Saturday, January 29, 2011

Multi - Org Functional Flow

Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of books.

Support any number of legal entities within a single installation

Secure Access: You can assign users to particular organizations. This ensures accurate transactions in the correct operating unit.of Oracle Applications.

You can sell from one legal entity and ship from another, posting to each organization’s set of books.

You can enter purchase orders and assign for receipt any inventory organization that uses the same set of books.

You can support multiple organizations running any Oracle Applications product with a single installation. When you run any Oracle Applications product, you first choose an organization—either
implicitly by choosing a responsibility, or explicitly in a Choose Organization window. Each window and report then displays information for your organization only.

Each legal entity can have one or more balancing entities. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit. To run any of these applications, you choose a responsibility associated with an
organization classified as an operating unit.

Legal Entities Post to a Set of Books Each organization classified as a legal entity identifies a set of books to post accounting transactions.

Operating Units Are Part of a Legal Entity Each organization classified as an operating unit is associated with a legal entity.

Inventory Organizations are Part of an Operating Unit Each organization classified as an inventory organization references an operating unit.

Inventory Organization Determines Items Available to Order Management The OM:Item Validation Organization profile option specifies the inventory organization that Order Management uses to validate items. Some inventory item attributes for Receivables and Order Management, including Tax Code and Sales Account, are specific to an operating unit or an accounting flexfield structure. Therefore, you
should define an item validation organization for each operating unit.

Inventory Organization Determines Items Available to Purchasing The inventory organization you specify in the financial options for each operating unit determines the items available in Purchasing. You can only choose an inventory organization that uses the same set of books as your operating unit.

Data Security You can limit users to information relevant to their organization. For example, you can limit access for order administration clerks to sales orders associated exclusively with their sales office.

Inventory Organization Security by Responsibility You can specify which inventory organizations are available to users in each responsibility. The Choose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility.

Responsibility Determines Operating Unit Your responsibility determines which operating unit you access when you use Oracle Applications. When you use Oracle Payables, Receivables, Order Management and Shipping Execution, Purchasing, Projects, and Sales Compensation you see information that is relevant to your operating unit. All transactions you create are automatically assigned to your operating unit.


Purchase and Receive Products Between Organizations Your purchase order operating unit and receiving inventory organization must share the same sets of books to receive against a purchase order.

Automatic Intercompany Sales Recognition Sales orders created and shipped from one legal entity to a different legal entity automatically generate an intercompany invoice to record a sale between the two organizations.

Posting Intercompany Invoices to Different Accounts You can define different accounts for Trade and Intercompany Cost of Goods Sold and Sales Revenue to eliminate intercompany profit.

These are the steps to follow when implementing the Multiple Organization support feature in Oracle Applications.


1. Develop the Organization Structure
2. Define Sets of Books
3. Define Locations
4. Define Business Groups (optional)
5. Associate Responsibilities with Business Groups
6. Define Organizations
7. Define Organization Relationships
8. Define Responsibilities
9. Set MO: Operating Unit Profile Option
10. Convert to Multiple Organization Architecture
11. Change Order Management Profile Option
12. Set Profile Options Specific to Operating Units
13. Define Inventory Organization Security (optional)
14. Implement the Applications Products
15. Secure Balancing Segment Values by Legal Entity (optional)
16. Run the Multi–Org Setup Validation Report (recommended)
17. Implement Document Sequencing (optional)
18. Define Intercompany Relations (optional)
19. Set Top Reporting Level Profile Option (optional)
20. Set Conflict Domains (optional)


Step 1 Develop the Organization Structure A successful implementation of Multiple Organization support 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


If your enterprise structure requires that you define a business group, you should define sets of books before business groups.

Step 3 Define Locations Oracle Applications products use locations for requisitions, receiving, shipping, billing, and employee assignments.

Step 4 Define Business Groups (optional) If you define a new business group instead of modifying the pre–defined business group, you need to set the Business Group profile option at the responsibility level for the new business group. Oracle Human Resources automatically creates a security profile with the business group name when you define a new business group.

You should define all your business groups before defining any other type of organization.

To define additional business groups:

1. Set the responsibility from which you define the organizations in the profile option HR: User Type to HR User, to get access to the Define Organizations window. This profile must be set for all responsibilities that use tables from Oracle Human Resources (for example, responsibilities used to define employees and
organizations).


2. Define all of your business groups at this step from a responsibility. Do not define any new organizations or organization hierarchies until you have associated each business group with a responsibility. You do this by setting the HR: Business Group profile option to the business groups for each responsibility.

