multi org (2).doc

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Multi Org(Multiple Organizations)

The Oracle Applications organization models define organizations and the relationships amongthem in arbitrarily complex enterprises. This organization model serves as the cornerstone for all

of the Oracle Applications products. It dictates how transactions flow through differentorganizations and how those organizations interact with each other.

Generally, a complex enterprise has several organization structures, such as Internal,Accounting, and uman !esources. "ou are able to define different structures to customize

Oracle Applications according to your business needs.

Basic Business Needs

Oracle Applications provides you with the features you need to satisfy the following basicbusiness needs#

$. %se a single installation of any Oracle Applicationsproduct to support any number oforganizations, even if those organizations use different sets of boo&s.

'. (efine different organization models

). *upport any number of legal entities within a single installation of Oracle Applications.

+. *ecure access to dataso that users can access only the information that is relevant to

them.

. *ell products from a legal entitythat uses one set of boo&s and ship them from another

legal entity using a different set of boo&s, and automatically record the appropriate

intercompany sales by posting intercompany accounts payable and accounts receivableinvoices.

-. urchase products through one legal entityand receive them in another legal entity.

Major Features

Multiple Organizations in a Single Installation

"ou can define multiple organizations and the relationships among them in a single installation

of Oracle Applications. These

organizations can bebusiness groups, sets of boo&s, legal entities, operating units, or inventoryorganizations.

/hen you run any Oracle Applications product, you first choose an organization0either

implicitly by choosing a responsibility, or explicitly in a 1hoose Organization window. 2achwindow and report then displays information for your organization only. Organizations that

share the same functional currency, Accounting 3lexfield structure, and calendar can post to the

same set of boo&s.


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Secure Access

"ou can assign users to particular organizations. This ensures accurate transactions in the correct

operating unit.

Sell And Ship Products From Dierent !egal "ntities

"ou can sell from one legal entity and ship from another, posting to each organization4s set ofboo&s.

#ecei$e %oods Into An& In$entor& Organization

"ou can enter purchase orders and assign for receipt any inventory organization that uses the

same set of boo&s. "our purchase order operating unit and receiving inventory organization must

share the same set of boo&s to receive against a purchase order.

Automatic Accounting or Internal #e'uisitions

"ou can create an internal re5uisition 6sales order7 in one organization, then ship from another

organization, with correct intercompany invoicing.

Multiple Organizations #eporting

"ou can set up your Oracle Applications implementation to allow reporting across operatingunits by setting up the top reporting level. "ou can run your reports at the set of boo&s level,

legal entity level, or operating unit level

&pes o Organizations

"ou can define organizations and the relationships among them.

"ou create sets of boo&s using the (efine *et of 8oo&s window in Oracle General 9edger. "ou

define all other types of organizations using the (efine Organization window.

* Business %roup

Thebusiness group represents the highest level in the organization structure, such as the

consolidated enterprise, a ma:or division, or an operation company. The business group secures

human resources information. 3or example, when you re5uest a list of employees, you see allemployees assigned to the business group of which your organization is a part.

;ote# This is true in all applications except the ! applications, which support more granular

security by a lower


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-* !egal "ntit&

A legal company for which you prepare fiscal or tax reports."ou assign tax identifiers and other

legal entity information to this type of organization.;ote# There are currently only a few features provided for legal entities, such as intrastat

movement reports and

intercompany invoice generation.

-*+ Balancing "ntit&

!epresents an accounting entity for which you prepare financial statements. This is a segment in

the Accounting 3lexfield structure 6usually the 1ompany segment7 at which all accounting

entries must balance. There may be multiple companies within the same structure, and each ofthese must balance within itself. 2ach legal entity can have one or more balancing entities. "ou

can use 3lexfield >alue *ecurity rules to restrict data entry of balancing segment values by legal

entityor operating unit.

.* Operating /nitAn organization that uses Oracle 1ash =anagement, Order =anagement and *hipping

2xecution, Oracle ayables, Oracleurchasing, and Oracle !eceivables. It may be a sales office, a division, or a department.

An operating unit is associated with a legal entity.

Information is secured by operating unit for these applications. 2ach user sees information onlyfor their operating unit. To run any of these applications, you choose a responsibility associated

with an organization classified as an operating unit.

0* In$entor& Organization

An organization for which you trac& inventory transactions and balances, and?or an organization

that manufactures or distributes products.2xamples include 6but are not limited to7manufacturing plants, warehouses, distribution centers, and sales offices. The following

applications secure information by inventory organization#Oracle Inventory, 8ills of =aterial, 2ngineering, /or& in rocess, =aster *cheduling?=!,

1apacity, and urchasing receiving functions.

To run any of these applications, you must choose an organization that has been classified as an

inventory organization.

1* 2# Organization

! organizations represent the basic wor& 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 organizationsfor tax and government reporting purposes,or for third part payments.

3* Organizations in Oracle Projects

Oracle ro:ects allows you to define organization hierarchies to reflect your company4sorganizations structure. "ou can add Oracle ro:ects


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you to better manage your pro:ect control re5uirements. "ou assign pro:ect and expenditure

hierarchies to operating units.

4* Asset Organizations

An asset organization is an organization that allows you to perform asset


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In$entor& Organizations are Part o an Operating /nit

2ach organization classified as an inventory organization references an operating unit.

