The Oracle Applications organization model defines organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
Multi-Org is an application and database enhancement that enables multiple business units(operating units) in an enterprise to use a single installation of oracle applications products while keeping transaction data separate and secure.
Major Features of Multi-org
Multiple Organizations in a Single Installation
You can define multiple organizations and the relationships among them in a single installation of Oracle Applications. These organizations can be ledgers, business groups, legal entities, operating units, or inventory organizations.
Secure Access
You can assign operating units to a security profile and then assign the security profile to responsibilities or users. If multiple operating units are assigned to the security profile, then a user can access data for multiple operating units from a single
responsibility. This ensures that users can only access, process, and report on data for the operating units they have access to.
Data Security
You can limit users to information relevant to their organization. For example, you can limit access for order administration clerks to sales orders associated exclusively with their sales office.
Inventory Organization Security by Responsibility
You can specify the inventory organizations that are available to users in each responsibility. The Choose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility.
Responsibility Determines Operating Unit
Your responsibility determines which operating units you can access when you use Oracle Applications. If you only want a responsibility to access only one operating unit, then set the profile option called MO: Operating Unit. If you want a responsibility to access multiple operating units, then define a security profile with multiple operating units assigned and assign it to the MO: Security Profile profile option. Additionally, if using the MO: Security Profile profile option, you can also set the MO: Default Operating Unit profile option to specify a default operating unit that will default in transaction entry pages.
Types of Organizations
You can define organizations and the relationships among them. You can define security for either an organization hierarchy or list of organizations.
Business Group
The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company. The business group secures human resources information. 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.
The business group drives the legislation used for
human resources and
payroll purposes. If the implementation involves employees in multiple countries, then it will likely require several different business groups, one for each country where employees are located. This assumes that the company does not seek to customize multiple legislative requirements into one business group.
The HRMS best practice recommends that a new business group should represent a country or regional level partition of data. All companies that operate in the country or regions should be represented as legal employers in the business group.
SOB/PLSet of books in 11i consists of 3Cs –
Chart of Account, calendar, currencyPrimary ledger in R12 consists of 4Cs
See the child chapter to this
http://www.oracleug.com/user-guide/basics-oracle/define-sob
Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.
You can define legal entities using Legal Entity Configurator or Accounting Setup Manager in General Ledger.
Operating Unit
- An organization that uses Oracle subledgers, such as Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales office, a division, or a department.
- In R 12 Operating units are not associated with legal entities. Operating units are assigned to ledgers and a default legal context.
- Information is secured by operating unit for these applications using responsibilities. Each user can access, process, and report on data only for the operating units assigned to the MO: Operating Unit or MO: Security Profile profile option. The MO: Operating Unit profile option only provides access to one operating unit. The MO: Security Profile provides access to multiple operating units from a single responsibility
- You can define operating units from the Define Organization window in Oracle HRMS or from Accounting Setup Manager in General Ledger.
Inventory Organization
- An organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices.
- The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization.
- You can create ledgers using the Accounting Setup Manager in Oracle General Ledger and define organizations using the Define Organization window.
HR Organization
HR organizations represent the basic work structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group. In addition to these internal organizations, you can define other organizations for tax and government reporting purposes, or for third party payments.
Information Shared Across Organizations
The following information is global. It must be set up once for the enterprise:
• Flexfield definitions
• Customer Header (customer site is at the operating unit level)
• Supplier Header (supplier site is at the operating unit level)
Setting up Multi Org R12
The following steps are required to add new operating units to your organizational structure:
1.1 Revise the Organization Structure.
1.2 Define Sets of Books (optional).
1.3 Define Locations.
1.4. Define Organizations and Relationships.
2.1 Define Responsibilities.
2.2 Set Profile Options for Each Responsibility linked to the new Operating Unit.
1.1. HR: Business Group
1.2 HR: Security Option
1.3: HR: User Type (FOR accessing HRMS functions)
1.4 HR: Cross Business Group
2.1. GL: Set of Books(11i)
2.1 GL:%Ledger% (R12)
2.3 GL: Data Access Set. This profile option to control the ledgers that can be used by Oracle General Ledger.
3.1. MO: Operating Unit
3.2. MO: Security Profile (R12)
3.3. MO: Default Operating Unit
4.1 Tax: Allow Override of Tax Code
4.2 Tax: Invoice Freight as Revenue
4.3 Tax: Inventory Item for Freight
5.1 Sequential Numbering
5.2 INV: Intercompany Currency Conversion
2.3 Run the Replicate Seed Data concurrent program.
3.1 Define Inventory Organization Security.
3.2 Define Intercompany Relations (optional).
3.3 Implement the Application Products.
4.1 Secure Balancing Segment Values (optional).
4.2 Run the Setup Validation Report (recommended).
4.3 Implement Document Sequencing (optional).
4.4 Set the top reporting level (optional).
4.5 Set up conflict domains (optional).
Share this:
Multiple Organizations Overview – R12
Multiple Organizations in a Single Installation
You can define multiple organizations and the relationships among them in a single installation of Oracle Applications. These organizations can be ledgers, business groups, legal entities, operating units, or inventory organizations.
