Case Study: How We Achieved Cost Optimization Using Negotiations in Oracle Fusion Procurement

Introduction:

In real-world implementations, procurement is not just about creating purchase orders - it’s about driving value through supplier collaboration and competitive sourcing.

In this case study, I’ll walk through how we leveraged the Negotiation feature in Oracle Fusion Procurement to optimize costs and improve supplier selection for a large-scale procurement requirement.

Business Problem:

A client in the manufacturing sector needed to procure:

• Bulk raw materials across multiple locations
• From multiple suppliers
• Within tight timelines

Challenges:

• No structured supplier comparison
• Pricing inconsistencies
• Manual evaluation process
• Limited visibility into supplier performance

Result: Higher procurement costs and inefficiencies

Solution Approach:

We implemented the Negotiation (RFQ + Auction) process in Oracle Fusion Procurement.

Key steps:

1. Created a Negotiation (RFQ)
2. Invited multiple qualified suppliers
3. Defined clear:
• Pricing structure
• Delivery timelines
• Compliance requirements
4. Enabled competitive bidding (Auction)

Execution Flow:

The below execution flow illustrates the step-by-step approach adopted.

Key Configuration Highlights

• Multi-supplier invitation
• Line-level pricing comparison
• Supplier response visibility
• Real-time bidding (Auction)
• Evaluation based on:
• Price
• Delivery
• Compliance 

Real-Time Business Decisions

During evaluation:

• One supplier offered lowest price but long delivery time
• Another supplier had slightly higher price but faster delivery + better quality history

Decision:

• Split award:

• 70% → Reliable supplier
• 30% → Low-cost supplier

Results Achieved

✅ 12–15% cost reduction through competitive bidding
✅ Improved supplier transparency
✅ Faster decision-making
✅ Reduced manual effort
✅ Better supplier relationships

Key Learnings:

• Negotiations are not just about lowest price
• Always consider:
• Delivery timelines
• Supplier performance
• Risk diversification
• Use partial awards to reduce dependency

When to Use This Approach

This model works best for:

• Bulk procurement
• High-value sourcing
• Multi-supplier environments
• Cost optimization initiatives

Challenges Faced

• Supplier onboarding delays
• Initial resistance to auction model
• Data standardization issues

These were resolved through:

• Supplier training
• Clear communication
• Standard templates

Conclusion:

The Negotiation feature in Oracle Fusion Procurement can significantly transform procurement operations when used effectively.

By leveraging RFQs and Auctions, organizations can:

• Drive competition
• Improve transparency
• Achieve measurable cost savings

Follow my blog “Oracle Fusion Cloud Pulse” for more real-world Oracle Fusion insights.

Thank you.

Transformation Rules in Oracle Fusion Order Management

Introduction

In complex order management scenarios, businesses often require dynamic logic to default, validate, or modify order data during processing. Transformation Rules in Oracle Fusion Order Management provide a powerful way to automate such requirements without heavy customizations.

This blog explains the difference between Pre-Transformation and Post-Transformation rules, along with real-time business use cases and when to use each.

What are Transformation Rules?

Transformation Rules in Oracle Fusion Order Management are configurable business rules that automatically default, validate, or modify sales order data during different stages of order processing.

In simple terms, they help you automate business logic without writing complex code.

They help in:

Automating business logic

Reducing manual effort

Ensuring data consistency

 Types of Transformation Rules:

Oracle Fusion OM supports two types of transformation rules:

1. Pre-Transformation Rules
2. Post-Transformation Rules

They differ mainly by when they run and what data they can access.

How it works: Flow in Order Management

1. Pre-Transformation Rules:

Pre-transformation rules are used to default and validate order attributes before orchestration begins, such as assigning warehouse or order type.

Pre-Transformation Rules are used for:

• Defaulting values
• Validating data
• Deriving attributes at Order Entry

Sample Pre-Transformation Business Use Cases:

2. Post-transformation Rules

Post-transformation rules are used to modify or enrich data after processing, such as applying discounts, updating fulfillment priority, or passing values to downstream documents like purchase orders.

Post-Transformation Rules are used for:

• Modify values after processing
• Apply business logic post pricing/orchestration
• Update downstream documents

Sample Post-Transformation Business Use Cases:

When to Use What?

