Create a Party Hierarchy in Oracle Fusion Applications

This article will discuss Party Hierarchies and demonstrate how to create a Party Hierarchy in Oracle Fusion Applications.

Hierarchical structures of an enterprise are defined in and maintained in special tables. And one of those tables is the FND_HIER. There are three predefined hierarchies:

1. The customer hierarchy
2. Thee trading community party hierarchy
3. Dun and Bradstreet hierarchy. 

As a prerequisite, you need to have the role "Customer Data Steward" assigned to the desired user. For a demonstration on how to assign the role, check out the video below:

Once assigned, proceed to the Navigator, look for Customer Data Management > Hierarchies 

Select Hierarchies and click on the Create button. 

Give the hierarchy a name and go with the option: "Trading Community Party hierarchy" and with the status of "Active" and then click on Next:

In the Hierarchy Members section, Click on the "Add" icon to add a Parent Party:

To add a child Party, select the Parent Party and click on the "Add" icon again:

Look for the child Party ("ABC Consulting") and proceed to click OK.

If you expand the hierarchy, you can see that ABC Corporation sits at the top and then ABC Consulting sits below, underneath. 

You can further add child Parties if necessary. Once done, click on Next to confirm the hierarchy and click on Finish to effectively create the Party hierarchy.

Below is a quick video demonstration on how to create a Party Hierarchy in Oracle Fusion Applications:

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Creating a Customer Paying Relationship Assignment in Oracle Fusion Applications

This article will demonstrate how to create a Customer Paying Relationship Assignment in Oracle Fusion Applications. As a prerequisite, you need to have the role "Customer Data Steward" assigned to the desired user. For a demonstration on how to assign the role, check out the video below:

What is a paying relationship? 

A paying relationship is a configuration that enables customers to apply receipts to the transactions of related customers.So For example, you have two customer entites that are related. Maybe they roll up to the same corporate parent. A paying relationship enables the parent company to pay the bills for its subsidiaries, or a subsidiary wants to pay for the bills of the other subsidiaries. So this means the paying relationship allows you to manage these types of scenarios in the receivables obligation where a customer wants to pay the bills of a related entity.

The idea with party relationships is to model your customer records according to the way you conduct your business. A party relationship represents the way in which two entities interact with each other based on the role that each entity takes with respect to the other. 

There are two different types of paying relationships: party paying relationships (we'll call it PPR), and customer account relationships (CAR). 

What is the difference between the two?

In the simplest terms, PPR is at the Party Level (including the Accounts, Sites and Transactions) while CAR is only at the Account Level. 

Party paying relationships provide one party with access to another party's accounts and transactions. You may have a party with five accounts underneath and another party with three accounts underneath. And those eight accounts are going to be related to each other because the parties at the top are related.

Meanwhile, Customer Account Relationship is a flat relationship between two customer accounts only. A relationship at the customer account level is flat in the sense that it only involves one account on one side and another account on the other side. 

How do I Create a Party Paying Relationship?

To create a Customer Paying Relationship Assignment, go to the Functional Setup Manager > choose the "Financials" Offering > Search for the task "Manage Customer Paying Relationship Assignment".

From the Manage Customer Paying Relationship Assignment page, View the seeded Paying Relationship Assignment set or add a new one by clicking on the  "+" Icon. 

Add the preferred Hierarchy Type and the preferred Paying Relationship.

The Pay Below Paying Relationship consists of parties paying for their own transactions and the transactions of all parties that are lower in the hierarchy. What this means here is that we are going to have to build a hierarchy as a requirement, as a prerequisite, to a party paying relationship. For more information on creating party hierarchies, check out a separate article: Create a Party Hierarchy in Oracle Fusion Applications.

The Pay Any Paying Relationship means that any party in the hierarchy can pay for each other's receivable bills, regardless of where they are in the sequence. Any party within the relationship can pay for the accounts of any other party within the relationship.

Below is a quick video demonstration on how to Create a Customer Paying Relationship Assignment in Oracle Fusion Applications:

For more full-detailed Tutorials and Tips, check out #TheOracleProdigy at https://lifeofanoracleprodigy.blogspot.com/

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