multiorg fisher

8/13/2019 Multiorg Fisher

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Implementing Oracle Financials Under

Multi-Org

Al li son G. Fisher

Laura B. DeSantis

OAUGOracle Applications Users Group


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Agenda

Introduction

Applications Modif ied for Multi-Org Example

- Oracle Payables

Applications not Modif ied for Multi-Org Examples

- Oracle General Ledger

- Oracle Assets

Conclusion

Oracle V8 DB, V10 Applications and Mul ti -Org

Multi-Org Defini tions and Implementation


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The Multi-Org Presentation Team Consists of . . . .

Introduction

Al lison G. F isher - Author and Presenter

Associate Consul tant

PricewaterhouseCoopers LLP

Laura B. DeSantis - Author and Presenter

Senior Associate

Pr icewaterhouseCoopers LLP


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Oracle V8 DB, V10Applications

and Multi-Org


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Oracle V8 Databases offer the following advantages

over previous Versions . . . .

Inc reased Data Storage

Oracle V8 DB, V10 Applications and Mul ti-Org

Faster Handlin g of Data

Easier Access to Data

Adv anced Queuing

Inc reased Scalabil i ty

Higher Eff ic iencyLevels


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V10.7 SC Applications are not directly compliant with Oracle V8

Databases. The only Oracle Certi f ied method of using an

Oracle V8 Database with V10.7 SC Applications involves atechnique called Server Partitioning . . . .

Oracle V8 DB, V10 Applications and Mul ti-Org

Oracle 8.0.3 Database

RDBMS_HOME

SQL*Net v. 2 Listener

LINK_HOMEOracle Applications

Oracle Reports

Client

SQL*Net v.2


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Multi-Org Defini tions andImplementation


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The following steps must be executed in the sequence

indicated to properly configure Oracle Applications within a

Multi-Org environment . . . .

Multi-Org Defin itions and Implementation

Develop Organizational StructureStep 1

Def ine Set(s) of BooksStep 2

Def ine Organizations and RelationshipsStep 3

Set Prof ile Option for Organization Uni t Responsibil it iesStep 4

Def ine Organization Uni t Responsibil i tiesStep 5

Convert to Mul ti-Org (Run Adadmin Uti li ty)Step 6

Def ine Inventory Organization Securi ty (optional)Step 7

Implement Oracle ApplicationsStep 8

Define Organization Unit Secur ity Rules (optional)Step 9

Verify Mul ti-Org Validation Report (optional)Step 10

Implement Document Sequencing (optional)Step 11


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The importance of investing the time and effort necessary

to properly define the Organizational Structure cannot be

over-emphasized . . . .


Business Group 1 Business Group 2

Legal Entity 3

Set of Books 3

(G/L, F/A)

Operating Unit 4

(A/P, A/R, P/O, O/E)

Inventory Org. 3(INV and all MFG Apps)

Set of Books 1(G/L, F/A)

Legal Entity 1

Operating Unit 1

(A/P, A/R, P/O, O/E)

Inventory Org. 2

(INV and all MFG Apps)

Legal Entity 2


Operating Unit 3(A/P, A/R, P/O, O/E)

Inventory Org. 4


Operating Unit

2(A/P, A/R, P/O, O/E)

Inventory Org. 1



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indicated to properly configure Oracle Applications

within a Multi-Org environment . . . .


Implement Document

Sequencing

Define Organizations

and Relationships

Define OrganizationUnit Responsibilities

Define Inventory

Organization Security

Implement Oracle

Applications

Verify Multi-Org

Validation Report

Set Profile Option for

Org Unit Responsibilities

*

*

*

*

Define Organization

Structure

Define Set(s) of Books

Convert to Multi-Org

(Run Adadmin Utility)

* Optional

Step 1

DEVELOP ORGANIZATION STRUCTURE

Define Business

Group(s)

Defi ne Set(s) of

Books

Define Legal

Entities

Define Operating

Unit(s)

