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Posted By Sanjit Anand On February 22, 2008 @ 1:47 am In EBS Suite,HRMS | 2 Comments
Lets talk about one of the basic concept of Oracle Application which is so called "Business Group" , part of Multi-org architecture.
Understanding this is important for non HRMS consultant as in R12 Finance the new legal Entity architecture [1] is equally important.
Business Group in HRMS Shared Mode
A business group is a basically Human Resources organization to which you assign employees. You assign each operating unit to a
business group in the financial options setup. You can assign the same business group to different operating units including to
operating units in different financial sets of books. You can setup a separate business group for each operating unit if you want to
segregate and maintain each group of employees separately. Oracle provides one setup business group you can use.
In case of not having HRMS (Full mode),what you have to do is ,to create at least one business group to cater requirement for
Oracle Financials and Manufacturing, so that only the employees can perform some of application functionality , which are as
follows:
Entry and approvals of purchase orders and requisitions require requisitioners, buyers, and approvers to be setup as
employees.
Purchasing receiving staff must be setup as employees in order to use receiving screens.
Engineering change order approver lists use the employee database to validate approvers.
AP expense report features allow you to create suppliers from employee information and to generate expense report
coding using employee default account numbers.
iExpense requires users who enter or approve expense reports to be setup as employees.
Fixed Assets allows you to optionally assign assets to employees for tracking purposes.
Standard Workflow approvals of GL journal entries in Release 11 require approvers to be setup as employees.
Standard Workflow approvals of AR credit memos in Release 11i require approvers to be setup as employees.
AP may add invoice approval through AME , which will likely require approvers to be setup as employees.
There are few exceptions, where you have to understand when your installation site is having HR and Projects modules installed, as
there are significant implications of business group and HR organizations.
Business Group is part of MultiOrg model of Organizations
The Multi-Org model provides a four level hierarchy that dictates how transactions flow through different business units and how
those business units interact
Business Group
Balancing Entity
Operating Unit- AP, AR, PO, OE -Bal Segment 1, Bal Segment 2,Bal Segment 3
There is one confusion between Oracle Financial and HRMS consultant, as they simply assume SOB is more meant for non HRMS
module and BG is more for HRMS, in certain extend this is true.Lets investigate this on GRE\LE and OU as follows:
Know something more for SOB
As covered in earlier post [2] ,a set of books is a financial reporting entity that shares the three Cs that is Chart of
accounts(accounting flexfield structure), functional currency and calendar.
Oracle General Ledger secures transaction information (journal entry),When we use General Ledger, we choose a
responsibility that specifies a set of books. We then see information only for that set of books.
In the multiple set of books, the concept of global item master Organization exist, since the item master
organization is used for item definition and not item accounting information.
More over all accounting activity releated to the item master can be controlled at the item or organization level. Example
is consolidation at the corporate office or Head office.
Human resources information is secured by business group.(For example, when you request a list of employees, you see
all employees assigned to the Business Group of which your organization is a part. )
This is true in all applications except the Human Resources applications themselves, which support more granular security
by a lower-level organization unit.
Multiple sets of books can share the same business group if they share the same business group attributes, including
Human Resources flexfield structures.
Business Groups separate major segments of a business. Each can have it's own set of books.
Each Group will also have a structure of other organizations classifications assigned to it.
Set of Books
Inventory Organizations define and maintain items used by other manufacturing modules (Order
Entry,Purchasing, MRP, etc.). They also collect and pass data to the Financials modules.
With Multi-Org you can define an owning Operating Unit and associate this with a profile option -MO:Operating Unit.
When you define data or execute a business process within Oracle Financials, then the system automatically attaches the
id of your Operating Unit organization to the data or transaction.
With Business Group security model in HRMS [3] you can secure data and processes by id of the Business
Group.However, in HRMS, the Business Group id is closely related to the country of operation, and not simply a division or
line of business.
Both look the same but it is important to realize that these are distinct and different mechanisms for two different
functional areas. This is especially true for any global implementation of HRMS where the data for each country exists
within a single business group but Operating Units exist across many countries, and business groups.
Generally the laws are so different in each country that to be compliant, there must be a different business group for each country
in which an enterprise has employees.
BU in HRMS and other Integration
The need for cross functional integration cann't be denied as most of the base information is pulled from HRMS to Oracle Finance ,
Manufacturing as well as CRM Modules. A typical integration aspect with some of the core module can be best understood as figure
below:
Similar Post
Lets Talk About Security Groups functionality available within Oracle HRMS
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