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Understanding Multi-Organization Structure in EBS – Part 1
Posted By Sanjit Anand On July 14, 2007 @ 1:05 am In Beginner,JumpStart | 25 Comments
In order to allow use of the system by multiple business units, accommodating differing requirements for functional currencies, accounting structures and security, whilst at the same time ensuring a central core design Oracle provides functionality known as "Multiple Organizations" in short is called " multi-Org".This allows different business units to have their own view of the applications, in particular for the financials AP ( Payables), AR ( Receivables), FA (Fixed Assets), CE (Case Management) and INV ( Inventory). Multi-Org is an important feature of Oracle Applications for several reasons: • Allows multiple sets of books and multiple legal entities to be configured and to operate in the same instance • Provides support for data security between business units within a single applications installation • Permits users to sell and ship products from different legal entities (in different sets of books) with automatic intercompany accounting • Supports internal requisitions and purchasing/receiving products from different inventory organizations (within the same set of books) • Enables an enterprise to be housed in one database instance of Oracle, spanning multiple countries, currencies, and legal entities without a reduction in response times (architecture-related) • Multiple Organizations Reporting enhances the reporting capabilities of Oracle Applications products by allowing you to report at the:Set of Books level, Legal entity level or Operating unit level
Multiple Organization in Oracle Applications depends primarily on defining your organizational structure in the multi-level hierarchy used by Oracle Applications. The levels are: • • • • • Business groups Accounting sets of books Legal entities Operating units] Inventory organizations
Business Groups: Oracle Applications secures human resources information, including organization definition, by business group. At least one Business Group will be required for
2007 @ 1:04 pm Hi Anand. and sales offices The following applications secure information by inventory organization: Oracle Inventory. Work in Process. Operating Units allow for configuration of the Oracle Applications across Multiple Business Groups using a single installation of the software. Bills of Material. calendar. Cash Management. internal requistions. Legal entities: An organization that represents a legal company for which you prepare fiscal or tax reports.. Inventory organizations: An organization that tracks inventory transactions and balances. To run any of these applications. min-max and Internal sales order be carried in different operating units Across Set of Books. Capacity. Purchasing. including HR flex-field structures (Grade. Order Management. Order Entry. you must choose an organization that has been classified as an inventory organization. Multiple sets of books can share the same business group if they share the same business group attributes. or functional currency differs. Security access to the sensitive Human Resources data is secured at the highest level at the Business Group. Purchasing. 2008 @ 7:47 am Hi Anand. Asset Organizations An asset organization is an organization that allows you to perform assetâ€“related activities for a specific Oracle Assets corporate depreciation book.its an informative one. warehouses. HR Organization Internal Departments to which Employees are Assigned. and Purchasing receiving functions. and the Manufacturing Applications (Organization_Id).. Fixed Assets and Receivables. In short Business Group partitions Human Resources information in a multi-organization structure. In addition for scalability and ensuring independent numbering system for all the accounting transactions as well as the ability to open and close each of the legal entities period independently a separate set of books will be configured for each legal entity.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 . Master Scheduling/MRP.oracleappshub. distribution centers. Examples could be manufacturing plants.. Page 2 of 8 every country since the employee legislation is specific for each country and employee profile is set up at the Business Group level. If so can u send me the details of it.Read ur article.. You assign tax identifiers and other relevant legal company information to this entity. I wanted to know whether Inventory transactions such as receiving. Organization Structures and Organization Hierarchy is defined within the Business Group. positions flex-fields etc). Segregate Item data objects for Inventory. http://www. Oracle Assets uses only organizations designated as asset organizations 25 Comments To "Understanding Multi-Organization Structure in EBS – Part 1" #1 Comment By gopal On November 13. Operating units: An organization that partitions and uses data for Payables. Its pretty urgent!….com/beginner/understanding-multi-organization-structure-i. Accounting sets of books: A General Ledger concept for having separate financial reporting entities for which chart of accounts.. #2 Comment By ben On February 20. and/or that manufactures or distributes products or components. Engineering. 02/03/2011 .