Define In ventory

Organization(s)

(1)

(5)

(4)(3)

(2)


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

DEFINE SET(s) OF BOOKS

Define Withi n

the General

Ledger Module

Defi ne the same

for both Multi-Org

and non M ulti-Org(1) (2)

Step 2


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

Step 3

DEFINE ORGANIZATIONS AND RELATIONSHIPS

(1)

Business Group - None if HR not installed

GRE/Legal Entity - G/L Set of Books

Operating Unit - Associated Legal Entity

Inventory Organization - Accounting Information

Specif y requir ed

inf ormation for each

organi zation type


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

DEFINE ORGANIZATIONS UNIT RESPONSIBILITIES

(1)Users are confined to Operati ng

Uni ts via responsibil iti es

(2)Responsibil iti es are defi ned fromwithin the System Admini strator

Responsibility

(3)Thi s step is no dif ferent fr om creatin g

custom responsibilities in a non

Mu lti -Org environment

Step 4


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

SET PROFILE OPTION FOR ORG UNIT RESPONSIBILITY

(1)Users are conf ined to

Operating Uni ts via

responsibilities

(2)Responsibil iti es are defi ned fromwithin the System Admini strator

Responsibility

(3)Thi s step is no dif ferent fr om creating

custom responsibilities in a non

Multi -Org environment

Step 5


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

CONVERT TO MULTI-ORG

Thi s step is usually

performed by the DBA(2)

Run the AutoI nstall

Utility Adadmin(1)

Step 6


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

Step 7

DEFINE INVENTORY ORGANIZATION SECURITY

This step is optional for

those impl ementi ng Oracle I nventory(1)


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

Step 8

IMPLEMENT ORACLE APPLICATIONS

Some ORACLE Appli cations requi re a

separate setup for each operating uni t(1)

Some ORACLE Applicati ons only need be

setup once for the entire enterpr ise(2)


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

Step 8- Order Entry - Purchasing- Payables - Receivables

- Projects - Cash Management

- Sales - Sales & Marketing

Compensation

- Service


Some ORACLE Appli cations require a

separate setup f or each operating uni t(1)


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure




* Optional

Step 8- General Ledger - Assets

- Inventory - Remaining

Manufacturing

Applications


Some ORACLE Applicati ons only need be

setup once for the enti re enterpri se(2)


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



*

*

*

*

Define Organization

Structure


Step 9



DEFINE ORGANIZATION UNIT SECURITY RULES

Secur ity Rules restr ict access to

specif ied account segments(1)

Securi ty Rul es are set-up

in the General L edger Module(2)


* Optional


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Implement Document

Sequencing


and Relationships


Define Inventory


Implement Oracle

Applications



Define Organization

Unit Security Rules

*

*

*

*

Define Organization

Structure


Step 10



VERIFY MULTI-ORG VALIDATION REPORT

The Set-Up Validation Report should be

run f ollowing the conversion to Multi -Org(1)

Not a r equired step,

but strongl y recommended(2)


* Optional


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and Relationships


Define Inventory


Implement Oracle

Applications

Verify Multi-Org

Validation Report



Define Organization

Unit Security Rules

*

*

*

*

* Optional


Step 11



IMPLEMENT DOCUMENT SEQUENCING

Not a r equired step(1)

Treats each transaction as a document and assigns

a document number for a complete audit trail

(2)



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To add more operating units after the initial Multi-Org

configuration, perform the following . . . .


Setup New Operating Unit(s)

Revise the Organization Structure

Conf igure New Applications (I f Any)

Update Secur ity Rules (I f Necessary)


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The following areas should be given special consideration

when implementing Oracle Applications within a Multi-Org

environment . . . .