Use Pre-Transformation Rules when:

• You want to default or validate data early
• Logic is needed at order entry stage

Use Post-Transformation Rules when:

• You want to modify data after processing
• Logic depends on pricing or orchestration results

Key Components:

• Rule Type: Pre or Post
• Object: Header or Line level
• Condition: When the rule should trigger
• Action: What the system should do

Best Practices:

• Keep rules simple and readable
• Avoid too many overlapping conditions
• Test thoroughly with different scenarios
• Document logic clearly for support teams

Common Mistakes to Avoid:

• Using Post rule when Pre rule is sufficient
• Overcomplicating logic
• Not testing edge cases
• Ignoring performance impact

Limitations:

• Not suitable for very complex logic
• May require extensions (Groovy) for advanced use cases
• Needs proper testing

Final Thought:

Transformation Rules in Oracle Fusion Order Management are a powerful feature to automate and standardize order processing. Understanding when to use Pre vs Post Transformation Rules can significantly improve efficiency, reduce errors, and streamline business processes.

Follow my blog “Oracle Fusion Cloud Pulse” for more Oracle Fusion insights.

I will cover the step-by-step configuration process for both Pre and Post Transformation Rules in upcoming blog posts.

Thank you.

Processing Requisitions using new Redwood UI in Oracle Fusion

Introduction:

Processing Requisitions is a critical step in the Procure-to-Pay cycle, and Oracle has made this experience more user-friendly with the Redwood UI. The new Process Requisition page brings a modern layout, improved navigation, and better visibility into requisition details and approvals.

In this post, we will explore how to use this new Redwood page to efficiently process requisitions in Oracle Fusion.

Business Scenario:

A buyer or procurement user needs to review and process approved requisitions to convert them into purchase orders or take further actions such as modifying, rejecting, or canceling requisitions.

Prerequisites:

Before proceeding, ensure:

• Requisition is created and submitted
• Required approvals are completed (if applicable)
• User has appropriate Procurement roles
• Supplier and item details are available

Process Requisitions (New) process:

Login to Oracle Fusion Application > Home page

Navigate to: Procurement > Quick Actions > Process Requisitions (New)

A new Redwood page will open. Select the Requisition BU and click Unprocessed Lines tab.

Select the Requisition and Click Stage. This will process the Requisition to Stage state.

Buyer can take other Actions as well on the Requisition like Reassign, Return, etc.

Once the Requisition is Staged, verify the details like Sourcing Method, Action, Line details, etc.

Buyer will also have option to Initiate negotiation or Initiate Contract.

Once the Requisition details are verified, click Publish. 

A Purchase Order will be generated. Buyer can click the View purchase order link to open the PO.

Buyer will verify the PO header and Line details before Submitting for Approval.

Lines Tab:

Schedules Tab:

Distributions Tab:

Click Submit.

A Purchase Order will be submitted for Approval. After approval, Buyer can view the Status and linking of the PR to PO.

Verify that the requisition status is updated after processing.

Key Points to Remember:

• Ensure requisition is approved before processing
• Validate supplier and pricing details
• Use filters to quickly locate requisitions
• Track status after processing 

Benefits of using Redwood UI:

• Improved user productivity
• Reduced processing time
• Better user experience
• Simplified navigation

Conclusion:

The new Redwood interface in Oracle Fusion Procurement significantly enhances the requisition processing experience by making it more efficient and user-friendly. By following the above steps, users can easily manage and process requisitions within Oracle Fusion.

Follow my blog Oracle Fusion Cloud Pulse for more Oracle Fusion SCM insights.

Thank you.

Creating a Subinventory Transfer Using Redwood UI in Oracle Fusion

Introduction:

With the introduction of the Oracle Fusion Redwood User Experience, Oracle has significantly improved the usability and navigation of key inventory transactions. One such commonly used transaction is the Subinventory Transfer, which enables movement of material within the same inventory organization.

In this blog, we will walk through the step-by-step process of creating a Subinventory Transfer using the Redwood interface in Oracle Fusion Inventory Management.

Business Scenario:

A warehouse user needs to transfer material from one subinventory (e.g., Completed) to another (e.g., Stores) within the same organization for operational requirements.

Prerequisites:

Before performing the transaction, ensure:

• Item is enabled for inventory transactions
• Source and destination subinventories are defined
• Required on-hand quantity is available
• User has appropriate roles/access

Subinventory Transfer Process:

Login to Oracle Fusion Application > Home page

Navigate to: Supply Chain Execution > Inventory Management

A new Redwood page will open. Select the Inventory Organization and click Item Quantities.

On the next page, Search the Item which needs to be transferred from one subinventory to another.

Click Subinventory tab, and check the Subinventory and On-hand quantity available.

Select the row, click Actions (...) and then Create Subinventory Transfer.

Click Edit (pencil icon) to edit the transaction.

Verify the already populated details like Item, Source Subinventory, etc., and select the Destination Subinventory.

Now enter the required Quantity to be transferred to destination subinventory and click Done.

On next page, click Submit.

Verify Transaction:

Verify that the Subinventory Transfer transaction is successfully completed and the required quantities have been transferred to destination subinventory.

