Procurement_Setup_Simplification / Tuesday, November 10, 2015

Slide 3 - Oracle Procurement Cloud Release 11

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Hello, my name is Mohanish. Welcome to training for Release 11. In this session we will talk what’s coming in Oracle Procurement Cloud for Simplified Setup for Procurement.

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Slide 4 - Agenda

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For the enhancements covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value they bring.

Then we’ll walk you through a demonstration.

Next we’ll explain what you need to consider before enabling these features in your business, and what you need to know to set them up.

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Slide 5 - Enhancements Overview

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We begin with an overview. At a high level, this solution provides organizations to manage their implementation of Fusion Procurement easily and more efficiently.

Procurement offering now includes Purchasing as an optional functional area. This allows the offering to be easily configured for cases when an organization wishes to implement Sourcing or Supplier Qualification as standalone applications without implementing Fusion Purchasing. Such implementations will now have a significantly shorter list of setup tasks to complete as compared with previous releases.

Many of the setup tasks for Procurement which were mandatory in previous releases have now been made optional either by providing additional seed data or by building intelligent defaulting logic on transactions in absence of setup data.

A pre-packaged rapid implementation task list is provided to enable organizations with simple setup requirements, to implement procurement offering with minimum number of setup tasks and get ready for transaction processing as quickly as possible. Also, the rapid implementation task list includes a new setup task that automatically configures centralized procurement structure for all the business units in the organization, along with many other important configurations.

The transaction account builder, that drives various accounts on requisitions and purchase orders, is now more powerful and yet much easier to configure.

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Slide 6 - Purchasing as an Optional Functional Area

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Till Release 10, the Procurement offering typically represented the ‘Purchasing’ application with other applications in the offering like ‘Sourcing‘, ‘Self Service Procurement’, ‘Supplier Qualification‘, ‘Supplier Invoice Processing’ as options which can be implemented along with ‘Purchasing’. It was not possible to configure the offering for cases where organizations wish to implement ‘Sourcing’ or ‘Supplier Qualification’ without implementing ‘Purchasing’. Due to this the implementation consultants would always see all the setup tasks that were specific to purchasing but totally irrelevant for the Sourcing implementations, for example the tasks for financial reporting structures, inventory organizations and so on.

In Release 11, ‘Purchasing’ is an optional functional area within the Procurement offering. Therefore, if organizations wish to implement ‘Sourcing’ or ‘Supplier Qualification’ without ‘Purchasing,' they can simply unselect the ‘Purchasing’ option while configuring the offering. This ensures that only those functional areas and setup tasks that are relevant for such implementations are presented to the implementation consultants.

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Slide 7 - Reduced Number of Mandatory Setup Tasks

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The total number of task that are mandatory in the procurement offering has now been reduced.

Starting release 11, the Freight Terms and Freight On Board or FOB that are most commonly used for purchasing transactions across various industries are available out of the box. For customers upgrading to release 11 who have already defined their own lookup codes for FOB and freight terms will not see any impact and can continue to use their existing values.

Also, the application can now process transactions - such as requisitions, negotiations and purchase orders without the common options for payables and procurement defined for the business unit. Application provides defaulting logic for several attributes in absence of any such setup.

Till release 10, it was mandatory to specify a one-time location while configuring requisitioning business function for a business unit. In release 11, the one-time address functionality is made optional.

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Slide 8 - Rapid Implementation Task List for Procurement

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In Release 11, procurement has a rapid implementation task list. It includes only those setup tasks that are either mandatory or very commonly used. This task list can be used for any kind of offering configuration, whether the implementation is for Procure to Pay or for Sourcing or Supplier Qualification as standalone applications.

In this rapid implementation task list, there are two different task lists included for configuring the enterprise structures. An organization can choose whichever is more suitable for their implementation.

The task lists ‘Define Common Procurement Configuration for Rapid Implementation’ and ‘Define Procurement Security Configuration for Rapid Implementation’ are applicable for all implementations.

The rapid implementation task list includes one sub task list for each of the optional modules in the Procurement offering.

When an implementation project is created, the task lists for the modules that are not being implemented can be easily deleted. Also, individual tasks can be added or removed as per specific requirement.

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Slide 9 - Rapid Implementation Task List for Procurement

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The task list – ‘Define Enterprise Structure Configuration for Procurement Rapid Implementation Including Purchasing’ – should be used when an organization is implementing Purchasing. This task list includes a spreadsheet upload utility that helps organizations define their enterprise structure configuration in an excel spreadsheet instead of having to go through several setup tasks in the application. This spreadsheet upload performs many setup tasks automatically such as:

• Creating accounting calendar

• Creating chart of accounts key flex field structure, and deploying it

• Creating ledgers and ledger configuration

• Creating legal address, legal entities and legal entity registrations, and assigning legal entities to ledgers

• Creating business units and assigning business functions to them.

And many more. Another spreadsheet upload utility allows organizations to define banks, bank branches and bank accounts in the application in a very easy to use excel spreadsheet. Please note that the setup tasks for these two spreadsheet upload utilities were available prior to Release 11 as well, and have been included in Procurement rapid implementation task list.

