Isn’t SFO an airport? The airport one would travel if the destination is Oracle’s Redwood Shores campus. Widely known as the initialism for the San Francisco International Airport, the answer would be correct if this question were posed in that context. However, in Oracle Fusion, SFO stands for the Supply Chain Financial Orchestration. Based on what it does, we cannot call it an airport, but it sure is a control tower for financial transactions.
As companies are expanding their presence across countries and continents through mergers and acquisitions or natural growth, it becomes inevitable for the companies to transact across the borders and produce intercompany financial transactions.
Supply Chain Financial Orchestration (SFO), is the place where Oracle Fusion handles those transactions. The material may move one way, but for legal or financial reasons the financial flow could be following a different path.
A Typical Scenario
A Germany-based company sells to its EU customers from its Berlin office, but ships from its warehouses in New Delhi and Beijing.
Oracle Fusion SFO takes care of all those transactions and as transactions are processed in Cost Management, financial trade transactions are created, and corporations can see their internal margins, intercompany accounting, and intercompany invoices.
Oh wait, the financial orchestration doesn’t have to be across countries only. What if a corporation wants to measure its manufacturing and sales operations profitability? Supply Chain Financial Orchestration is there for you.
In short, SFO is a tool that is part of the Supply Chain management offering that helps create intercompany trade transactions for various business cases.
Contact Mehmet Erisen at Perficient for more introspection of this functionality, and how Perficient and Oracle Fusion Cloud can digitalize and modernize your ERP platform.
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