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MOAC Setups (Multi-Org Access Control) in R12

Multi-Org Access Control’ (also known as ‘MOAC’ in short form) is an enhanced feature of Release 12. MOAC enables users to access secured data in multiple operating units from a single responsibility. End-Users can access/transact data within several operating units based on a Security Profile attached to the responsibility.   

                                                            MOAC Setups
1. Define Responsibilities for GL, AP,AR,FA,CM.
2. Define Business Group.
3.Define Ledger.
4.Define Operating Unit.
5. Define Security Profile.
6. Run Security List Maintenance Program.
7. Assign Security Profile to Responsibilities.  
8. Run Replicate Seed Data Program. 

 1. Define Responsibilities for GL, AP,AR,FA,CM.

Navigation: System Administrator –> Security –> Responsibility –> Define.

Responsibility for GL.

 Responsibility for HRMS.


   Responsibility for AP.

    
  Responsibility for AR.


Responsibility for FA.

                                                     

Responsibility for CM.


Setup 2: Define Business Group
Navigation: HRMS –> Work Structures –> Oraniazation –> Description.
Click on New button.


 Click on Others.
Select Business Group information.

  
Click on Ok and Save.

Once we created the business group system default assigned the business group to your HRMS Responsibility.

 Assign Business group to your HRMS Responsibility.
Navigation:  System Administrator –> Profile –> Systems.

Setup 3: Define Ledger.

Setup 4: Define Operating Unit.

Setup 5: Define Security Profile.
The security profile determines which applicant, employee, contingent worker and other person type records are available to holders of the responsibility the profile is linked to.
You can define security profiles in the Security Profile window to give access to a single business group or the Global Security Profile window (to allow users to access records from more than one business group).
Using the Global Security Profile window does not give Oracle HRMS users access to records from multiple business groups within the same responsibility; users must still switch responsibilities to see records from different business groups. However, HRMS users can see a restricted set of information in records from more than one business group within a single responsibility if the HR:Cross Business Profile profile option is set to Yes. In addition, you can use people management templates to query and update worker information across business groups using a single responsibility.
Navigation: HRMS –> Security –> Profile.
Click on Save.
Note: The above security profile will access only single business group information.

 6. Run Security List Maintenance Program.

Navigation: HRMS –> Processes and Reports –> Submit Processes and Reports —> Single Request
Click on Ok and click on Submit.
Global Security Profile:
  
By using Global security Profile we can access one or more business group at a time under single Responsibility.
Navigation: HRMS –> Security –> Global.
 Click On save.
 Run Security List Maintenance Program.
Navigation: HRMS –> Processes and Reports –> Submit Processes and Reports —> Single Request

Click ok and then submit.

7. Assign Security Profile to Responsibilities.
Navigation: System Administrator –> Profile –> System
Click on Find.
  Save.
8. Run Replicate Seed Data Program.
Navigation: System Administrator –> Request –> Run –> Single Request
 Click ok and submit.


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Intercompany Invoicing Cycle

2.1. Intercompany Invoicing Cycle

When a sales order is entered in an operating unit, and if the shipping warehouse is part of a separate operating unit (may also belong to another SOB), then the goods can be shipped from the said shipping organization and the selling organization generates a customer invoice. Also the system automatically records an intercompany sale between the shipping organization and the selling organization by generating intercompany invoices. This is called Intercompany invoicing.

After entering the order in Selling operating unit, you can pick release and ship confirm the order from Shipping Operating unit. Then the following programs need to be run to ensure necessary Intercompany invoices are created ..

  1. Launch the Cost Manager in Inventory > Setup > Transactions > Interface Managers. If it is not active then go to Tools  and Launch Manager. Intercompany Invoices will not be generated unless this manager is active.
  2. In Shipping OU run ‘Create Intercompany AR Invoices’. Ensure that the items shipped have a price for ‘Internal Price List’.
  3. In Shipping OU run ‘Receivables AutoInvoice Program’
  4. In Selling OU run ‘Create Intercompany AP Invoices’. Ensure that the conversion rates between the functional currencies of above SOBs exist for the current date and GL period is open in both OUs.
  5. In selling OU run ‘Expense Report Import’ (Payables)

2.1.1. Transaction Steps

Create an Order in ‘Vision Operations’ OU and schedule it from D1 warehouse under ‘Singapore Distribution Centre’ OU as ..


