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    How About A Close To Real Life Case Study?: What Is A Multi Org Structure?

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    Bheeshma
    A multi org structure allows an enterprise to implement multiple organizations like ledgers, legal entities, and business groups within a single Oracle Applications installation. Business groups partition human resources information and security access by country. Legal entities represent separate reporting and tax entities, while operating units partition transactional data. For example, an office supplies retailer operates in the US, Canada, and India with two business groups, three legal entities, three primary ledgers, three operating units, and five inventory organizations to support the multi-country structure.

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    How About A Close To Real Life Case Study?: What Is A Multi Org Structure?

    Uploaded by

    Bheeshma
    86 views2 pages
    A multi org structure allows an enterprise to implement multiple organizations like ledgers, legal entities, and business groups within a single Oracle Applications installation. Business groups partition human resources information and security access by country. Legal entities represent separate reporting and tax entities, while operating units partition transactional data. For example, an office supplies retailer operates in the US, Canada, and India with two business groups, three legal entities, three primary ledgers, three operating units, and five inventory organizations to support the multi-country structure.

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    Multi Org

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    A multi org structure allows an enterprise to implement multiple organizations like ledgers, legal entities, and business groups within a single Oracle Applications installation. Business groups partition human resources information and security access by country. Legal entities represent separate reporting and tax entities, while operating units partition transactional data. For example, an office supplies retailer operates in the US, Canada, and India with two business groups, three legal entities, three primary ledgers, three operating units, and five inventory organizations to support the multi-country structure.

    Copyright:

    © All Rights Reserved
    Download as ODT, PDF, TXT or read online from Scribd
    Download as odt, pdf, or txt
    86 views2 pages

    How About A Close To Real Life Case Study?: What Is A Multi Org Structure?

    Uploaded by

    Bheeshma
    A multi org structure allows an enterprise to implement multiple organizations like ledgers, legal entities, and business groups within a single Oracle Applications installation. Business groups partition human resources information and security access by country. Legal entities represent separate reporting and tax entities, while operating units partition transactional data. For example, an office supplies retailer operates in the US, Canada, and India with two business groups, three legal entities, three primary ledgers, three operating units, and five inventory organizations to support the multi-country structure.

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    What is a Multi Org Structure?

    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.

    How About a Close to Real Life Case Study?


    Before we dive into this topic, let us draw a multi org structure on a whiteboard. It would help to
    analyze a real picture, as we pick at the concepts that go into designing a multi org structure.

    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.

    The above is the organization structure for Office Smart Solutions, which is a major office s
    supplies retailer, headquartered in Naperville, Illinois, USA. The organization operates in three
    countries the US, Canada and India.
    Office Smart has an organization structure with the following:
    2 Business Groups one in the US, which controls the organization structure in North America,
    and one in India
    3 Legal Entities one in the US, one in Canada, and one in India
    3 Primary Ledgers one in the US, one in Canada, and one in India
    3 Operating Units one in the US, one in Canada, and one in India
    5 Inventory organizations two in the US, one in Canada, and two in India
    Subinventories and locators exist beneath the inventory organizations, but they are not relevant
    for the session on multi org structures

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