Centralized Purchasing and Billing
The Centralized Purchasing and Billing feature enables you to receive orders and fulfill vendor returns across multiple subsidiaries and locations. This simplifies the procurement workflow, makes the item receipt process more flexible, and avoids unnecessary transfer of orders between locations.
After you enable the Centralized Purchasing and Billing feature, you are not limited to receive purchase orders in the originating subsidiary’s locations. You can create a single centralized purchase order that you can receive in any subsidiary and location. You can then create bills and make bill payments centrally from the originating subsidiary.
The Centralized Purchasing and Billing feature also enables you to consolidate requisitions entered from any subsidiary into a centralized purchase order.
Similarly, you can create a vendor return authorization centrally, fulfill the return in specific subsidiaries and locations, and credit the return centrally.
This feature includes the following restrictions:
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This feature is only available with a OneWorld account.
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Centralized Purchasing and Billing does not support drop shipments or special orders.
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If you use the Intercompany Framework feature, Centralized Purchasing and Billing does not support representing entities. To enter a purchase order or requisition with a representing entity vendor, do not enter a target location or target subsidiary for any line item. For more information about representing entities, see Representing Entities.
You can use both methods of posting vendor bill variances. When you post a variance, the journals generate under the receiving subsidiary. Vendor bill variance postings generate based on individual vendor bill lines. This includes support for multi-currency scenarios, for when the base currency between subsidiaries differs. For more information, see Vendor Bill Variances.
See the following:
See the following diagram for an overview of the centralized purchasing and billing flow: