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Concept of Profit Center Business Unit

Accepted answer
edited Apr 25, 2020 11:57AM in Inventory Management 9 comments


The client requires a structure where there is a Business Unit (Requisition and Procurement function assigned) which would include 3 Legal Entities.

BU1 includes:
LE1 - Would raise direct procurement POs
LE2 - Would not raise direct procurement POs. Only indirect procurement.
LE3 - Same as LE2.

Question - I am aware of the concept of Profit Center Business Unit, due to which LE1 which has inventory locations will be assigned as default legal entity for the BU1. Now, due to this arrangement where LE2 and LE3 are also part of the same BU1, is it possible that we can still create indirect purchase orders for LE2 and LE3 under this BU1? Or in order for LE2 and LE3 to create their respective indirect purchase orders, they need to be setup under a different Business Unit (BU2)? And as LE2 and LE3 do not have any warehouses/inventory

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