Each FA corporate book then posts to one GL financial set of books. here is some more thoughts on FA. Maintaining fewer FA corporate books allow you to easily transfer assets anywhere within each FA book. You can setup different depreciation books that point to different GL SOBs. This can result in incorrect depreciation if you use accelerated methods and can impact tax reports. as these transactions are not retirements or additions. In 11i. legal entities. an asset organization. and assigning the FA: Security Profile to responsibilities. what additional information you want #4 Comment By Sanjit Anand On February 21. You process transactions by FA book and run most processes such as depreciation by FA book. Each FA corporate book can copy transactions to one or more FA tax books.. you can restrict responsibilities to FA books by specifying an organization as an asset organization. 2008 @ 12:21 am http://www. Ben #3 Comment By Sanjit Anand On February 21. Please do refer to one my old post. creating an organization hierarchy.oracleappshub. Oracle added a new type of organization. Security . Each AP operating unit interfaces to one FA corporate book. Let me know. assigning FA books to the asset organization. tax books that typically do not post to GL. Fixed Assets Book and Asset Organization In Fixed Assets you can setup multiple FA books: corporate books that post to GL. you need to retire it from one and add it to another. Setup tax books equivalent to tax entity (not lower) or GL financial set of books to allow printing complete tax reports from one FA tax book. 02/03/2011 . FA books are different from GL financial sets of books. and budget books which are not commonly implemented. Page 3 of 8 Can you please tell me at which level does ASSETS come in a Multi org and how do we link ASSETS while doing the Multi org setups. there is no security by book in FA.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 . Until 11i. Thanks. #5 Pingback By “Business Group” in EBS On February 22. In 11i. You can setup FA corporate books equivalent to operating units... You run most reports by FA book. FA is not multi-org. To transfer an asset from one FA book to another. There is some shared setup and some sharing of financial data between FA books. but that just means the Accounting Flexfield can be a different structure since it belongs to GL. or GL financial sets of books.com/beginner/understanding-multi-organization-structure-i.. 2008 @ 1:25 am extending the last discussion. 2008 @ 1:23 am ben. setting up a security profile with the hierarchy. Each responsibility can access all FA books.
I need to have a subsidiary ledger in a local currency and a GL in dollars for each company (for consolidation in the ‘master company’)...] #6 Comment By invoice in one operating unit and payment in other On April 16. functional currency.. Page 4 of 8 [.. Yes. 02/03/2011 . Any entity that requires a unique chart of accounts. I have a question on this part : if I consider your schema above. I would advice you to read multiorg a small document under oracle documentation. Check it  and  in case if you still looking. not a technical one) Prior to Multi-Org. First of all.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 . is there a possibility for a supplementary level ? I will try to explain further : if I were to implement a big corporate with subsidiaries in several countries.com/beginner/understanding-multi-organization-structure-i. Can I have a ‘master company’ aggregating sub companies agregatings various territories and son on ? Thanks for you site. I am quite a beginner in the subject and this proves to be very useful. The great feature called multi-Org which is designed to support many sets of books for accounting. A Set of Books is the highest level at which the financial reporting entities are segregated. 2008 @ 4:53 pm thats true it was case in and till Release 11i but from Release 12 . 2008 @ 7:23 pm Olivier. Thanks for nice word. thanks a lot for all those information.a set of books is a financial reporting entity that shares the three Câ€™s that is Chart of [..oracleappshub.] covered in earlier post . all transaction and payment is stamped with LE Context. 2008 @ 7:04 am Hi Anand. the Set of Books was set at the site level and this http://www. 2008 @ 4:43 pm will multiorg take care of invoice in one operating unit and payment in other operating unit. Olivier #9 Comment By Sanjit Anand On May 5. which will provide some more thoughts on the way you are looking... is there a possibility #7 Comment By Sanjit Anand On April 16. means new model simply swap the concept. let me know #8 Comment By Olivier On May 5. or fiscal calendar should utilize a different Set of Books.. (This is a functional distinction.
