Use the Bill-to BU from the Consigned PO During Ownership Change

If you manage consigned inventory in a centralized or shared services setup, this update helps you avoid incorrect accounting entries when ownership transfers from the supplier to your business. Prior to this update, Cost Management used the management business unit (BU) of the inventory organization when transferring consigned goods to owned inventory. This caused issues when the original PO came from a different BU, especially in centralized procurement models, leading to misaligned Trade Receipt Accruals and extra effort to fix accounting errors.

With this enhancement, Cost Management now uses the Bill-to BU from the original consigned PO, so that accounting automatically and accurately reflects the true financial owner.


Screenshot of the inventory organization parameters page with management BU and profit center BU setup

Screenshot of the inventory organization parameters page with management BU and profit center BU setup

Screenshot of the consigned purchase order and the Bill-to BU for the order

Screenshot of the consigned purchase order and the Bill-to BU for the order

Screenshot of receipt accounting distributions with the correct Bill-to BU as recorded on the purchase order

Screenshot of receipt accounting distributions with the correct Bill-to BU as recorded on the purchase order

This update helps your business run smoother by making consigned inventory flows more accurate, scalable, and audit-ready, especially in multiple BU or shared service environments.

Steps to Enable and Configure

You don't need to do anything to enable this feature.

Tips And Considerations

This derivation of business unit will happen only for new consigned receipts.

Key Resources

  • Oracle Fusion Cloud SCM: Using Supply Chain Cost Management guide, available on the Oracle Help Center.
  • Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

  • Submit Receipt Accounting (CMR_SUBMIT_RECEIPT_ACCOUNTING)
  • Create Receipt Accounting Distributions (CMR_CREATE_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
  • Review Receipt Accounting Distributions (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
  • Review Receipt Accounting Distributions by Web Service (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS_WEB_SERVICE)

These privileges were available prior to this update.