(Applications) Centrali zation / Decentrali zation

Data Secur ity

Global Supplier Tables

Form and Report Titles

Concurrent Programs


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Oracle Payables


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The following data must be set-up separately for

each operating unit:

Oracle Payables

Distr ibution Sets

Bank Accounts

Matching Tolerances

F inancials and Payables Options

Expense Detail Report Format

Tax Names and Groups

Reporting Enti ties


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Shared Supplier Header

Oracle Payables

Supplier header record shared between

Operating Units

Payment sites are segregated by operating

unit

Vendors with payment sites in multipleOperating Units cannot be merged


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Applications Not Modif iedfor Multi-Org

Examples


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The Context Diagram below depicts the Oracle Applications that have

been modified to operate independently within a Multi-Org

Configuration. Thus,each application requires a separate setup only foreach Operating Unit within which it is to be utilized . . . .

Order

EntryPayables

Projects

Sales

Compensation

Receivables

Sales &

MarketingService

Cash

Management

Purchasing

Oracle Mul ti-Org

Configuration

Setup once per

Operating Uni t

Appli cations Not Modif ied for Multi-Org


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The Context Diagram below depicts both the Oracle Applications

that have been modified to operate independently within a Multi-

Org Configuration as well as those that have not (i.e. outside thecircle). Each Application outside context requires a separate

setup for each Enterprise only within which it is to be utilized . . .

Order

EntryPayables

Projects

Sales

Compensation

Receivables

Sales &

MarketingService

Cash

Management

Purchasing

Oracle Multi-Org

Configuration

Setup once per

Operating Uni t

Assets

Inventory Manufacturing

General

Ledger

Appli cations Not Modif ied for Multi-Org


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OracleGeneral Ledger


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A Multi-Org configuration enables proper segregation

of data across operating units . . . .

Oracle General Ledger

Business Group 1 Business Group 2

Legal Entity 3

Set of Books 3

(G/L, F/A)


Inventory Org. 3(INV and all MFG Apps)


Legal Entity 1


Inventory Org. 2


Legal Entity 2

Set of Books 2

(G/L, F/A)


Inventory Org. 4



Inventory Org. 1



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Security Rules

Vs.Cross-Validation Rules


Security Rules

Restr icts access to a

specif ic accounting

f lexf ield segment(s)

-e.g. company segment

Cross-ValidationRules

Used to control the set-up

of account combinationsacross locations,

departments, product

codes, etc.


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Stepsin Defining Security Rules


Step 1:

Determine a companys business requirements

Step 2:

Define onl ine security for account inqui ry and

data entry

Step 3:

Define security for FSGs and Standard

reports


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Step 1: Determine a Companys Business

Requirements


Cross-Validation Rules Vs. Secur ity Rules

Two or more companies operating

independently within a single set of

General Ledger books

Autonomy across values associated with a

particular accounting flexf ield segment


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Step 2: Define Online Security for Account

Inquiry and Data Entry


Define Messages associated with a particular

rule

Globally Include the range of values

associated with a particular rule

Exclude all values not valid for a particular

rule

Assign Securi ty Rule(s) to a particular

responsibility


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Step 3: Define Security for FSGs and

Standard Reports


To define security for Standard Reports:

this functionali ty is not cur rently

available in Applications version

10.7SC

To define security for FSG Reports:

System Administrator Responsibil i ty

- set the System Profile Value


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Oracle Assets


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Utilizing a common thread, such as company number,

throughout the asset flexfields provides processing

autonomy as well as security across the applications ...

Sample Asset Hierarchy

Accounting Key Flexfield

CO-DIV-LOC-DEPT-ACCT-SUB-PROD

"Company X"Asset Book "Company Y"Asset Book "Company Z"Asset Book

G/L Set of Books

AssetCategoryFlexfield

- "Company No."-Major Category- Minor Category

AssetLocationFlexfield

- "Company No."- State- County- City

AssetKey

Flexfield

-"Company"- Project- CEA

- Business Segment

Oracle General Assets


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Conclusion


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Implementing Oracle Financials UnderMulti-Org

Al li son G. Fisher

Laura B. DeSantis

OAUGOracle Applications Users Group

multiorg fisher

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