After Pick release and shipconfirm the order, the delivery associated with the line is closed as ..

  • The Create Intercompany AR Invoices process creates invoice lines for order shipment transactions in Oracle Inventory where the shipping warehouse does not belong to the order entry operating unit.
  • The Oracle Receivables AutoInvoice program processes the records inserted into the interface tables by the Create Intercompany AR Invoices process.
  • Find the AR Invoice that has been generated in Shipping OU by querying for source ‘Intercompany’ and optionally by the Sales Order.

  • Create Intercompany AP Invoices process creates records in Payable invoices interface tables.
  • The Oracle Payables ‘Expense Report Import’ program processes the records inserted into the interface tables by the Create Intercompany AP Invoices process. All invoices created by the Create Intercompany AP Invoices program have Intercompany as their source.
  • Find the Payables Invoice that has been generated in Selling OU by querying for supplier and today’s date.

  • The customer invoice automatically gets created if the ‘Workflow background process’ is running. Find it in Selling OU by querying for the transaction source as ‘ORDER ENTRY’ and with a date range.

2.2. Set up steps

The below set-up steps are necessary for proper functioning of Intercompany invoicing cycle ..

  1. Define a customer and customer site in the selling operating unit.
  2. Define a supplier and supplier site in the shipping operating unit.
  3. Define Intercompany Relations
  4. Define price for the items in  ‘Internal Price list’

The organization itself is defined as a customer ‘Vision’, having a customer site in the selling operating unit as ..

The organization itself is defined as a supplier ‘Vision’, with a supplier site in the shipping operating unit as ..

Define Intercompany Relations as ..

Define price for the items in  ‘Internal Price list’ ..

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How to Assign Item from One Organization to Another Organization in Oracle

Item Organization Assignment setup…
  1. Create Organization Hierarchy
    Nav: Inventory → Setup → Organization → Hierarchy
  2. Organization Name is Source Organization
  3. Subordinates is Destination Organization
    Note: You can add more than one subordinates(Destination Organization)
     
    Run Request : Item Organization Assignment
    Nav: View → Requests → Submit New Requests → Single Requests → Item Organization Assignment
Enter the Parameter
  1. Source Organization = From Organization
  2. Hierarchy Origin = Destination Organization
  3. Hierarchy = Which you created Organization Hierarchy name
  4. Category set Name = At least one Category set name required.
  5. Request Count = 1
Click (B) ok
 
After Completing the Request 
You can run the Item Status report and view the output which is assigned the against the Organization.
 
Run the Request Item Status Report and View Output

View Output Item
 
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Oracle EBS Valuation and Other Accounts

Valuation Accounts

You choose a default valuation account when you define organization parameters. Under standard costing, these accounts are defaulted when you define subinventories and can be overridden. Under average costing, these accounts (except for Expense) are used for subinventory transactions and cannot be updated.

Material An asset account that tracks material cost. For average costing, this account holds your inventory and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
Resource An asset account that tracks resource cost.
Overhead An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
Expense The expense account used when tracking a non-asset item.

Other Accounts

Sales The profit and loss (income statement) account that tracks the default revenue account.
Cost of Goods Sold The profit and loss (income statement) account that tracks the default cost of goods sold account.
Purchase Price Variance The variance account used to record differences between purchase order price and standard cost. This account is not used with the average cost method.
Inventory A/P Accrual The liability account that represents all inventory purchase order receipts not matched in Accounts Payable, such as the uninvoiced receipts account.
Invoice Price Variance The variance account used to record differences between purchase order price and invoice price. This account is used by Accounts Payable to record invoice price variance.
Encumbrance An expense account used to recognize the reservation of funds when a purchase order is approved.
Average Cost Variance
Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing your inventory before your receipts.




Note: For standard costing, only the Purchase Price Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults to speed your set up.
Note: For average costing, only the Material, Average Cost Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults or are not required.

