MULTIPLE ORGANIZATIONS

 

Multi-Org feature in Oracle 11i allows us to define multiple organizations and the relationships among them within a single installation of Oracle Applications. These organizations can be sets of books, business groups, legal entities, operating units, or inventory organizations.

The Multi-Org feature serves various business needs of a complex enterprise having several organizations. Some of the business needs are:

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

• Define different organization models
• Support any number of legal entities within a single installation of Oracle Applications.
• Secure access to data so that users can access only the information that is relevant to them.
• Sell products from a legal entity that uses one set of books and ship them from another legal entity using a different set of books, and automatically record the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices.
• Purchase products through one legal entity and receive them in another legal entity.

Types of Organizations:

·         Set of Books

A financial reporting entity that partitions General Ledger information and uses a particular chart of accounts, functional currency, and accounting calendar. This concept is the same whether or not the Multi–organization support feature is implemented.

·         Business Group

An organization which represents the consolidated enterprise, a major division, or an operation company. This entity partitions Human Resources information.

·         Legal Entity

An organization that represents a legal company for which the company prepare fiscal or tax reports. You assign tax identifiers and other relevant information to this entity.

·         Balancing Entity

An organization for which the company prepares a balance sheet, represented as a balancing segment value in the accounting flex field. This is the equivalent of a fund in government organizations. Examples include companies, strategic business units, and divisions.

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·         Operating Unit

An organization that partitions data for sub ledger products (AP, AR, PO, OE). It is roughly equivalent to a single pre–Multi–Org installation.

·         Inventory Organization

An organization that tracks inventory transactions and balances and/or that manufactures or distributes products.

·         HR Organizations

·         Organizations in Oracle Projects

·         Asset Organizations

There are two types of Multi-Org models:

Human Resources Organization Model

With Oracle Human Resources, you can define multilevel organization hierarchies, with  business group at the top of each hierarchy. When you define new organizations, they are automatically assigned to the business group associated with your current session. Each organization is part of a business group. The business group is usually the top box on an enterprise organization chart.

Enterprise Organization Chart Example

Accounting / Distribution / Materials Management Organization Model

Using the accounting, distribution, and materials management functions in Oracle Applications, you define the relationships among inventory organizations, operating units, legal entities, and sets of books to create a multilevel company structure,

Multilevel Company Structure Example

Setting up Multiple Organization Enterprise

Steps that need to be performed when converting from non-multi-org setup to multi-org setup. These are:

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

17. Implement Document Sequencing (optional)

18. Define Intercompany Relations (optional)

19. Set Top Reporting Level Profile Option (optional)

20. Set Conflict Domains (optional)