1. Implementing Order Management
  2. Set Up Business Units for Selling Profit Centers

Set Up Business Units for Selling Profit Centers

Set the selling profit center on a sales order line that's different from the business unit on the order header so you can sell items that belong to more than one profit center in a single sales order.

  • Order Management updates the selling profit center every time a downstream system updates the warehouse.

  • If you modify the warehouse in the Order Management work area, then Order Management doesn't update the selling profit center.

  • Order Management prices the order line each time the value in the Selling Profit Center attribute on the order line changes.

  • Order Management communicates the selling profit center to downstream applications, such as Shipping, Costing, Sales Financial Orchestration, Tax, and Receivables.

  • You can reference the selling profit center in the Order Information Service, an order management extension, or in a service mapping.

Here are some notes about tax.

  • Use this feature when you have more than one tax registration across regions, such as across states in the United States. Your users can set the business unit on the order line for the profit center but continue to use a single business unit in the order header.

  • The Selling Profit Center affects the tax that Oracle Financials calculates for each order line according to tax rules that the taxing authority imposes and that you set up.

  • Tax determinants depend on the selling profit center, so Order Management sets the default value for tax determinants each time it updates the business unit for the selling profit center.

  • Learn how to set up tax. For details, see Implementing Tax.

Set up business units for selling profit centers.

  1. Enable the Specify Business Unit for Selling Profit Center for Goods and Services Tax feature.

  2. Set the Business Unit for Selling Profit Center parameter.

    Order Management will set the value of the Selling Profit Center attribute on the order line to the value that you specify in this parameter. It sets the attribute value when the Order Entry Specialist adds an order line to a sales order.

    If You Set the Parameter To

    Order Management Will

    Order Management

    Set the Selling Profit Center attribute on the order line to the same value that the Business Unit attribute on the order header contains.

    Shipping Organization

    Set the Selling Profit Center attribute on the order line to the business unit that the shipping inventory organization references.

    You can use this value for these flows.

    • Normal shipment.

    • Drop shipment.

    • back-to-back shipment.

    • Ship but don't bill.

    • Bill but don't ship.

    • Return material authorization.

    For details, see Manage Order Management Parameters.

Import Assessable Value

You can't use REST API with the Specify Business Unit for Selling Profit Center for Goods and Services Tax feature. For example, if you use REST API to import the assessable value but don't freeze the tax, then Pricing will overwrite whatever value that you import when it calculates the tax for your item. If you freeze the tax, then Pricing will use the assessable value that you import.

You can also use the Order Management work area to set the assessable value, or use some other technology to import it, such as file-based data import or a web service.

For details and examples, go to REST API for Oracle Supply Chain Management Cloud, expand Order Management, then click Sales Orders for Order Hub.

For details, see Freeze Price on Sales Orders and Import Tax on Sales Orders.

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