Inter-Organization Transfer Accounts

You define default inter-organization transfer accounts in the Organization Parameters window. These accounts are defaulted when you set up shipping information in the Inter-Organization Shipping Networks window.
Transfer Credit
The default general ledger account used to collect transfer charges when this organization is the shipping organization. This is usually an expense account.
Purchase Price Variance
The default general ledger account used to collect the purchase price variance for inter-organization receipts into standard cost organizations. This is usually an expense account.
Payable
The default general ledger account used as an inter-organization clearing account when this organization is the receiving organization. This is usually a liability account.
Receivable
The default general ledger account used as an inter-organization clearing account when this organization is the shipping organization. This is usually an asset account.
Intransit Inventory
The default general ledger account used to hold intransit inventory value. This is usually an asset account. For average cost organizations, this account is the default material account.

Defining Other Account Parameters

To define Receiving Account information:
1. Navigate to the Organization Parameters window.
2. Select the Other Accounts alternative region.
3. Enter a general ledger account to accumulate Purchase Price Variance for this organization.
This is the variance that you record at the time you receive an item in inventory, and is the difference between the purchase order cost and an item’s standard cost. Purchase price variance is calculated as:
PPV = (PO unit price – standard unit cost) X quantity received
Purchase price variance is not used for average costing.
4. Enter a general ledger account to accumulate Invoice Price Variance for this organization. This is usually an expense account.
Invoice price variance is the difference between the purchase order price for an inventory item and the actual invoice price multiplied by the quantity invoiced. Oracle Inventory passes this account to Oracle Purchasing when the requisition or purchase order is created. When Oracle Payables matches and approves the invoice, Oracle Payables uses the invoice price variance account from the purchase order to record invoice price variance entries. In addition, if you have exchange rate variances, Oracle Payables also records invoice price variance for exchange rate gains and losses.
5. Enter a general ledger account to accumulate Inventory Accounts Payable Accrual for this organization.
This is the account used by Oracle Purchasing to accrue your payable liabilities when you receive your items. This account represents your uninvoiced receipts and is usually part of your Accounts Payable Liabilities in the balance sheet. Oracle Payables relieves this account when the invoice is matched and approved.
6. Enter a default general ledger account to accumulate Encumbrance for this organization. This is the default account when you define your subinventories.
To define Profit and Loss Account information:
1. Select the Other Accounts alternative region.
2. Enter a default Sales revenue account.
When you define your items, this account is defaulted to the item’s sales account in the Invoicing attribute group.
3. Enter a default Cost of Goods Sold account.
When you define your items, this account is defaulted to the item’s cost of goods sold account in the Costing attribute group.
To define Average Cost Account information:
1. Select the Other Accounts alternative region.
2. Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing your inventory before processing your receipts. This account is required only when using average costing.
3. Save your work.

Subinventory General Ledger Account Fields

Material
Enter a general ledger account to accumulate material costs for items received into this subinventory. This is usually an asset account used for the value of goods stored in this subinventory.
For asset items, you use this account as a default when you generate purchase requisitions from MRP, min-max organization level planning, or reorder point planning. However, when you receive the purchase order, you use the appropriate valuation or expense account.
Outside Processing
Enter a general ledger account to accumulate outside processing costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you receive items for a job or schedule in Oracle Purchasing. Oracle Work in Process relieves this account at standard cost when you issue components to a job or schedule.
Material Overhead
Enter a general ledger account to accumulate material overhead or burden costs for this subinventory. This is usually an asset account.
Overhead
Enter a general ledger account to accumulate resource or department overhead costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you complete assemblies from a job or schedule. Oracle Work in Process relieves this account at standard when you issue components to a job or schedule.
Resource
Enter a general ledger account to accumulate resource costs for this subinventory. This is usually an asset account. Oracle Work in Process charges this account at standard cost when you complete assemblies from a job or schedule. Oracle Work in Process relieves this account at standard cost when you issue components to a job or schedule.
Expense
Enter a general ledger account to accumulate expenses for this subinventory. For expense subinventories, this account is charged when you receive any item. For asset subinventories, this account is charged when you receive an expense item.
Encumbrance
ORACLE PURCHASING ONLY
Enter a general ledger account to hold the value of encumbrances against items in this subinventory. This account is used for purchase order receipts and returns.
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Intercompany Invoicing Setups

