MULTI-ORG Major Features: 1. Defining multiple organizations and relationships among them in a single installation of Oracle Applications.

These organizations could be set of books, business groups, legal entities, operating units or inventory organizations. 2. Providing secure access to data by assigning users to particular organizations. 3. Selling from one legal entity and shipping from another and posting to both the organizations sets of books. 4. Purchasing and receiving products between organizations. 5. Automatic accounting for internal requisitions through intercompany invoicing. 6. Reporting across multiple organizations by specifying the top reporting level. Reports could be run at the set of books level, legal entity level or operating unit level. Types of Organizations: Business Group: This is the highest level of organizational classification and represents a consolidated enterprise or a major company. It secures human resource information. It could be a collection of multiple legal entities if they share the same business group attributes including the HR Flexfield structure. Set of Books: It is a financial reporting entity that uses particular Chart of Accounts, Functional Currency and Accounting Calendar. Legal Entity: It is a legal company that prepares separate legal or tax reports. The tax identifiers are assigned to this organization. Operating Unit: It is associated with the legal entity and could be a sales office, a division or a department. Responsibilities are associated at this level to access the various applications. Inventory Organization: This is at the lowest level in the organizational classification. It could be an organization for which we could track inventory transactions and balances or an organization that manufactures of distributes products. HR Organization: It represents the basic work structure of any enterprise. It usually represents the functional management or reporting groups that exist within a business group. For any organization definition, no employees can be defined and associated, unless HR Organization classification is also assigned to the organization definition.

Approaches to Multi-org: Human Resource Model: Business Group

HR Org1

HR Org2

HR Org3

HR Org4

HR Org5

HR Org6

Finance Model: Set of Books

Legal Entity1

Legal Entity2

Operating Unit1

Operating Unit2

Operating Unit3

Operating Unit4

Invento ry Organi sation1

Sales Orga nisati on1

Inven tory Orga nizati on2

Proje ct Burd ening Org1

Asset Orga nizati on 1

Sales Orga nizati on 2

Inven tory Orga nizati on3

Sales Orga nizati on 3

The aforesaid approaches are not mutually exclusive. Both the models have to be mapped for a proper organization structure. When both the approaches are combined the model would look as depicted below:

Business Group

Set of Books

Legal Entity1

Legal Entity2

Operating Unit1

Operating Unit2

Operating Unit3

Operating Unit4

Inv Org 1

Sales Org 1

Asset Org 1

Proj. Org 1

Inv Org 2

Asset Org 2

Sales Org 2

Proj. Org 2

Aspects to be noted: 1. Any number of Business Groups can be defined in Oracle Applications. 2. As many company values exist in the company segment in the Chart of Accounts, that many i.e. equivalent numbers of legal entities must be established. 3. Legal Entities could share the same set of books are have different sets of books.

4. All the legal entities having identical requirements for job and position flexfield values can be defined under one Business Group. 5. Once the HR Flexfield structures change, legal entities must be defined under different business groups. 6. All organizations that are collection of employees must be having an additional organization classification as HR Organization. 7. In single organization set up, only one Business Group, Legal Entity or Operating Unit can be defined. But the Operating Unit can have multiple inventory, reporting and project burdening organizations. 8. In Multi-org set up, multiple Business Groups, Legal Entities & Operating Units can be defined and each Operating Unit can be a collection of reporting, inventory and project burdening organizations. Set up Steps: 1. Define Locations: Responsibility: Inventory Manager Navigation: Setup/ Organizations/ Locations Note: Locations can also be defined from other responsibilities such as Purchasing, HRMS etc. 2. Define Flexfield Structures: The flexfield structures such as Grade, People Group, Job, Costing, Position and Competence must be defined. These Key Flexfield structures can be defined from any responsibility. Responsibility: Inventory Manager Navigation: Set up/ Flexfields/ Key/ Segments 3. Define Business Group: Organizations can be defined through any of the responsibilities such as Inventory Manager, Purchasing Super User or through the HRMS Module. The Business Group has to be defined first. Responsibility: Inventory Manager Navigation: Set up/ Organizations/ Organizations Name: Give the name of the business group Type: Choose from the list of quick codes say Corporate Headquarters Dates: Specify the effective date range for the organization. From date is mandatory whereas To Date is optional. Location: Choose the defined location from the list of values Internal or External: Specify whether the organization that is being defined is internal or external. Note: Employees can be associated with internal organization only. External organizations are agencies working on behalf of the company. Location Address: This defaults based on the location chosen Now Save. Organization Classification:

