, , , , ,

Organization in R12

Define the following organizaions as per the requirement of business
i. Business group
ii. Legal Entity
iii. Operating Units
iv. Organization
External organizations (for example, tax offices, insurance carriers, disability organizations, benefit carriers, or recruitment agencies)
Internal organizations (for example, departments, sections or cost centers)
Creating an Organization
1. Enter a name for your organization in the Name field. A check is performed to see if organizations with the same name already exist.
All Oracle applications you install share the information entered in the Organization window. Therefore organization names must be unique within a business group, and business group names must be unique across your applications network.
You can create two organizations with the same name in different business groups but this can cause confusion later, if the HR: Cross business group profile option is set to Yes and you decide to share certain information across all business groups. If you decide to create two organizations with the same name, be sure that this will not cause you problems in the future.
2. Optionally, select an organization type in the Type field.
Organization types do not classify your organization, you use them for reporting purposes only. The type may identify the function an organization performs, such as Administration or Service, or the level of each organization in your enterprise, such as Division, Department or Cost Center.
3. Enter a start date in the From field. This should be early enough to include any historical information you need to enter.
Note: You cannot assign an employee to an organization before the start date of the organization.
4. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or office number.
If you are using Oracle Payroll in the US, every organization to which employees can have assignments, including business groups, must have on record a location with a complete address. This is because the system uses the location of the organization of the employee’s primary assignment to determine employee work locations for tax purposes. This does not apply to GREs, because the assignment to a GRE exists in addition to the assignment to an organization.
For Dutch users only, if you are setting up external organizations for a tax office, a social insurance provider or a private health insurance provider, you must enter the postal address and contact details using the NL_POSTAL_ADDRESS Location EIT.
Note: If you are an Oracle Inventory user, then you must not assign a location to more than one organization classified as an Inventory Organization.
5. Enter internal or external in the Internal or External field. You cannot assign people to an external organization.
Examples of external organizations that may require entry are disability organizations, benefits carriers, insurance carriers, organizations that employees name as beneficiaries of certain employee benefits, and organizations that are recipients of third party payments from employees’ pay.
 
 
Inventory : Setup -> Organizations -> Organization
 
Enter Organization Classifications & Additional Information
1. Business Group
Business Group Information.
Budget Value Defaults.
Work Day Information.
Benefits Defaults.
PTO Balance Type.
Recruitment Information.
Payslip Information.
Self Service Preference Information.
2. Attaching Set of Books to Legal Entity
 
3. Attaching Set of Books & Legal Entity to Operating Unit
4. Attaching Operating Unit to organization
/by
, , , , , , , , , ,

Inter Company

More and more companies are doing business globally, and taking advantage of the operations and tax benefits that can be achieved by running operations throughout the world. These companies have multiple operating units and organizations around the world. When goods are shipped or received, the financial ownership through these organizations does not necessarily follow the physical movement of goods. Oracle Applications support three main logistics needs of global organizations – Central Distribution, Central Procurement and Drop Ship.
  • Central Procurement (P2P)
  • Central Distribution (IR ISO)
  • Drop Ship
    1.  External (O2C)
     2. Internal (O2C)
A corporation manages its global operations in various countries through a network of subsidiaries, separate legal entities, licensees and several associated label franchisee. This complex network of operations is necessitated to take care of local legal and fiscal environment, which prevail in each of those countries.
Consider the below example:
Vision Operations (V1) is based in USA. It has a 100 % owned subsidiary company called Vision Asia (VA). VA in turn has two subsidiaries – Vision Japan (VJ) and Vision China (VC). VJ has manufacturing facilities in Osaka (O1) and distribution center at Tokyo (T1). Due to tax advantages, V1 sources all the goods from china through VJ. Though the financial transactions between V1 and VC are routed through VJ, logistic movement of goods takes place directly between V1 and VC.
Continuing the above example, Vision Operations (V1) has another subsidiary company called Vision Singapore (VS), 100 % that it owns. Individual plants procure components from their own suppliers. VS centralizes all the commodity (like steel, Aluminum etc.,) procurement needs of Vision Operations across Overview of Intercompany Invoicing 1 world and procures the material on behalf of all VJ and its subsidiary plants and places purchase orders on its suppliers. However, material is directly shipped from the suppliers to all the manufacturing plants.

Fig1
A key requirement for the global implementation of Oracle applications in such a complex business environment is the ability to process “intercompany transactions,” where one business unit (across OUs)invoices another for transfer of goods and services. Often these intercompany transactions involve transactions related to general expenses, funds transfer, salary transfers, asset transfers, royalty payments and product transfers.
For example, the organization structure depicted in figure 1 can be modeled in Oracle applications as depicted in Figure 2.

