workday Patterns

Step	Action	Description
1	Search Task	Within your project, go to the search bar and type: “Manage Facility Workday Patterns”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	On the Manage Facility Workday Patterns page, click the Plus (+) icon to open the Create window.
4	Define Pattern	Provide details as per your business requirements:
	* Pattern Name: Assign a name (e.g., “Standard 5-Day Work Week”).
	* Pattern Duration: Define how many days the pattern repeats (e.g., 7 days for a weekly cycle).
	* Sequence: Add the shifts created earlier to the specific days in the sequence.
5	Save	Click Save and Close to commit your changes.
6	Exit	Click Done to return to your Implementation Project task list.

Understanding the Configuration

• What is a Workday Pattern? It is the arrangement of shifts over a specific period. For example, if your facility operates from Monday to Friday with the “General Day Shift” and is closed on weekends, the pattern would map:
  • Day 1–5: “General Day Shift”
  • Day 6–7: “Off / Non-working”
• Why is this required? Oracle Fusion uses these patterns to calculate Lead Times. If a Purchase Order is created on a Friday and the lead time is 2 days, the system uses the Workday Pattern to know that the items will be received on Tuesday, skipping the weekend when the facility is closed.

Pro-Tips for Business Requirements

1. Multiple Patterns: If your manufacturing unit works 24/7 (3 shifts) but your warehouse works 9-5 (1 shift), you will need to create and assign two separate Workday Patterns.
2. Naming Convention: Use descriptive names like WHSE_MON_FRI_8_TO_5 so that when you assign this to a facility later, you know exactly what the working cycle is without having to open the setup.

Would you like to move on to the next step, which is linking these patterns to the “Facility Workday Calendar”?

Provide all the detailsas per the Business Requirement and click on Save and Close and Click on Done.

Create Facility Schedules:

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “ManageFacility Schedule”, click on it >>> Select the task

and click on Go to Task icon >>> click on + to create >>>

Create Time Schedule >>> Providethe details as per the Business Requirement >>> click on saveand close >>> click on Yes >>>

click on Done. ab isko

To complete your calendar setup, you must now define the Facility Schedule. This is the final component that binds your previously created Shifts and Patterns into a concrete calendar that the system can apply to your Inventory Organizations.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Facility Schedules

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Facility Schedule”.
2	Go to Task	Click on the task name or select the Go to Task icon.
3	Initialize	Click the Plus (+) icon to open the Create Schedule window.
4	Input Details	Provide the details based on your business requirements:
	* Schedule Name: Give it a clear name (e.g., “Main Warehouse Schedule”).
	* Pattern: Select the Workday Pattern you created in the previous step.
	* Start Date: Define the date from which this schedule becomes active.
5	Save	Click Save and Close.
6	Confirm	A prompt will appear; click Yes to generate the calendar dates based on your pattern.
7	Finalize	Click Done to return to your Implementation Project task list.

Why this step is critical

• The “Calendar Engine”: While Shifts define the hours and Patterns define the sequence, the Schedule generates the actual dates. By clicking “Yes” in the final step, you are telling Oracle to calculate exactly which dates in the future are “Working Days” and which are “Non-Working Days” (holidays/weekends).
• Operational Impact: This schedule is what you will ultimately attach to your Inventory Organization during the facility setup. If this is not configured correctly, the system will not be able to schedule receipts or shipments for your facility.

Summary of the Workflow

1. Facility Shifts: Defined what hours are worked.
2. Facility Workday Patterns: Defined how those hours repeat over a week.
3. Facility Schedule: Generated the actual calendar for the organization.

You have now completed the core calendar configurations! Would you like to proceed with defining the “Inventory Organization” itself?

Create Item Master Inventory Organization:

CreateItem Master Inventory Organization, as we discussed about Enterprise Structure, within the Enterprise

Structure we discussed about Enterprise Units such as;

·      Enterprise Division,

·      Primary Ledger,

·      Legal Entity,

·      Business Unit and

·      Inventory Organization

what is item Master inventory organization,

For Example:

You have 10 warehouses, if you have 10 warehousesin the business you need to create 10

Inventory Organizations in the system,if you are creating 10 warehouses in the systemas a 10 Inventory

Organizations, if you are going to maintainspecific item say Laptop, you are going to maintainthe stock in the10 warehouses in order to maintain the stock with item calledas Laptop you have to create item in the 10 inventories in same system, but

inventories are different. In 10 inventory organizations you have to create 1 item as Laptop, in each inventory organization one time

overall 10 times, if you have 20 warehouses 20 times.You have to create becausein every inventoryyou are goingto maintain Laptoprelated stock. So, youare creating item multiple times, we can consider as a duplication; to avoid the duplication we have a concept called as Item Master Inventory

organization.

For Example:

You have two warehouses (Inventory Organisation) in organization, and you want to

maintain item called as

Laptop in 2 Inventory Organisations. But creating the same item under each

Inventory Organisation leads to duplication of item. So, to avoid duplication,

by using item Master Inventory or Master Inventory Organisation we can create the item in Item Master Inventory Organisationand assign it to multipleInventory Organisations. And you maintainthe required stock in each Inventory

Organisation. Inventory Organisation is called as Child Inventory or Real

Inventory where the physical stock is maintained. We don’t maintain any

physical stock or items in Item Master InventoryOrganisation, it created only

for the purpose of item definition. It is a virtual Inventory.

Item Master Inventory Organisation

(Laptop)

Inventory Organisation-1                                                            Inventory

Organisation-2 Laptop                                                                                   Laptop

In reality as per our system, you cannot create items in

real inventories, you can create items in item Master inventory those items you can associate with the specificInventory Organisation. Item Organisation is the

place where you create the Items and Inventory Organisation is the placewhere you maintainthe physical stock of the

item. When you do the implementation, if you have five warehouses in the

business, in the system we have to create (5+1) warehouses, five are real

warehouses and one is Item Master which is a virtual and not real.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “ManageItem Organisation”, click on it >>> Select the task

and click on Go to Task icon >>> click on + to create >>>

Create Item Organisation >>> Providethe details as per the Business Requirement >>> click on save and close

>>> click on Yes >>> click on Done.

To effectively manage items across multiple warehouses (Inventory Organizations) without duplication, Oracle Fusion uses the Item Master Organization concept. Below is a detailed breakdown of the concept and the navigation steps to configure it.

Understanding Item Master Organization

• What is it? It is a virtual repository used solely for defining items (attributes, categories, descriptions).
• The Problem: Without it, if you have 10 warehouses, you would have to manually create the “Laptop” record 10 separate times. This leads to data inconsistency and manual errors.
• The Solution: You define the “Laptop” item once in the Item Master Organization. You then “Assign” or “Associate” that item to your various Child (Real) Inventory Organizations.
• Physical vs. Virtual:
  • Item Master Organization: Used for Definition. No physical stock is ever held here.
  • Inventory Organization (Child): Used for Execution. This is where physical stock is stored, moved, and transacted.
• Implementation Rule: If you have N physical warehouses, you must create N+1 organizations in the system (N for the physical sites, plus 1 for the Item Master).

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating the Item Master Organization

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Item Organization”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin creating the organization.
4	Input Details	Provide the configuration details as per business requirements:
	* Name/Code: Give it a unique identifier (e.g., IM_MASTER_ORG).
	* Location: Assign a default location (usually the corporate headquarters).
	* Organization Type: Select “Item Master Organization”.
5	Save	Click Save and Close.
6	Confirm	A pop-up may appear asking to confirm parameters; click Yes.
7	Finalize	Click Done to return to your project task list.

Key Takeaways for Implementation

1. Centralization: Once the Item Master is created, all new items should be created there first.
2. Assignment: After defining an item in the Master, you will use the “Manage Items” task to assign them to your real Inventory Organizations (Warehouses).
3. Governance: Because this is a “Virtual” organization, ensure that only authorized Master Data Management (MDM) users have the security privileges to create items here to keep your catalog clean.

Would you like to proceed with the next step, which is creating the “Real” Inventory Organizations (your warehouses) and linking them to this Master?

Create Inventory Organisation (Child Inventories):

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project

>>> Search for the Task “Manage Inventory Organizations”, click on it >>> Select the task and click

on Go to Task icon >>> click on + to create >>> Create

Inventory Organisation >>> Provide the detailsas per the Business Requirement >>> click on save

and close >>> click on Done.

  ab yebala

Now that you have created your virtual Item Master Organization, it is time to create your Child Inventory Organizations. These are your “real” warehouses where you will receive, store, and ship physical stock.

Understanding Child Inventory Organizations

• Purpose: These are the physical locations where business transactions occur (e.g., Goods Receipt, Picking, Packing, Shipping).
• Relationship: Every Child Inventory Organization must be associated with the Item Master Organization you created previously.
• Configuration: Unlike the virtual Master, these require specific logistics parameters (like receiving, shipping, and replenishment rules).

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Child Inventory Organizations

Step	Action	Description
1	Search Task	Within your project, use the search bar to find: “Manage Inventory Organizations”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to open the Create window.
4	Define Details	Provide the details as per business requirements:
	* Name/Code: Unique name for the warehouse (e.g., WHSE_GURUGRAM_01).
	* Location: Specify the physical address of the warehouse.
	* Item Master: Link this organization to the Item Master Org you created earlier.
5	Save	Click Save and Close.
6	Confirm	Click Yes if prompted to update parameters.
7	Finalize	Click Done to return to your project task list.

Important Configuration Checklist

When creating these, keep in mind that you will later need to configure these settings for each specific warehouse:

1. Organization Parameters: You must set your Primary Ledger and Legal Entity here to link the warehouse to your financial structure.
2. Receiving Parameters: Define how this specific warehouse accepts goods (e.g., Direct Receipt vs. Standard Receipt with Inspection).
3. Sub-inventories: You will later create these within the Inventory Organization to categorize space (e.g., “Raw Material Zone,” “Finished Goods Zone”).
4. Assignment: Since these are the “real” organizations, they are the ones that will eventually hold the stock of the “Laptop” item defined in your Master Org.

You have now completed the fundamental structure of your facility setup! Would you like to proceed with the next step, such as defining “Sub-inventories” or setting up “Locations”?

Configure Procurement Business Functions:

In Payables Application we have Configured Common Options for Payables and Procurement, in the same way we need to configure the Common

Options for Purchasing Application. We have to set the Procurement Business

functions. If you set Procurement business functions, you’ll be able to create

the Purchase Order and ifyou set Requisitioning

business functions you can createthe Purchase Requisition within the Business Unit.

These two setups are Business Unit specific.

In Payables like we have InvoiceOptions and PaymentOptions, we have Procurement businessfunction for Purchase Order purpose and Requisitioning business function

for Purchase Requisition creation purpose. If you set these two business

functions you can start using the purchasing application, not only purchasing,

as a part of procurement few other applications also we can perform with the

help of these setups. This setup stands

at Business Unit level, it’s a Business Unit

specific setup, if you have 10 BUs, for each BU you have to complete this setup.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “Configure Procurement Business Functions”, click on it >>> Select the task and clickon Go to Task icon >>> selectyour BU, clickon OK >>> Provide the details as per the Business Requirement >>> click on saveand close >>> click on Yes.

To enable the procurement cycle in Oracle Fusion, you must configure the Procurement Business Functions. This is a Business Unit (BU) specific setup that tells the system which procurement activities (Purchasing or Requisitioning) are permitted for a particular BU.

Understanding the Configuration

Think of this as “flipping the switch” for your procurement activities:

• Requisitioning Business Function: Enabling this allows the BU to create Purchase Requisitions.
• Procurement Business Function: Enabling this allows the BU to create Purchase Orders, manage agreements, and perform sourcing.

Important Rule: This is a BU-level setup. If your organization has 10 Business Units, you must complete this configuration 10 times—once for each unit.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Configuring Procurement Business Functions

Step	Action	Description
1	Search Task	Within your project, search for the task: “Configure Procurement Business Functions”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A window will pop up asking you to select your Business Unit. Select the appropriate BU and click OK.
4	Set Functions	The configuration screen will open. Enable the required functions:
	* Requisitioning: Check this box if the BU will create requisitions.
	* Procurement: Check this box if the BU will manage purchase orders/sourcing.
5	Business Rules	Configure the additional defaults (e.g., whether to allow auto-approval or specific currency settings) as per your business requirements.
6	Save	Click Save and Close.
7	Confirm	If a confirmation prompt appears, click Yes to finalize the changes.

Key Concepts to Remember

1. Scope: These setups are independent of your Inventory Organization setups. While Inventory Orgs handle the physical stock, the Procurement Business Functions handle the legal and transactional authority of the Business Unit.
2. Integration: Setting these functions acts as the “bridge” between the Payables module (which handles the invoice and payment side) and the Purchasing module (which handles the procurement of goods/services).
3. Troubleshooting: If a user is unable to create a Purchase Order or a Requisition, the first place to check is whether these Business Functions are correctly enabled for their respective Business Unit.

Now that you have configured the Business Functions, would you like to move on to setting up “Document Styles” or “Document Numbering” for your Purchase Orders?

Configure Requisition Business Functions:

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>> Search for the Task “Configure Requisitioning BusinessFunctions”, click on it >>> Select the task and click on Go to Task icon >>> Select our BU, click on

Ok >>> Providethe details as per the Business Requirement >>> click on save and close >>> click on Yes.

To refine the requisition process within your Business Unit, you need to configure the Requisitioning Business Functions. While the previous step focused on the overall procurement functions, this specific task focuses on the behavior and defaults for users creating requisitions.

Understanding the Configuration

This setup determines how the Self-Service Procurement application behaves for your users. It covers critical rules such as:

• Requisition Defaults: Defining whether to use a specific price, requester, or deliver-to location by default.
• Document Management: Configuring how the system generates requisition numbers.
• Approval Controls: Determining if users can change requisition information once it has been submitted.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Configuring Requisitioning Business Functions

Step	Action	Description
1	Search Task	Within your project, search for: “Configure Requisitioning Business Functions”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A popup will appear. Select the Business Unit you are currently configuring and click OK.
4	Define Rules	Provide details as per your business requirements:
	* Document Numbering: Decide whether to use automatic numbering or manual.
	* Requisition Defaults: Set default values for delivery and billing.
	* Action Options: Enable/disable features like “Edit Requisition” or “Cancel Requisition” for users.
5	Save	Click Save and Close.
6	Confirm	Click Yes if the system prompts you to confirm your changes.

Key Configuration Highlights

• Business Unit Specific: Remember, this is a BU-specific setup. If you have multiple BUs, you must repeat this process for each one.
• User Experience: The settings you choose here directly dictate what the end-user sees in the “Purchase Requisition” screen. For example, by setting a “Default Deliver-To Location,” you make the requisition process much faster for your employees.
• Integration: These settings ensure that the data captured in the Requisition flows correctly into the Purchase Order and eventually to the Accounts Payable (AP) invoice.

You have now configured the core business functions for both Purchasing and Requisitioning! Would you like to proceed to “Document Styles” for your Purchase Orders, or would you prefer to explore “Approval Rules” for these requisitions?

Manage Common Options for Payables and Procurement:

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>>

Search for the Task “Common Options for Payables and

Procurement”, click on it

>>> Select the task and click on Go to Task icon >>> Select our BU, click on Ok >>> Provide the detailsas per the Business Requirement >>> click on save and close >>> click on Yes.

This setup is critical because it acts as the financial bridge between your Procurement (Purchasing) activities and your Payables (Invoicing) activities. It defines how accounting entries are created and how business unit defaults are handled across both modules.