For implementations where Sourcing or Supplier Qualification are being used as standalone applications, the task list ‘Define Enterprise Structure Configuration for Procurement Rapid Implementation Including Purchasing’ is not applicable and therefore should be removed from the implementation project. For implementations where Sourcing or Supplier Qualification will be used as standalone application, the task list – ‘Define Enterprise Structure Configuration for Procurement Rapid Implementation Excluding Purchasing’ – should be used. Such implementations do not require financials reporting structures such as chart of accounts, ledgers and bank accounts; however they still require legal entities to be defined so that employees can be created in the application.

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Slide 10 - Rapid Implementation Task List for Procurement

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The task list ‘Define Common Procurement Configuration for Rapid Implementation’ includes the setup task that are used across all the applications in the Procurement suite such as locations, catalogs, document numbering, and suppliers.

This task list also includes a new setup task - ‘Define Basic Enterprise Structure for Procurement’. We will cover

more details about this new setup task later in this training.

In Release 11, ‘Import Suppliers’ has been defined as a setup task flow. Organizations can utilize this task to bulk load their supplier data into the Fusion applications.

The task list ‘Procurement Security Configuration for Rapid Implementation‘ allows the implementation consultant to define application users, assign them roles and define procurement agents.

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Slide 11 - Rapid Implementation Task List for Procurement

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Configure Basic Enterprise Structure for Procurement is a new setup task in Release 11. It is an ESS program that performs several setup tasks automatically:

• It creates a new business unit with procurement business function and configures it as a service provider for all other business units.

• It creates an item organization. It also creates one inventory organization for each of the business units in the application. In the process it also creates mandatory pre-requisite setups such as calendar, workday shift, patterns and schedules. All the inventory organizations refer to the item organization created as their master organization.

• It configures the inventory organization parameters and receiving parameters for each inventory organization created.

• For each business unit, it also configures requisitioning business function.

• For the procurement business unit, it configures the procurement business function.

• For the procurement business unit, it also creates a common content zone and a common catalog which enable access to all agreements and master items for users in all requisitioning business units, when creating requisitions.

• Finally, it creates most commonly used units of measure and their standard conversions.

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Slide 12 - Simplified and more powerful Transaction Account Builder

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In Release 11, the transaction account builder for Procurement includes several enhancements. One key enhancement is that all of the mapping sets that are required for indirect procurement are part of the Purchasing mapping sets. Organizations will not need to access Cost Management mapping sets if they are using the application only for indirect procurement flows.

Another useful enhancement is that for every new ledger created in the application, the default transaction account definition is initialized. This means that implementers do not need to access sub ledger accounting options for Purchasing sub ledger unless there is a need to customize the transaction account definition.

Purchasing has new mapping set that uses various levels in the procurement category hierarchy as sources. This means that organizations can now define their account derivation mappings using procurement category hierarchy instead of creating mappings for each individual item category.

Also, many of the existing TAB sources such as organization, item and category now have list of values while creating the mapping sets. Instead of using system generated identifiers, these mapping sets can now be created using user defined values for these sources. In addition, if a source has an associated value set, the user can pick input values from a list of values while defining a mapping set. This reduces the possibility of committing errors.

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Slide 13 - Simplified Setup for Procurement

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Now let us talk about the business values that these enhancements bring.

Procurement offering is now much more flexible. This ensures that the implementation consultants need to focus on only those setup tasks that are relevant to a specific implementation. This helps them manage the implementations more efficiently.

Rapid implementation task list can help organizations become transaction ready with minimum number of setup tasks by hiding setup complexity from users and by creating lot of setup data automatically. It also enables faster data entry for initial setup. Organizations can reap huge savings on implementation time and costs.

Rapid implementation task list includes a new setup task 'Configure Basic Enterprise Structure for Procurement’. This task performs several setup tasks automatically and configures centralized Procurement. Centralizing the procurement activity is an industry best practice.

Enhancements related to TAB will help implementers to quickly and easily configure account derivation logic for procurement transactions and will significantly reduce chances for errors.

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Slide 31 - Summary of Enhancement Capabilities

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Here is the summary of the features I have talked about today.

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Slide 32 - Implementation Advice

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In this implementation advice section we will go through what you need to consider before enabling these features in your business, and what you need to know to set them up.

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Slide 33 - Feature Impact Guidelines

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All the features covered in this training are automatically available, and can be accessed using the shipped job roles. They do not require any additional setup steps.

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Slide 34 - Implementation Decision Points

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If you are implementing Sourcing or Supplier Qualification as standalone applications, then you should disable ‘Purchasing’ option for implementation.

The rapid implementation task list is primarily for customers who have simple enterprise structure and are implementing procurement offering only for their expense procurement.

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Slide 35 - Job Roles

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This table details the shipped job roles that will access the new capabilities covered in this training.

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Slide 36 - Associated Release Training

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Another training module that is related to these new capabilities and is recommended viewing is Oracle Fusion Sourcing Enhancements: Sourcing Setup Simplification.

This concludes this presentation. Thank you for listening. You can pause and rewind any of these slides if you require additional time to take in the detail.

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