Key Points to Remember:

• Subinventory Transfer happens within the same inventory organization.
• Ensure sufficient on-hand quantity before transfer.
• Lot/Serial-controlled items require additional details.
• Transactions are real-time in Redwood UI.

Benefits of Redwood Experience:

• Modern and intuitive UI
• Faster transaction entry
• Reduced navigation steps
• Improved user productivity

Conclusion:

The Redwood UI in Oracle Fusion Inventory Management simplifies inventory transactions like Subinventory Transfer, making them more user-friendly and efficient. By following the above steps, users can easily perform and track inventory movements within the system.

Follow my blog Oracle Fusion Cloud Pulse for more Oracle Fusion SCM insights.

Thank you.

Cross Validation Rule in Oracle Fusion General Ledger

There are two ways to create a Cross Validation Rule (CVR):

1. Manual Creation (as demonstrated in this blog)

2. Spreadsheet Upload (using ADFdi / FBDI methods)

Cross Validation Rules operate at the account combination level, whereas Security Rules function at the individual segment value level.

This highlights a fundamental distinction between Cross Validation Rules and Segment Security configuration in Oracle Fusion.

Setup Cross-Validation Rule:

Manage Cross Validation Rules:

Select your COA > Search and click Create

In the Condition Filter, select the Asset natural account range

In the Validation Filter, restrict the allowed Cost Center to (00 – None / General)

This ensures that Asset accounts can only be used with Cost Center 00

Error Message: In the Error Message field, define a clear and user-friendly validation message that will be displayed when an invalid Cost Center is selected in combination with an Asset account.

Click Save and Done.

Cross Validation Rules are applied during the entry of account combinations.

If Dynamic Combination Creation is enabled, the system validates the rules before allowing the combination to be created and saved.

Test Rule:

Home > General Accounting > Journals > Create Journal

Create a journal line using:

• Asset Account
• Cost Center 00

The journal should post successfully.

Check Status: Posted

Then attempt:

• Asset Account
• Different Cost Center

The system should trigger the defined error message and prevent saving the combination.

Important Implementation Note:

• Cross Validation Rules should be configured before users begin creating account combinations.
• If combinations are already in place, applying CVRs later will not automatically remove existing invalid combinations.

Therefore, it is essential to ensure proper Chart of Accounts (COA) design and validation setup during the initial design and implementation phase.

Creating a Custom Role from a Seeded Role and Assigning It to a User in Oracle Fusion

This guide walks Oracle Fusion Cloud administrators through the end-to-end process of creating a custom role from a seeded role and assigning it to a user.

Audience: System Administrators, Security Administrators, IT Consultants

Prerequisites: IT Security Manager or Application Implementation Consultant role required.

Section 1: Understanding Roles in Oracle Fusion Cloud

Oracle Fusion Cloud uses a Role-Based Access Control (RBAC) model. Every action a user can perform - and every piece of data they can see - is governed by roles assigned to their user account.

1.1  Role Types

Role Type	Description	Example
Job Role	Assigned directly to users; represents a job function	Accounts Payable Manager
Duty Role	Aggregates function security policies for a task area	Manage Supplier Invoices
Abstract Role	Provides baseline access for a broad group	Employee, Line Manager
Data Role	Scopes access to specific data sets / business units	Payables Manager – BU France

1.2  Why Copy a Seeded Role Instead of Modifying It?

By copying a seeded role you:

• Preserve Oracle's original role definition untouched
• Protect customizations from being overwritten during quarterly updates
• Maintain a clear audit trail of custom vs Oracle-delivered access
• Use Oracle's tested privilege set as a secure starting point

Section 2: Creating a Custom Role from a Seeded Role

1. Navigate to the Security Console

The Security Console is Oracle Fusion's central hub for all role and user security configuration.

• Log in to your Oracle Fusion Cloud environment as an administrator.
• Click the Navigator icon in the top-left of the home page.
• Expand the Tools section in the navigator menu.
• Click Security Console to open it.

You can also access the Security Console by typing 'Security Console' in the Oracle Fusion search bar at the top of any page.

2. Navigate to the Roles Tab and Search for the Seeded Role

Once inside the Security Console you will see several tabs. The Roles tab is where all role management happens.

• Click the Roles tab in the Security Console header.
• In the search bar, type the name of the seeded role you want to copy. For example: Order Entry Specialist or Procurement Manager.
• Press Enter or click the Search icon.
• The matching roles will appear in the search results below.

3. Copy the Seeded Role

Oracle requires you to copy (not edit) a seeded role. The Copy Role option creates a full duplicate of the seeded role including its entire privilege inheritance chain.