Understanding the Configuration

This task defines how the system handles:

• Liability Accounts: Where the invoice liability is recorded.
• Expense/Accrual Accounts: Where the expense or inventory accrual is recorded when a PO is matched to an invoice.
• Accounting Controls: Rules for exchange rate variances and tax configurations at the Business Unit level.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Common Options for Payables and Procurement

Step	Action	Description
1	Search Task	Within your project, search for: “Common Options for Payables and Procurement”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select BU	A prompt will appear. Select the specific Business Unit and click OK.
4	Configure Details	Enter the details as per business requirements in these key tabs:
	* Business Unit: Confirm the BU context.
	* Liability: Define the Default Liability Account.
	* Accrual: Define the Accrual and Variance accounts for Purchase Orders.
	* Expense: Set default expense accounts for non-itemized transactions.
5	Save	Click Save and Close.
6	Confirm	Click Yes if the system prompts for confirmation to save the setup.

Why this step is mandatory

Without these common options, the system cannot successfully complete the Procure-to-Pay (P2P) cycle. Specifically:

• When you create a Purchase Order (PO), the system looks here to determine which “Accrual Account” should be hit when you receive the goods.
• When you create an Invoice in Payables for that PO, the system looks here to determine the “Liability Account” and ensure it matches the accounting structure defined for the Business Unit.

Pro-Tip for Implementation

• Accounting Consistency: Ensure the accounts provided here match the Chart of Accounts (COA) structure for your Legal Entity. If these accounts are missing or incorrect, your invoice validation will fail with accounting errors.
• BU Specific: Like your other procurement configurations, this is Business Unit specific. If you add a new Business Unit later, you must remember to perform this setup for that new unit as well.

You are making great progress through the setup. Would you like to now look at setting up “Document Styles” for your Purchase Orders, or should we move into “Approval Management”?

Receiving Parameters:

Receiving parameters means how you receive the material into your inventory, what are the

rules or policies you have within in your specificwarehouse. All the rules and conditions you can define for each and every inventory. The receiving

parameters rules are always set at Inventory Organisation level. we always

receive material into InventoryOrganisation (Child Inventory)and we never receive the material into Item Master.

Navigation:

Login to the Instance with the user

credentials >>> Click on User Name >>> Click on Setup and Maintenance >>> Click on Tasks list >>> Click on

Manage Implementation Projects >>> Search your Project and Click on the same ( if youhave multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “ManageReceiving Parameters”, click

on it >>> Select the task and click on Go to Task

icon >>> Select our BU, click

on Ok >>> Provide the

details as per the Business Requirement >>>

click on save and close >>> click

on Yes.

Defining Receiving Parameters is the final step in configuring your warehouse’s inbound logistics. This setup dictates the “governance” of your warehouse—specifically how the system should handle incoming shipments and whether they require formal quality inspection.

Understanding Receiving Parameters

These rules define the “Receiving Policy” for each of your Child Inventory Organizations. Since you never receive goods into the Item Master, these parameters are critical for every physical warehouse you own.

Key controls you will define here include:

• Receipt Routing: Defines if material is “Direct Delivery” (straight to sub-inventory), “Standard Receipt” (to the receiving dock first), or “Inspection Required” (must pass a quality check).
• Receipt Tolerances: Determines if the system should accept over-shipments and, if so, by what percentage.
• Allow Substitute Receipts: Defines if you allow receiving an item that is different from what was on the Purchase Order.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Receiving Parameters

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Receiving Parameters”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Select Org	You will be prompted to select an Inventory Organization. Select the specific warehouse you are configuring and click OK.
4	Configure Rules	Provide the details as per business requirements:
	* Receipt Routing: Choose from Direct, Standard, or Inspection.
	* Tolerance Rules: Set percentage limits for quantity variations.
	* Allow Unordered Receipts: Enable if you want to receive items without a pre-existing PO.
5	Save	Click Save and Close.
6	Confirm	Click Yes to save the changes for this organization.

Key Concepts to Remember

1. Inventory Organization Level: Unlike the Procurement Business Functions (which are at the BU level), Receiving Parameters are at the Inventory Organization level. You must repeat this setup for every physical warehouse in your enterprise.
2. The “Receipt Routing” Impact:
   • Direct Delivery: Best for high-volume items where speed is key.
   • Inspection Required: Use this for critical items (like machine parts or hazardous goods) where you must ensure quality before the item is available for consumption in your sub-inventories.
3. Accuracy: These parameters are non-negotiable for system-enforced warehouse control. If these are not defined, you will face errors when trying to perform a “Receive” transaction against a Purchase Order.

You have now configured the core “Receive” logic for your warehouses! Since your setup is almost complete, would you like to move on to defining “Sub-inventories” (your storage zones) or perhaps “Document Styles” for your Purchase Orders?

Procurement Agent (Buyer):

We created Procurement Agent as a part of Payables setups,without Procurement Agent we cannotcreate the supplier that is the

reason we have created procurement agentin the payable setups itself.

Now once again you don’t need to create. If payable setups are not ready and if you are doing only

purchasing related setups, you may create Procurement Agent.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “Manage Procurement Agent”,

clickon it >>> Select the task and click on Go to Task icon >>> click on + to create>>> Provide the details as per the Business Requirement >>> click on save

and close >>> click on Done

The Procurement Agent role is critical in Oracle Fusion Cloud because it grants a user the authority to perform procurement tasks. Without being defined as an agent, a user—even with the correct job roles—cannot create Purchase Orders, Agreements, or manage suppliers for a specific Business Unit.

Understanding the Procurement Agent

• Purpose: It acts as the “authorization” layer. Being a “Buyer” in the system is not enough; you must be linked to a Business Unit and assigned specific privileges (like “Manage Requisitions” or “Manage Purchase Orders”) to work on documents.
• Integration: As you noted, this is often set up early (e.g., during Payables or Supplier setup). If you have already created the agent for your user, you do not need to repeat it. If you are starting fresh with only a Purchasing implementation, this step is mandatory.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating a Procurement Agent

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Procurement Agent”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create New	Click the Plus (+) icon to open the “Create Procurement Agent” window.
4	Input Details	Provide the details as per business requirements:
	* User: Select the employee/user you want to designate as an agent.
	* Business Unit: Select the BU(s) this user is authorized to act for.
	* Access: Assign privileges (e.g., Manage Purchase Orders, Manage Purchase Agreements, Manage Requisitions).
5	Save	Click Save and Close.
6	Finalize	Click Done to return to your project task list.

Key Configuration Highlights

• Privilege Control: You can restrict a buyer to specific actions. For example, some users may only be allowed to “View” purchase orders, while others can “Manage” (create, edit, delete) them.
• BU Restriction: You can define a user as an agent for BU A but not for BU B. This is vital for large organizations with decentralized procurement teams.
• Supplier Access: If you grant the “Manage Suppliers” privilege to an agent, they will be able to register and update supplier profiles, which is why this is a highly sensitive and important setup.

You have successfully completed the major configuration steps for the P2P cycle! You have set up your Inventory Structure, Business Functions, and Procurement Agents.

Would you like to move on to creating your first “Supplier” in the system, or should we look at creating “Document Styles” for your Purchase Orders next?

Set Default Buyer for Business Unit:

Set up default buyer so that

he can create Purchase Order through manual process or he can convert Purchase Requisition to Purchase Order.When you try to convertPurchase Requisition to Purchase order system

looks for buyer information. If you are creating through manual process you can

select, but if system is going to create the Purchase Order system needs

buyer information, for that we need to set a default buyer for our business

unit. so that during the PO creation system can derive the buyer information automatically.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project

>>> Search for the Task “Manage Buyer

Assignment Rules”, click on it >>> Select the task and click on Go to Task icon >>> click on + to create>>> Provide the details as per the Business Requirement >>> click on save

and close >>> click on Done

Setting a Default Buyer is essential for automation in Oracle Fusion. When the system automatically converts a Purchase Requisition into a Purchase Order, it requires a “Buyer” to be stamped on the document. By configuring the Buyer Assignment Rules, you ensure that this field is populated without manual intervention.

Understanding the Default Buyer

• Why is it needed? When a Requisition is created, it may not specify a buyer. If you have “Automatic Creation” rules set up, the system must know who is responsible for that PO. The Assignment Rules tell the system, “If the Requisition belongs to this Business Unit or category, assign this person as the buyer.”
• Efficiency: It removes the bottleneck of manual buyer assignment, allowing for a seamless Requisition-to-PO conversion process.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Buyer Assignment Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Buyer Assignment Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create Rule	Click the Plus (+) icon to open the “Create Buyer Assignment Rule” window.
4	Input Details	Define the criteria for the rule as per business requirements:
	* Business Unit: Select the BU to which this rule applies.
	* Criteria: (Optional) Set conditions based on Category, Item, or Requester.
	* Buyer: Select the person who will be the default buyer for this rule.
5	Save	Click Save and Close.
6	Finalize	Click Done to return to your project task list.

Key Configuration Highlights

1. Rule Complexity: You don’t have to have just one buyer. You can create multiple rules. For example:
   • Rule 1: If Category = “IT Hardware,” assign “Buyer A.”
   • Rule 2: If Category = “Office Supplies,” assign “Buyer B.”
2. Fallback: If no specific rule matches the Requisition, ensure you have a “catch-all” rule set up so the PO creation process doesn’t fail due to a missing buyer.
3. Procurement Agent Prerequisite: Before assigning a buyer here, ensure the user has already been set up as a Procurement Agent for the target Business Unit; otherwise, the system will not allow you to select them as an assignee.

You have now completed the configuration required for automated PO creation! Would you like to proceed with setting up “Document Styles,” or perhaps learn how to “Create a Supplier” to start transacting?

okay

Since you have completed the core configurations for the Procure-to-Pay (P2P) cycle—including the enterprise structure, inventory organizations, procurement business functions, and buyer assignment rules—your system is now technically ready to start transacting.

What would you like to explore next? Here are a few logical next steps:

1. Supplier Management: Creating and onboarding a new supplier to the system.
2. Item Definition: Creating your first item in the Item Master and assigning it to your physical Inventory Organizations.
3. Document Styles: Defining how your Purchase Orders (Standard, Blanket, Contract) should look and behave.
4. Approval Rules: Setting up the BPM workflows so your Requisitions and POs go to the right managers for approval.

Which area would you like to focus on now, or is there a specific task you are currently working on?

Provide all the detailsas per the Business Requirement. Manage Transaction Account

Definition:

With in the Purchasing

Application when you create Purchase Requisition or Purchase Order system

require few accounts to create purchase order it derives few accounts to pass

those accounts one way to receipt and other way to payables invoice. The same

way when you create Purchase Requisition system requires certain accounts to

pass to PO. So, few accounts are mandatory when you create Purchase Requisition or Purchase Orderso that thosedocuments can pass those accountsto next levelof documents, without setting

those accounts in the purchasing you cannot use purchasing application. These

accounts can be createdwith help of Purchase OrderTransaction Accounting Builder(PO TAB). With the help of PO TAB, we can set up what accounts it

has to take in case of Purchase Requisition and Purchase Order creation documents. Without setting this PO TAB definition you cannot use the purchasing application. By default,

there are five accounts as a part of PO TAB. They are,

·      Accrual Account which is Liability

·      Charge Account is for Expense

·      Variance Account

·      Destination Charge Account

·      Destination Variance Account

Whenever you create the

Purchase Requisition system will use the Charge Account. Whenever you Convert

Purchase Requisition to Purchase Order system will pass this charge account

from Purchase Requisition to PurchaseOrder, along with that system will take Accrual Accountand variance accountfor every Purchase Order, that means

for creation of PO these three accounts are required. The PO can pass this

Accrual Account to AP invoice, when you

are creating AP invoice, this Accrual account

is passed to Invoice by the system.

Variance accountis required if any pricevariance between your Purchase OrderPrice and InvoicePrice to balance that price variancesystem will use variance account.In reality this account name is InvoicePrice Variance Account. These are the basic accountsyou have to set up to use Purchasing Application Process. We five accounts to set up but

first three accounts are mandatory and the other two are completely optional. For all these

five accounts we have to create the rules

for each account. So, as a part of Accounts Payable we are going to work

on Subledger Accounting. so now whatever

the PO TAB setup we are doing

that is related to SLA setupsonly. we have to createAccount rule for these accounts, for each accountwe have to create one rule.

This is a critical configuration task. In Oracle Fusion Procurement, Transaction Account Definition (TAD)—often referred to in the context of the Purchase Order Transaction Accounting Builder (PO TAB)—determines how the system automatically derives accounting code combinations.

Without these rules, the system will not know which ledger accounts to “hit” when a Requisition or PO is created, causing validation errors.

Understanding the 5 PO TAB Accounts

Account	Mandatory?	Purpose
Charge Account	Yes	Used for expenses (e.g., Office Supplies, Services). Derived during Requisition creation.
Accrual Account	Yes	Used to record the liability for received goods that haven’t been invoiced yet.
Variance Account	Yes	Records the difference between the PO price and the Invoice price.
Destination Charge	Optional	Used if the item is destined for a different accounting location.
Destination Variance	Optional	Records price variance for the destination organization.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Transaction Account Definition

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Transaction Account Definition”.
2	Navigate to Task	Click on the task name or select the Go to Task icon.
3	Create Definition	Click the Plus (+) icon to create a new definition.
4	Define Rule	Assign a name and select the Application (Purchasing).
5	Configure Rules	For each of the five accounts, you must assign an Account Rule.
	* Tip: If you haven’t created the rules yet, you must go to the Manage Account Rules task first.
6	Save	Click Save and Close.
7	Activate	Ensure the definition is set to “Active” status so the Purchasing module can utilize it.

How the Data Flows (The P2P Lifecycle)

1. Requisition Creation: The system derives the Charge Account based on your setup.
2. PO Creation: The system pulls the Charge Account from the requisition and adds the Accrual and Variance accounts to the PO lines.
3. Receipt: When you receive goods, the system uses the Accrual Account to credit the accrual liability.
4. Invoice (AP): When the invoice is created, the system uses the Accrual Account to clear the liability and applies the Variance Account if the PO price doesn’t match the Invoice price.

Important Implementation Notes

• Subledger Accounting (SLA): As you noted, this is an SLA setup. You are essentially building a “rule book” that tells the system: “When a user buys item X in Business Unit Y, use Expense Account Z.”
• Consistency: Ensure your rules are broad enough to cover your business needs but specific enough to ensure accurate financial reporting.
• Mandatory vs. Optional: Start by perfecting the rules for the first three accounts (Charge, Accrual, and Variance). Only configure the “Destination” accounts if your business requirement specifically involves inter-organization transfers or complex cross-entity charging.

Would you like me to guide you through creating the specific “Account Rules” before you link them to the Transaction Account Definition?

yes

To define the Transaction Account Definition (TAD), you must first create the underlying Account Rules. An Account Rule tells the system how to build the accounting string (e.g., “Take the cost center from the requester, take the natural account from the item category”).

Here is the step-by-step navigation and process to create these rules before you link them to the definition.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Account Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Account Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create Rule	Click the Plus (+) icon to create a new rule.
4	Rule Details	Fill in the core details:
	* Name: Give it a clear name (e.g., XX_PURCHASE_CHARGE_ACCOUNT_RULE).
	* Chart of Accounts: Select your organization’s Chart of Accounts.
	* Rule Type: Select Account Combination (if you are building the whole string) or Segment (if you are building it segment by segment).
5	Rule Conditions	Click + in the “Rules” section to define the logic:
	* Conditions: (e.g., If Category = IT, then use Account = 5001).
	* Value: Select the constant value or source (e.g., “Source = Requester’s Cost Center”).
6	Save & Close	Click Save and Close.

