Example of Supplier Agreement Business Unit Access

As a procurement agent you can specify the client requisitioning business units that can purchase using a supplier agreement. Do this using the agreement's Business Unit Access region, on the Control tab.

You can allow all clients of the procurement business unit to purchase using the agreement, or a specific client, or some subset. In addition, you can specify the supplier site, ship-to location, and bill-to location for purchase orders created for these client business units.

Each client requisitioning business unit can either:

• Retain the responsibility of creating and administering their own purchase orders for the goods and services they're buying against the agreement.

• Outsource the responsibility to the procurement business unit service provider.

As a procurement agent you can configure the level of business process outsourcing using the Order Locally check box:

• When you select the Order Locally check box, the client requisitioning business unit creates and administers its own purchase orders. The supplier sites a user can select are:

  • assigned to the active requisitioning business unit,

  • and are created in the active requisitioning business unit.

• When you leave the Order Locally check box not selected, the client requisitioning business unit outsources the purchase order administration to the service provider. The supplier sites a user can select are:

  • assigned to the active requisitioning business unit,

  • but are created in another business unit different from the active requisitioning business unit.

To see how this works, consider the following scenario:

• Vision Corporation has two business units, Vision Operations and Vision Services, both of which have the requisitioning business function.

• Vision Operations has the procurement business function and provides the procurement service for all requisitions created by its client, Vision Services.

• A blanket purchase agreement with supplier Advanced Network Devices is hosted by Vision Operations, and is made available to Vision Services.

• Vision Operations handles all purchase order administration for Vision Services.

Business Unit Access Scenario for Vision Corporation

1. Add a business unit access record for Vision Services. This business unit can now access the agreement content.

2. Ensure that the Order Locally check box is not selected. The purchase orders created for Vision Services are administered by the procurement business unit Vision Operations.

3. Specify the supplier site to fulfill the purchase orders created for Vision Services. Also enter the ship-to and bill-to locations to be used on the purchase order.