COAUG Training Days

Ten Steps to Multi-Org Success

Presented by Bill Anderson

Managing Consultant
Solbourne
banderson@solbourne.com

Copyright © 2001,
Solbourne Computer, Inc.
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 Agenda
 Introductions
 Multi-Org Overview
 Ten Steps to Success
 On-going Maintenance
 Release 11 and 11i Enhancements
 Questions

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 Why Multi-Org?
 In a single installation of Oracle
applications…
 Support any number of organizations with
different sets of books
 Support any number of legal entities
 Secure access to data by organization
 Sell and ship products across legal entities
with automatic inter-company accounting
 Purchase and receive products across legal
entities

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 Six Different Organization Types
 Set of Books - secures general ledger transaction
information determined by the 3 C’s
 Business Group - secures human resources information
 Legal Entity - inter-company invoice generation and
fiscal/tax reporting
 Balancing Entity - restrict entry using security rules for the
balancing segment value in the accounting flexfield
 Operating Unit - secures AR, OE, AP, PA, SC and PO
information
 Inventory Organization - secures INV, BOM, ENG, WIP,
MRP, Capacity and PO Receiving information

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 Required Ten Step Program
1. Develop Your Organization Structure
2. Define Sets of Books
3. Define Organizations
4. Define Organization Relationships
5. Define Responsibilities
6. Set Operating Unit Profile for Each Responsibility
7. Convert to Multi-Org Architecture
8. Update Operating Unit Specific Profile Options
9. Implement the Applications
10. Review the Setup Validation Report

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 Human Resources Model

Business
Group

Organization Organization

Organization Organization Organization Organization

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 Finance Model

Set Of Books

Legal Entity Legal Entity

Operating Unit Operating Unit Operating Unit Operating Unit

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 Sets of Books
 The three C’s...

Calendar Chart of
Accounts

Currency

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 Organization Relationships
 Utilize the Define Organization window to
establish your organizations and the roles they
play.
Set of Books
Legal Entity

Operating Unit

Inventory Organization

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 Responsibilities
 Utilize the Define Responsibility window to
establish your responsibilities for each operating
unit. MENUS REPORTS

WINDOWS

CONCURRENT
DATA PROGRAMS

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 Operating Unit Profile Option
 Link your responsibilities to operating units by
setting the MO:Operating Unit profile option.
Responsibility Operating Unit

Security

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 Convert Architecture
Have your DBA run the AutoInstall adadmin utility. Adadmin has
a convert to Multiple Organizations option which should be
selected when executing.

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 Operating Unit Specific Profiles
Update profile options that are specific to the operating unit at the
responsibility level. Examples include but are not limited to…
Reference data secured by operating unit
AR:Receipt Batch Source
AR:Transaction Batch Source
Required to differ at operating unit level
OE:Item Validation Organization
GL Set of Books
Required to differ at the set of books level
Sequential Numbering

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 Implement the Applications
Use your operating unit specific responsibilities to set up the
applications being implemented.
Applications which secure data by operating unit must be set up
for each operating unit.

AP PA

GL

CM AR

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 Setup Validation
Run the Setup Validation Report to identify errors in your Multi-
Org setup. This report will advise you of the following…
Data contained in disabled fields on the Enter Customer and
Enter Supplier windows.
Responsibilities in one Operating Unit that do not share the
same profile and sequential numbering options.
An operating unit and the item validation organization selected
for it that do not share the same set of books.

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 Optional Setup Steps
Additionally, Multi-Org offers the functionality to
further restrict access by…
Restricting inventory organization access to
specific responsibilities.
Providing various Order Entry options for item
validation and set of books selection for your
operating units at the responsibility level.
Utilizing security rules to secure data entry of
balancing segment values.

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 Ongoing Maintenance
But it doesn’t look Users and Responsibilities
as if anything
has changed!?!? Financial Statement Generator
Currency Conversion Rates
Chart of Accounts
Security Rules
Cross Validation Rules
Bank Accounts
Suppliers
Customers
Consolidation Rules

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 Release 11 and 11i
Enhancements
Global Intercompany System (GIS)
Cross-Currency Rates
Global Consolidation System
R11i Inter-company Balancing
Multiple Reporting Currencies
FSG Report Titles
Enhanced Multiple Organization Drilldown

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 GIS (formerly CENTRA)
Manage intercompany transactions through a centralized
review and approval process…

The parent company and subsidiaries with auto approval privileges can
send automatically approved transactions
Define and generate automatically recurring intercompany transactions
Report on intercompany transactions sent or received
Import intercompany transactions directly to General Ledger

Automatic transaction generation with Notifications.

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 Consolidation &FASB 52 Overview

 Revaluation and Translation are performed prior to

consolidating subsidiary books to parent books
 Revaluation is the process of adjusting balance sheet
transactions from the daily currency conversion rate to the
reporting period
 FASB 52 provides rules for the Translation of an entire set of
General Ledger Books from the functional currency to the
foreign currency
 Why…in order to consolidate and report all sets of books
for the organization in the functional currency of the
parent company.

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 Cross-Currency Rates
Enter daily conversion rates
between any two currencies,
regardless of the functional
currency.
Daily conversion rates are
shared across sets of books in
an applications instance.
Open interface available for
loading daily conversion rates
from an external source.

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 Global Consolidation System
Use the Consolidation Workbench to consolidate accounting
information to a parent set of books in a multi-org install…
Map Consolidation Data
Prepare Consolidation Data – Revalue and Translate
Transfer Consolidation Data
Post Consolidation Data
Period-end Elimination Entries
Report and Analyze Consolidated Balances
Automatic generation of eliminations in R11i.

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 R11i Inter-company Balancing
Same Set of Books ONLY!!!!
Allows more precise due to/due from intercompany accounting.
Automatic grouping of intercompany balances by multiple
parameters…
Journal Source
Journal Category
Balancing Segment Value
Inserts additional journal lines to “offset” lines that cross
balancing entities.
Optional “hub” company for all “offset” lines.

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 Multiple Reporting Currencies
Maintain transactions and account balances in multiple currencies
using separate reporting sets of books.
From any reporting set of books…
Perform on line inquires and produce any of the standard
reports in the reporting currency.
Design custom reports in the reporting currency using the
Financial Statement Generator.
Consolidate the reporting set of books directly to the parent set
of books, eliminating the need translate subsidiary books.

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 FSG Report Titles
Enter FSG Report Titles at the report
level, rather than the row set level.
Cumulative

P&L ROW Comparative

SET

Actual to
Budget

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 Multi-Org Drilldown Capabilities
Review consolidated balances on-line and drilldown to subsidiary
balances across sets of books.
Review subledger details at the lowest level subsidiary balance.
Supports drilldown to all financial and manufacturing modules in
R11i.

SUB A UK OPS B
W/DETAILS W/DETAILS

PARENT SUB B US OPS B

W/DETAILS

SUB C MX OPS B
W/DETAILS W/DETAILS

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 Questions and Answers

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