Multi Org(Multiple Organizations)

The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other. Generally, a complex enterprise has several organization structures, such as Internal, Accounting, and uman !esources. "ou are able to define different structures to customize Oracle Applications according to your business needs. Basic Business Needs Oracle Applications provides you with the features you need to satisfy the following basic business needs# $. %se a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of boo&s. '. (efine different organization models ). *upport any number of legal entities within a single installation of Oracle Applications. +. *ecure access to data so that users can access only the information that is relevant to them. ,. *ell products from a legal entity that uses one set of boo&s and ship them from another legal entity using a different set of boo&s, and automatically record the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices. -. .urchase products through one legal entity and receive them in another legal entity. Major Features Multiple Organizations in a Single Installation "ou can define multiple organizations and the relationships among them in a single installation of Oracle Applications. These organizations can be business groups, sets of boo&s, legal entities, operating units, or inventory organizations. /hen you run any Oracle Applications product, you first choose an organization0either implicitly by choosing a responsibility, or explicitly in a 1hoose Organization window. 2ach window and report then displays information for your organization only. Organizations that share the same functional currency, Accounting 3lexfield structure, and calendar can post to the same set of boo&s.

Secure Access "ou can assign users to particular organizations. This ensures accurate transactions in the correct operating unit. Sell And Ship Products From Di erent !egal "ntities "ou can sell from one legal entity and ship from another, posting to each organization4s set of boo&s. #ecei$e %oods Into An& In$entor& Organization "ou can enter purchase orders and assign for receipt any inventory organization that uses the same set of boo&s. "our purchase order operating unit and receiving inventory organization must share the same set of boo&s to receive against a purchase order. Automatic Accounting or Internal #e'uisitions "ou can create an internal re5uisition 6sales order7 in one organization, then ship from another organization, with correct intercompany invoicing. Multiple Organizations #eporting "ou can set up your Oracle Applications implementation to allow reporting across operating units by setting up the top reporting level. "ou can run your reports at the set of boo&s level, legal entity level, or operating unit level

(&pes o Organizations
"ou can define organizations and the relationships among them. "ou create sets of boo&s using the (efine *et of 8oo&s window in Oracle General 9edger. "ou define all other types of organizations using the (efine Organization window. )* Business %roup The business group represents the highest level in the organization structure, such as the consolidated enterprise, a ma:or division, or an operation company. The business group secures human resources information. 3or example, when you re5uest a list of employees, you see all employees assigned to the business group of which your organization is a part. ;ote# This is true in all applications except the ! applications, which support more granular security by a lower<level organization unit, the security profile. =ultiple sets of boo&s can share the same business group if they share the same business group attributes, including ! flexfield structures. +* Set o Boo,s A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. Oracle General 9edger secures transaction information 6such as :ournal entries and balances7 by set of boo&s. /hen you use Oracle General 9edger, you choose a responsibility that specifies a set of boo&s. "ou then see information for that set of boo&s only.

-*) !egal "ntit& A legal company for which you prepare fiscal or tax reports. "ou assign tax identifiers and other legal entity information to this type of organization. ;ote# There are currently only a few features provided for legal entities, such as intrastat movement reports and intercompany invoice generation. -*+ Balancing "ntit& !epresents an accounting entity for which you prepare financial statements. This is a segment in the Accounting 3lexfield structure 6usually the 1ompany segment7 at which all accounting entries must balance. There may be multiple companies within the same structure, and each of these must balance within itself. 2ach legal entity can have one or more balancing entities. "ou can use 3lexfield >alue *ecurity rules to restrict data entry of balancing segment values by legal entity or operating unit. .* Operating /nit An organization that uses Oracle 1ash =anagement, Order =anagement and *hipping 2xecution, Oracle .ayables, Oracle .urchasing, and Oracle !eceivables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. 2ach user sees information only for their operating unit. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit. 0* In$entor& Organization An organization for which you trac& inventory transactions and balances, and?or an organization that manufactures or distributes products. 2xamples include 6but are not limited to7 manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization# Oracle Inventory, 8ills of =aterial, 2ngineering, /or& in .rocess, =aster *cheduling?=!., 1apacity, and .urchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization. 1* 2# Organization ! organizations represent the basic wor& structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group. In addition to these internal organizations, you can define other organizations for tax and government reporting purposes, or for third part payments. 3* Organizations in Oracle Projects Oracle .ro:ects allows you to define organization hierarchies to reflect your company4s organizations structure. "ou can add Oracle .ro:ects<specific organization types to the organization hierarchy 6for example, pro:ects organizations or 2xpenditure organizations7 to help

you to better manage your pro:ect control re5uirements. "ou assign pro:ect and expenditure hierarchies to operating units. 4* Asset Organizations An asset organization is an organization that allows you to perform asset<related activities for a specific Oracle Assets corporate depreciation boo&. Oracle Assets uses only organizations designated as asset organizations

Accounting 5 Distri6ution 5 Materials Management Organization Model

*ubmitted by Anonymous on /ed, @'?'+?'@$@ A $$#$$ %sing the accounting, distribution, and materials management functions in Oracle Applications, you define the relationships among inventory organizations, operating units, legal entities, and sets of boo&s to create a multilevel company structure, as shown in below 3igure.

