Oracle Procurement Cloud Blog Part III: Why build a skyscraper if your need is a small apartment building?

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The good news is that in Oracle Procurement Cloud you can also model the giant skyscraper. But even better –  you don’t have to! You can also live without it if you want to keep it simpler and  live in a small apartment building.

In continuation to our blog  series on Oracle Procurement Cloud, this week we will share our experience on what we learnt about the ‘organization model’. You can read our earlier blogs on business speed, and Go Live here.

As an Oracle e-Business Suite consultant I am used to building skyscrapers. Long lasting systems with a strong foundation, built up level by level all the way to the top. Standing firmly in the IT landscape, clearly visible and standing out from the crowd. Carefully situated and integrated with its surroundings; building  a skyscraper is an art on its own and usually a long lasting event.

The good news is that in Oracle Procurement Cloud you can also model the giant skyscraper. But even better –  you don’t have to! You can also live without it if you want to keep it simpler and  live in a small apartment building. You have a choice here, which is great if you ask me!

In our Procurement Cloud project the goal was to implement a standard Sourcing and Supplier management & collaboration solution. As a good practice and our learnings from Oracle eBusiness Suite projects, we know that financial setup is a must. Legal Entity, Calendar, Chart of Accounts and Currency are something a person just cannot live without, or can he?

When we started setting up our Procurement Cloud  we experienced that in Cloud there is an option to live without the financial setup. This was a positive surprise for us. In Cloud you have the choice to set up the Procurement parts without the financial structure provided if you don’t require any operational transactions such as a requisition or purchase order against it. This can make certain implementations and discussions easier and also  provides a window to set up the financial structure in the future. It is mandatory to setup a Legal Entity but you can leave it as it is and not link it to a Business Unit. Once you do want to create the link or activate the transactional business function, an Legal Entity must be assigned at that time.

One of the new features that Oracle Procurement Cloud offers is the Service Provider model. With this functionality you can model your Shared Service Center into the Oracle Procurement Cloud and decide to go for a centralized procurement versus decentralized procurement model. It allows you to have Business Unit ‘A’ setup for requisitioning only and Business Unit ‘B’ for both requisitioning as well as purchasing for both ‘A’ and ‘B’. With the Service Provider model comes the need for setting up the financial part because it requires transactions with financial implications. So, in case you  want to use this functionality the financial setup becomes critical.

Within Supplier Management on Supplier Site level there are some settings for the Service Provider model. You can only use these functionalities if you use the Service Provider model. But as mentioned you  have to do the financial setup  in that case too.

Another important new feature which we used helped to divide the access between users, which is the reference data set setup – this is something that comes from PeopleSoft. With the reference data sets you can split the data access to certain business units by assigning a different data set to different business units. Once you have done that it also requires that you  setup  the Procurement Agents accordingly. Procurement Agents ties buyers to certain business units and since businesses have the data set assigned automatically, a buyer only has access to that business unit.

So to summarize and conclude you have the option to go for the complete skyscraper including all financial elements or you can go for a small apartment building and leave the financial part behind. Great to at least have the flexibility here!


If you need any further information, please contact or

Please find below the links to all blogs in this series:

·        Procurement Cloud Go Live

·        Business speed; The transformation from turtle into hare

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