Name: Choose From List Business Group Enabled: Ensure that this check box is enabled. Then Save. Click on Others Push Button. Business Group Info: Press Tab Then give the following mandatory information: Short Name: Specify Short name for the business group. This is referenced while defining legal entities or operating units or while setting the profile options Employee Number Generation: Choose the employee number generation method. It could be Manual, Automatic or Use National Identification Number. Application Number Generation: Choose the method in the same manner. Grade Flexfield Structure: Specify the structure Group Flexfield Structure: Specify the structure Job Flexfield Structure: Specify the structure Costing Flexfield Structure: Specify the structure Position Flexfield Structure: Specify the structure Competence Flexfield Structure: Specify the structure Legislation Code: Choose the code based on the country in which the company operates Currency: Specify the currency- this becomes the functional currency. The following optional information could also be provided: Fiscal Year Start: Minimum Working Age: Maximum Working Age: This age range is used by the system to restrict the entry of certain employees. Say Ok and then Save. Click on Others again. Now choose Workday Information: Press tab. Give the following information: Normal Start Time: Normal End Time: Working Hours: Frequency: Then say OK and Save. 4. Define Set of Books: Responsibility: General Ledger Super User Navigation: Set up/ Financials/ Books/ Define The prerequisites for this step are: a. Defining accounting calendar Responsibility: General Ledger Super User Navigation: Set up/ Financials/ Calendars/ Accounting b. Defining Accounting Flexfield Structure i.e. the Chart of Accounts

Responsibility: General Ledger Super User Navigation: Set up/ Financials/ Flexfields/ Key/ Segments c. Defining the Retained Earnings Account Value Responsibility: General Ledger Super User Navigation: Set up/ Financials/ Flexfields/ Key/ Values 5. Define Legal Entities: Responsibility: Inventory Manager Navigation: Set up/ Organizations/ Organizations Provide the information regarding Name, Type, Dates, Location etc, in the same manner. In the Organization Classification specify following: Name: Choose GRE/ Legal Entity Enabled: Ensure that this checkbox is enabled. Save Click on Others Push Button. Choose Legal Entity Accounting Press tab. Give the following information: Set of Books: Choose the defined set of books from the list. VAT Registration Number: This is optional info. Say OK and Save. 6. Define Operating Units: Responsibility: Inventory Manager Navigation: Set up/ Organizations/ Organizations Provide the information regarding Name, Type, Dates, Location etc, in the same manner. In the Organization Classification specify following: Name: Choose Operating Unit Enabled: Ensure that this checkbox is enabled. Save Click on Others Push Button. Note: Bill to Country and Ship to Country information is used by the Purchasing Module. Choose Operating Unit Information Press tab. Give the following information: Legal Entity: Specify the legal entity with which the operating unit is associated. Set of Books: This defaults based on the legal entity chosen. Say OK and Save 7. Define other organizations such as inventory, sales etc. To define an inventory organization:

Responsibility: Inventory Manager Navigation: Set up/ Organizations/ Organizations Provide the information regarding Name, Type, Dates, Location etc, in the same manner. In the Organization Classification specify following: Name: Choose Inventory Organization Enabled: Ensure that this checkbox is enabled. Save Click on Others Push Button. Choose Accounting Information. Press tab. Then give the following information: Set of Books: Legal Entity: Operating Unit: Say OK and Save. Then choose Inventory Information. Give the following information: Inventory Parameters Zone: Organization Code: Item Master Organization: Calendar: Costing Information Zone: Costing Method: Transfer to GL: Other Accounts Zone: Specify various accounts Then Save. Choose Receiving Information Specify various Receiving options. Save. 8. Define Responsibilities for the Operating Units: For each Operating Unit, one responsibility must be defined (preferably with suffix as Operating Unit name for easy identification. Responsibility: System Administrator Navigation: Security/ Responsibility/ Define Note: For each Module, as many responsibilities as the number of Operating Units must be defined. For example, if 10 Operating Units are defined 10 Payables responsibilities, 10 Purchasing responsibilities etc must be created. 9. Set Values for the Relevant Profile Options: The following are the relevant profile options:

