Business Unit & Legal Entity Mapping

Establishing the foundational structure for your procurement organization

Oracle Consultant:

Welcome to TMX Semiconductor's global design workshop! Let's start with your Business Unit structure. In Oracle Fusion, Business Units control transaction processing and security. How would you like to organize your procurement operations?

TMX Client:

We have operations in Santa Clara, Indore, and Kolkata. Should we create separate BUs for each location or centralize?

Oracle Consultant:

Great question! Let me explain both approaches and their implications for your procurement processes.

Select Business Unit Structure:

Centralized BU - Single global procurement unit Decentralized BUs - Separate BU per location Hybrid - Regional BUs (Americas & Asia)

Control Level (1=Centralized, 10=Fully Decentralized):

5

System Impact:

Select an option to see the impact on your procurement system.

Document Your Design Decision:

Global Procurement Category Structure

Designing your procurement category hierarchy for spend analysis and supplier management

Oracle Consultant:

Now let's design your procurement category structure. This will drive your spend analysis, supplier qualification, and sourcing strategies.

TMX Client:

We procure semiconductor materials, manufacturing equipment, and indirect goods. How should we organize these?

Oracle Consultant:

You have two main approaches: a flat structure for simplicity or a hierarchical structure for detailed analysis. Let me show you the trade-offs.

Category Structure Type:

Flat Structure - Simple, 2-level categories Hierarchical - Multi-level with sub-categories UNSPSC-based - Industry standard classification

Number of Top-Level Categories:

System Impact:

Select options to see the impact on reporting and analysis.

Document Your Design Decision:

Supplier Registration Model

Configuring supplier onboarding and qualification processes

Oracle Consultant:

Let's design your supplier registration process. Oracle offers self-service registration or controlled onboarding workflows.

TMX Client:

We need to balance efficiency with risk management. Some suppliers are critical semiconductor partners, others are indirect suppliers.

Oracle Consultant:

Perfect! We can design a tiered approach based on supplier criticality and spend levels.

Registration Model:

Self-Service - Suppliers register independently Controlled - Internal team manages all registrations Tiered - Mix based on supplier type/risk

Risk Assessment Requirements:

Financial verification (D&B scores) Compliance certifications Quality certifications (ISO, etc.) Site visit for critical suppliers

System Impact:

Select options to see the onboarding workflow impact.

Document Your Design Decision:

Requisitioning & Requester Role Strategy

Defining who can request what and setting up requisition controls

Oracle Consultant:

Now we'll design your requisitioning strategy. This determines who can create requisitions and what they can request.

TMX Client:

We have about 500 employees who might need to request items. How do we manage this efficiently?

Oracle Consultant:

We can assign requester roles by location, department, or a hybrid approach. Let's explore what works best for TMX.

Requester Assignment Strategy:

By Location - Santa Clara, Indore, Kolkata By Department - Engineering, Manufacturing, Admin Hybrid - Location + Department matrix Universal - All employees can request

Catalog Access Control:

System Impact:

Select options to see security and usability implications.

Document Your Design Decision:

Document Style & Control Strategy

Configuring purchase order styles and document controls

Oracle Consultant:

Let's configure your document styles. This controls PO formats, numbering, and approval requirements.

TMX Client:

We need different controls for capital equipment versus routine supplies. Also, our India operations have specific compliance needs.

Oracle Consultant:

Excellent point! We can create multiple document styles with different controls and formats.

Document Style Strategy:

Global Style - One standard for all locations Regional Styles - US vs India specific Category-based - Capital vs Operational Matrix - Region + Category combination

Change Control Settings:

5

1 = Minimal controls | 10 = Maximum change restrictions

System Impact:

Select options to see compliance and change management impact.

Document Your Design Decision:

Approval Workflow Design (BPM Rules)

Setting up business process management rules for procurement approvals

Oracle Consultant:

Time to design your approval workflows using Oracle's BPM engine. We can route approvals based on various criteria.

TMX Client:

We need different approval levels for different amounts, and our CFO wants visibility on all purchases above $100K.

Oracle Consultant:

Perfect! We'll create a multi-dimensional approval matrix. Let me show you the options.

Primary Approval Routing:

Amount-based - Tiered by PO value Category-based - By procurement type Cost Center - Department managers approve Matrix - Amount + Category + Location

Approval Thresholds:

System Impact:

Configure your approval strategy to see workflow implications.

Document Your Design Decision:

Supplier Site & Address Management

Structuring supplier sites for global operations

Oracle Consultant:

Let's design how you'll manage supplier sites and addresses. This impacts PO delivery, invoicing, and payments.

TMX Client:

Many suppliers ship to multiple locations. Some are global suppliers, others are local to India or the US.

Oracle Consultant:

We need to balance reporting clarity with operational efficiency. Let me explain the approaches.

Supplier Site Strategy:

Global Suppliers - Multiple sites per supplier Local Suppliers - Separate supplier per location Hybrid - Based on supplier type/size

Site Naming Convention:

Payment Terms Assignment:

System Impact:

Select options to see the impact on procurement and payables.

Document Your Design Decision:

Accounting Rules & SLA Mapping

Configuring procurement accounting and subledger accounting rules

Oracle Consultant:

Finally, let's configure your accounting rules and SLA mapping. This determines how procurement transactions create journal entries.

TMX Client:

We need to ensure proper cost allocation across our three locations and various projects.

Oracle Consultant:

We'll design rules that automatically derive the correct accounting based on your business logic.

Accounting Method:

Centralized - Single chart of accounts Distributed - BU-specific accounting Project-based - Project-driven accounting

Cost Allocation Rules:

By requesting location By project code By procurement category Custom DFF-based rules

System Impact:

Select options to see the financial reporting impact.

Document Your Design Decision:

TMX Semiconductor - Global Design Decisions Summary

No decisions saved yet. Complete the design topics to see your summary.

Oracle Fusion Procurement Global Design Workshop

Business Unit & Legal Entity Mapping

Global Procurement Category Structure

Supplier Registration Model

Requisitioning & Requester Role Strategy

Document Style & Control Strategy

Approval Workflow Design (BPM Rules)

Supplier Site & Address Management

Accounting Rules & SLA Mapping

TMX Semiconductor - Global Design Decisions Summary

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