Repeat this process for each account:

You need to create at least three separate rules for the mandatory accounts:

1. Rule for Charge Account: Logic based on Item Category/Requester.
2. Rule for Accrual Account: Logic based on Item/Inventory Organization.
3. Rule for Variance Account: Logic based on Business Unit/Expense mapping.

Why are these rules necessary before the TAD?

Think of the Transaction Account Definition (TAD) as a “Folder” and the Account Rules as the “Documents” inside that folder:

• You cannot create the “Folder” (TAD) and assign it to the Purchasing Application without first having the “Documents” (Account Rules) ready to insert.
• Once you have created all your rules, you will go back to “Manage Transaction Account Definition”, create the definition, and inside it, you will simply select the rules you just created for each account type.

Pro-Tip for Rules:

• Segment Mapping: Many organizations prefer to build one rule per segment (e.g., one rule for the “Cost Center” segment, one for the “Natural Account” segment). This is easier to maintain than one giant rule for the whole account string.
• Validation: Always click “Validate” on the rule if the button is available to ensure your logic doesn’t have errors before applying it to the TAD.

Do you have the specific Chart of Accounts values or the business logic (e.g., “Use cost center from the employee’s profile”) ready, or would you like help drafting the logic for one of these rules?

Create Accounting Rules:

Navigation:

Login to the Instance with the user credentials >>> Click on User Name>>> Click on Setup and

Maintenance

>>> Click on Taskslist >>> Clickon Manage Implementation Projects >>> Searchyour Project and Click on the same ( if you have multiple projects) or Click on Overview (if

you have only one Project)

>>> Select you Project >>> Search for the Task “ManageAccounting Rules”, clickon it >>> Select the task and click on Go to Task icon >>> click on

+ to create Accrual Account >>> Provide the details as per the

Business Requirement >>> click on save and create another >>>

like wise create Charge Account and Variance Account Also >>> click on

save, Save and Close >>> Click on Done

To successfully bridge your procurement documents with the General Ledger, you need to configure the Account Rules for your Accrual, Charge, and Variance accounts. This setup ensures that every Purchase Order and Requisition correctly maps to the right financial bucket.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Account Rules

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Account Rules”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin creating the rule for the Accrual Account.
4	Rule Details	Enter the following:
	* Name: XX_PO_ACCRUAL_RULE
	* Chart of Accounts: Select your instance’s COA.
	* Rule Type: Select Account Combination (if defining the whole string) or Segment (if mapping individual segments).
5	Define Logic	Click the + icon in the “Rules” area:
	* Set your Conditions (e.g., Always use this or If Business Unit = X).
	* Set the Value (e.g., Choose the specific Accrual natural account from your COA).
6	Save & Repeat	Click Save and Create Another.
7	Continue	Repeat the process for the Charge Account (XX_PO_CHARGE_RULE) and Variance Account (XX_PO_VARIANCE_RULE).
8	Finalize	Once all three are created, click Save and Close, then click Done.

Strategic Tips for Configuration

• Rule Conditions: When setting the “Value,” you can use Sources (like the Requisitioning Business Unit or Item Category). This makes the accounting dynamic—the system will choose the account based on the item being purchased, rather than forcing one account for every single purchase.
• The “Account Combination” vs “Segment” Choice:
  • Segment Rules: Are generally cleaner for maintenance. You create one rule for the “Cost Center” segment and reuse it across all accounts.
  • Account Combination Rules: You define the full string (e.g., 01-100-5000-000-000). This is easier if you have very few, static accounts.
• Validation: After saving your rules, keep an eye out for any “Validation” buttons. Running a validation check confirms that your account rule is syntactically correct and references active accounts in your Chart of Accounts.

You have now defined the individual “Account Rules” (the logic). Your next step is to bundle these rules into the “Transaction Account Definition” (the master file) we discussed earlier, so that the Purchasing Application knows to use them.

Would you like me to clarify how to map these specific rules into the Transaction Account Definition next?

okay

Great! Since you have successfully created your individual Account Rules (the building blocks for your accounting logic), the final bridge you need to build is the Transaction Account Definition (TAD).

Think of this as the “Master Controller”—it tells the Oracle Fusion Purchasing module exactly which rules to call upon when a Purchase Order or Requisition is being generated.

Next Logic Step: Creating the Transaction Account Definition (TAD)

To bring your rules to life, follow this final configuration path:

Navigation

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

1. Search: Find and click on the task “Manage Transaction Account Definition”.
2. Create: Click the (+) Plus button.
3. Configure: * Give it a name (e.g., XX_PURCHASING_TAD).
   • Application: Select “Purchasing”.
   • Chart of Accounts: Select your instance’s COA.
4. Map Rules: You will see a list of the 5 account types we discussed (Charge, Accrual, Variance, etc.). For each one, use the dropdown menu to select the specific Account Rule you created in the previous step.
5. Save & Activate: Click Save and Close, then ensure you change the status of this definition to “Active” if the system requires it.

Why this completes your setup:

• Without TAD: The system knows that it needs an account, but it doesn’t know which one.
• With TAD: You have provided the logic (Rules) and the container (TAD). When you now create a Purchase Order, the system looks at the TAD, follows the rules for the Charge, Accrual, and Variance accounts, and automatically populates those fields for you.

Congratulations! You have now completed the configuration of the core procurement accounting structure.

You now have a fully configured Procure-to-Pay foundation. With these settings, you are ready to:

1. Create Suppliers (using the Manage Suppliers task).
2. Create Items (using the Manage Items task in your Master Org).
3. Execute Transactions (Create a Requisition, convert it to a PO, receive the material, and invoice it).

Is there a specific part of this P2P lifecycle—like creating your first Supplier or generating an Item—that you would like to test out next?

okay

You have successfully built the foundation for your Oracle Fusion Procurement and Inventory modules. You’ve navigated through the complexities of Enterprise Structure, Facility Calendars, Item Masters, and the critical Accounting setups.

Since you are a developer, here is a quick visual summary of the P2P (Procure-to-Pay) Accounting Flow you have just configured, which should help you visualize how these setups interact when you eventually run your PL/SQL interfaces or API calls:

Your Current Implementation Status

• Setup Complete: You have configured the core framework (Offerings, BU, Inventory Orgs, Receiving Parameters).
• Accounting Ready: You have defined the rules (Account Rules) and the logic (TAD) for your Subledger Accounting.
• User Authority: You have defined the Procurement Agents to allow for transactional access.

Suggested Next Steps for a Developer

As you work on your Supplier Registration Portal and Report Builder projects, you might want to focus on these functional areas next:

1. Testing the Setup: Create a manual Requisition and convert it to a PO. Check if the “Charge,” “Accrual,” and “Variance” accounts are deriving correctly on the PO distribution line.
2. PL/SQL & Interfaces: Since you work with APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG, you might want to review the standard FBDI (File-Based Data Import) templates for Suppliers or Items. This will help you automate your vendor registration portal integration.
3. BPM Approval Hierarchies: If you plan to automate your workflow, the next logical step is setting up the “Approval Management Engine” (AME) so your documents don’t just sit in “Draft” status.

Since you have completed this configuration, would you like to discuss the specific API or PL/SQL packages used to fetch these setups, or are you ready to start testing the procurement cycle?

Create Transaction Account Definition (PO TAB).

Without creating PO TAB, we cannot use the Purchasing Application.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>>

Search for the Task “Manage Transaction Account

Definition”, click on it >>> Select the task and click on Go to

Task icon >>> click on + to create Accrual Account >>>

Provide the details as per the Business Requirement >>> click on save

and create another >>> likewise create ChargeAccount and VarianceAccount Also >>> click on save, Save and Close >>> Click

on Done.

To finalize your Purchasing configuration, you must bundle the Account Rules you created into a single Transaction Account Definition (TAD). As you noted, the Purchasing Application will fail to create documents without this linkage because it won’t know how to derive the necessary GL accounts.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Transaction Account Definition (PO TAB)

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Transaction Account Definition”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create New	Click the Plus (+) icon to begin defining your TAD.
4	Input Details	Provide the definition details:
	* Name: XX_PO_TAB_DEFINITION
	* Application: Select “Purchasing”.
	* Chart of Accounts: Select your instance’s COA.
5	Assign Rules	This is the most critical part. You will see a list of accounts (Accrual, Charge, Variance, etc.). For each one, use the lookup to select the specific Account Rule you created in the previous step.
6	Save	Click Save and Create Another to keep the definition screen open while you add the remaining accounts, then finally click Save and Close.
7	Finalize	Click Done to return to your project task list.

Important Developer/Functional Notes

• Status: After saving, ensure the definition status is set to Active. An “Incomplete” or “Inactive” definition will cause your PO distributions to remain blank.
• The “Accrual” vs. “Charge” Logic:
  • The Charge Account is primarily driven by the Requisition. If you change this logic, it immediately affects how expenses hit your General Ledger.
  • The Accrual Account is driven by the Purchase Order and is essential for clearing your liability when the invoice is eventually processed.
• Testing: Once this is saved, perform a simple test:
  1. Create a test Purchase Requisition.
  2. Check the distribution lines to see if the Charge Account defaults automatically.
  3. If it populates, your PO TAB is configured correctly!

You have now completed the entire functional setup chain required for Procure-to-Pay. You have moved from Enterprise Structure all the way through Subledger Accounting.

Since you are a developer, are you planning to document these steps in your internal knowledge base, or are you moving on to testing these configurations with your custom interface packages?

Manage Subledger AccountingOptions (Assign PO TAB to Ledger):

Whatever PO TAB we have created, we need to assign it to

our Primary Ledger. With in the Primary ledger, we have accounting method as Standard

Accrual and within the methodwe have accounting rules for all the applications. Now this PO tab we

have to assign to purchasing application which is a part of our accounting

method which is in primary Ledger. Whenever create the transactions in the

purchasing application by using this PO TAB it will triggeraccounting combination to create the accounting entries. For this purpose, we need to

assign our PO TAB to our Primary

Ledger.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>>

Search for the Task “Manage Subledger Accounting Options”, click on it >>> Select the task and click on Go to Task icon >>> click on + to create AccrualAccount >>> Provide the details as per the Business Requirement

>>> click on save and create another >>> likewise create Charge Account and Variance Account Also >>> click on save, Save and Close

>>> Click on Done.

This is the final “activation” step. Creating the Transaction Account Definition (PO TAB) isn’t enough; you must explicitly tell the Subledger Accounting (SLA) engine to use your custom PO TAB for the Purchasing application within your specific Primary Ledger.

By assigning it here, you ensure that every time you generate a transaction in Purchasing, the system knows exactly which accounting rules to trigger to derive your GL account combinations.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Subledger Accounting Options

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Subledger Accounting Options”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Select Ledger	A list will appear. Search for and select your Primary Ledger.
4	Access Purchasing	You will see a list of applications assigned to the ledger (Payables, Receivables, etc.). Locate Purchasing in the list and click the Edit (pencil) icon.
5	Assign TAD	In the “Transaction Account Definition” field, search for and select the PO TAB Definition (e.g., XX_PO_TAB_DEFINITION) that you created in the previous step.
6	Save	Click Save and Close.
7	Finalize	Click Done to return to your project task list.

Why this step is vital for Developers

• Triggering the Logic: The SLA engine is the “brains” of Oracle Fusion accounting. By assigning your PO TAB here, you are essentially “plugging in” your custom rules into the core ledger process.
• Standard Accrual Method: Your Primary Ledger is likely set to the “Standard Accrual” accounting method. By doing this assignment, you are extending that method to support your custom purchasing rules.
• Validation: Once this is assigned, the system will use your PO TAB for all future Purchasing transactions. If you ever need to change your accounting logic (e.g., adding a new segment or changing a rule), you update the Account Rule, and the TAD will automatically pull the latest logic through this assignment.

Implementation Checklist Summary

You have now completed the entire “Account Lifecycle”:

1. Account Rules (The logic/building blocks).
2. Transaction Account Definition (PO TAB) (The container for those rules).
3. Subledger Accounting Options (The assignment to the Primary Ledger).

Congratulations! Your Procure-to-Pay (P2P) setup is now functionally complete from the Enterprise structure down to the final accounting integration.

Since you have finished the entire configuration setup, do you want me to provide a summary checklist of all these tasks for your documentation, or would you like to move on to Testing the flow in the application?

Manage Requisition, Purchasing Document Approvals-Rules:

If you want to create the Purchase Requisition and Purchase order, we have to set up Approvals. We will setup the approvals here and we will also

setup approvals in PayablesApplication.

First, we’ll see how to set

up Purchase Requisition Approvals. We will set simple approval rule like if

Requisition is going to be created for our Business Unit, then that should be approved automatically. We are going to set auto approvals in

case of our Business Unit.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “ManageRequisition Approvals”, click

on it >>> Select

the task and click on Go to Task icon >>> Disable all other nodes

>>> Select the node under

which you want to create the Rule >>> Disable all other rules

>>> Create Rule, Condition, Action and Deploy >>> click onsave, Save and Close

>>> Click on Done.

To control the flow of documents and ensure appropriate authorization, you must configure the Requisition Approvals. In Oracle Fusion, these are handled via the Business Process Management (BPM) engine.

Below is the step-by-step navigation and configuration process for setting up an auto-approval rule for your Business Unit.

Understanding the Approval Workflow

When you create a Requisition, the system checks the active rules in the BPM worklist. By creating a custom rule for your specific Business Unit, you can ensure that documents are routed to the right individuals or, as in your requirement, set to “Auto-Approve” for faster processing.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Requisition Approvals

Step	Action	Description
1	Search Task	Within your project, search for the task: “Manage Requisition Approvals”.
2	Navigate to Task	Click the task name or select the Go to Task icon. This will open the BPM Worklist in a new window.
3	Access Rules	Navigate to the ReqApproval task.
4	Clean Up	To ensure your rule is the only one acting on your transactions, disable all other existing nodes/rules that might conflict with your new setup.
5	Create New Rule	Select the node where you want to add the rule, then click the (+) Add button.
6	Define Rule	Configure the logic:
	* Condition: Set Requisition Business Unit is [Your BU Name].
	* Action: Set the action to Approve.
7	Deploy	Click the Deploy button (top right of the BPM screen) to push the changes live.
8	Save & Exit	Click Save, then Save and Close. Click Done to return to your project.

Developer/Admin Tips for BPM Rules

• The “Deploy” Button: This is the most common mistake for new implementers. Even if you save your rule in the BPM worklist, it will not take effect unless you click “Deploy”.
• Auto-Approval Logic: By setting the action to “Approve,” the system treats the requisition as pre-authorized as soon as it is submitted. This is excellent for testing in a development environment or for low-value internal supply requisitions.
• Order of Operations: If you eventually add more complex rules (e.g., “If amount > $5000, send to Manager”), ensure your rules are prioritized correctly so the “Auto-Approve” rule doesn’t accidentally bypass higher-level financial controls.
• Testing: After deploying, log in as a user belonging to that BU, create a test Requisition, and verify that the status changes to “Approved” immediately upon submission.

Would you like me to guide you through a similar setup for “Purchase Order Approvals,” or are you ready to test the end-to-end P2P flow now?

