Setting up Common Procurement Functions
Shared procurement configuration
Common procurement functions are the reference data reused by purchasing, self service, sourcing, and contracts. Define procurement business units and requisitioning business units, then set the default procurement BU. Set up procurement agents, supplier profiles and sites, payment terms, freight terms, line types, document styles, categories, units of measure, currencies, tax, and approval rules.
Order of setup
Enterprise structures and common reference data come first. Then procurement BU options, then agents and suppliers, then document styles and approvals. Changing a shared value after transactions exist can require inactivation rather than deletion.
Worked example
A company buys services in Canada. Create a Canadian procurement BU, assign a requisitioning BU, and set the default procurement BU. Define a service line type with no receipt required, a payment term of Net 30, and a supplier site in CAD. Build the PO style to use the service line type. If the supplier site is created in USD only, the PO currency defaults may conflict.
Traps
Deleting a shared value used by a transaction is blocked. Do not set the default procurement BU at the wrong level. Do not mix supplier site currency and document currency without checking conversion.