How does Fusion Procurement use Business Units?
The most common uses of Business Units for Procurement purposes are to separate out different entities being used for different purposes. The following are the ones used in Procurement:
- Deliver-to BU – selected on purchasing documents to denote corresponding location for deliver.
- Purchasing BU – selected on purchasing documents to denote which BU will perform the main purchasing tasks (e.g. create the order).
- Sourcing BU - Responsible for the sourcing of suppliers and negotiating contracts.
- Sold-to BU – selected on purchasing documents to confirm where the payables liability will go. For a myriad of reasons (tax, legal, etc), companies can decide to create orders in the name of a separate BU.
There are four main Procurement Business Functions that help set up this seperation of duties of each BU:
- Requisitioning – denotes the ability to raise requisitions
- Procurement – denotes the ability to create orders and agreements, was well as supplier records
- Receiving – denotes the ability to create receipts
- Payables Invoicing – denotes the ability for a business unit to manage supplier invoices
- Payables Payments - denotes the ability to release payments to suppliers against their invoices.