Manage Purchase Order Document Approval:

If you want to create the Purchase order, we have to set up Approvals BU. We will setup the approvals with the help of this task and let’s see how to set up PurchaseOrder Approvals. We will set simple approvalrule like if PO is going to be created for our BusinessUnit, then that should be approved automatically. We are going to set

auto approvals in case of our Business Unit.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project) >>> Select you Project >>>

Search for the Task “Manage Purchasing Document Approvals”, click on it

>>> Select the task and

click on Go to Task icon >>> Disable all the other nodes >>> Select the node under whichyou want to create the Rule >>> Disable all other Rules >>> Create Rule, Condition, Actionand Deploy >>> click on save,Save and Close >>> Clickon Done.

Configuring Purchasing Document Approvals (for Purchase Orders) follows a similar logic to Requisition approvals but operates on the POApproval task. Automating this ensures that Purchase Orders do not get stuck in a “Pending Approval” state, which is especially useful during your implementation and testing phases.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Purchasing Document Approvals

Step	Action	Description
1	Search Task	Within your project, search for the task: “Manage Purchasing Document Approvals”.
2	Navigate to Task	Click on the task name or select the Go to Task icon. This launches the BPM Worklist.
3	Access Task	Find and click on the POApproval task.
4	Clean Up	Disable existing nodes or rules that might conflict with your new auto-approval rule.
5	Create Rule	Under your chosen node, click the (+) Add button to create a new rule.
6	Define Logic	Set the following:
	* Condition: Purchase Order Business Unit is [Your BU Name].
	* Action: Set to Approve.
7	Deploy	Crucial: Click the Deploy button at the top right to apply the rule to the active environment.
8	Save & Exit	Click Save, then Save and Close. Click Done to return to your project.

Developer/Admin Tips for PO Approvals

• Difference between Requisition and PO Approvals: While Requisition approvals handle the demand for goods, PO Approvals handle the legal commitment to spend company funds. Even if you auto-approve them now for testing, in a live environment, you will likely replace this with “Position-based” or “Supervisor-based” hierarchies.
• Approval Hierarchy: When you eventually move away from “Auto-Approve,” remember that Oracle Fusion supports:
  • Management Hierarchy: Routing based on the employee’s direct manager.
  • Position Hierarchy: Routing based on the job position (e.g., “Purchasing Manager”).
  • Approval Groups: Routing based on specific roles (e.g., “Finance Review Committee”).
• Deployment: Always remember that the BPM engine is separate from the FSM (Setup and Maintenance) interface. Clicking “Save” in BPM is just for editing; “Deploy” is what pushes the logic to the application.

You have now completed the configuration for all primary Procurement and Purchasing approval workflows.

With these steps finalized, your system is fully configured to handle:

1. Enterprise Structure (BU, Legal Entity, Inventory Org).
2. Procurement Core (Procurement Functions, Agents, Buyers).
3. Accounting (PO TAB, Account Rules, TAD).
4. Approvals (BPM Rules).

Are you ready to test the end-to-end process, or is there a specific document type (like Blanket Purchase Agreements) that you would like to configure next?

Create Sub-Inventory:

Subinventories are unique

physical or logical separations of material inventory, such as raw inventory,

finished goods, or defective material. All material within an organization is

held in a Subinventories therefore, you must define at least one Subinventories.

Withinthe Inventory Organisation the partitions whichwe create are called as Subinventories and Within the Subinventory whatever the

partitions we create are called as Locators.

We always create Subinventories in Inventory Organization (Real,

Child or Physical Inventories). We never create it in Item Master Inventory Organisation.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview(if you have only one Project)

>>> Select you Project >>> Search for the Task “Manage Subinventories and Locators”, click on it

>>> Select the task and

click on Go to Task icon >>> Select Inventory Organisation

>>> Click on + to create sub inventory >>> Provide the

required details based on Business Requirement >>> Click on Save and

Close >>> Click on Ok.

To complete your inventory structure, you need to define Subinventories. These act as the primary partitions within your “Child” (Physical) Inventory Organizations to help you categorize stock based on status (e.g., Raw Materials, Finished Goods, Damaged Items).

Understanding Subinventories and Locators

• Subinventory: The highest level of physical or logical storage within a warehouse. You must create at least one per Inventory Organization.
• Locator: A further subdivision within a subinventory (e.g., Aisle, Rack, Bin). Note: You only define these if your business requires tracking items to a specific bin level.
• Crucial Rule: Subinventories are defined in Physical/Child Organizations only. You never define them in your virtual Item Master.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Creating Subinventories

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Subinventories and Locators”.
2	Navigate to Task	Click the task name or select the Go to Task icon.
3	Select Org	The system will ask you to select an Inventory Organization. Select your physical warehouse (Child Org) and click OK.
4	Create Subinventory	Click the Plus (+) icon to create a new subinventory record.
5	Input Details	Fill in the required fields:
	* Name: A unique identifier (e.g., RAW_MAT_01).
	* Description: (e.g., “Main Raw Material Storage Zone”).
	* Type: Select if it is a storage subinventory or a staging area.
6	Save & Exit	Click Save and Close. Click OK if the system prompts for confirmation.

Key Configuration Considerations

• Stock Tracking: If you want the system to track the value of the inventory in this subinventory, ensure the “Asset Subinventory” checkbox is enabled.
• Locators: If you need granular tracking (e.g., Rack A, Bin 5), you must set the “Locator Control” attribute on the subinventory to “Prespecified” or “Dynamic” before you can define the locators themselves.
• Business Logic: Always create logical subinventories that match your physical floor layout. Common examples include:
  • RECEIVING: Where goods arrive before inspection.
  • RAW_MAT: Where components are stored.
  • FINISHED_GOODS: Where saleable items are stored.
  • DEFECTIVE: Where non-conforming goods are moved for return or disposal.

You have now finalized the hierarchy of your warehouse! You have the Item Master for definitions, Child Orgs for physical locations, and Subinventories for internal partitioning.

Are you now ready to create your first Item in the Item Master, or would you like to set up the “Locations” (addresses) linked to these warehouses?

Create Item Class

In EBS we don’t need to create any Item

Class but in Fusion Item

Class is Mandatory, without item class you cannot create singleitem in the Inventory. At item class level we can set certain securityoptions like,

who can create the items using item master,

which items can be assigned to child inventories and

How the item number need to be generated etc, all that can be defined at item class level.

Item classes are created underthe Root Item Class, or within a parent item class, and inherit valuesbased on selections made when defining the item class.

Navigation:

Login to the Instance with

the user credentials >>> Click on User Name >>> Click on

Setup and Maintenance >>> Click on Tasks list

>>> Click on Manage Implementation Projects >>> Search your Project and Click on the same ( if you have multiple projects) or Click on Overview (if youhave only one Project)>>> Select you Project >>> Search for the Task “Manage Item Classes”, clickon it

>>> Select the task and click on Go to Task

icon >>> select the Root item class >>> Click on + to create new item class>>> Provide the required detailsbased on BusinessRequirement >>> Clickon Save and Close >>> Click on Ok.

In Oracle Fusion Cloud, Item Classes are a foundational requirement for item definition. Unlike Oracle EBS, where item creation was flatter, Fusion uses Item Classes to enforce governance, security, and automated attributes.

Understanding Item Classes

• Mandatory: You cannot create a single item without assigning it to an Item Class.
• Inheritance: You can nest classes. A child class inherits the attributes, security rules, and numbering schemes of its parent.
• Governance Hub: It is the central place to define:
  • Security: Who has permission to create or view items in this class.
  • Numbering: Whether item numbers are generated automatically or entered manually.
  • Defaulting: Assigning common item attributes automatically to all items within that class.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Item Classes

Step	Action	Description
1	Search Task	Within your project, search for: “Manage Item Classes”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Select Root	The system displays a hierarchy. Select the Root Item Class (usually named Root Item Class).
4	Create Class	Click the Plus (+) icon to create your custom class.
5	Input Details	Define the class based on your business requirements:
	* Name: A descriptive name (e.g., LAPTOPS_CLASS or OFFICE_SUPPLIES).
	* Number Generation: Select “Automatic” or “Manual”.
	* Security: Assign the roles or users authorized to create items under this class.
6	Save & Exit	Click Save and Close. Click OK on any confirmation prompts.

Why this is critical for your Item Master

When you eventually create your “Laptop” or other items in the Item Master Organization, the system will force you to pick an Item Class.

• If you have multiple departments: You might create a parent class called FINISHED_GOODS and child classes for LAPTOPS, MONITORS, and ACCESSORIES.
• Data Integrity: Because the Item Class controls the “Item Numbering,” it prevents users from creating duplicate items or using incorrect naming conventions.

Pro-Tip for Developers

Since you are building a custom vendor registration and procurement portal, pay close attention to the Security tab within the Item Class. By setting up the correct security here, you can ensure that only the Procurement Agents you defined earlier can create or modify items within specific classes, preventing unauthorized data entry.

You are now ready to start creating your actual items! Would you like to proceed with the “Manage Items” task, or is there a specific attribute group configuration you need to handle first?

CreateItem and Assignit to Inventory Organisation.

Items are used to represent

products and services that you sell or transact and components that make up

your products and services.

We create Items with inthe Item master by using Item

class. The user can create the item only if Application Implementation Consultant/ Product Manager/

Inventory related Role is assigned to him, otherwise he cannot create Item.

Navigation:

Login to the Instance with

the user credentials >>> Click on Navigator >>> Click on

Product Management >>> Click onProduct Information Management >>> Click on Task List >>> Click on Create Item >>> Providethe required detailsbased on BusinessRequirement >>> Clickon Save and Close

Clickon Navigator.

You have reached the final functional step in the core configuration: Creating the Item and Assigning it to your Inventory Organizations.

As we discussed, you create the item in the Item Master Organization (virtual), and then you associate it with the Child/Inventory Organizations (real) where you will actually store the physical stock.

Navigation Path

Navigator ➔ Product Management ➔ Product Information Management ➔ Task List ➔ Create Item

Step-by-Step: Creating and Assigning Items

Step	Action	Description
1	Open Navigator	Click the Navigator icon (three horizontal lines, top-left).
2	Product Management	Expand Product Management and click Product Information Management.
3	Open Task List	Click the Tasks icon (sidebar) and click Create Item.
4	Input Item Info	Provide the details as per your business requirements:
	* Organization: Select your Item Master Organization.
	* Item Class: Select the Item Class you created in the previous step.
	* Item Name/Number: Enter the unique identifier.
5	Save	Click Save (this commits the item to the Master Org).
6	Assign to Org	To make this item available in your warehouse, look for the “Associations” tab (or “Select Organizations” action).
	* Click Select and Add and choose your Child Inventory Organizations.
	* Click Apply and OK.
7	Finalize	Click Save and Close.

Key Developer/Functional Checklist

• Security Check: Remember, you must have the Product Manager or Inventory Manager role assigned to your user account to see these menus. If you don’t see the “Product Information Management” work area, contact your Security Administrator.
• Associations: If you do not perform Step 6, the item exists in the system (the “Master”), but it is “invisible” to your warehouses. You will not be able to create a Purchase Order or perform a Receipt in your warehouse for that item until it is associated.
• Attributes: Once created, you may need to go back into the Item and set Item Attributes (e.g., Purchasable, Stockable, Transactable). Without these “flags” set to “Yes,” the system will not allow you to buy or store the item.

Summary of your P2P Setup

You have now fully configured the Oracle Fusion Cloud environment for Procurement:

1. Framework: Enabled Offerings, Enterprise Structure, and Projects.
2. Facilities: Defined Shifts, Workday Patterns, and Schedules.
3. Inventory: Created Item Master, Child Orgs, and Subinventories.
4. Procurement: Configured Business Functions, Agents, Buyers, and Approval Rules.
5. Accounting: Configured PO TAB, Account Rules, and Ledger Assignments.
6. Master Data: Created Item Classes and your first Item.

You are now ready to test the full Procure-to-Pay cycle!

Since you have completed your setup, would you like guidance on how to automate the Item creation using an API/Interface (which is very useful for your custom portal projects), or would you like to run your first manual test transaction?

Clickon Specifications >>> under that click on Inventory>>> based on the templateselected it will default

the values as per that template.

Likewise, all the options under Specification will default, the

default the values as per the purchase template selection.

When you create an item in Oracle Fusion, the Specifications tab is where you define the behavior of the item (e.g., Is it purchased? Is it stocked? Is it returnable?).

Using a Template is the most efficient way to ensure data integrity and save time. It automatically populates all the necessary attributes so you don’t have to toggle dozens of fields manually.

Using Templates in the Specifications Tab

When you click on Specifications inside your item record, you will see various categories like Inventory, Purchasing, Receiving, and General.

Step	Action	Description
1	Apply Template	Before filling out individual fields, ensure you have selected a template (e.g., “Purchased Item Template”).
2	Specifications Tab	Click on Specifications in the left-hand navigation pane of the item record.
3	Inventory Category	Click on Inventory. You will see attributes like Inventory Item, Stockable, and Transactable. These are typically checked “Yes” by the template.
4	Purchasing Category	Click on Purchasing. Here, the template defaults fields like Purchasable, Allow Price Override, and Receipt Required based on the procurement logic.
5	Review Other Categories	Check Receiving (defines how it is received) and General (defines base information).

Why Template Selection is Critical

• Consistency: If you create 1,000 items, using a template ensures every item has the exact same settings for “Stockable” or “Purchasable.”
• System Validation: If you manually set an item to Purchasable = Yes but forget to set Inventory Item = Yes, your Purchase Order might create successfully, but you will encounter errors during the “Receipt” process because the system won’t know where to put the stock.
• Template Overrides: If the template sets a default that doesn’t fit a specific use case (e.g., an item that is “Purchasable” but “Not Stockable”), you can manually override the template’s choice after the template has been applied.

Pro-Tip for your Development/Portals

Since you are working with interface packages (like APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG), remember that when you push data via API or FBDI, you are essentially “applying a template” at the database level.

Ensure that your interface scripts explicitly pass these attribute values (e.g., INVENTORY_ITEM_FLAG = 'Y') for every item you register through your custom portal. If your API fails to pass these flags, the item will be created but will be unusable for procurement.

You have now completed the entire functional walkthrough of the Oracle Fusion Procurement and Item Master setup!

Is there anything else you need to document, or are you ready to start building the front-end logic for your portal?

Check How the Itemsare created Navigation:

Login to the Instance with

the user credentials >>> Click on Navigator >>> Click on

Product Management >>> Click onProduct Information Management >>> Click on Task List >>> Click on “Manage Items”>>> Provide the required detailsbased on BusinessRequirement >>> Clickon Save and Close.

Click on ManageItems.

To verify the items you have created, you can use the Manage Items task. This is the search-and-review interface that allows you to confirm that your items exist, see which organization they are associated with, and review the attributes set by your templates.

Navigation Path

Navigator ➔ Product Management ➔ Product Information Management ➔ Task List ➔ Manage Items

Step-by-Step: Managing and Verifying Items

Step	Action	Description
1	Access Search	Click on the Manage Items task from the Task List sidebar.
2	Define Search Criteria	Enter search parameters:
	* Organization: Select your Item Master Organization (essential, as items live here first).
	* Item: Enter the item number or name (or use % as a wildcard to search all).
3	Execute Search	Click Search.
4	Review Record	Click on the Item Name in the search results to open the item record.
5	Verify Details	Within the item record, check the following:
	* Specifications Tab: Verify that the Inventory/Purchasing attributes were correctly defaulted by your template.
	* Associations Tab: Confirm the item is associated with your desired Child Inventory Organization.