This is way in which MNC’s are managing there entity . what structure yoy have at your end. If you provide some more inputs for LE. and. calendar. #Use recurring journals. diverse financial systems. keeping one SOB for local country reporting need and other for consolidation book. including both Oracle and non-Oracle applications. separate instances. â€¢ Purchase products through one legal entity and receive them in another legal entity â€¢ Support any number of legal entities within a single installation of Oracle Applications â€¢ Secure access to data so that users can access only the information that is relevant to them. 2008 @ 7:32 pm Lets take a case. multiple set up of books per entity basis. Single installation also allows for more sharing of setup data. or chart of accounts reside in separate sets of books. Page 5 of 8 restriction drove companies to have multiple installations of the Applications looking at the same database instance to cover different reporting and transaction needs. Oracle Applications supports many cross-organization features that leverage the single installation architecture. 02/03/2011 . Cross-Organization feature of Multi-org in a single installation enables a global view of enterprise information.. and standard journals to create intercompany elimination journal entries for multiple companies sharing the same set of books. #you can monitor the status of your consolidation. you can: http://www. typically combining subsidiary accounting information into a parent company for reporting purposes. where as from Global Consolidation System (GCS) #you can use Global Consolidation System (GCS) to consolidate financial information for multiple sets of books.. OU and BU then will address some more thoughts on some of key area. I am not sure.. mass allocation journals. With the Global Consolidation System. which combines the financial results of different companies. â€¢ Define customers and suppliers in a global registry and secure customer and supplier addresses by operating unit. Now coming to your query. you can keep. Normally each entity will have one Primary sob required for local legal need and you can also keep a secondary SOB for Dollar and you can use global Consolidation Process do all consolidation. If you are using the consolidation process . or non-Oracle applications. Consolidating Multiple Companies with Multiple Sets of Books #when companies do not share the same currency. legal entity. you have three entity in three different zones of the globe like Therefore u have 3 SOB A: US currency USD B: UK currency GBP C: AUS currency AUD All three share same calendar and accounting structure.. including: â€¢ Automatically generate inter-company invoices with transfer pricing when you sell from one organization and ship from another. #Use the Consolidation Workbench in GCS to: #you can access windows used to perform each consolidation activity. #also view history of past consolidations. possibly. you can use Consolidation Tools like FSG or GCS Through Financial Statement Generator (FSG) #you can use Financial Statement Generator (FSG) to consolidate financial information for businesses using a single set of books or businesses using different sets of books that share the same calendar and chart of accounts.com/beginner/understanding-multi-organization-structure-i. â€¢ Run selected reports at the operating unit. or set of books level. which is required to understand #10 Comment By Sanjit Anand On May 5.oracleappshub. and geographic locations.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 .
2008 @ 1:15 am check it at. Page 6 of 8 #Consolidate the results of multiple organizations. I’ve operating units for each legal entity..  #15 Pingback By LE/OU Question on Merger or De-Merger On August 11..] A reader query from Sreekanth Allamudi [. with different sets of books that use different currencies..g.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 . We would like to move the data (open AP. one set of books (GL)(eg. #Create automatic intercompany eliminations.] #14 Comment By Sanjit Anand On August 11. I have one business group (eg. 2008 @ 12:36 am [. 2008 @ 7:02 am Please clarify the possibilities of having multiple legal entities (various countries) under a single business group in Oracle 11i #12 Comment By Sreekanth Allamudi On July 31. I want to setup security such that operating unit X should not see Y and Z data etc. Question: One of the legal enitity is aquired by an other new Legal entitiy..10. Z). 2008 @ 7:45 am Is there a way I can do a following security setup in FA. and charts of accounts. What is the best practice and how do I go about in doing it.. Three Set of books US... 2008 @ 1:17 am [. Business Group 2.2 Please advice. #Consolidate actual amounts as well as budget amounts.oracleappshub. I’ve three legal entities (balancing segment is my legal entity) 4. open AR) into new legal Entity under the same set of books (US). Hope this will help you in understnading. ABC). UK & Mexico 3. ABC_SB) and multiple operating units (e.] #16 Comment By Sowmya On September 24. #Consolidate the results of multiple organizations on multiple database instances. 2009 @ 10:32 am Hi Anand.. http://www. We’re in 11. #Initiate consolidations from your parent set of books or subsidiary set of books...] Understanding Multi-Organization Structure in EBS – Part 1 [. Is this the correct approach ? #17 Comment By Shree On April 10. 02/03/2011 .5. calendars. #11 Comment By Yuvaraj On July 18. 2008 @ 8:43 am I Have 1... I’m a regular visitor to your blog and i really like the way you present your topic. #Consolidate account balances or transactions. Y. is there a way I can do it? I setup an Org Hierarchy and am trying to setup FA security profile for each of the operating units. #13 Pingback By 11i Setup for nd LE On August 11. X. Under US SOB.. i tried to put into post.com/beginner/understanding-multi-organization-structure-i.
