What is Multi-Org?
Multi-org enables multiple Business units in an enterprise to use a single installation of Oracle Applications products while keeping transaction data separate and secure.
Features:
Business Group:
A Business Group could be set up to model a consolidated enterprise, a major division, or an operating company—without any accounting impact.
A Ledger is a financial reporting entity, which implements the four “C”s & is a single repository of financial truth.
When you use General Ledger, you select a responsibility that specifies a particular Ledger with information relevant to only that Ledger.
Legal Entity:
Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for
Oracle E-Business Suite products in R12.
This is an entity for which you prepare a balance sheet, represented as a balancing segment
value in the Accounting Flexfield structure.
There can be multiple balancing entities within the same operating unit structure and each of these must balance within itself.
All required intercompany entries will be automatically created within the Ledger to ensure that companies are never out of balance.
Inventory Organization:
An inventory organization represents an organization for which you track inventory transactions and balances.
Examples include manufacturing plants, warehouses, distribution centers, and sales offices.
Products BOM, WIP, Inventory etc. secure information by Inventory Organization.
To run any of these products or functions, you must select an organization classified as an inventory organization.
Summary:
The following points describe how the Multi-Org model relates organizations:
Multi-org enables multiple Business units in an enterprise to use a single installation of Oracle Applications products while keeping transaction data separate and secure.
Features:
- Support any number of Business Unit's(Even if they use different ledgers) within a single installation of Oracle Apps
- Secure access to data whereby user access is limited to information relevant to the user’s organization
- Procure products from an Operating Unit(OU) that uses one ledger, but receive them in another OU using a different ledger.
- Sell products from an OU using one ledger, but ship them from another OU using a different ledger
- Report at any level of the organization structure
Sample Organization Structure
A Business Group could be set up to model a consolidated enterprise, a major division, or an operating company—without any accounting impact.
- The Business Group partitions HR information and the Purchasing Approval Hierarchy.
- You must have at least one Business Group.
- Multiple Legal Entities can relate to a single Business Group
A Ledger is a financial reporting entity, which implements the four “C”s & is a single repository of financial truth.
- Chart of Accounts (COA: Accounting Flexfield Structure)
- Functional Currency
- Financial Accounting Calendar
- Accounting Conventions
When you use General Ledger, you select a responsibility that specifies a particular Ledger with information relevant to only that Ledger.
Legal Entity:
- A Legal entity represents a legal company for which you prepare fiscal or tax reports.
- You assign tax identifiers and other Legal entity information to these types of organizations.
- Represents the designated legal employer, recognized by the legal authorities in a country as a separate employer.
Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for
Oracle E-Business Suite products in R12.
- Support of multiple accounting requirements concurrently in a single instance.
- By maintaining a full link between the transaction and accounting data, Subledger Accounting allows powerful reconciliation and auditing capabilities.
- Bidirectional drilldowns
- Enables consistency in reporting, analysis, and user experience
- An organization qualified as an operating unit can be used to model an autonomous business
unit in an organization that has a business need to secure transaction data, set up and seed data. - Generally, an Operating Unit could be a major division or separate company within the
enterprise. - Each user sees the information associated with the operating units to which they
have access. - An Operating Unit is linked to a Responsibility using the MO: Operating Unit
profile option.
This is an entity for which you prepare a balance sheet, represented as a balancing segment
value in the Accounting Flexfield structure.
There can be multiple balancing entities within the same operating unit structure and each of these must balance within itself.
All required intercompany entries will be automatically created within the Ledger to ensure that companies are never out of balance.
Inventory Organization:
An inventory organization represents an organization for which you track inventory transactions and balances.
Examples include manufacturing plants, warehouses, distribution centers, and sales offices.
Products BOM, WIP, Inventory etc. secure information by Inventory Organization.
To run any of these products or functions, you must select an organization classified as an inventory organization.
Summary:
The following points describe how the Multi-Org model relates organizations:
- A Business Group is the highest level of the structure and does not have an accounting impact. The Business Group determines which employees will be available to Ledgers and Operating Units related to that Business Group.
- A Ledger is the highest level that impacts accounting.
- Ledger is associated with a single Business Group. Multiple Ledgers may be associated with a single Business Group.
- Each Ledger may have a different chart of accounts structure, calendar, or functional currency.
- Each GRE/Legal entity is associated with a single Ledger, multiple Legal Entities may be associated with a single Ledger.
- Each Operating Unit is associated with a single GRE/Legal entity, multiple Operating Units may be associated with a single Legal entity.
- An Inventory Organization may be associated with any Operating Unit within the same Ledger.
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