Multi Org in R12

Multi Org in R12

It’s a feature used to store the data of multiple organization in a single instance by partitioning the data of human resource, financials, sales, purchases, assets and materials.

If an enterprise or a business wants to implement multiple organizations such as multiple Ledgers (Sets of Books), or Legal Entities, or Business Groups within a single installation of Oracle Applications, then we can summarize that the enterprise is planning to implement a multi org setup.

Major Features of Multi-org

Multiple Organizations in a Single Installation

you can define multiple organizations and the relationships among them in a single installation of Oracle Applications. These organizations can be ledgers, business groups, legal entities, operating units, or inventory organizations.

Secure Access

You can assign operating units to a security profile and then assign the security profile to responsibilities or users. If multiple operating units are assigned to the security profile, then a user can access data for multiple operating units from a single
responsibility. This ensures that users can only access, process, and report on data for the operating units they have access to.

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 the inventory organizations that 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 units you can access when you use Oracle Applications. If you only want a responsibility to access only one operating unit, then set the profile option called MO: Operating Unit. If you want a responsibility to access multiple operating units, then define a security profile with multiple operating units assigned and assign it to the MO: Security Profile profile option. Additionally, if using the MO: Security Profile profile option, you can also set the MO: Default Operating Unit profile option to specify a default operating unit that will default in transaction entry pages.

Multi Org has been categorized into

1. Business Group.
2. Ledger.
3. Legal Entity.
4. Operating Unit.
5. Inventory Org.

Business Group

Business Group is a top level in the org structure. At this level we secure work structures (Job Structure, Position structure, Grades structure) and remuneration policy (Pay roll Policy).

Structure for Jobs, Position, Grades may differ from organization to organization, say position structure in a organization may have clerk, senior clerk, manager, senior manager. Where as in another organization it may only have clerks and managers.

Based on the Work Structure and remuneration the business group are created

Ledger

A Ledger is a financial reporting entity, which implements the four “C”s and is a single repository of financial truth.

•         Chart of Accounts (COA: Accounting Flexfield Structure)

•         Functional Currency

•         Financial Accounting Calendar

•         Accounting Conventions

General Ledger secures transaction information (journal entries, balances) by Ledger. When you use General Ledger, you select a responsibility that specifies a particular Ledger with information relevant to only that Ledger.

Legal Entity

This is a legal business or a registered firm; at this level we prepare income tax reports.

Legal Entries are used to report the Tax Reporting.

Operating Unit

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. An operating unit can be set up to support different business policies and workflow processes. Generally, an operating unit can 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 by using the MO: Operating Unit profile option.

Inventory organizations 

subinventories and stock locators are the last building blocks, which can be accommodated with relative ease, once the other entities are put in place.Each operating unit would have one or more inventory organizations beneath it. An inventory organization is either a manufacturing facility or an independent warehouse. Therefore, inventory organizations need to have an address or location.