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MULTI ORG in Oracle Application

The ability to define multiple organizations and the relationships among them within a single installation of Oracle Applications is called multi organization or Multi-org. Multi Org is the future used to store the data of multiple organizations in a single Database instance.
Basic Business Needs:

  • Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of books.
  • Define different organization models.
  • Support any number of legal entities within a single installation of Oracle Applications.
  • Secure access to data so that users can access only the information that is relevant to them.
  • Sell products from a legal entity that uses one set of books and ship them from another legal entity using a different set of books, and automatically record the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices.
  • Purchase products through one legal entity and receive them in another legal entity.

Basically the different entities in multi-org are:

  • Business Group (BG)
  • Sets of Books (SOB)
  • Legal entities (LE)
  • Operating units (OU)
  • Inventory organizations (IO)

Organization Structure Example:

Business Group (BG):
The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an Operation Company. A BG is used to secure human resources information like generation of employee numbers, generation of applicants, position flex fields, Job flexfields, Grade Flex field, Fiscal year, etc.
Set of Books (SOB):
A SOB is a collection of Currency, Calendar and Chart of Accounts (COA). Oracle General Ledger is used to secure Journal transactions (such as journal entries and balances) of a company by set of books. For each organization of the Business Group we need to define a set of Book. A company which operates in separate cities or separate line of businesses may separate their accounting transactions across units through separate Set of Books. A Business Group can have one or more set of Books.
Legal entities (LE):
A legal entity represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to these types of organizations. Separate Legal Entities may share same set of Books.

Operation Unit (OU):
An operating unit is a division or a Business unit of the legal entity. At this level we are going to maintain the information of sub‐ledgers. We are going to maintain the ledgers at Legal Entity level. Receivable, Payables, Assets, etc. are comes under Operation Unit level. Each user sees information only for their operating unit. Responsibilities are linked to a specific operating unit by the MO: Operating Unit profile option.

Inventory organizations (IO):
An inventory organization represents an organization for which you track inventory transactions and balances, and manufactures or distributes products. Examples include manufacturing plants, warehouses, distribution centers, and sales offices. The following products and functions secure information by inventory organization: Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and purchasing receiving functions. To run any of these products or functions, you must choose an organization that is classified as an inventory organization.

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How to run Discoverer Reports in Multi-Org Environment?

How to run Discoverer Reports in Multi-Org Environment?

When you are working in R12 MOAC environment, sometimes discoverer reports which are based on some context based view will not give data. Then do the following setup to make the discoverer reports work in MOAC environment.
1)      Create a Security Profile in HR
1)      Run concurrent program Security List Maintenance

1)      Tag this profile to MO: Security Profile option at responsibility level.
1)      Update profile option “Initialization SQL Statement – Custom” with following pl/sql block at responsibility level.
begin if (fnd_profile.value(‘XLA_MO_SECURITY_PROFILE_LEVEL’)= 0) then mo_global.init(‘S’); else GL_SECURITY_PKG.init(); mo_global.init(‘M’); end if; end;
When multiple organizations are included in Security Profile: TEST SECURITY PROFILE, This profile is attached to resp Discoverer EUL Management.
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Shared Entities in Oracle EBS

Shared entities can be referenced by multiple products. These entities allow you to define broad-level structures that help you to include members when implementing the E-business suite. Which business unit will own specific data in a shared entity is at the discretion of the compnay. Employee data is always owned by human resources, provided the E-business suite is installed.

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Implementing Multiple Organization Support

Step 1: Develop the Organization Structure
A successful implementation of Multiple Organization support in Oracle Applications depends primarily on defining your organizational structure in the multi-level hierarchy used by Oracle Applications. The levels are:
• Business groups
• Primary ledgers (as defined in Accounting Setup Manager)
• Legal entities
• Operating units
• Inventory organizations
 
Step 2: Define Accounting Setups
Use the Accounting Setup Manager in Oracle General Ledger to define accounting setups that include the following common financial components:
One or more legal entities (optional)
Primary ledger
  • Reporting Currencies (optional)
  • Balancing segment value assignments (optional)
  • Subledger Accounting Options
Operating Units (available if legal entities are assigned)
  • Intercompany Accounts (available if legal entities are assigned)
  • Intracompany Balancing Rules (optional)
Sequencing (optional)
Secondary Ledger (optional)

To use multiple organizations, you must define an accounting setup with at least one legal entity, a primary ledger that will record the accounting for the legal entity, and an operating unit that is assigned to the primary ledger and a default legal context (legal entity). It is also recommended that balancing segment values be assigned to the legal entity to help you identify legal entity transactions during transaction processing and reporting and to take advantage of Intercompany Accounting.
Note: If your enterprise structure requires that you define a business group, you should define accounting setups before business groups.
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Installation step 1.1 – Create legal entity
Once the installation of R12 is complete, log into the system with user id and password as sysadmin/sysadmin and create the user who ‘ll handel the Accounting part. Assign Grants Accounting Super User to the user

Go to the grants accouting super user responsibility and define a new legal entity.
Navigation : Grants accouting super user ->Set up -> Financials -> Accounting setup manager -> Accouting setups

Installation step 1.2 – Accounting Setup

Installation step 1.2.1 – Chart of Account

Lets define a six segment chart of account as shown below

Navigation : Grants accouting super user ->Set up -> Financials -> Flexfields-> Key ->Segments

 Installation step 1.2.1 – Calendar
 

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