MO Overview R12

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Multiple Organizations Overview - R12 [oracleug

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H O M E U S E R G U ID E F O R U M O R A C LE F R E E LA N C IN G C O N T A C T

Home Multi Org(Multiple Organizations)

Multiple Organizations Overview - R12Submtted by Anonymous on Wed, 02/04/2009 - 11:13

LondonSchool of Businessft Finance

The Oracle Applications organizat ion model defines organizat ions and therelat ionships among them in arbit rari ly complex enterprises . Thisorganizat ion model serves as the cornerstone for all ofthe OracleApplications products. Itdictates how transactions flowthrough differentorganizat ions and how those organizat ions interact with each other.

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Multi-Org is an application and database enhancement that enablesmultiple business units (operating units) in an ente rpr is e to use a singleinstallat ion oforacle applications products while keeping transaction dataseparate and secure.

Application

Multi-OrgMajor Features ofMulti-orgMultiple Organizations in a Single InstallationYou can define multiple organizat ions and the relat ionships among them in a single installat ion ofOracle Applications. Theseorganizations can be ledgers, business groups, legal entities, operating units, or inventory organizations.Secure AccessYou can assign operating units to a security profi le and then assign the security profi le to responsibil it ies or users . Ifmultipleoperating unit s are ass igned to the secu ri ty profi le , then a user can access da ta for multip le operat ing unit s f rom a s ingleresponsibil ity. Thi s ensures that users can only access, p rocess, and repor t on data fo r the operat ing uni ts they have access to.Data SecurityYou can l imit users to information relevant to their organizat ion. For example, you can l imit access for order administrat ion clerksto sales orders associated exclusively with their sales office.Inventory Organization Security by ResponsibilityYou can specify the inventory organizat ions that are available to users in each responsibil ity. The Choose Inventory Organizat ionwindow automatically limits available inventory organizations to those authorized for the current responsibility.

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Multiple Organizations Overview - R12 [oracleug

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Responsibility Determines Operating UnitYour responsibil ity determines which operating units you can access when you use Oracle Applications. Ifyou only want aresponsibil ity to access only one operating unit, then set the profi le opt ion cal led MO: Operating Unit. Ifyou want a responsibil ity toaccess multiple operating units , then define a security profi le with multiple operating units assigned and assign i t to the MO:Security Profi le profi le opt ion. Addit ionally, i fusing the MO: Security Profi le profi le opt ion, you can also set the MO: DefaultOperating Unit profi le opt ion to specify a default operating unit that wil l default intransact ion entry pages.

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Tynes of OrganizationsYou can define organizat ions and the relat ionships among them. You can define security for either an organizat ion hierarchy or l is tof organizations.

Hierarchy in 11i

accounting super user

1.#; OperatiJtg

IfI" Units! R!IiI I . lationinip __ .J+----------

Busines s GroupThe business group represents the highest level in the organizat ion structure, such as the consolidated enterprise, a major divis ion,or an operation company. The busines s group secures human resources information. For example , when you request a li st ofemployees, you see all employees assigned to the business group ofwhich your organizat ion is a part.

~he business group drives the legislation used for human resources and payroll purposes. If the implementation involvesemployees in multiple countries , then i twill l ikely require several different business groups, one for each country where employeesare located. This assumes that the company does not seek to customize multiple legis lative requirements into one business group.~The HRMS bes t pract ice recommends tha t a new business group should represent a count ry or reg iona l leve l partiti on of da ta . Allcompanies tha t operate in the country o r regions shou ld be represented as l ega l employers in the busines s group.

SOB/PLSet of books in IIi consists of3Cs - Chart of Account , calendar, currencyPrimary ledger in R12 consists of4CsSee the chi ld chapter to thishttp://www.oracleug.com/user-guide/basics-oracle/define-sobLegal Entity

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Multiple Organizations Overview - R12 [oracleug Page 3 of 5

A legal company for which you prepare fiscal ortax reports. You assign tax ident ifiers and other legal ent ity information to thistype of organization.You can define legal ent it ies using Legal Entity Configurator or Accounting Setup Manager in General Ledger.

Operating Unit

o An organizat ion that uses Oracle subledgers, such as Oracle Cash Management, Order Management and ShippingExecution, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. Itmay be a sales office, a divis ion,or a department.o In R 12Operating units are not associated with legal ent it ies. Operating units are assigned to ledgers and a default legalcontext.

if) Information is secured by operating unit for these applications using responsibilities. Each user can access, process, andrepor t on da ta only for the operating units assigned to the MO: Operating Unit or MO: Secur ity Prof ile prof ile option. TheMO: Operating Unit profi le opt ion only provides access to one operating unit. The MO: Security Profi le provides access tomultiple operating units from a single responsibility

if) You can define operating units from the Define Organization window in Oracle HRMS orfrom Accounting Setup Manager inGeneral Ledger.

Inventory Organizationo An organization for which you track inventory transactions and balances, and/ or an organization that manufactures or

distributes products. Examples include (but are not l imited to) manufacturing plants, warehouses, dis tribut ion centers , andsales offices.

1 8 The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering,Work in Process , Master Scheduling/MRP, Capacity, and Purchasing receiving funct ions. To run any ofthese applications,you must choose an organization that has been classified as an inventory organization.

o You can create ledgers using the Accounting Setup Manager in Oracle General Ledger and define organizations using theDefine Organization window.

HR OrganizationHR organizations represent the basic work structure of any enterprise. They usually represent the functional management, orreporting 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 party payments.Information Shared Across OrganizationsThe following information is global. Itmust be set up once for the enterprise: Flexfield definitions Customer Header (customer site is atthe operating unit level) Supplier Header (supplier s ite is at the operating unit level)



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Level Table Name COIUIUIlBusiness Group HRFV _B SINESS_GROUPS BUSI ESS_GROUP _NAME ISet of books GL_sETS_OF _BOOKS SET _OF _BooKSJD ILegal Entity HR_L1:'GAL_f.N1T'l'lES Name IOpWltingUnit HR_ OPERATING _UNITS ORGANIZATION_IO IInventory Org ORG_ORGANIZAT ION_OEFINT IONS ORGANIZATION_IOSub Inv~ry MTL_SECONOARY_INVENTORIES SECONDARY _INVENTORY _NAME IStOCk Loc3llon MTL_ITEM_LOCATIONS SUB INVENTORY _CODE,ORGANIZA

TlON_IOItems MTL_SYSTEM_ITEMS_B INVENTORY _ITEM_lO I

o Balancing Entityo DefineSOBo HRMSwith Oracle Financialo Multi-org Security model

< Setting up Multi Org up Balancing Entity.MultiOrg

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