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In order to allow use of the system by multiple business units, accommodating differing requirements for functional currencies, accounting structures and security, whilst at the same time ensuring a central core design Oracle provides functionality known as "Multiple Organizations" in short is called " multi-Org".This allows different business units to have their own view of the applications, in particular for the financials AP ( Payables), AR ( Receivables), FA (Fixed Assets), CE (Case Management) and INV ( Inventory).
Multi-Org is an important feature of Oracle Applications for several reasons:
- Allows multiple sets of books and multiple legal entities to be configured and to operate in the same instance
- Provides support for data security between business units within a single applications installation
- Permits users to sell and ship products from different legal entities (in different sets of books) with automatic intercompany accounting
- Supports internal requisitions and purchasing/receiving products from different inventory organizations (within the same set of books)
- Enables an enterprise to be housed in one database instance of Oracle, spanning multiple countries, currencies, and legal entities without a reduction in response times (architecture-related)
- Multiple Organizations Reporting enhances the reporting capabilities of Oracle Applications products by allowing you to report at the:Set of Books level, Legal entity level or Operating unit level
Multiple Organization 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
Business Groups: Oracle Applications secures human resources information, including organization definition, by 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. Security access to the sensitive Human Resources data is secured at the highest level at the 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.
Multiple sets of books can share the same business group if they share the same business group attributes, including HR flex-field structures (Grade, positions flex-fields etc).
Accounting sets of books: A General Ledger concept for having separate financial reporting entities for which chart of accounts, calendar, or functional currency differs. In addition for scalability and ensuring independent numbering system for all the accounting transactions as well as the ability to open and close each of the legal entities period independently a separate set of books will be configured for each legal entity.
Legal entities: An organization that represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other relevant legal company information to this entity.
Operating units: An organization that partitions and uses data for Payables, Purchasing, Order Management, Cash Management, Fixed Assets and Receivables. Operating Units allow for configuration of the Oracle Applications across Multiple Business Groups using a single installation of the software.
Inventory organizations: An organization that tracks inventory transactions and balances, and/or that manufactures or distributes products or components. Segregate Item data objects for Inventory, Purchasing, Order Entry, and the Manufacturing Applications (Organization_Id).
Examples could be manufacturing plants, warehouses, distribution centers, and sales offices
The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization.
Internal Departments to which Employees are Assigned.
An asset organization is an organization that allows you to perform assetâ€“related activities for a specific Oracle Assets corporate depreciation book. Oracle Assets uses only organizations designated as asset organizations