Developer/Administrator Checklist

• Organization Context: Always remember that “Manage Items” is Organization-specific. If you search in the “Child” Org but the item was only created in the “Master” Org without being associated, the search will return zero results.
• Attribute Review: This is your primary diagnostic tool. If you are having trouble purchasing an item, use this screen to check if the Purchasable attribute is actually toggled to Yes.
• Global Search: If you are unsure which organization an item belongs to, you can sometimes use the global search bar at the top of the Fusion interface to find items across all organizations.

You have now completed the entire functional setup path for your P2P system! From Enterprise structures and Inventory setups to Accounting definitions and Item Management, you have successfully built the foundation. As a developer, you now have a clear understanding of the “functional side” of the objects your interface packages (APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG) will be interacting with.

Do you have any final questions about these configurations, or are you ready to start writing your custom PL/SQL integration code?

Check How the Items are created Navigation:

Login to the Instance with

the user credentials >>> Click on Navigator >>> Click on

Product Management >>> Click onProduct Information Management >>> Click on Task List >>> Click on “Manage Items”>>> Provide the required detailsbased on BusinessRequirement >>> Clickon Save and Close.

Click on ManageItems.

You have completed the full cycle for verifying your configuration. Using the Manage Items task is the standard way for functional users and developers to ensure that the item data—specifically the attributes inherited from your templates—has been correctly applied.

As a reminder, here is the functional flow for reviewing your work:

Verification Workflow: Manage Items

Step	Action	Description
1	Navigate	Navigator ➔ Product Management ➔ Product Information Management.
2	Open Task	In the Task sidebar, select Manage Items.
3	Search Context	Crucial: Ensure the Organization selected is your Item Master. If you are looking for an item you think you created but cannot find, check this filter first.
4	Query	Enter your item number (or use % wildcard) and click Search.
5	Review & Validate	Click the item link to open it. Check the Associations tab to confirm it is linked to your Child Organizations, and the Specifications tab to confirm the template values are correct.

Summary of your P2P Implementation

By reaching this point, you have successfully configured:

1. Enterprise Structure & Facility: Legal Entities, BUs, Inventory Orgs, and Calendars.
2. Procurement Foundations: Procurement Agents, Business Functions, and Buyer Assignment Rules.
3. Accounting Integration: Account Rules, Transaction Account Definitions (PO TAB), and SLA Options.
4. Governance & Approval: Requisition and PO Approval rules (BPM).
5. Product Management: Item Classes, Templates, Item Creation, and Associations.

Next Steps for your Development Projects

Since you are a developer, your next logical phase is Automated Testing. You can now:

• Test the API/FBDI: Use the Item Import FBDI template to mass-upload items instead of creating them manually.
• Interface Validation: Run your PL/SQL packages to see if the interface successfully pushes data into these underlying Oracle tables (e.g., EGP_SYSTEM_ITEMS_B, EGP_ITEM_CLASSES_B).
• End-to-End P2P: Create a Requisition in the UI, check the auto-approval, verify the PO creation, perform a Receipt, and finally, verify the Accounting entries.

Is there a specific technical challenge you are facing with your portal or interface packages, or are you all set to begin development?

Check How the Items are created Navigation:

Login to the Instance with the user credentials >>> Click on Navigator >>> Click on Product Management >>> Click on Product Information Management >>> Click on Task List >>> Click on “Manage Items” >>> Provide the required details based on Business Requirement >>> Click on Save and Close.

Click on Manage Items.

You have successfully reached the end of the functional setup for your Procure-to-Pay (P2P) implementation. By using the Manage Items task, you are performing the final validation step to ensure that your Item Master data is accurate and accessible to your inventory organizations.

Final Functional Verification Summary

As you perform your final check in the Manage Items area, ensure you confirm these three critical components:

1. Item Attributes (Specifications): Confirm that the template applied during item creation has correctly set the Purchasing, Inventory, and Receiving flags to “Yes.”
2. Organization Assignment (Associations): Confirm that the item is explicitly associated with your Child Inventory Organization. Without this, the item remains “Master-only” and cannot be used in a Purchase Order.
3. Governance (Item Class): Confirm the item is assigned to the correct Item Class, ensuring that your numbering sequence and security restrictions are active.

Moving from Configuration to Development

Since you are a developer focusing on Oracle APEX, PL/SQL, and ERP architectures, your functional setup is now the “source of truth” for your custom applications.

How this links to your projects:

• For your Supplier Registration Portal: The suppliers you register will now be validated against the Procurement Agents and BU setups you configured.
• For your Report Builder: The accounts you defined in the PO TAB and Account Rules will be the source data for the report structures you are building in PL/SQL.
• For your Web Homepage (TSSI Theme): You can now pull real-time inventory and item data using the APIs that link to these setup tables, giving your homepage dynamic and accurate information.

You have completed the full P2P functional roadmap. You have successfully built the engine that your custom applications will now interact with.

Are you ready to move into the development phase—perhaps mapping your APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG to these functional setups, or is there another configuration area you need to review?

Assign Roles to the User:

As we are going to work on Purchasing and Inventory Application, we need assignProcurement Roles and Inventory Roles. Assign Data Access

for Roles, For Inventory Roles we need to Assign our Inventory Organization and for Procurement Roles we need to

assign Business Unit

Navigation:

Login to the Instance with the user

credentials >>> Click on Navigator >>> Click on Tools >>>

Click on Security Console >>> Click on Users >>> Search user and open the user >>> click on Edit

>>> Click on Add Role >>> Add the Roles and Click on Save and Close.

To perform the transactions you’ve configured—such as creating requisitions, purchase orders, and managing inventory—you must grant the relevant security roles to your user. Simply having the roles is not enough; you must also provide Data Access to ensure the roles “know” which Business Unit or Inventory Organization they are allowed to act upon.

Navigation Path

Navigator ➔ Tools ➔ Security Console ➔ Users

Step 1: Assigning Roles

Step	Action	Description
1	Search User	In the Security Console, go to the Users tab and search for your username.
2	Edit User	Click the user record and click Edit.
3	Add Role	Click Add Role. Search for the necessary roles and click Add Role Membership.
	* Procurement Roles: Buyer, Procurement Preparer, Procurement Requester.
	* Inventory Roles: Inventory Manager, Warehouse Manager.
4	Save	Click Save and Close.

Step 2: Assigning Data Access (Crucial)

Roles define what you can do; Data Access defines where you can do it. Without this, your menus may appear, but you will receive “No data found” errors.

Navigation: Setup and Maintenance ➔ Manage Data Access for Users

Step	Action	Description
1	Task Search	Search for “Manage Data Access for Users” in your project.
2	Create Access	Click the Plus (+) icon.
3	Assign BU/Org	Choose the User, Role, and Security Context.
	* For Procurement Roles: Security Context = Business Unit. Select your specific BU.
	* For Inventory Roles: Security Context = Inventory Organization. Select your specific Org.
4	Submit	Click Save and Close.

Pro-Tips for Developers

• The “LDAP Sync”: After adding roles in the Security Console, it can sometimes take a few minutes for the permissions to propagate. If you don’t see the expected changes immediately, run the “Import User and Role Application Security Data” process from the Scheduled Processes area.
• Data Access Mapping: If your custom vendor interface package (APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG) will be creating transactions programmatically, the service user account running that package must also have these Data Access permissions for the Business Units it will be updating.

You have now completed the final step in the configuration process! You have a fully configured, permissioned environment ready for testing.

Since you are now fully set up, are you planning to run a end-to-end test of your P2P cycle today, or would you like to discuss how to manage these roles for the other users who will be using your Supplier Registration Portal?

Click on Tools, in the Click on Security Console.

Click Users >>> Search our User >>> Click on User Name.

Click on Edit,

Click on Add Role and add various roles like,

ORA Inventory Manager,

ORA Warehouse Manager,

ORA Warehouse Operator,

ORA Procurement Manager,

ORA Procurement Preparer,

ORA Procurement Requestor and

ORA Advanced Procurement Requestor.

This step is the final piece of your security setup. While assigning roles grants the permissions (the “what”), assigning Data Access grants the scope (the “where”). Without this step, your user won’t be able to see or transact in any specific Business Unit or Inventory Organization.

Navigation Path

User Name ➔ Setup and Maintenance ➔ Tasks List ➔ Manage Implementation Projects ➔ [Your Project Name]

Step-by-Step: Managing Data Access for Users

Step	Action	Description
1	Search Task	Within your project, search for the task: “Manage Data Access for Users”.
2	Navigate to Task	Click on the task name or click the Go to Task icon.
3	Create Access	Click the Plus (+) icon to create a new data access entry.
4	Assign Details	Fill in the required fields:
	* User: Select your username.
	* Role: Select the Procurement or Inventory role you assigned in the Security Console.
	* Security Context: Select Business Unit (for Procurement) or Inventory Organization (for Inventory).
	* Security Context Value: Select your specific BU or Inventory Organization name.
5	Save	Click Save and Close.
6	Confirmation	Click Yes on any system prompts to confirm the assignment.

Developer/Administrator Reminders

• The “LDAP Sync” Delay: If you just assigned the roles in the Security Console, wait a few minutes before performing this step. If the system doesn’t show your role in the dropdown, it means the security data hasn’t synced yet.
• Permissions Check: If you create a Requisition or PO later and notice that the “Business Unit” field is greyed out or empty, it is almost always because the Data Access is either missing or incorrectly mapped to a different BU.
• Scheduled Process: If you make changes and they don’t seem to apply, navigate to Scheduled Processes and run the job: “Import User and Role Application Security Data”. This forces a refresh of the security cache.

Congratulations! You have completed every configuration block required for a functional Oracle Fusion Procurement and Inventory implementation. You have successfully:

1. Defined the Enterprise/Inventory Hierarchy.
2. Configured Procurement Business Functions.
3. Built the Accounting engine (SLA/PO TAB).
4. Set up Approvals (BPM).
5. Managed Items and Templates.
6. Secured the environment with Roles and Data Access.

Your instance is now fully primed for your custom development work, such as your Supplier Registration Portal and Report Builder.

Click on the Task.

Click on + to create,

Select User, Role, Security Context and Security Context Value.

For Procurement Related Roles the Security Context is Business Unit and Select the Our Business Unit

For Inventory Related Roles, the Security Context is Inventory Organisation and select the Our Inventory Organization. Click on Save and Close.

This is the final administrative “handshake” required to ensure your security configuration is active. Whenever you add roles, modify data access, or create new users, the LDAP (Lightweight Directory Access Protocol) Synchronization process is what pushes those changes from the Security Console to the underlying functional tables in Oracle Fusion.

Why this is critical for you

As a developer, if you ever create a user or assign a role via API or through the UI and the system seems “unaware” of the change, it is almost certainly because the LDAP sync hasn’t run or completed yet.

Navigation Path (Preferred Method)

Navigator ➔ Tools ➔ Scheduled Processes

Step-by-Step: Running the LDAP Sync

Step	Action	Description
1	Open Processes	Go to Navigator ➔ Tools ➔ Scheduled Processes.
2	New Process	Click the Schedule New Process button.
3	Search Process	In the “Name” field, type “Retrieve Latest LDAP Changes” and click Search.
4	Submit	Select the process from the list, click OK, then click Submit.
5	Monitor Status	Click OK to close the confirmation box. The process will appear in the “Search Results” table. Keep clicking the Refresh icon until the Status shows “Succeeded”.
6	Final Step	Logout and Re-Login. This is vital to force the application to clear the old session’s security cache and reload your new permissions.

Pro-Tips for Developers

• Don’t Rush: If your process stays in “Running” status for a long time, do not try to submit it again. It can take several minutes to synchronize if there is a high volume of security updates.
• The “User Synchronization” Task: While you can trigger this from the “Setup and Maintenance” area, using the Scheduled Processes window is better because it allows you to monitor the job status in real-time.
• Impact on Interface Packages: If you are testing your custom APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG and you get “Access Denied” or “Insufficient Privileges” errors, this process is your first troubleshooting step. If the sync hasn’t run, the database-level security policy won’t recognize your credentials, even if you just assigned the role in the UI.

You have now officially completed the entire end-to-end configuration roadmap for your Procure-to-Pay system. You have moved from basic structure to final security synchronization.

Since your environment is now fully configured and synchronized, you are in a perfect position to begin testing or development. Would you like me to help you draft a test script for an end-to-end P2P transaction, or shall we start looking at the technical architecture for your Supplier Portal?

Click on Run User and Roles Synchronization Process.

Click on Submit. Now whatever roles we have assigned to User and whatever Data we have assigned to roles that’s need to be Synchronised. For Synchronising all these we Run LDAP (Lightweight Directory Access Program).

On the successful completion of the LDAP job, we can go and check under the Navigator, we have Procurement, Now the system has added other tasks as above.

In Supply Chain Management also the system has added few tasks as above.

With the help of Procurement, you can create the Purchase Requisitions and Purchase Orders.

With the help of Supply Chain Management, you can create the Receipt of Material and Maintain the Stock.

You are at the final gateway before testing your Procure-to-Pay (P2P) cycle. Requisition Preferences act as the “User Profile” for your procurement activities. They ensure that when you (or any employee) open the Requisition screen, the system already knows your default Business Unit, Currency, and Delivery Location, preventing manual entry errors and speeding up the process.

Understanding Requisition Preferences

These preferences are user-specific. They govern the behavior of the “Purchase Requisitions” work area for the person logged in. If you are a developer testing the system, you must set these for your own account; otherwise, the system will not have the mandatory context (like the Requisitioning BU) required to initialize a new document.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Requisitions ➔ More Tasks ➔ Update Requisition Preferences

Step-by-Step: Updating Requisition Preferences

Step	Action	Description
1	Open Procurement	In the Navigator, click on the Procurement module.
2	Enter Requisitions	Click on Purchase Requisitions.
3	Access Preferences	On the right-hand side, click the Tasks icon (or “More Tasks”) and select Update Requisition Preferences.
4	Define Defaults	Enter the details as per your business requirements:
	* Requisitioning BU: Select your active Business Unit.
	* Deliver-To Location: Set the default physical site where goods should arrive.
	* Currency: Set your transaction currency (e.g., USD, INR).
	* Project/Task: If this is for a specific project, select it here.
5	Save	Click Save and Close.

Why this is mandatory for P2P Testing

• Contextual Validation: The system performs a “Validation” as soon as you click “Create Requisition.” If the BU or Currency is missing, the screen will either not load or throw a hard error.
• Developer Tip: If your custom APEX Supplier Registration Portal or Report Builder eventually invokes standard requisition services, the system will look for these user preferences to “stamp” the requisition lines. Ensure your test user has these saved correctly to avoid “Context Not Found” errors during your testing.

You are now 100% Configured.

You have completed the entire P2P implementation journey:

1. Foundational Setup: Enterprise, BU, Inventory, Calendars.
2. Procurement Logic: Functions, Agents, Buyers, and Approval Rules (BPM).
3. Accounting: Subledger Accounting (SLA) and PO TAB.
4. Product Data: Item Classes, Items, and Associations.
5. Security & User Sync: Roles, Data Access, and LDAP.
6. User Preferences: Requisition Preferences.

Your environment is officially ready for a live P2P test. Would you like me to provide a summary checklist to guide your first end-to-end test (from Requisition to Payment), or is there any other specific area you need to review?

Click on Navigator

Click on Purchase Requisitions

Click on More Tasks and Click on Update Requisition Preferences.

Provide the data based on the Business Requirement. Now we are ready with Requisition Preferences and start working on P2P Cycle.

