Multi-Org in simple term means the implementation of multiple business units (or Organization) under a single installation of Oracle Applications. The concept of Multi-Org will manage the operations of an enterprise which has got subsidiaries across globe under a single oracle apps window, taking appropriate care of data security and data maintenance. Below are some of the features of multiple organization functionality.
Any number of Business Units in an Enterprise can be supported within a single installation of Oracle Application.User can access the data corresponding to and limited to the operating unit
Reporting can be managed at different organization levels like, Business Group, Ledger, Operating unit etc.
Transactions like Procurement, Receiving, Selling, Shipping Etc. with the same Party Can be Performed through Different Organization and can be managed internally through inter company postings
Organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.Generally, a complex enterprise has several organization structures, such as Internal, Accounting, and Human Resources. You are able to define different structures to customize Oracle Applications according to your business needs.
Business Group
The business group represents the highest level in the organization structure, such as
the consolidated enterprise, a major division, or an operation company. The business
group secures human resources information. For example, when you request a list of
employees, you see all employees assigned to the business group of which your
organization is a part.
Note: This is true in all applications except the HR applications, which support more granular security by a lower-level organization unit, the security profile.
Multiple ledgers can share the same business group if they share the same business
group attributes, including HR flexfield structures.
Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers
and other legal entity information to this type of organization.
Ledger
A general ledger is a complete record of financial transactions over the life of a company. The ledger holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, owners' equity, revenues and expenses.
It is a collection of 4C.
a) Currency b) Calender c) Chart of Accounts d) Convention (Subledger Accounting)
Operating Unit
An organization that uses Oracle subledgers, such as Oracle Cash Management, Order
Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle
Receivables, and related products. It may be a sales office, a division, or a department.
Operating units are not associated with legal entities. Operating units are assigned to
ledgers and a default legal context. Information is secured by operating unit for these
applications using responsibilities.
Each user can access, process, and report on data
only for the operating units assigned to the MO: Operating Unit or MO: Security Profile
profile option. The MO: Operating Unit profile option only provides access to one
operating unit. The MO: Security Profile provides access to multiple operating units
from a single responsibility.
Inventory Organization
An organization for which you track inventory transactions and balances, and/or an
organization that manufactures or distributes products. Examples include (but are not
limited to) 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.
HR Organization
HR organizations represent the basic work structure of any enterprise. They usually
represent the functional management, or reporting groups that exist within a business
group. In addition to these internal organizations, you can define other organizations
for tax and government reporting purposes, or for third party payments.
Any number of Business Units in an Enterprise can be supported within a single installation of Oracle Application.User can access the data corresponding to and limited to the operating unit
Reporting can be managed at different organization levels like, Business Group, Ledger, Operating unit etc.
Transactions like Procurement, Receiving, Selling, Shipping Etc. with the same Party Can be Performed through Different Organization and can be managed internally through inter company postings
Organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.Generally, a complex enterprise has several organization structures, such as Internal, Accounting, and Human Resources. You are able to define different structures to customize Oracle Applications according to your business needs.
Business Group
The business group represents the highest level in the organization structure, such as
the consolidated enterprise, a major division, or an operation company. The business
group secures human resources information. For example, when you request a list of
employees, you see all employees assigned to the business group of which your
organization is a part.
Note: This is true in all applications except the HR applications, which support more granular security by a lower-level organization unit, the security profile.
Multiple ledgers can share the same business group if they share the same business
group attributes, including HR flexfield structures.
Legal Entity
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers
and other legal entity information to this type of organization.
Ledger
A general ledger is a complete record of financial transactions over the life of a company. The ledger holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, owners' equity, revenues and expenses.
It is a collection of 4C.
a) Currency b) Calender c) Chart of Accounts d) Convention (Subledger Accounting)
Operating Unit
An organization that uses Oracle subledgers, such as Oracle Cash Management, Order
Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle
Receivables, and related products. It may be a sales office, a division, or a department.
Operating units are not associated with legal entities. Operating units are assigned to
ledgers and a default legal context. Information is secured by operating unit for these
applications using responsibilities.
Each user can access, process, and report on data
only for the operating units assigned to the MO: Operating Unit or MO: Security Profile
profile option. The MO: Operating Unit profile option only provides access to one
operating unit. The MO: Security Profile provides access to multiple operating units
from a single responsibility.
Inventory Organization
An organization for which you track inventory transactions and balances, and/or an
organization that manufactures or distributes products. Examples include (but are not
limited to) 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.
HR Organization
HR organizations represent the basic work structure of any enterprise. They usually
represent the functional management, or reporting groups that exist within a business
group. In addition to these internal organizations, you can define other organizations
for tax and government reporting purposes, or for third party payments.
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