!egal "ntities Post to a Set o Boo,s 2ach organization classified as a legal entity identifies a set of boo&s to post accounting transactions. Operating /nits Are Part o a !egal "ntit& 2ach organization classified as an operating unit is associated with a legal entity

In$entor& Organizations are Part o an Operating /nit 2ach organization classified as an inventory organization references an operating unit. In$entor& Organization Determines Items A$aila6le to Order Management The Item >alidation Organization parameter specifies which Oracle =anufacturing organization is used to validate inventory items. "ou must define all transactable items in this organization. *ome inventory item attributes for !eceivables and Order =anagement, including Tax 1ode and *ales Account, are specific to an operating unit or an accounting flexfield structure. Therefore, you should define an item validation organization for each operating unit. In$entor& Organization Determines Items A$aila6le to Purchasing The inventory organization you specify in the financial options for each operating unit determines the items available in .urchasing. "ou can only choose an inventory organization that uses the same set of boo&s as your operating unit.

2uman #esources Organization Model

*ubmitted by Anonymous on /ed, @'?'+?'@$@ A $@#,B /ith Oracle uman !esources, you can define multilevel organization hierarchies, with a business group at the top of each hierarchy. /hen you define new organizations, they are automatically assigned to the business group associated with your current session. 2ach organization is part of a business group. The business group is usually the top box on an enterprise organization chart, as shown in below figure.

The business group is the largest organization unit you set up in uman !esources to represent your enterprises as an employer. After defining one or more business groups for your enterprise, you set up one or more government reporting entities 6G!2s7 within each business group. The G!2 is the organization that federal, state, and local governments recognize as the employer. 8elow this level, you represent the groupings in which employees wor&, such as branches, departments, or sections, by means of internal organizations. To enable the assignment of employees to an internal organization, you classify the internal organization as an ! organization. "ou can define external organizations in the same way as internal organizations, so that you can represent organizations that are not part of your enterprise 6such as training vendors or tax offices7. The ma:or difference between internal and external organizations is that you cannot assign people to an external organization.

Securit& 7ontrol
*ubmitted by Anonymous on /ed, @'?'+?'@$@ A $$#$C 7ontrolling Secure Access Data Securit& "ou can limit users to information relevant to their organization. 3or example, you can limit access for order administration cler&s to sales orders associated exclusively with their sales office.

In$entor& Organization Securit& 6& #esponsi6ilit& "ou can specify which inventory organizations are available to users in each responsibility. The 1hoose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility. #esponsi6ilit& Determines Operating /nit "our responsibility determines which operating unit you access when you use Oracle Applications. /hen you use Oracle .ayables, !eceivables, Order =anagement and *hipping 2xecution, .urchasing, .ro:ects, and *ales 1ompensation you see information that is relevant to your operating unit. All transactions you create are automatically assigned to your operating unit. Sell And Ship Products From Di erent !egal "ntities Sell rom One !egal "ntit&8 Ship rom Another !egal "ntit& /hen you enter sales orders, you can choose any inventory organization as the shipping warehouse. The shipping warehouse may be in a different legal entity than the operating unit that enters the sales order, and it may post to a different set of boo&s. /se the 7hoose Organization 9indo: to 7hoose In$entor& Organization After you choose your responsibility to perform materials management functions using Oracle Inventory, /or& in .rocess, 8ills of =aterials, =aster *cheduling?=!., 1apacity, or .urchasing, you must use the 1hoose Organization window to pic& an inventory organization. Intercompan& Accounting Automatic Intercompan& Sales #ecognition *ales orders created and shipped from one legal entity to a different legal entity automatically generate an intercompany invoice to record a sale between the two organizations. Posting Intercompan& In$oices to Di erent Accounts "ou can define different accounts for Trade and Intercompany 1ost of Goods *old and *ales !evenue to eliminate intercompany profit. #eport at the !egal "ntit& or Set o Boo,s !e$el In addition to reporting at the operating unit level, you can report at the legal entity or set of boo&s level.

Setting up Multi Org

*ubmitted by Anonymous on /ed, @'?'+?'@$@ A $'#'$ Adding a Ne: Operating /nit The following steps are re5uired to add new operating units to your organizational structure# $.$ !evise the Organization *tructure. $.' (efine *ets of 8oo&s 6optional7. $.) (efine 9ocations. $.+. (efine Organizations and !elationships.

'.$ (efine !esponsibilities. '.' *et .rofile Options for 2ach !esponsibility lin&ed to the new Operating %nit. $.$. !# 8usiness Group $.' !# *ecurity Option $.)# !# %ser Type 63O! accessing !=* functions7 $.+ !# 1ross 8usiness Group '.$. G9# *et of 8oo&s6$$i7 '.$ G9#D9edgerD 6!$'7 '.) G9# (ata Access *et. This profile option to control the ledgers that can be used by Oracle General 9edger. ).$. =O# Operating %nit ).'. =O# *ecurity .rofile 6!$'7 ).). =O# (efault Operating %nit +.$ Tax# Allow Override of Tax 1ode +.' Tax# Invoice 3reight as !evenue +.) Tax# Inventory Item for 3reight ,.$ *e5uential ;umbering ,.' I;># Intercompany 1urrency 1onversion '.) !un the !eplicate *eed (ata concurrent program. ).$ (efine Inventory Organization *ecurity. ).' (efine Intercompany !elations 6optional7. ).) Implement the Application .roducts. +.$ *ecure 8alancing *egment >alues 6optional7. +.' !un the *etup >alidation !eport 6recommended7. +.) Implement (ocument *e5uencing 6optional7. +.+ *et the top reporting level 6optional7. +., *et up conflict domains 6optional7.