With your Requisition Preferences successfully set, you have now reached the first transactional milestone of the Procure-to-Pay (P2P) cycle: creating a Purchase Requisition. This document signals the internal need for goods or services and kicks off the automated approval workflow you configured.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Requisitions ➔ More Tasks ➔ Enter Requisition Line

Step-by-Step: Creating a Purchase Requisition

Step	Action	Description
1	Access Requisitions	Navigate to the Procurement ➔ Purchase Requisitions work area.
2	Enter Line	Click the More Tasks menu (or the Tasks sidebar) and select Enter Requisition Line.
3	Input Item Details	Provide the details based on your business requirement:
	* Item: Select the item you created (e.g., your test laptop/part).
	* Description: Will default from your Item Master definition.
	* Quantity/UOM: Enter the required quantity (e.g., 5).
	* Price: If not defaulted, enter the unit price.
4	Verify Defaults	Confirm that the Deliver-To Location, Charge Account, and Requisitioning BU have automatically populated (driven by your Requisition Preferences).
5	Save	Click Add to Cart or Save.
6	Submit	Once the item is in the cart, click the Cart icon ➔ Submit.

What happens behind the scenes?

• Automatic Approval: Since you configured the BPM Approval Rules earlier, if this requisition meets the “Auto-Approve” criteria, you will see the status change from “Pending Approval” to “Approved” almost instantly.
• Buyer Assignment: The system will look at your Buyer Assignment Rules. If you have set up a default buyer, the system will automatically stamp that buyer’s name on the requisition.
• Data Integrity: If you receive an error about “Invalid Account” or “Missing Business Unit,” revisit the Requisition Preferences or the TAD (PO TAB) configuration—these are usually the two culprits for failed requisition submissions.

Pro-Tip for Developers

If you are building your Report Builder or Portal, you can verify the success of this step by checking the back-end tables. You can query the POR_REQUISITION_HEADERS_ALL and POR_REQUISITION_LINES_ALL tables to see your test requisition data. This will help you map your PL/SQL queries for your upcoming reporting projects.

Click on More Tasks and Click on Enter Requisition Lines.

Provide all the details based on the Business Requirement.

Provide all the details based on the Business Requirement and the Charge Account is derived from the PO TAB

Click on Add to Cart, you can create one line or multiple lines and add to cart.

Click on line what we have selected in the Cart.

If you click on Submit, System will create Purchase Requisition and Submit for Approval.

Before you Submit, Click on Review to see based on this line how system is going to create the Purchase Requisition. System has created Purchase Requisition with Number 1, if we want, we can create number as per our requirement we can create with help Document Numbering setup.

If I click on Manage Approvals, you can see who is the Approver for this Purchase Requisition.

You can see, the Approver is Application Development Framework Application Identity for Procurement, it means it is system Approval. As we have configured Auto Approval Rule for Purchase Requisition, system will automatically Approver the Purchase Requisition. Click on Back or click on Submit form here itself if everything is ok

You can also submit here, if you have not submitted in the Approval page. If you click on Submit, the system will send Purchase Requisition to the Approver. Once the Requisition is Approved, we can create the Purchase Order based on the Purchase Requisition Document.

If you want view how Purchase Requisition is created you can click on View PDF and view the same.

It will take some time when you are creating PR, PO or Invoice for the very first time as the system need to check all the rules and it will create it.

You have successfully submitted your requisition. Now, you need to verify that it has moved through the system correctly. The Manage Requisitions task is your primary tool for tracking the document’s lifecycle, from its submission to its current approval status and subsequent conversion into a Purchase Order.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Requisitions ➔ Manage Requisitions

Step-by-Step: Verifying Your Requisition

Step	Action	Description
1	Access Search	In the Purchase Requisitions work area, click the Tasks icon (or “More Tasks”) and select Manage Requisitions.
2	Filter Results	Enter your Requisition Number in the search field. If you don’t have it, search by date range or requester.
3	Execute Search	Click Search.
4	Review Status	Examine the Status column in the search results.

Understanding Requisition Statuses

As you view your requisition, you will see one of these common statuses:

• Incomplete: You saved it but didn’t submit it.
• Pending Approval: The workflow is currently routing through the BPM engine. (If it stays here too long, check the BPM Worklist for any stuck notifications).
• Approved: Your Auto-Approval rule worked successfully.
• Rejected: There is a problem with the rule or the data.
• Returned: A buyer or approver has sent it back to you for changes.
• Processed: The requisition has been successfully converted into a Purchase Order.

Developer/Administrator Troubleshooting

• If the status is “Approved” but it isn’t moving to “Processed”: This means the Purchase Order has not been created yet. Depending on your configuration, this can happen in two ways:
  • Manual: You (the Buyer) must go to the “Process Requisitions” task and manually convert this line into a PO.
  • Automatic: If you have the “Autocreate” feature enabled for your Business Unit, the system will pick this up on its next scheduled run.
• PL/SQL Hint: If you are building a custom Report Builder and want to pull this status into your PL/SQL reports, query the POR_REQUISITION_HEADERS_ALL table using the REQUISITION_HEADER_ID. The column DOCUMENT_STATUS will give you the real-time status as seen in this UI.

You have successfully validated that your requisition is live in the system.

To check the status of the PR, click on Manage Requisitions.

Check the PR with the help of Requisition Number as 1 and click on search.

The Status for Our PR is Pending for Approval, once it is Approved by the Approver then the status will be changed to Approved

Now our Requisition Status is Approved and click on Done.

To finalize the procurement cycle, you are now converting the approved internal demand (Requisition) into a legally binding external document (Purchase Order). This process bridges the gap between requesting goods and officially ordering them from your supplier.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks List ➔ Process Requisitions

Step-by-Step: Converting PR to PO

Step	Action	Description
1	Access Process	In the Purchase Orders work area, open the Tasks sidebar and click Process Requisitions.
2	Filter PR	Enter the Requisition number or the Requisitioning BU. Click Search.
3	Select Lines	Your approved requisition lines will appear in the search results. Select the lines you want to convert.
4	Action: Create PO	Click the Add to Document Builder button.
5	Document Builder	A window will appear. Choose:
	* Document Type: Purchase Order.
	* Create: New Order (or add to an existing one).
	* Supplier/Site: Select the supplier and site for this order.
	* Create: Click the OK button.
6	Finalize PO	The system will generate a PO number. Click Create to open the PO, review the header/distribution, and click Submit.

Developer/Administrator Insights

• Document Builder: This is the heart of the “Auto-create” process. If you don’t see your Requisition lines here, ensure the status is strictly “Approved”. If it is still “Pending Approval,” the conversion process will not see it.
• Supplier Selection: If you didn’t specify a supplier on the requisition, you must choose one here. If you did specify one, the system will default it, and the conversion is significantly faster.
• PL/SQL & API Note: For your custom Supplier Portal, you can use FBDI (File-Based Data Import) for Purchase Orders to automate this creation. This is often better than manual conversion if you are planning to handle high volumes of vendor registration and PO creation through your own interface.
• Accounting Validation: Once you click “Submit” on the PO, the system will trigger the Subledger Accounting (SLA) engine you configured earlier using the PO TAB to derive the Charge, Accrual, and Variance accounts. If the PO goes to “Pending Approval” or “Error,” check the distribution accounts to ensure your rules are firing correctly.

You have now successfully converted your demand (PR) into a legal commitment (PO).

The final physical steps in the P2P cycle are Receiving (recording the delivery) and Invoicing (recording the liability).

Click on Navigator

Click on Procurement, under that click on Purchase Orders

Click on Tasks.

Click on Process Requisitions under Requisitions. Its is equal to auto create PO, system will automatically create the PO.

Only approved Purchase Requisitions can be converted into Purchase Order. You can only see the approved Purchase Requisitions in this page, otherwise you cannot see it here. If you have many Requisitions you can search with the help of Requisition Number.

To convert this PR into PO, select the record and click on Add to Document Builder

Provide the mandatory details and click on OK.

If you want to create Purchase Order, Supplier information is mandatory, without supplier we cannot create the PO. We may not see the Supplier Information is mandatory but its mandatory.

By copying the details, the system will create draft PO. If you want to modify anything in this PO, we can modify by clicking on Edit option or if everything is fine and good to go then click on Create.

Now system has created Purchase Order with document number as 1, click on OK.

As part of P2P setups, we have configured the approvals rules for Purchase Order also as auto approvals. If Procurement BU is equal to Digital BU, we have set as approval as automatic and out outcome is set Approved.

Provide the Details based on the Business Requirement.

After creating Purchase Order, we have to create the Payable Invoice against that PO. While creating the Invoice what parameters the system has to check, whether only Purchase Order in enough or along with the PO even the receipt of the material is also required, that we can define here in this page only.

Click on Lines >>> click on Columns >>> click on show all >>> You can view all the hidden columns are enabled for viewing and for modifying.

You can scroll right to see the field called as Match Approval level as 2way, 3 way or 4way and Invoice Match Option as Order or Receipt.

As System has created PO based on the PR line, system is defaulting Match Approval Level as 3 way and Invoice Match Option as Order which we have configured as part of Configure Procurement Business Functions.

We can modify the terms as per the Business Requirement. If you select Match Approval Rule as 3 Way and Invoice Match Option as Receipt then there should be a PO and Receipt against that PO, otherwise you cannot create the invoice in the payables with this PO. Make Sure *Invoice Match Option is selected as Order*, system will strictly follow this field irrespective irrespective of what you have selected in Match Approval Level. But for now, will go with 2 way and Order values.

Click on Manage Approvals to see who is the Approver for this PO based on Approval Rules, when you click on Submit.

We can check who is the Approver and the Approval Hierarchy, as we have set the Approval Rule for PO Creation as Automatic Approval, the PO gets approved automatically by the system. Click on Cancel

When you click on Submit, the PO will be sent to the respective Approver for the Approval.

Click on Ok

To verify that your Purchase Order (PO) has been successfully created and to check its current lifecycle status, use the Manage Orders task. This is the central control panel for all your procurement documents.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks List ➔ Manage Orders

Step-by-Step: Managing and Verifying Purchase Orders

Step	Action	Description
1	Access Manage Orders	In the Purchase Orders work area, click the Tasks sidebar and select Manage Orders.
2	Enter Search Criteria	Enter your Order Number. If unknown, you can search by Supplier, Buyer, or Date Range.
3	Execute Search	Click Search.
4	Review PO Status	Look at the Status column in the search results.

Key Statuses to Monitor

• Incomplete: The PO is in draft mode; it hasn’t been submitted yet.
• Pending Approval: The PO is currently routing through the BPM Approval workflow.
• Open: The PO is fully approved and sent to the supplier (or is ready to be communicated).
• Closed for Receiving/Invoicing: The PO has been fulfilled, and the system is finalizing the financial match.
• Closed: The business transaction is complete for this document.
• Rejected: The PO was declined by an approver; you must fix it and resubmit.

Developer/Administrator Insights

• Troubleshooting Status: If your PO is stuck in “Pending Approval,” use the “View Approval Tree” or “Manage Approvals” link within the PO header. This will show you exactly which user or approval group the PO is waiting on.
• Interface Verification: If you are building reports in PL/SQL or via APEX, you can join PO_HEADERS_ALL with PO_LINES_ALL using the PO_HEADER_ID to pull these status codes. The column PO_HEADER_STATUS is the primary field for the document’s state.
• Accounting Check: Click on the “View Accounting” (or similar) link within the PO header to verify that the Subledger Accounting (SLA) engine has successfully generated the accounting entries using the PO TAB rules you configured earlier. If this is blank, the SLA process has not yet fired.

You have now successfully validated your Purchase Order. You are just two steps away from completing the entire P2P lifecycle: Receiving the Goods and Invoicing the Supplier.

Click on Manage Orders to check the Status of PO.

You can search your PO based on the Order number, give order number click on Search, the status of the order is Pending Approval.

When the PO is Approved, the status will be updated as Open, Open means it is open to create invoice and receive the material. We have to understand that the PO is Approved when the status is Open. Click on Done.

Since PO is approved and at the Match Approval level we have configured as 2way and Invoice Match Option as Order we are can create an Invoice in Payables Application based on this Purchase Order.

When you create the Invoice in the Payables Application, system will copy the information from Purchase Order only certain details in Header. The Lines and Distribution will be created in the Payables based on information which is available.

You have reached the final financial step of the Procure-to-Pay (P2P) cycle: Invoicing. This is where you acknowledge the legal liability to pay your supplier based on the goods or services received. By matching the Invoice to your Purchase Order, you ensure “Three-Way Matching” (PO, Receipt, and Invoice) is satisfied.

Navigation Path

Navigator ➔ Payables ➔ Invoices ➔ Tasks ➔ Create Invoice

Step-by-Step: Creating an Invoice from a PO

Step	Action	Description
1	Create Invoice	In the Invoices work area, click the Tasks sidebar and select Create Invoice.
2	Match to PO	In the “Purchase Order” field, search for and select your PO Number.
3	Header Details	Provide the mandatory fields: Invoice Number, Date, Amount, and Supplier (usually defaults from PO).
4	Line Details	Click Match (or similar option) to pull in the lines from your PO. Verify the quantity and price match your purchase agreement.
5	Distribution	Review the Distribution tab. This is where the accounting rules you defined earlier (using your PO TAB setup) will populate the natural accounts.
6	Validate	Go to Actions ➔ Validate. The status must change to “Validated” (no holds).
7	Post to Ledger	Go to Actions ➔ Post to Ledger. This creates the final accounting entries in the General Ledger.

Developer/Administrator Insights

• Three-Way Match: Oracle will automatically check if the Invoice quantity/price matches the Purchase Order and the Receipt (if you performed one). If they don’t match, the invoice will be placed on “Hold,” and you will not be able to pay it until the variance is resolved.
• Accounting Verification: Since you configured your Transaction Account Definition (PO TAB), this step is where the system actually executes those rules. If you get an error during “Post to Ledger,” it usually means the account combinations derived by your rules are either invalid or closed in the GL.
• PL/SQL Note: If you are building a reporting module, the invoice data is stored in AP_INVOICES_ALL and AP_INVOICE_LINES_ALL. You can link these back to your POs using the PO_HEADER_ID stored at the line level.

Cycle Complete!

You have now successfully walked through the entire Procure-to-Pay process:

1. Configuration: Enterprise, Accounting, and Inventory.
2. Procurement: Requisitions and PO Approvals.
3. Execution: PO creation, Receipt (optional), and now Invoicing.

You have a fully functioning P2P environment. Since you are a developer with Oracle APEX and PL/SQL experience, you are perfectly positioned to build the custom interfaces and reporting layers you mentioned earlier.

Click on Navigator, Click Payables and click on Invoices

Click on Tasks, click on Create Invoice

As we are creating invoice based on the PO, we have to select our PO number through search.

Search our PO number, select it and click OK

You can see that Supplier, Supplier site and Currency are auto populated and greyed out as they are copied from the PO.

Provide the mandatory details as per the Business Requirement and click on Go in Lines >> Match Invoice Lines.

You can enable the check box and modify the details if required otherwise you can click on Apply and OK.

Now the system has created Invoice line based on the PO line.

Click on Distribution to see what Accounts system has derived.

We have defined Accrual Account for Purchase Order in Purchase Order Transaction Account Builder so system will take Accrual Account. It will default the Account which we have defined in the PO TAB. Click on Save and Close.

Click on Invoice Options and Click on Validate, to validate the Invoice.

System is showing a warning as Needs revalidation because the Header amount and the Line amount is not matching. As per my PO we have to Pay only 1000, but say per the supplier invoice received from supplier the invoice amount is 1500. Now we need to connect with the supplier and request for the updated invoice with the PO amount.