In$entor& Organization Determines Items A$aila6le to Order Management

The Item >alidation Organization parameter specifies which Oracle =anufacturing organizationis used to validate inventory items. "ou must define all transactable items in this organization.

*ome inventory item attributes for !eceivables and Order =anagement, including Tax 1ode and*ales Account, are specific to an operating unit or an accounting flexfield structure. Therefore,

you should define an item validation organization for each operating unit.

In$entor& Organization Determines Items A$aila6le to Purchasing

The inventory organization you specify in the financial options for each operating unit

determines the items available in urchasing. "ou can only choose an inventory organization

that uses the same set of boo&s as your operating unit.

2uman #esources Organization Model

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/ith Oracle uman !esources, you can define multilevel organization hierarchies, with a

business group at the top of each hierarchy. /hen you define new organizations, they areautomatically assigned to the business group associated with your current session. 2ach

organization is part of a business group. The business group is usually the top box on an

enterprise organization chart, as shown in below figure.


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The business group is the largest organizationunit you set up in uman !esources to represent

your enterprises as an employer. After defining one or more business groups for your enterprise,you set up one or more government reporting entities 6G!2s7 within each business group. The

G!2 is the organization that federal, state, and local governments recognize as the employer.

8elow this level, you represent the groupings in which employees wor&, such as branches,

departments, or sections, by means of internal organizations.To enable the assignment ofemployees to an internal organization, you classify the internal organization as an !

organization.

"ou can defineexternal organizationsin the same way as internal organizations, so that you can

represent organizations that are not part of your enterprise 6such as training vendors or taxoffices7. The ma:or difference between internal and external organizations is that you cannot

assign people to an external organization.

Securit& 7ontrol

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7ontrolling Secure Access

Data Securit&

"ou can limit users to information relevant to their organization. 3or example, you can limitaccess for order administration cler&s to sales orders associated exclusively with their sales

office.


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In$entor& Organization Securit& 6& #esponsi6ilit&

"ou can specify which inventory organizations are available to users in each responsibility. The

1hoose Inventory Organization window automatically limits available inventory organizations tothose authorized for the current responsibility.

#esponsi6ilit& Determines Operating /nit"our responsibility determines which operating unit you access when you use Oracle

Applications. /hen you use Oracle ayables, !eceivables, Order =anagement and *hipping2xecution, urchasing, ro:ects, and *ales 1ompensation you see information that is relevant to

your operating unit. All transactions you create are automatically assigned to your operating unit.

Sell And Ship Products From Dierent !egal "ntities

Sell rom One !egal "ntit&8 Ship rom Another !egal "ntit&

/hen 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 boo&s.

/se the 7hoose Organization 9indo: to 7hoose In$entor& Organization

After you choose your responsibility to perform materials management functions using Oracle

Inventory, /or& in rocess, 8ills of =aterials, =aster *cheduling?=!, 1apacity, or

urchasing, you must use the 1hoose Organization window to pic& an inventory organization.

Intercompan& Accounting

Automatic Intercompan& Sales #ecognition

*ales orders created and shipped from one legal entity to a different legal entity automaticallygenerate an intercompany invoice to record a sale between the two organizations.

Posting Intercompan& In$oices to Dierent Accounts"ou can define different accounts for Trade and Intercompany 1ost of Goods *old and *ales

!evenue to eliminate intercompany profit.

#eport at the !egal "ntit& or Set o Boo,s !e$el

In addition to reporting at the operating unit level, you can report at the legal entity or set of

boo&s level.

Setting up Multi Org

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Adding a Ne: Operating /nit

The following steps are re5uired to add new operating units to your organizational structure#

$.$ !evise the Organization *tructure.$.' (efine *ets of 8oo&s 6optional7.

$.) (efine 9ocations.

$.+. (efine Organizations and !elationships.


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'.$ (efine !esponsibilities.

'.' *et rofile Options for 2ach !esponsibility lin&ed to the new Operating %nit.

$.$. !# 8usiness Group$.' !# *ecurity Option

$.)# !# %ser Type 63O! accessing !=* functions7

$.+ !# 1ross 8usiness Group'.$. G9# *et of 8oo&s6$$i7

'.$ G9#D9edgerD 6!$'7

'.) G9# (ata Access *et. This profile option to control the ledgers that can be used by OracleGeneral 9edger.

).$. =O# Operating %nit

).'. =O# *ecurity rofile 6!$'7

).). =O# (efault Operating %nit+.$ Tax# Allow Override of Tax 1ode

+.' Tax# Invoice 3reight as !evenue

+.) Tax# Inventory Item for 3reight

.$ *e5uential ;umbering.' I;># Intercompany 1urrency 1onversion

'.) !un the !eplicate *eed (ata concurrent program.

).$ (efine Inventory Organization *ecurity.).' (efine Intercompany !elations 6optional7.

).) Implement the Application roducts.

+.$ *ecure 8alancing *egment >alues 6optional7.

+.' !un the *etup >alidation !eport 6recommended7.+.) Implement (ocument *e5uencing 6optional7.

+.+ *et the top reporting level 6optional7.+. *et up conflict domains 6optional7.


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multi org (2).doc

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