• In the search results, locate your target seeded role.
• Click the dropdown arrow (▼) next to the role name in the search results.
• Select Copy Role from the dropdown menu.

• The Copy Options dialog box will appear. Select Copy top role (recommended - this copies only the top-level role and inherits all child duty roles and privileges by reference, keeping the role hierarchy clean).
• Click the Copy Role button in the dialog to proceed.

Note - Copy Top Role vs Copy All Roles

Copy top role (Recommended): Creates a copy of only the job role. All duty roles and privileges are inherited by reference from Oracle's seeded set - your copy will automatically receive Oracle's updates to those duties.  Copy top role and inherited roles: Creates copies of every role in the hierarchy. Use only when you need to modify individual duty roles. Results in a larger role footprint to maintain.

4. Enter Basic Information for the Custom Role

After clicking Copy Role you are taken to the Role creation wizard. Step 1 of the wizard is Basic Information.

• In the Role Name field, enter a meaningful name for your custom role.
• In the Role Code field, enter a unique code. Avoid starting with 'ORA_' - this prefix is reserved for Oracle seeded roles. Example: ASP_PO_PROCUREMENT_MANAGER.
• Select the appropriate Role Category. For most business user roles, this will be the relevant module followed by '– Job Roles', e.g., Procurement – Job Roles.
• Enter a meaningful Description that explains the role's purpose and the business requirement that prompted its creation.

• Click Next or click Step 2 in the wizard navigation at the top to proceed.

5. Review and Modify Function Security Policies

Function Security Policies define what actions (UI pages, buttons, menu items) a user with this role can perform. Because you copied a seeded role, all original function security policies are already inherited.

• In the wizard, click Step 2 – Function Security Policies
• You will see the list of all inherited function security policies from the source seeded role.

To Remove a Policy (reduce access):

• Locate the policy you want to remove and click the X / Remove icon next to it.
• Confirm the removal when prompted.

To Add a New Policy (grant additional access):

• Click + Add Function Security Policy.
• In the search dialog, type the privilege name or code.
• Select the privilege from the results and click OK.

When finished, click Next to move to Step 3 – Role Hierarchy.

6. Review the Role Hierarchy

The Role Hierarchy tab shows the duty roles and abstract roles that your new custom role inherits. If you chose 'Copy top role', all these are inherited references - no copies were made.

• Click Step 3 – Role Hierarchy in the wizard.
• Review the list of inherited roles. These are the duty roles that provide the grouped privileges.
• You can add additional duty roles by clicking '+ Add Role' if the business requirement needs more access.
• You can remove inherited duty roles if the copied seeded role has more access than required.

7. Review Summary and Submit

Before submitting, the wizard presents a summary of all changes you are making to the role.

• Navigate to Step 7 - Summary by clicking it in the wizard header.
• Review the summary showing counts of added and removed policies:
• Function Security Policies: Added (x), Removed (x)
• Data Security Policies: Added (x), Removed (x)
• Role Hierarchy: Added (x), Removed (x)
• Users: Added (x), Removed (x)
• If everything looks correct, click Submit and Close.
• Oracle Fusion will begin the role copy process in the background. This may take a few minutes.

    

Monitor the Role Copy Status:

• In the Security Console, click the Administration tab.
• Click Role Copy Status.
• Find your role code in the list and verify that the Status column shows Complete.

Section 3: Assigning the Custom Role to a User

Once the role copy process is complete, you can assign the new custom role to one or more users. There are two methods - via the Security Console (recommended for administrators) or via User Management.

1. Navigate to User Accounts in the Security Console

• In the Security Console, click the Users tab.
• In the search bar, type the user's name, username, or email address.
• Press Enter or click Search.
• Click the user's name in the search results to open their user account.

2. Assign the Custom Role to the User

Inside the user's account record you can view all currently assigned roles and add new ones.

• On the user's detail page, click Edit and locate the Roles section.
• Click Add Role.

• In the role search dialog, type the name or code of your newly created custom role.
• Select the role from the search results.
• Click Add Role Membership and Done to confirm.

    

• After adding the role, click Save and Close on the user record.
• Oracle Fusion will provision the role to the user. This may take a few minutes to propagate.

3. Verify the Role Assignment

It is good practice to verify that the role has been correctly assigned and that the user can now access the expected functions.

Verify from the Security Console:

• Return to Security Console → Users and search for the same user.
• Open the user record and scroll to the Roles section.
• Confirm your custom role appears in the list with the correct effective dates.

    

Verify from the User's Perspective:

• Ask the user to log out and log back in to refresh their session.
• Navigate to the function or page that the role should grant access to.
• Confirm the user can see the expected menu items, buttons, and data.

Thank you.