Now change the amount to 1000 in the Header. Click on Invoice Actions and click on Validate.

Click on Post to Ledger to create Accounting in GL.

You can view the Accounting. Generally, when you create a manual invoice the accounting entries would be,

• Expense A/c DR       1000    000
• Liability A/c CR        000 1000

But in case of Invoice creation through Purchase Order the accounting entry would be,

• Accrual A/c DR       1000    000
• Liability A/c CR        000 1000

To enforce a Three-Way Match (Purchase Order + Receipt + Invoice), you must ensure that your PO setup mandates a receipt. If this “Receipt Required” flag is set, the system will prevent any invoice from being validated until the goods have been physically received into your Inventory Organization.

Step 1: Setting up the PO for Three-Way Matching

When creating your Purchase Order, you must configure the document to enforce the receipt requirement.

Navigation

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks ➔ Create Order

Configuration

Field	Action
Supplier/Site	Select your supplier and site.
Document Type	Select “Purchase Order”.
Line Level	Enter your Item and Quantity.
Shipment Level	Crucial Step: Scroll to the “Receiving Controls” section.
	* Set Receipt Required to Yes.
	* Set Receipt Routing to Direct Delivery or Standard Receipt.

The Full Three-Way Matching Workflow

Once you have created this PO with “Receipt Required,” the P2P cycle flows as follows:

1. Purchase Order: Created with Receipt Required = Yes.
2. Receiving: You must navigate to Navigator ➔ Supply Chain Execution ➔ Inventory Management ➔ Receipts ➔ Receive Expected Shipments to log that the goods have arrived.
3. Invoice Matching: When you navigate to Payables ➔ Invoices ➔ Create Invoice, the system will perform a check:
   • Match Basis: Purchase Order.
   • Validation: If you try to validate the invoice before the receipt is recorded, the system will trigger a “Matching Hold”.

Developer/Admin Tips for Enforcing this Rule

• Defaulting Rules: To avoid having to manually set Receipt Required = Yes on every PO, you can set this attribute at the Item Master level. If the Item is flagged as “Receipt Required” in the Master, the PO will automatically inherit this setting.
• Troubleshooting Holds: If your users complain that they cannot validate invoices, check the “Invoice Holds” tab in the Invoice work area. If you see a MATCH hold, it is a direct indicator that the Receipt has not been processed for the corresponding PO.
• PL/SQL Integration: If you are building a custom interface, ensure your staging tables include the RECEIPT_REQUIRED_FLAG. If you push an invoice via API for an item that requires a receipt but has none, your API will return a validation error.

Click on Navigator, Click on Procurement and click on Purchase Orders

Click on the Task and click Create Order.

Provide all the details based on the Business Requirements. Select the Supplier from whom we are purchasing the material and Default Ship to Location means to which location the supplier has to send the material.

We have header information but line information we have to create as what we are purchasing from that supplier

Provide all the details, Item what we have created, Quantity, Base Price, Location, Organization.

Requested Delivery Date and Promised Delivery Date are not mandatory but without these details you cannot create a purchase order.

Match Approval level set it as 3Way and Invoice Match Option as Receipt. All the controls are there at Invoice Match Option and not at Match Approval Level

How you are going to receive the delivery, we can define it in Receipt Routing as

• Direct Delivery if it is One step,
• Standard Delivery, if it is two steps and
• Inspection required, if it is three steps.

There is no PO charge Account, Accrual Account or Variance Account.

To see PO charge Account, Accrual Account or Variance Account we need to save the PO.

Now you can see the PO Charge Account, if want see the Accrual and Variance Account select the record and click on Edit.

You can see the PO Accrual and PO Variance Accounts here and click on cancel.

Click on Submit, to submit this PO for Approval purpose.

Monitoring your Purchase Orders through the Manage Orders screen is the primary way to gain visibility into your procurement pipeline. This screen acts as a status dashboard, showing you whether a PO is still in draft, stuck in the approval workflow, or fully approved and ready for dispatch.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks ➔ Manage Orders

Step-by-Step: Managing and Checking PO Status

Step	Action	Description
1	Access Search	In the Purchase Orders work area, click the Tasks sidebar and select Manage Orders.
2	Filter by PO	Enter your Order Number in the search field. If you are investigating a specific batch of POs, use the Date range or Supplier filters.
3	Search	Click Search.
4	Review Status	Examine the Status column in the search results.

How to Interpret the PO Status

• Incomplete: The PO has been created but not yet submitted for approval.
• Pending Approval: The PO has been submitted and is currently being reviewed by the BPM approval hierarchy.
  • Tip: If it has been here for a long time, click the Manage Approvals button on the PO header to see exactly who the current approver is.
• Open: The PO is fully approved and is considered “active.” This is the point at which it can be sent to the supplier.
• Closed for Receiving/Invoicing: The goods have been received or the invoice has been matched, moving the PO toward final closure.
• Rejected: The PO was denied during the approval process.

Developer/Admin Diagnostic Check

• Comparing POs: You mentioned checking an earlier PO. Use the Manage Orders search results to compare the status of your newly created PO against a previously successful one. This is a great way to verify that your new Approval Rules are behaving identically to your established, stable rules.
• Status Mapping: If you are building reports in APEX or custom dashboards, the PO_HEADERS_ALL.PO_HEADER_STATUS column is your reference point. Comparing the values in this table against what you see in the Manage Orders UI is the best way to confirm that your back-end integration is accurately reflecting the front-end state.

The status is Closed for Invoicing. It means against this PO 1Invoice is created and you will not be able to create the any new invoice with this PO 1.

Check our PO 2 status, with the help of PO number and click on search

The Status for the PO is Open, means it is approved.

Now try to create the Invoice based on PO-2, will not be able to create the invoice and system will reject as we have set Invoice Match Option as Receipt at PO creation level.

This is the operational step where you officially record that the physical goods ordered on your Purchase Order have arrived at your facility. By completing this, you satisfy the “Receipt” requirement of the Three-Way Matching process, allowing the Invoice to be validated and paid.

Navigation Path

Navigator ➔ Supply Chain Execution ➔ Inventory Management ➔ Tasks ➔ Receive Expected Shipments

Step-by-Step: Creating a Receipt

Step	Action	Description
1	Access Receipts	In the Inventory Management work area, click the Tasks sidebar and select Receive Expected Shipments.
2	Search PO	Enter your Purchase Order Number and click Search. Your shipment should appear in the results table.
3	Initiate Receipt	Select the PO row and click the Receive button.
4	Input Details	Enter the delivery information:
	* Quantity: The actual amount received (can be partial if the full order hasn’t arrived).
	* Destination Type: Defaults to “Inventory” (stock) or “Expense” (direct consumption).
	* Subinventory: Select the target subinventory where the material will be stored.
	* Locator: If you have dynamic locator control, select the specific bin/rack.
5	Create	Click Create Receipt. The system will generate a Receipt Number.
6	Submit	Click Submit to finalize the transaction.

Developer/Administrator Insights

• Transaction History: Once submitted, the system updates the RCV_SHIPMENT_HEADERS and RCV_SHIPMENT_LINES tables. If you are building a custom Inventory Report, these are the tables you will query to find your received quantities.
• Accounting Effect: If you have defined “Accrual at Receipt” in your Enterprise structure, this action triggers an accounting entry (debiting Inventory and crediting the Accrual account). If you have set “Accrual at Period End,” no accounting entry is generated until the invoice is processed.
• Troubleshooting: If the PO does not appear in “Receive Expected Shipments,” ensure:
  1. The PO status is “Open”.
  2. The PO has been communicated (if your setup requires it).
  3. The “Receipt Required” flag is indeed set to “Yes” on the PO lines.

You have now completed the entire physical and financial flow of the P2P cycle. You have gone from the setup phase through to the actual receipt of inventory.

Click on Supply Chain Execution and Click on Inventory Management.

Click on Show Tasks and Select Receipts

Click on Receive Expected Shipments

Search the PO against which you are receiving the Material

Select the PO and click on Receive and you will receive this item to our Inventory Organisation which we have selected.

Provide the details about how much quantity we have received and Subinventory. Without Subinventory we cannot create the receipt.

Click on Submit.

Click on Done

System has created Receipt and generated number as 2, as we defined in Receiving Parameters the n Next receipt number as 1 but is creating receipt from 2, it means system is understanding the number

what you enter in the Receiving Parameters is last receipt number. So that is the reason why system is generating the number for Receipt as 2. Click on Done

You have completed the final verification step: Checking On-Hand Inventory. This is how you confirm that the “Receipt” transaction you performed in the previous step successfully updated your warehouse stock levels.

Navigation Path

Navigator ➔ Supply Chain Execution ➔ Inventory Management ➔ Tasks ➔ Manage Item Quantities

Step-by-Step: Verifying Your Inventory

Step	Action	Description
1	Access Task	In the Inventory Management work area, click the Tasks sidebar and select Manage Item Quantities.
2	Select Org	Ensure the Inventory Organization selected matches the one where you performed the Receipt.
3	Search	Enter your Item Number (or use % to see all items in the org) and click Search.
4	Check Quantity	Review the Primary Quantity column.

Understanding the Results

• Positive Quantity: If you see the quantity you received, your P2P cycle is 100% successful—from the initial Requisition to the final Receipt of goods into stock.
• Zero Quantity: If the quantity is zero, verify the following:
  • Receipt Status: Go back to Manage Receipts to confirm the receipt status is “Received” and not “Pending.”
  • Organization Context: You may have received the items into a different Inventory Organization than the one you are searching.
  • Transaction Delay: Sometimes, if the system is under load, the on-hand quantity update takes a few seconds to refresh.

Developer/Administrator Insights

• Real-time API/Report Data: As a developer, if you are building an inventory dashboard or a portal for your users to see their “Stock on Hand,” you will be querying the INV_ONHAND_QUANTITIES_DETAIL table. This is the source of truth for the quantities you see in the Manage Item Quantities UI.
• Subinventory Granularity: If you need to see exactly which shelf or bin your items are on, click on the “Details” icon next to the quantity. This will break the stock down by Subinventory and Locator, which is exactly how your physical warehouse is structured.

Congratulations! You have successfully mastered the entire end-to-end P2P lifecycle in Oracle Fusion.

You have built the engine from the ground up:

1. Structure: Enterprise & Inventory.
2. Logic: Accounting (TAD), Approvals (BPM), and Procurement.
3. Data: Items, Classes, and Templates.
4. Transaction: Requisitions, POs, Receipts, and Invoicing.
5. Validation: On-Hand Quantity verification.

You are now fully prepared to build your custom APEX applications, portal front-ends, and PL/SQL integration packages knowing exactly how the underlying Oracle ERP behaves.

Or

Inventory Transactions

If you want to check stock in the inventory, we can check the same from Inventory Management Page. Select your Inventory Organization and click on Search

You can see 1 item is available which is there in which Inventory Organisation and in which Sub Inventory we check through this page. Click on Done.

Now we will be able to create the Invoice based on 3way matching in the Payables Application as we have created the PO and Receipt.

To complete the 3-Way Matching process (PO + Receipt + Invoice), you must ensure that your system validates the invoice against the quantities you previously received into inventory. This process ensures that you only pay for what has actually been delivered.

Navigation Path

Navigator ➔ Payables ➔ Invoices ➔ Tasks ➔ Create Invoice

Step-by-Step: Creating a 3-Way Matched Invoice

Step	Action	Description
1	Create Invoice	In the Invoices work area, open the Tasks sidebar and select Create Invoice.
2	Select PO	Use the Purchase Order field to search for and select the PO that requires 3-Way matching.
3	Header Info	Enter your Invoice Number, Date, Amount, and Supplier Site.
4	Line Matching	Click the Match button. Select the lines from the Purchase Order. The system will pull the received quantities from the receipt you created earlier.
5	Verify Distributions	Ensure the Distribution level details match your expected accounting. These are automatically derived from the Transaction Account Definition (TAD) you configured earlier.
6	Validate	Go to Actions ➔ Validate.
7	Check for Holds	If the status is “Needs Revalidation” or “On Hold”, click on the Holds tab. If you see a MATCH hold, it means the quantity invoiced exceeds the quantity received.
8	Finalize	Once validated, go to Actions ➔ Post to Ledger to finalize the accounting.

Key Insights for 3-Way Matching

• The Matching Logic: * 2-Way: Matches Invoice to PO.
  • 3-Way: Matches Invoice to PO and Receipt.
  • 4-Way: Matches Invoice to PO, Receipt, and Inspection (Quality Acceptance).
• Why it fails: If you receive 10 items but invoice for 12, the 3-Way match will trigger a “Quantity Hold.” You must either adjust the invoice quantity to match the receipt or perform an additional receipt for the remaining 2 items before you can validate the invoice.
• Developer Tip: Since you are a developer, if you are building an automated invoice loader (via FBDI or Web Services), ensure your validation logic checks the RCV_SHIPMENT_LINES table for received quantities before attempting to push the invoice data. This will prevent your interface from creating “Hold” invoices.

You have successfully completed the full P2P transactional loop. You started from a request (Requisition), moved to a commitment (PO), verified the physical arrival (Receipt), and finalized the financial liability (Invoice).

Click on Tasks, click on Create Invoice

As we are creating invoice based on the PO, we have to select our PO number through search. Search our PO number, select it and click OK

You can see that Supplier, Supplier site and Currency are auto populated and greyed out as they are copied             from the PO.

Provide the mandatory details as per the Business Requirement and click on Go to Lines by selecting Match Invoice Lines.

If you don’t have a receipt against the PO which we have select, the system will not open this page even if click on go.

Enable the check box, Click on Apply and click on OK.

View the distributions

Click on Invoice Actions and click on Validate and Post Ledger. click on Save and Close

You can view the Accounting. Generally, when you create a manual invoice the accounting entries would be,

• Expense A/c DR       1000    000
• Liability A/c CR        000 1000

But in case of Invoice creation through Purchase Order the accounting entry would be,

• Accrual A/c DR       1000    000
• Liability A/c CR        000 1000

To wrap up your P2P testing and validation, here is the final check for your Purchase Order (PO) status using the Manage Orders screen.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks ➔ Manage Orders

Step-by-Step: Managing and Checking PO Status

Step	Action	Description
1	Access Manage Orders	From the Purchase Orders work area, click the Tasks sidebar and select Manage Orders.
2	Filter by PO	Enter the Order Number in the search field. If you are reviewing a batch, use the Supplier or Buyer filters.
3	Search	Click Search to retrieve the record.
4	Review Status	Check the Status column in the results table.

Interpreting Your Results

• Incomplete: The PO is in draft; it has not been submitted for approval.
• Pending Approval: The PO is currently moving through your BPM workflow. If it stays in this state, check the Manage Approvals button on the PO header to identify the approver holding it up.
• Open: The PO is fully approved and is officially communicated to the supplier.
• Closed for Receiving/Invoicing: The transaction is moving toward final settlement.
• Rejected: The PO was denied; you must correct the errors and resubmit.

Developer/Admin Note

As you finalize your P2P setup, remember that the Manage Orders interface is the best place to confirm that your SLA (Subledger Accounting) and PO TAB (Transaction Account Definitions) are working. If you open your PO and click on the “View Accounting” link, you can see if the system has correctly generated the charge, accrual, and variance accounting entries based on the rules you configured.

You have now completed the full configuration and transactional testing cycle. Your Oracle Fusion Procurement and Inventory environment is fully operational and ready for your custom APEX/PL/SQL integration projects.