Responsibility: System Administrator Navigation: Profile/ System a. HR: Business Group: This has to be set to the Business Group Name. It cannot be set at the site level. b. HR: Security Profile: It is the same as the Business Group Name. Note1: If this option is not set, when the user tries to access the system through the responsibility, system gives an error message Your Business Group does not match with your Security Profile. Note2: Whenever a Business Group is defined, system automatically creates a security profile definition, which can be accessed in the System Profile Options form. Note3: When Oracle Applications is installed, a default Business Group called Set up Business Group is pre-defined. When the HR: Security Profile option is not set even at site level, system checks with this Default Business Group. c. MO: Operating Unit: This option associates the responsibility to the Operating Unit. The Operating Unit name has to be specified here. Apart from the above, the profile option GL: Set of Books Name must also be set for the responsibility in order to access the set of books. The Set of Books Name must be specified here. If this option is not set for a responsibility, system would pick up the set of books from the site level. Some points to be noted: 1. Based on the user, access to the inventory organization can be restricted through a DBMS package called DBMS_STANDARD. (SET_CLIENT_INFO_TRIGGERUser id is stored in a variable and Inventory Org value is associated with the same). 2. In the Employee definition form, only those organizations that have the classification HR Organization would appear in the list. 3. Employees can be shared between legal entities within a Business Group. 4. Legal Entity to Legal Entity transactions can be recorded only if the legal entities belong to a single Business Group and the Global Intercompany System is set up. 5. One legal entity can place a Purchase Order on an outside supplier and another legal entity can receive goods. For matching, Purchase Orders of other legal entities also would appear in the list. Technical Overview: Significance of Install Group Number: This number is specified while registering the Module Database users with the System Administration Module. By default, the Install

Group Number for each database user registration is 0 which indicates that single organization architecture is supported. A value greater than 0 makes a Module a component of multi-organization structure. Example: Purchase Order Form If it is single organization, directly form opens from the menu. In case of multi-org, it displays a list of organizations first and asks to choose the organization for which Purchase Order needs to be recorded. APPS Schema: All Applications code is run again the Apps schema only. The Applications Database structure is same for multiple-organization as well as non-multiple organizations architecture. Multiple Organizations Tables: Multiple Organizations is enabled in Oracle Applications by partitioning some database tables by the Operating Unit. Other tables are shared across Operating Units (and therefore across set of books). Examples of Applications with partitioned tables are Oracle Payables, Oracle Purchasing, Oracle Receivables, Oracle Projects, Oracle Sales & Marketing etc. The name of each corresponding partitioned table is the view name appended by _ALL. Significance of ORG_ID Column: Every transaction is grouped according to the organization by means of an additional column called ORG_ID in each of the tables. This column is used to track organization wise transactions and generate reports by organization. If multi-org feature is implemented, users are prompted to select an organization to enter transaction information while opening a form whereas in single org architecture, all the transactions are recorded for one organization definition across multiple modules. Convert to Multiple Organizations: Convert to Multiple Organizations is an option available in ADADMIN. This task converts a standard product group into a multiple product group. This option can be chosen only if multi-org is not already installed in database if you do not currently have multiple set of books architecture installed in the database. Before running this step, at least one operating unit must have been defined and the profile option MO: Operating Unit must have been set. The Convert to MultiOrg program does the following: Populates the ORG_ID column with the new operating unit you defined at the site level profile option MO: Operating Unit. Sets ORG_ID to NULL for records that are shared seed data. Sets the MULTI_ORG_FLAG in the FND_PRODUCT_GROUPS table to Y. The Convert to MultiOrg option is not displayed on the Database Objects menu if this flag is set to Y Runs the replicate seed data program. If you define additional operating units, the seed data is replicated for all operating units. Multiple Organizations Reporting API: Oracle Applications provides the Multiple

Organizations Reporting API that you can use to create custom multiple organizations reports. Limitations of Multiple Organizations Support: 1. Data Security: Multiple Organizations enabled products do not support viewing secured data across operating units. However, you can create custom reports or windows to view secured data across operating units by using the fulltable views. 2. Centralization/ Decentralization: Multiple Organizations enabled products process transactions within an operating unit. There is no additional support for centralization/decentralization of business functions. For example, the following combinations are not supported: centralized payables with decentralized purchasing, centralized purchasing with decentralized payables, centralized receivables with decentralized orders, and centralized disbursement with decentralized vouchering. 3. Global Supplier and Customer Registries: Supplier and customer tables are shared across operating units. However, supplier sites and customer addresses must be defined for each operating unit. For example, if multiple operating units buy from the same supplier site, the supplier site must be defined once for each operating unit. If a global customer or supplier has subsidiaries in multiple countries, a separate customer or supplier must be defined for each country. Distribution sets must be defined at the supplier site level. Specify the invoice and offset tax codes at the supplier level only if there are identical tax codes across operating units. Tax codes can be specified at the supplier site level. Centralized statements site, centralized dunning site, customerlevel order type, or customerlevel salesperson must not be specified because customer addresses, order types, and salespeople are not shared across operating units. Tax code must be specified at the customer level only if there are identical tax codes across operating units. Carrier must be specified at the customer level only if the same item validation organization is used for all operating units, because carriers are secured by inventory organizations. Order type, tax code, and carrier can be specified at the customer site level. The Customer Merge process allows merging only of addresses and sites within the same operating unit, since transactions are secured by operating unit. If a customer has active addresses in other operating units, the Customer Merge process does not make the customer inactive. In addition, the Customer Merge window does not allow deletion of the old customer/site if the old customer has addresses (active or inactive) in other operating units.

