1.3 Business Units and Reference Data Sets
Key Takeaways
Payment terms use the sharing method "assignment to multiple sets, no common values allowed"; the reference group is Payables Payment Terms and the determinant type is business unit.
A business unit can use a payment term only if the term is assigned to the reference data set that the business unit uses for the Payables Payment Terms reference group.
Oracle requires the Immediate payment term to be assigned to the business unit's reference data set before you define Common Options for Payables and Procurement.
To assign payment terms to a set, the implementor needs a data role generated from the Financials Common Module Template for SetID.
Invoice options, payment options, distribution sets and expense templates are defined per business unit and aren't shared through reference data sets.
Large enterprises run dozens of business units. Without a sharing mechanism, every unit would need its own copy of each payment term and similar setup. Reference data sharing solves this. Setup records are grouped into reference data sets, and each business unit is told which set to use for each kind of reference data. The published objective is to describe the purpose of Business Units and Reference Sets. Expect questions where a value is missing from a list of values because of a set assignment.
Key terms
| Term | Meaning |
|---|---|
| Reference data set | A named group of reference data records, for example US Set or EMEA Set. Oracle predefines a Common Set (COMMON) that works like any other set. |
| Reference group | A category of set-enabled data that is assigned as a unit, for example Payables Payment Terms |
| Determinant type | The kind of entity that decides which set applies. Oracle's determinant types are asset book, business unit, cost organization, project unit and reference data set. Payables reference groups use business unit. |
| Determinant value | The specific entity, for example the US East business unit |
| Set assignment | Mapping a business unit to a reference data set for each reference group. A business unit has a default set, which you can override for individual reference groups on Manage Business Unit Set Assignment. |
Sharing methods
Oracle defines how each kind of reference data can be shared:
- Assignment to one set only, no common values. Each record belongs to exactly one set.
- Assignment to one set only, with common values. A record belongs to one set, and records in the common set are also available.
- Assignment to multiple sets, no common values allowed. One record can be assigned to several sets.
Payables payment terms use assignment to multiple sets, no common values allowed. The reference group is Payables Payment Terms and the determinant type is business unit. You can still assign a term to the predefined common set, which then behaves like any other set: unless you also assign the term to other sets, only business units that use the common set can select it.
Worked example: sharing payment terms
Oracle's documentation uses this pattern:
- Net 45 is assigned to the North America set.
- Net 30 is assigned to both the North America and Europe sets.
- The United States and Canada business units use North America for Payables Payment Terms.
- The France business unit uses Europe.
| Business unit | Set for Payables Payment Terms | Terms available on its invoices |
|---|---|---|
| United States | North America | Net 45, Net 30 |
| Canada | North America | Net 45, Net 30 |
| France | Europe | Net 30 only |
If a French clerk complains that Net 45 is missing from the Payment Terms list, the answer isn't a security problem or a closed period. Net 45 simply isn't assigned to the Europe set.
Setup steps Oracle lists for payment terms
- Assign a reference data set to the business unit for the Payables Payment Terms reference group, either when you define the business unit or later on Manage Business Unit Set Assignment.
- Generate a data role for the reference data set using the predefined data role template Financials Common Module Template for SetID.
- Provision that data role to the implementor who creates the payment terms.
- Create the payment term and assign one or more sets in the Set Assignment section of the Create Payment Terms page.
Important
Before you define Common Options for Payables and Procurement, Oracle requires the Immediate payment term to be assigned to the reference data set for the business unit. If it isn't, the common options setup for that business unit can't be completed correctly.
What is not shared through reference data sets
A frequent mistake in drafts and practice tests is to assume that every Payables setup is set-enabled. Many important objects are tied to a single business unit:
| Setup object | Level | Practical consequence |
|---|---|---|
| Invoice options (Manage Invoice Options) | Invoice business unit | Each invoice BU has its own terms date basis, approval and matching options |
| Payment options (Manage Payment Options) | Business unit | Payment accounting option, overrides and currency conversion settings differ by BU |
| Distribution sets | Invoice business unit | Defined "for invoice business units"; a default can be set on the supplier site assignment |
| Common Options for Payables and Procurement | Business unit | Default liability and prepayment distributions, offset segments |
| Expense report templates | Business unit | Oracle states that expense templates can't be shared across business units |
| Expenses system options | All business units, with business-unit overrides | Uses its own two-level model, not reference data sets |
Global setups apply everywhere and aren't partitioned at all: Manage Disbursement System Options, payment methods (controlled by usage rules, see section 6.1) and payment process profiles (also usage rules). Usage rules are a separate mechanism from reference data sets. They limit where a payment method or profile can be used, by business unit, legal entity and other attributes.
Design guidance
- Use few sets. A typical design has one set per region or regulatory regime, with the common set reserved for truly universal values.
- Check the default set. When a business unit is created, its default set covers every reference group you don't explicitly override. Review overrides during design so a business unit doesn't inherit an unintended set.
- Separate sharing from security. A term missing from a list of values points to the set assignment. A user who can't see any invoices points to data access (section 1.2).
The France business unit uses the Europe reference data set for Payables Payment Terms. A clerk entering a French invoice can't find the payment term Net 45, which is active and assigned only to the North America set. What resolves the issue?
Grant the clerk the Accounts Payable Manager job role so restricted terms are displayed
Assign Net 45 to the Europe set as well, since terms can be shared across sets
Change the payment term's determinant type from business unit to legal entity
Open the next Payables period so terms with future effective dates appear
Which statement correctly describes how Oracle Fusion Payables shares payment terms across business units?
Payment terms use one set only with common values, and the determinant type is legal entity
Payment terms aren't set-enabled; each invoice business unit maintains its own terms in invoice options
Payment terms are shared through usage rules on the payment method, by business unit and currency
Payment terms use assignment to multiple sets, no common values allowed, with business unit as the determinant type
A consultant wants three regional invoice business units to share one utility-bill distribution set through a reference data set. What should the consultant know?
Distribution sets are defined for an invoice business unit and aren't shared through reference data sets, so each business unit needs its own
Distribution sets share the Payables Payment Terms reference group, so assigning the set once makes it available everywhere
Distribution sets are global objects available to every business unit without any assignment
Distribution sets are shared through payment process profile usage rules by business unit
Sections you finish are checked off in the contents.