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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 2
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Oracle Supply Chain Financial Orchestration
Financial orchestration for non-shippable sales orders

Customer Connect Session: October 2018

Presenter Information

Karthik Natarajan
Director – Financial Orchestration Product Management

Kaushik Sivakumar
Director – Costing and Financial Orchestration Product Strategy

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Delivering Profitable Innovation
Modeling & Executing Your Tax Efficient Supply Chain in Oracle SCM Cloud
• Define configurable trade relationships -
transfer pricing, intercompany
Model Supply Chain documentation and ownership transfer
Financial Flow points for profit center business units
Physical movement
• Create multi-node financial routes
• Automate financial accounting within
Separate Physical from Oracle SCM Cloud
Financial Transactions • Without interfering with the execution
transactions
Financial ownership

Monitor & Report • Monitor and audit financial orchestration

transactions

Supply Chain Financial Orchestration

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Business Flows
Internal Transfers Global Procurement
Ownership Change Event: Shipment/Receipt Ownership Change Event: PO Receipt

Sale

Supplier
Purchasing Org Regional HQ Manufacturing Plant
Shipment
Manufacturing Plant Warehouse
Sale

Sale Sale

Internal Drop shipment

Ownership Change Event: Sales Order Shipment

Complex Drop shipment

Warehouse Customer Ownership Change Event: Advanced Shipment Notice (ASN) / Supplier Invoice
Supplier Customer

Shipment
Shipment

Sale Sale
Sale Sale
Sales Org Sales Org

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Global Procurement for Services
• Global Procurement for Services
• Service items with Expense Destination
• PO Lines without an item number
• Fixed Price Services – Amount Based POs
• Ownership change event is PO Receipt
• Amount based POs converted to Qty X 1 unit of currency to support partial receipts
• Accrue at Receipt mandatory for Global Procurement
• Transfer Price
• PO Price +/- Markup
• Fusion Price List – for PO lines with item
• Financial Orchestration
• Multi-node financial flows
• Costing Trade Events & Intercompany Invoices
• Financial Orchestration Qualifiers

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Financial Orchestration of Non-Shippable Sales Order Lines
What Does it Do?

• Define financial Orchestration

flow for non-shippable sale
order lines
• Define the fulfillment business
unit to be credited
• Add qualifiers and
intermediate business units
• Calculate transfer prices
• Automatically create
intercompany invoices when
order line is closed

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Setup: Financial Orchestration Flow

New
Business Process Type
‘Nonshippable Sales’

No Cost Distributions –
Trade Organizations are
not required

Specify a Charge Account

for Intercompany
Payables Invoice

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Setup: Financial Orchestration Qualifier

New
Business Process Type
‘Nonshippable Sales’

Item, Item Type, Item

Category, Item Class
and Asset Flag
Sales Order Type
& Sold to Party

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Financial Orchestration Process
FOM Fulfillment Line
Created
Fulfillment Line
Billed
Fulfillment Line
Closed

Ignore Event

N
Bill Only?
Y Within N Ship Org N Identify FinOrch Flow
based on
Agreement Y
same BU? Available? Available?
From BU

N Y Y
SFO Identify FinOrch Flow
based on
Agreement Y
Available?
From and To BUs
Ignore Event
N
Resubmit Error

Create Intercompany Invoices for

Nonshippable Sales

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Demonstration

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Safe Harbor Statement
The preceding is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted 13
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted 14