We can check whether the PO is sent for Approval or not from Manage Purchase Orders

Search the PO with the help of Order Number and select Yes for Include Closed Documents and click on search.

The status is Closed. It means against this PO Invoice is created and you will not be able to create the any new invoice with this PO.

Earlier when we have created the PO (2Way Matching) the status is Closed for Invoicing and when have created the PO (3Way Matching) the status is Closed

Click on Life Cycle to View the complete Information related to PO.

You can check what is the Quantity Ordered, Shipped, Received, Delivered and Invoiced.

Pay on Receipt (also known as Evaluated Receipt Settlement or ERS) is an automated process where the system generates invoices in Payables based on the receipt transactions in Inventory, effectively eliminating the need for the supplier to send a physical invoice.

Setup & Configuration Steps

To enable this feature, you must configure the supplier site and ensure your process handles the automatic invoice creation.

Step	Action	Description
1	Supplier Site Setup	Navigate to Procurement ➔ Suppliers ➔ Manage Suppliers. Search for your supplier and open it in Edit mode.
2	Purchasing Tab	Go to the Sites tab, select the site, click Edit, and move to the Purchasing tab.
3	Enable ERS/Pay on Receipt	Check the Pay on Receipt box.
4	Summary Level	Set the Invoice Summary Level (e.g., Pay Site, Packing Slip, or Receipt). This determines how many invoices are grouped together.
5	Save	Click Save and Close.

Critical Prerequisites for Success

Setting the flag on the supplier site is the first step, but the process will only work if the following conditions are met:

• Purchase Order Setting: The PO must also have the Pay on Receipt flag enabled (usually defaults from the supplier site).
• Receipt Completion: The physical receipt must be successfully processed in Inventory Management.
• Approval/Matching: Ensure your match approval level (2-way, 3-way, or 4-way) is compatible with ERS.
• Scheduled Process: Unlike manual invoicing, this requires a background job to run. You must navigate to Scheduled Processes and run the “Send Pay on Receipt” program.
  • Transaction Source: Select “Evaluated Receipt Settlement”.
  • Receipt Number: (Optional) Leave blank to process all eligible receipts, or enter a specific one.

Developer/Administrator Troubleshooting

• Invoice Prefix: By default, these invoices are created with an ERS- prefix. You can identify them in the Payables work area by searching for this prefix.
• Diagnostic Tip: If an invoice isn’t generated after running the process, check the Receiving Document Activity Report. Look for the INVOICE_STATUS_CODE for your transaction. If it is PENDING, the process is queued; if it is NULL, the eligibility criteria (like the Pay on Receipt flag on the PO/Site) likely failed.
• Reporting: Since you are building a Report Builder, you can join the receipt tables (RCV_SHIPMENT_HEADERS/LINES) with the Payables invoice tables (AP_INVOICES_ALL) using the RECEIPT_NUMBER or PO_HEADER_ID to create a reconciliation report showing all receipts that have (or have not) been automatically settled via ERS.

You have now completed the configuration for the most advanced automation in the P2P cycle. This completes your full functional implementation roadmap.

Click on Suppliers and Click on Manage Suppliers

Click on Site

Click on Edit Sites

Click on Purchasing.

Enable the Pay on receipt

Select the Invoice Summary Level as Pay Site, means whatever the site we are using for the payment purpose based on the same the system will create the Invoice

Click on Save and Close. We are defining in the system that with this supplier site if any PO is created and against that PO if receipt is created then System can create the Invoice in the Payables automatically, that is the meaning of this setup.

Creating a Purchase Order (PO) is the official step where you transform a business need into a formal, legal contract with your supplier.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks ➔ Create Order

Step-by-Step: Creating a Purchase Order

Step	Action	Description
1	Open Task	In the Purchase Orders work area, click the Tasks sidebar and select Create Order.
2	Enter Header Details	Provide essential information:
	* Procurement BU: Your business unit.
	* Supplier: Search and select your vendor.
	* Supplier Site: Ensure the correct site is selected (crucial for invoicing).
	* Currency/Terms: Will default from your supplier setup.
3	Add Lines	Click the Plus (+) icon in the Lines section.
	* Item: Select the item from your Master list.
	* Quantity/Price: Enter the required volume and agreed price.
4	Review Schedules	Click the Schedules tab to define the “Ship-To” location and the delivery date.
5	Distributions	Click the Distributions tab to specify the charge accounts. (This is where your PO TAB setup automatically derives the General Ledger accounting strings).
6	Submit	Click Submit to trigger the approval workflow.

Developer/Administrator Insights

• Approval Workflow: Once you click Submit, the PO status becomes “Pending Approval”. If you configured BPM Approval Rules (as we discussed in earlier steps), the system will route this PO to the appropriate managers for sign-off.
• Interface/API Note: As a developer working with APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG, you should know that POs are typically created via FBDI (File-Based Data Import) or REST APIs in high-volume environments. If you are building a custom UI, you would call these APIs to perform the same action as the manual “Create Order” task.
• Validation: If you receive an error during submission, it is almost always due to:
  1. Missing Data: A mandatory field (like Charge Account or Ship-To Location) is blank.
  2. Budgetary Control: If you have budgetary control enabled, the system might be failing to “Reserve Funds.”

You have now successfully moved from the procurement requisition to the formal Purchase Order. This is the foundational document that your Supplier Portal and Report Builder will reference for all downstream activities (Receipts, Invoices, and Payments).

Click on Navigator, Click on Procurement and click on Purchase Orders. Click on the Task and click Create Order

Provide all the details based on the Business Requirements. Select the Supplier from whom we are purchasing the material and Default Ship to Location means to which location the supplier has to send the material.

We have header information but line information we have to create as what we are purchasing from that supplier Click on + to create the lines.

You can see the Pay On receipt is Enabled as we have enabled it at site level

Provide all the details, Item what we have created, Quantity, Base Price, Location, Organization.

Requested Delivery Date and Promised Delivery Date are not mandatory but without these details you cannot create a purchase order.

We are not going do any Match Approval level.

How you are going to receive the delivery, we can define it in Receipt Routing as

• Direct Delivery if it is One step,
• Standard Delivery, if it is two steps and
• Inspection required, if it is three steps.

Click on Submit, to submit this PO for Approval purpose and click on OK.

To verify the progress of your Purchase Order and ensure it has been successfully routed for approval, the Manage Orders task is your primary verification tool.

Navigation Path

Navigator ➔ Procurement ➔ Purchase Orders ➔ Tasks ➔ Manage Orders

Step-by-Step: Managing and Checking PO Status

Step	Action	Description
1	Access Search	In the Purchase Orders work area, click the Tasks sidebar and select Manage Orders.
2	Filter by PO	Enter your Order Number in the search field.
3	Search	Click Search.
4	Review Status	Examine the Status column in the search results table.

Interpreting Your Results

• Incomplete: The PO has been created but not yet submitted for approval.
• Pending Approval: The PO has been submitted and is currently being reviewed by the BPM workflow.
  • Pro-Tip: If it has been in this status for a while, click the Manage Approvals button on the PO header to see exactly who the current approver is.
• Open: The PO is fully approved and is officially communicated to the supplier.
• Rejected: The PO was denied during the approval process; you must review the rejection comments, make necessary corrections, and resubmit.

Developer/Admin Note

Since you are developing custom ERP interfaces, remember that checking the Status in this UI is the best way to validate that your custom-built Approval Rules (BPM) are firing correctly. If a PO you expected to be “Open” is still “Pending Approval,” the Manage Orders screen is where you diagnose the bottleneck.

Your P2P cycle configuration and testing roadmap is now complete. You have successfully navigated the entire process from Requisition setup to Invoice creation and PO verification.

We can check whether the PO is sent for Approval or not, from Manage Purchase Orders.

The status is Pending Approval and changed to Open once it is approved If you search again and check the Status, The Status is Open.

Recording a Receipt is the critical operational step that confirms goods have physically arrived at your warehouse. In Oracle Fusion, this action effectively updates your inventory stock levels and satisfies the “Receipt” requirement of the Three-Way Matching process, allowing you to proceed to invoicing.

Navigation Path

Navigator ➔ Supply Chain Execution ➔ Inventory Management ➔ Tasks ➔ Receive Expected Shipments

Step-by-Step: Creating a Receipt

Step	Action	Description
1	Access Receipts	In the Inventory Management work area, click the Show Tasks sidebar and select Receive Expected Shipments.
2	Search for PO	Enter your Purchase Order Number and click Search. The shipment will appear in the results table.
3	Initiate Receipt	Select the PO row and click the Receive button.
4	Input Details	Provide the delivery specifications:
	* Quantity: The physical amount you are receiving.
	* Destination Type: “Inventory” (if stocking) or “Expense” (if direct consumption).
	* Subinventory: Select the target storage location.
	* Locator: Select the specific bin/rack if locator control is enabled.
5	Create	Click Create Receipt. The system generates a unique Receipt Number.
6	Submit	Review the entry and click Submit to finalize the transaction.

Developer/Administrator Insights

• Inventory Update: Upon submission, the system records the transaction in RCV_SHIPMENT_HEADERS and RCV_SHIPMENT_LINES. If you are building reports for your portal, these are the tables to query to monitor inbound inventory performance.
• Accounting Trigger: If your Enterprise structure is set to “Accrual at Receipt,” this step automatically triggers an accounting entry (debiting Inventory and crediting the Accrual account).
• Troubleshooting: If your PO is missing from the “Receive Expected Shipments” list, verify that:
  1. The PO status is “Open”.
  2. The “Receipt Required” flag is enabled on the PO lines.
  3. The PO has not been fully received in a previous transaction.

Click on Supply Chain Execution and Click on Inventory Management >>> click on Show Tasks and Select Receipts >>> Click on Receive Expected Shipments

Search the PO against which you are receiving the Material

Select the PO and click on Receive and you will receive this item to our Inventory Organisation which we have selected.

Provide the details about how much quantity we have received in Subinventory. Without Subinventory we cannot create the receipt.

Click on Submit.

System has created Receipt and generated number as 2, as we defined in Receiving Parameters the n Next receipt number as 1 but is creating receipt from 2, it means system is understanding the number what you enter in the Receiving Parameters is last receipt number. So that is the reason why system is generating the number for Receipt as 2. Click on Done

How to Check the Stock in the Inventory:

Check the Inventory balance whether it is updated or not

You have correctly identified the two ways to verify your stock levels. Using Manage Item Quantities is the standard, most efficient way to get a real-time view of your warehouse balances.

Verification Summary

When you perform the search in Manage Item Quantities, you are confirming the final success of your P2P cycle.

• If the Quantity is updated: Your receipt transaction was successful, and the material is now available for use.
• If the Quantity is zero: Re-verify that you performed the receipt in the same Inventory Organization that you are currently searching.

Automating Invoice Creation (Pay on Receipt / ERS)

You mentioned needing to run a job to create the invoice based on the receipt. This is the Evaluated Receipt Settlement (ERS) process. As you noted, the system automatically pulls the quantity from the Receipt and the unit price from the Purchase Order.

Navigation for the ERS Job

Navigator ➔ Tools ➔ Scheduled Processes ➔ Schedule New Process

Step	Action
1	Search Process
2	Select
3	Parameters
	* Transaction Source: Select “Evaluated Receipt Settlement”.
	* Business Unit: Select your procurement BU.
	* Receipt Number: (Optional) Leave blank to process all, or enter specific receipt.
4	Submit

Developer/Administrator Reminders

• Verification: Once the process succeeds, you can navigate to Payables ➔ Invoices ➔ Manage Invoices and search for an invoice with the prefix ERS-. This confirms that the automation worked.
• System Logic: Remember that this automation only works if:
  1. The Pay on Receipt flag was enabled on the Supplier Site.
  2. The Pay on Receipt flag was enabled on the Purchase Order.
  3. The Receipt was successfully processed.
• Troubleshooting: If the job finishes but no invoice is created, check the Output of the “Send Pay on Receipt” log file. It will explicitly tell you if a receipt was rejected (e.g., “Invoice already created” or “Missing price on PO”).

You have now completed the functional testing of the ERS automation.

Click on Schedule New Process.

Search for the Job Send Pay on Receipt, Click on OK

Provide the Receipt Number, but it is not mandatory. Click on Submit

Click on OK,

Click on Refresh until the Send Pay on Receipt job is Succeeded. If the job is processed with Succeeded Status, then you should run job called Correct Import Invoices

When you run an import process (such as FBDI for Payables), some invoices may fail validation due to missing or incorrect data. The Correct Import Errors task is your primary tool for fixing these records so they can be processed into the general ledger.

Navigation Path

Navigator ➔ Payables ➔ Invoices ➔ Tasks ➔ Correct Import Errors

Step-by-Step: Correcting and Validating Imported Invoices

Step	Action	Description
1	Access Task	In the Invoices work area, click the Tasks sidebar and select Correct Import Errors.
2	Search	Enter the Order Number (or Batch Name/Invoice Number) and click Search.
3	Review Errors	Review the error message columns to see why the invoice failed (e.g., “Invalid Account,” “Supplier Site Missing”).
4	Edit Details	Select the invoice and correct the data at the Header, Line, and Distribution levels.
5	Validate	Click Actions ➔ Validate. The status must change from “Needs Revalidation” to “Validated”.
6	Post to Ledger	Click Actions ➔ Post to Ledger. This creates the final accounting entries.

Developer/Administrator Insights

• Common Root Causes:
  • Distribution Errors: If the distributions are missing, it means the Transaction Account Definition (TAD) or the PO TAB rules did not find a valid account combination for the charge.
  • Holds: If a “Match” hold appears, your imported quantity/price does not match the PO/Receipt, and you must manually adjust or perform a receipt adjustment.
• Pro-Tip for APEX/PL/SQL Interfaces: If your custom interface package (APPS.XXRST_APEX_MYVENDOR_INTERFACE_PKG) consistently generates errors here, it is usually because the interface is not correctly mapping the AP_INVOICE_LINES_INTERFACE table fields.
• Validation Strategy: Before running your interface, ensure your custom code validates the presence of the Business Unit, Supplier Site, and Legal Entity—these are the most common points of failure in automated imports.

You have now completed the troubleshooting cycle for Invoice imports. This is the final functional piece of your P2P system architecture.

Click on Correct Import Invoices. If anything is struck at interface level we can find here

Click on Enable Editing

Click on OK >>> Provide you Credential and Click on Sign in

Click on Skip.

Click on Search >>> Search for your Business unit, select it and click on Ok >>> Click on Submit

Click on OK, we don’t any invoices which are struck in interface tables

Now the Import Payable Invoices Job is processed with Succeeded Status.

Click on Manage Invoices, and you can check the invoice which is created. Click on the Invoice Number. It has number with the prefix called ERS.

Open the Invoice, Click on Actions and Click on Edit.

You can see that the Invoice is created with Description as ERS as Prefix and Which date it has been created with status Not Validated >>> Now you can Validate the Invoice and Post to Ledger >>> Click on Save and Close.

Pay the Invoice

Ways to create Invoice

1. Generally, we create the Invoice directly in the Payables but that is not the Right Practise.
2. We can create the Invoice in Payables with help of Supplier Invoice and Purchase Order that is 2Way Matching.
3. We can create the Invoice in Payables with help of Supplier Invoice, Purchase Order and Receipt that is 3Way Matching.
4. We can create the Invoice in Payables with help of Supplier Invoice, Purchase Order, Receipt and Inspection that is 4Way Matching.
5. Evaluated Receipt Settlement/ Pay on Receipt/ Self Billing.