1. For a single process flow (one procure-to-pay cycle or order-to-cash cycle), you can model Oracle to generate intercompany invoices between two or more operating units. The building block of intercompany invoicing is the setup of intercompany transaction flow.
The intercompany transaction flow establishes the physical flow of goods and financial flow relationship between two operating units. The intercompany transaction flow establishes the relationship between one operating unit (known as Start Operating Unit) and another operating unit (known as End Operating Unit) about the actual movement of goods. Similarly, it also establishes the invoicing relationship between Start Operating Unit and End Operating Unit.
2. Intercompany transaction flow is of two types – shipping flow and procuring flow. You need to setup intercompany transaction flow of type shipping when selling operating unit is different from shipping operating unit. You need to setup intercompany transaction flow of type procuring when buying operating unit is different from receiving operating unit.
 
3.1 By enabling advanced accounting for an intercompany transaction flow, you would be able to generate multiple intercompany invoices between different operating units for the same physical movement of goods.
Oracle supports intercompany invoicing for both shipping and procuring flows. However, you need to use the ‘Advanced Accounting’ option for enabling intercompany invoicing for procuring flow even if it involves only two operating units. If you do not enable ‘Advanced Accounting’ option at the intercompany transaction header, then no logical transactions will be generated and no intermediate nodes can be defined
3.2 You need to define intercompany relations between each pair of operating units in the intercompany transaction flow. When advanced accounting is enabled for an intercompany transaction flow, you will be able to define multiple intercompany relationships between different operating units. If advanced accounting is set to No, then an intercompany transaction flow can have only one intercompany relation (it is between start operating unit and end operating unit).
 
At each pair of intercompany relationship, you will define the intercompany accounts, and currency code to be used on AR and AP invoices.
Note that in Figure 3.1 – Intercompany Transaction Flow, physical goods never flow through intermediate operating unit. Oracle creates ‘Logical Material Transactions’ between the operating units, based on which intercompany invoices between multiple operating units are raised.
3.3 No logical transactions will be created when you do not choose ‘Advanced Accounting’. For example, the transactions in Figure 4 can be broken down as depicted in Figure 6.
 
Logical transactions are useful to record financial transactions between two operating units without physical movement of goods. For example, in Figure 3.2 – Logical Material Flow, Vision Japan is an intermediate operating unit through which no physical goods flow. However, it is a financial intermediate node, which is involved in intercompany invoice flow. To facilitate accounting in the intermediate OUs, logical intercompany receipt and issue transactions are created. Similarly, logical receipt and logical sales order issue transactions are created for those receipts and issues that are not accompanied with physical receipt and issue of goods.
3.4 Advanced Accounting’ option is not available for internal requisitions – internal sales order business flow. Though you can set the ‘Advanced Accounting’ flag at Intercompany Transaction Flow header to ‘Yes’, system ignores the flag and does not generate any logical transactions. This means you cannot have an intermediate financial node in the intercompany transaction flow. Also, you cannot have intercompany invoicing for internal sales order with direct transfer (in shipping network between the inventory organizations) as an option. You have an flexibility to switch off intercompany invoicing for internal sales orders by setting the profile ‘INV: Intercompany Invoice for Internal Orders’ to No.
Intercompany invoicing is possible for inter-org transfers of type ‘In-transit’ only through ‘Internal sales Orders’. No intercompany invoicing is possible if you perform org transfers between two inventory orgs belonging two different operating units without ‘internal sales Orders’. Also note that intercompany invoice cannot be raised for inter-org transfers of type ‘Direct Transfer’ through Internal sales Orders.

Customer and Supplier relationship
Intercompany invoicing is widely used in multinational organizations. Sometimes you will find that these companies engage in a customer – supplier relationship.
For example, in above Figure you need to define Vision Japan as a customer in Vision China operating unit. Similarly, Vision China should be defined as a supplier in Vision Japan. When you define an intercompany relationship between Vision Japan and Vision China, actually you are establishing an internal customer and supplier relationship. Similar is the case for every intercompany relationship in an intercompany transaction flow. However, at present intercompany invoicing does not support any sales credit check.
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