#18 Comment By BENALI On April 15. Can i get summary document where i can decide organization structure before implementing oracle EBS i. Thank you for this helpful site.e.. Currently. 2010 @ 11:46 pm Useful information. I have a question: Can we have different operating units. 2009 @ 10:55 pm Hi Can you kindly tell me if it is possible to have access to different OUs from different LEs in same responsibility? Thanks a lot #20 Comment By Maryam On July 23. 2009 @ 11:20 pm Hi again My question is for R12. each of them related to a different chart of account and having juste one inventory master organization so we can use juste one Item referential? Thank you Anand #19 Comment By Maryam On July 23. 02/03/2011 . 2009 @ 9:58 am Hi Anand. shree. 2009 @ 10:14 pm Hi Anand. We have this line of business also part of our chart of accounts.com/beginner/understanding-multi-organization-structure-i. 2010 @ 5:07 am can u tell me. This is very informative. thanks. Page 7 of 8 I have a quation.In US we have one set of books with multiple operating units. Currently we have oracle applications 11i (11. how can i transfer standard costing a/c to another business unit oroperating unit ? http://www. Thanks for your help.Out of which we want to split one existing ou into multiple OUs for better analysis and reporting. How to decide org.OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 . BR #21 Comment By Shailesh Kokare On August 25.10.5. Currently we have 2 major line of business that we operate. structure and fit in structure as explained by you #22 Comment By Geethika On June 10. #23 Comment By sri On June 23. I need to know the best practices/advantages/disadvantes/limitatons of having different OUs for each line of business compared with running reports fron single OU by line of business segment from the COA...oracleappshub.2) financials and projects..
All rights reserved.oracleappshub. 02/03/2011 .com/beginner/understanding-multi-organization-structure-i.oracleappshub.com/release12/release-12-legal-entity-uptake/  : http://www. that will be great help Regards Ram Article printed from OracleApps Epicenter: http://www. Page 8 of 8 #24 Comment By Rajeshvarma On October 29.com URL to article: http://www.oracleappshub. practice and observation and does not represent the thoughts. http://www...oracleappshub.But what my question is how we link business group and legal entity ..SOB to Operating units.oracleappshub. Could you please give me answer plzz #25 Comment By Ram On November 10.com/accounts-receivable/power-of-autoinvoice/  : http://www.oracleappshub. Copyright © 2007-2010 OracleApps Epicenter.com/beginner/understanding-multiorganization-structure-in-ebs-part-1/ URLs in this post:  : http://www. can you please provide me the info.. Suppose if i have to redploy a LE what are the effort required in terms of setup in oracle 11i. 2010 @ 11:37 am Hello Anand I want to know something…Actually we all define multi org structure. plans or strategies of my current & previous employers and their clients.com/general-ledger/leou-question-on-merger-orde-merger/ Disclaimer The opinions expressed here represent solely my own represent personal conjecture based upon experience. Normally we will link operating units to inv org . intentions.... 2010 @ 8:47 pm HI Anand..OracleApps Epicenter » Understanding Multi-Organization Structure in EBS – Part 1 ..
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