3. After you have correctly associated business groups to responsibilities, you enter business group setup information, such as additional organization information and business group classifications, to create the organization structure.

4. After you have correctly associated your business groups with a responsibility, sign off and sign on again using the correct responsibility for the business group you want to define. For example, if you have a U.S. business group and a U.K. business group, select the responsibility attached to the U.S. business group to define the U.S. organization structure.
Note: Oracle Human Resources automatically creates a view all security profile with the business group name. This enables you to view all records for your business group.
Note: Oracle Human Resources allows you to use a single responsibility security model by enabling the Security Group. This allows you to access more than one business group from a responsibility. You should not use the single responsibility model in Multiple Organization products.

Step 5 Associate Responsibilities with Business Groups (optional)
Note: This section applies to you if you have multiple business groups, or if you do not choose to use the default business group provided by Oracle Applications.

If you have multiple business groups, you must associate each responsibility to one and only one business group. You associate a business group with a responsibility via the HR:Business Group system profile option. If you are upgrading to Multiple Organizations, you must also associate previously created responsibilities to the appropriate business group.

Step 6 Define Organizations
Use the Define Organization window to define all your organizations. You can perform this step and the next step (Define Organization Relationships) at the same time. The steps are presented separately to emphasize the difference between the organizational entity and the role it plays in your organizational structure.



_ To define legal entities, operating units, and inventory organizations:
1. Log in to the responsibility associated with the business group for which you are defining an organization.
2. Define a legal entity. It is then automatically attached to the correct business group.
3. Define operating units.
4. Define your inventory organizations for each operating unit that will have an inventory organization.
Note: Do not define the inventory parameters at this point.
5. If you have more than one business group, switch to the responsibility associated with the other business group and continue to define your organization structure.

Step 7 Define Organization Relationships Use the Define Organization window to define organization
relationships by assigning classifications to each organization. Attributes of certain classifications relate organizations and the roles they play. You can classify an organization as any combination of legal entity, operating unit, and inventory organization. Specify your organization classifications in the following order:
1. Legal Entities Attach organizations designated as legal entities to a set of books. You must also specify a location in the Define Organization window. Use the Define Location window to define locations for
your legal entities.
2. Operating units Attach the operating units to the correct set of books and legal entity.
3. Inventory organizations Attach the inventory organizations to the correct operating unit,
legal entity, and set of books. If you have more than one business group, change to the responsibility
associated with the other business group and continue defining your organization classification.

Classification Information Type Required Attributes
Business Group Business group information if Human Resources is installed. Otherwise, None.
Short Name, Employee/Applicant Numbering, Key Flexfield Structures, Default Legislation Code, and Currency
GRE/Legal Entity Legal Entity Accounting Set of Books, Location
Operating Unit Operating Unit Information Legal Entity, Set of Books
Inventory Organization Accounting Information Set of Books, Legal Entity, Operating Unit


Special Considerations for Inventory Organizations All the inventory organizations in the above chart have been set up with the minimal amount of information to enable them in the Multiple Organization environment. This minimal amount is detailed in the table below. If you plan to implement Oracle Inventory, you need to follow the setup procedures for that product.

For a standalone Oracle Purchasing installation (without Oracle
Inventory), you must specify the following minimum information:

1 Accounting information : Set of books, legal entity, operating unit
2 Receiving information : Three–character organization code,prefix serial (no dummy)
3 Inventory information : All required accounts

You must define the control options and account defaults for one inventory organization, the item master organization. Then you can easily assign items to other inventory organization without recreating all the item information. Use the Organization Parameter window to assign inventory organizations to the item master. The item master organization uses itself as the item master.

There is no functional or technical difference between the item master organization and other inventory organizations. However, we recommend that you limit the item master to just an item definition organization. If you set up new inventory organizations in the future, you can assign the new items to only the item master and the new inventory organization.

Step 8 Define Responsibilities Use the Define Responsibility window to define responsibilities for each operating unit by application. When you sign on to Oracle Applications, the responsibility you choose determines the data, forms, menus, reports, and concurrent programs you can access.

Step 9 Set MO: Operating Unit Profile Option Oracle Applications uses the profile option MO: Operating Unit to link an operating unit to a responsibility. You must set this profile option for
each responsibility.

After you choose your responsibility, there is an initialization routine that reads the values for all profile options assigned to that responsibility,

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