You can assign operating units to a security profile and then assign the security profile to responsibilities or users. If multiple operating units are assigned to the security profile, then a user can access data for multiple operating units from a single
responsibility. This ensures that users can only access, process, and report on data for the operating units they have access to.
You can limit users to information relevant to their organization. For example, you can limit access for order administration clerks to sales orders associated exclusively with their sales office.
You can specify the inventory organizations that are available to users in each responsibility. The Choose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility.
Your responsibility determines which operating units you can access when you use Oracle Applications. If you only want a responsibility to access only one operating unit, then set the profile option called MO: Operating Unit. If you want a responsibility to access multiple operating units, then define a security profile with multiple operating units assigned and assign it to the MO: Security Profile profile option. Additionally, if using the MO: Security Profile profile option, you can also set the MO: Default Operating Unit profile option to specify a default operating unit that will default in transaction entry pages.
You can define organizations and the relationships among them. You can define security for either an organization hierarchy or list of organizations.
The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company. The business group secures human resources information. 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.
The HRMS best practice recommends that a new business group should represent a country or regional level partition of data. All companies that operate in the country or regions should be represented as legal employers in the business group.
SOB/PL
Set of books in 11i consists of 3Cs – Chart of Account, calendar, currency
Primary ledger in R12 consists of 4Cs
See the child chapter to this
http://www.oracleug.com/user-guide/basics-oracle/define-sob
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.
You can define legal entities using Legal Entity Configurator or Accounting Setup Manager in General Ledger.
Operating Unit
HR organizations represent the basic work structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group. In addition to these internal organizations, you can define other organizations for tax and government reporting purposes, or for third party payments.
The following information is global. It must be set up once for the enterprise:
• Flexfield definitions
• Customer Header (customer site is at the operating unit level)
• Supplier Header (supplier site is at the operating unit level)
Share this:
Security Control in Multi Org
You can limit users to information relevant to their organization. For example, you can limit access for order administration clerks to sales orders associated exclusively with their sales office.
You can specify which inventory organizations are available to users in each responsibility. The Choose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility.
Your responsibility determines which operating unit you access when you use Oracle Applications. When you use Oracle Payables, Receivables, Order Management and Shipping Execution, Purchasing, Projects, and Sales Compensation you see information that is relevant to your operating unit. All transactions you create are automatically assigned to your operating unit.
Sell from One Legal Entity, Ship from Another Legal Entity
When you enter sales orders, you can choose any inventory organization as the shipping warehouse. The shipping warehouse may be in a different legal entity than the operating unit that enters the sales order, and it may post to a different set of books.
After you choose your responsibility to perform materials management functions using Oracle Inventory, Work in Process, Bills of Materials, Master Scheduling/MRP, Capacity, or Purchasing, you must use the Choose Organization window to pick an inventory organization.
Automatic Intercompany Sales Recognition
Sales orders created and shipped from one legal entity to a different legal entity automatically generate an intercompany invoice to record a sale between the two organizations.
You can define different accounts for Trade and Intercompany Cost of Goods Sold and Sales Revenue to eliminate intercompany profit.
In addition to reporting at the operating unit level, you can report at the legal entity or set of books level.
Share this:
Human Resources Organization Model
Below this level, you represent the groupings in which employees work, such as branches, departments, or sections, by means of internal organizations. To enable the assignment of employees to an internal organization, you classify the internal organization as an HR organization.
You can define external organizations in the same way as internal organizations, so that you can represent organizations that are not part of your enterprise (such as training vendors or tax offices). The major difference between internal and external organizations is that you cannot assign people to an external organization.
Share this:
Accounting / Distribution / Materials Management Organization Model
Each organization classified as a legal entity identifies a set of books to post accounting transactions.
Operating Units Are Part of a Legal Entity
Each organization classified as an operating unit is associated with a legal entity
Inventory Organizations are Part of an Operating Unit
Each organization classified as an inventory organization references an operating unit.
Inventory Organization Determines Items Available to Order Management
The Item Validation Organization parameter specifies which Oracle Manufacturing organization is used to validate inventory items. You must define all transactable items in this organization. Some inventory item attributes for Receivables and Order Management, including Tax Code and Sales Account, are specific to an operating unit or an accounting flexfield structure. Therefore, you should define an item validation organization for each operating unit.
Inventory Organization Determines Items Available to Purchasing
The inventory organization you specify in the financial options for each operating unit determines the items available in Purchasing. You can only choose an inventory organization that uses the same set of books as your operating unit.
Share this: