Overview of Enterprise Structure

Phani Bhushan Mallojala

Agenda ERP Enterprise Structure

What is ERP(Enterprise Resource Planning)?

Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform

Enterprise Structure
An Enterprise structure describes how your company is structured from an operating,legal & Reporting Perspective. Oracle Enterprise Structure represents company organization which runs the business. Oracle purchasing Provides 5 organization classifications


Business Group HR Organization Legal Entity Operating Unit Inventory Organization.

Enterprise Structure

Business group

Ledger/Set of Books Legal Entity Operating Unit Inventory Org Sub Inv Locator Operating Unit

Inventory Org

Inventory Org

Enterprise Structure

Business group Ledger/Set of Books Ledger/Set of Books

Legal Entity

Legal Entity

Business Group
Business Group:Oracle Applications secures human resources information, including organization definition, by business group. In short Business Group partitions Human Resources information in a multi-organization structure. Organization Structures and Organization Hierarchy is defined within the Business Group. At least one Business Group will be required for every country since the employee legislation is specific for each country and employee profile is set up at the Business Group level

Ledger
A ledger is a financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calender.The ledger is used for reporting, analysis and recording the financial transactions that have occurred for corporation.
Chart of accounts(Accounting Flex Field Structure) :
Bifurcation of accounts by different operations that we do in business. Accounting Flexfield Structure:-The accounting flexfield structure defines all the segments that makeup any account in the organization. In any organization, the accounts typically consist of codes like company_id, department_id, asset_number etc. E.g. a typical account may have the first 2 digits representing the company, next 3 digits representing the department, next 4 digits representing the location and the last 4 digits representing the asset number. (A typical account may look like 01.111.0011.0001)

Functional currency: Currency in which we want to report the account. Calender : is the accounting calender

Legal Entity
A legal company for which you prepare fiscal or tax reports. A set of books can have multiple tax entities. Legal entity is essentially a reporting structure to roll up subledger reporting for multiple operating units.

Operating Unit
An operating unit typically is an enterprise division. Eg: A computer manufacturer may have seperate divisions for laptop computers, personal computers. Purchasing , Order Management, AP, AR activities are done at OU level

Inventory, Location,& Subinventory

This is an organization where goods are received and stored. Eg: manufacturing facilities, warehouses.

Webliography

http://www.open-source-erp-site.com/ http://www.aboutoracleapps.com/ http://oracle.anilpassi.com/ http://www.oracleappshub.com