Oracle Payables has a Supplier Merge process, which works similarly to the Customer Merge process in Oracle Receivables. Standard product features show supplier and customer transactions for a given operating unit. The Supplier Customer Netting report, for example, calculates the net balance of receivable and payable transactions for the current operating unit. However, Multiple Organization provides a structure for simpler custom reports or windows to view global supplier and customer activities. 4. Receiving: Purchase orders can be received only in the operating unit to which your responsibility is connected. As before, a purchase orders shipto organization must be in the purchase orders set of books. 5. Shipping: Pick release must be run once for each operating unit. In the Confirm Shipments window, orders can be viewed across operating units. However, the Process Online option cannot be used, which processes the shipping confirmation and updates inventory online. The Update Shipping Information and Inventory Interface programs must be run in batch mode for each operating unit. 6. Internal Requisitions: Internal requisitions can be used to obtain inventory items from organizations that belong to a different operating unit, set of books, or chart of accounts. For internal sales orders, you can ship from an inventory organization belonging to another operating unit, set of books, or chart of accounts. However, intercompany payable and receivable invoices are not automatically generated for internal requisitions. 7. Inventory Transfer between Organizations: Intransit shipments across organizations in different sets of books are not supported. 8. Expense Reports: Multiple operating units for different sets of books can share the same business group. Expense Reports defaults the Accounting Flexfield on the expense report header from the employees primary assignment, provided that the primary assignment is for the same set of books as the current operating units set of books. While entering expense reports for an employee whose primary assignment is for another set of books, ensure that entry is in the appropriate Accounting Flexfield. 9. Profile Options: Since responsibilities are associated at the Operating Unit Level, several profile options have to be set at the Responsibility level and cannot be set at the Application or site level. 10. Location Flexfield Structure: Only operating units with the same Accounting Flexfield structure can share a Location Flexfield structure. If two operating units with the same tax structure cannot share the same Accounting Flexfield structure, each operating unit needs to have its own Location Flexfield structure. Location values then need to be defined for each Location Flexfield structure.

11. Tax Name for Locations: Tax names are defined for each operating unit, while locations are shared across operating units. If you assign a default tax name to a location, the tax name is a valid default only in operating units in which that tax name is defined. 12. Kits on Intercompany Invoices: When the Automatic Intercompany Invoices program generates receivable invoices for kits, individual item descriptions (rather than kit descriptions) are displayed. 13. Window and Report Titles: Report and window titles continue to show the set of books name, rather than the operating unit or legal entity name. 14. User Primary Keys: Most user primary keys only need to be unique within an operating unit. The order type name and picking batch name, for example, are exceptions; they are unique across operating units. Limitations on Multiple Operating Units per Set of Books: These limitations are applicable only when multiple operating units share the same set of books and not otherwise. 1. Tax/ Fiscal Reporting: For the other tax reports, in the products, which previously required multiple installations, tax or fiscal reporting reflects transactions in one operating unit. Legal entity reporting (such as tax reporting) that involves sub ledger products is done at the operating unit level. If all the operating units for a given set of books belong to the same tax reporting entity, one must sum the tax data manually. One must be aware of this limitation if Oracle Financials for your country provides sub ledger VAT reports. 2. Document Sequencing: Document sequencing is available at the set of books level. Legal entities for the same set of books must share document sequences. If each legal entity requires its own numbering sequence, a separate set of books must be set up for each legal entity. 3. Period Statuses: All of the operating units that share a set of books also share the same period statuses. When the period status is updated to Open in one operating unit, that period is opened for all operating units within the set of books. 4. Posting to Oracle General Ledger: When the Multiple Organizations enabled products post to Oracle General Ledger, the posting process must be run from each operating unit. The posting process for all operating units in the set of books cannot be run in a single process.