Following are the key implementation points you need to look into:
  • Understand the corporation business entities and the relationship between them. Identify selling-shipping relationships and procuring-receiving relationships.
  • Understand Oracle multi org structure and the building blocks in data structure.
  • Breakup the business relationships into manageable process flow and map it to various entities in Oracle applications.
/by
, ,

WIP accounting classes

An accounting class is a group of various General Ledger accounts which allows you to arrive at job cost, production cost and maintenance costs.

The following are different accounting classes in Oracle WIP:

1) Standard discrete
Standard discrete accounting classes can be used to group job costs for building subassemblies and finished goods on shop floor. You can define and attach this accounting classes so that you can separately value and report the costs associated with subassembly and finished goods production.

2) Asset non standard discrete
If you use non-standard discrete jobs to track production costs as assets, you can define and assign an accounting class with a type of asset non-standard. Asset non-standard discrete jobs are costed the same as standard discrete jobs. Valuation accounts are charged when material is issued to a job and final costs and variances are calculated and posted to the appropriate variance and valuation accounts when the job is closed.

3) Expense non-standard discrete
Non-standard discrete accounting classes can be used to group and report various types of non-standard production costs, such as field service repair. For example to track recurring expenses – machine maintenance or engineering projects- with non-standard jobs, you can define and assign an accounting class with a type of expense non-standard to these jobs. The valuation accounts carry the costs incurred on these expense jobs as an asset during the period and automatically writes them off to the variance accounts at period close.

4) Repetitive accounting class
Repetitive accounting classes are used to group production costs and must be assigned to each repetitive line/assembly association that is created. Every repetitive schedule for that assembly on that line uses these accounts.

5) Standard Lot based
Standard lot based jobs control the material, resources, and operations required to build an assembly and collect costs. When you build lot based jobs, the standard lot based accounting class is used to separately value and report costs associated with yielded production at each individual operation on the routing.

6) Expense non standard lot based
Expense non-standard lot based accounting class jobs control material and collects costs for miscellaneous activity. These jobs are used for expense work orders for testing, prototypes, and rework where operation yield costing is not considered. You can perform all transactions (moves, jumps, scrap, splits, and update assemblies or routings) with the exception of job merge.

7) Maintenance accounting class
Maintenance accounting classes are used to group costs for work orders used in Oracle Enterprise Asset Management (eAM) Module . For example, if you are creating work orders for plant maintenance activities, you can define your accounting classes to separately value and report the costs related to asset.

The following valuation and variance accounts are associated with each accounting class.

Valuation accounts
1) Material account
2) Material overhead
3) Resource
4) Overhead
5) Outside Processing

Variance accounts
1) Material account
2) Material overhead
3) Resource
4) Overhead
5) Outside Processing
6) Standard cost
7) Bridging
8) Expense

Standard cost account is applicable to only standard costing method and Bridging and Expense accounts are applicable to average costing method only. Rest all accounts are applicable to both standard and average costing methods.

/by
, ,

Item Instance Movement Tracking

Oracle Installed Base can track an item instance from the time that it is received in inventory, in work in process, in projects, at customer sites, and throughout the return and repair process.


Item Instance Attribute Change Tracking
Oracle Installed Base is a centralized repository of information for an item instance and its tracking details including location, status, ownership, party role, and contact relationships. It also supports the creation and maintenance of Oracle Installed Base configurations.
Counters can be tied to item instances so that usage can be captured. For example, if an item instance is an electrical meter, then counters can be used to store the meter reading, thus recording the usage that in turn generates revenue.

History of Item Instance Changes
Oracle Installed Base records a history of changes to item instances.
For each item instance in Oracle Installed Base, a history of transactions is tracked and stored. Given a particular time frame, these transactions and the state of the attributes during that time can be viewed.
The transaction history includes a list of inventory, work in process, order management, and other transactions affecting an item’s tracking attributes.
/by
, , , ,

Tracking Transactions using Install Base


The Oracle applications that use Oracle Installed Base are shown the picture.
Several Oracle Order Management, Purchasing, Inventory, Work in process transactions interact with Oracle Installed Base. Oracle Installed Base can track both shippable and non-shippable items.
Purcahse Order
In case of purchase orders when the receipt of materials is completed, system increases the Inventory on hand. If installed Base is used then the tracking of the material is also started with the receipt completion. Installed Base creates an item instances for each of the received items which are marked as ‘Tracked in Installed Base’.
Order Management
A sales order shipment generates an Inventory Issue material transaction in Oracle Inventory application. Because Oracle Installed Base also tracks the internal inventory for trackable items, the instance already exists in Oracle Installed Base. A shipment can result in a change in instance location and ownership, status, and so on, based on the associated Oracle Installed Base transaction subtype.
/by