Version R12/11i? = 11i
Module? = Multi-Org
Hi Gurus,
Please help me with Multi-Org concept questions?
1.Based on which criteria ,a functional Consultant can decide how many Business Group (BG) ,Legal Entity(GRE/LE)s , Operating Units (OU) and Inventory Org (IO) are needed for one company or Organization ?
2. What are the relevant questions a func.Consultant will ask a client in order to get the above mentioned info?
Many thanks in Advance.
Regards
Racle11i
Multi-Org Questions
I see this question from many people. I also got the same question in my Personal message inbox from some members. Let me start the answer with what I could remember. I will add it if I get more. Other members can also add...
<u><b>Business Group</b></u>
The Business Group is an Organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information
If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group..
You must have at least one Business Group for an installation. For a new installation, Oracle Applications provides a default business group, Setup Business Group. You can define additional business groups as required for your enterprise
If HRMS is not implemented and there is no plan to implement oracle HRMS in future, then one business group is suffice. You can use the default BG or create a new one.
No. of business groups mainly decided on the following factors
1. HRMS Implemented or not
2. Countries in which HRMS implemented and localization requirement
3. Payroll processing currency
4. Centralized or Decentralized Payroll Processing
5. Transfer of employees from one business to another business (not so important?)
At least one Business Group would be required per country that an enterprise operates in since HRMS data would have different legislation in different countries.
<u><b>Ledgers</b></u>
A ledger is a financial reporting entity that shares the four Cs: a particular chart of accounts (accounting flexfield structure), functional currency, financial accounting calendar and subledger accounting method. Basically the ledger separate the accountings for a legal Entity. A company which operates in separate cities or separate line of businesses may separate their accounting transactions across units through separate Set of Books. General Ledger module secures transaction information (journal entries, balances) by ledgers. When you use General Ledger, you choose a responsibility that specifies a ledger/ledger set. You then see information only for that ledger(s).
A Business Group can have one or more ledgers.
Factors that decide the SOB
1. Chart of Account
2. Functional Currency
3. Calendar
4. SLA method for primary ledger
5. Security of accounting data
6. Online availability of data (Consolidation needed in case of multiple ledgers)
7. Journal Approval
<u><b>Legal Entity</b></u>
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. Separate Legal Entities may share same ledger
Criteria
Legal Reporting of fiscal and tax data
<u><b>Operating Unit</b></u>
An operating unit represents an organization that uses any Oracle subledger application, for example, Receivables, Order Management, Payables, Purchasing. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit(s). Responsibilities are linked to one or more operating units by the MO: Security Profile profile option.
Criteria
1. Secure access to data so that users can only access relevant information
2. Reporting Requirements ? Some reports gives output only for an OU. Reports may have to be consolidated
3. Localization Requirements
4. Transaction approval requirements
Cheers,
Saravanan
<u><b>Business Group</b></u>
The Business Group is an Organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information
If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group..
You must have at least one Business Group for an installation. For a new installation, Oracle Applications provides a default business group, Setup Business Group. You can define additional business groups as required for your enterprise
If HRMS is not implemented and there is no plan to implement oracle HRMS in future, then one business group is suffice. You can use the default BG or create a new one.
No. of business groups mainly decided on the following factors
1. HRMS Implemented or not
2. Countries in which HRMS implemented and localization requirement
3. Payroll processing currency
4. Centralized or Decentralized Payroll Processing
5. Transfer of employees from one business to another business (not so important?)
At least one Business Group would be required per country that an enterprise operates in since HRMS data would have different legislation in different countries.
<u><b>Ledgers</b></u>
A ledger is a financial reporting entity that shares the four Cs: a particular chart of accounts (accounting flexfield structure), functional currency, financial accounting calendar and subledger accounting method. Basically the ledger separate the accountings for a legal Entity. A company which operates in separate cities or separate line of businesses may separate their accounting transactions across units through separate Set of Books. General Ledger module secures transaction information (journal entries, balances) by ledgers. When you use General Ledger, you choose a responsibility that specifies a ledger/ledger set. You then see information only for that ledger(s).
A Business Group can have one or more ledgers.
Factors that decide the SOB
1. Chart of Account
2. Functional Currency
3. Calendar
4. SLA method for primary ledger
5. Security of accounting data
6. Online availability of data (Consolidation needed in case of multiple ledgers)
7. Journal Approval
<u><b>Legal Entity</b></u>
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. Separate Legal Entities may share same ledger
Criteria
Legal Reporting of fiscal and tax data
<u><b>Operating Unit</b></u>
An operating unit represents an organization that uses any Oracle subledger application, for example, Receivables, Order Management, Payables, Purchasing. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit(s). Responsibilities are linked to one or more operating units by the MO: Security Profile profile option.
Criteria
1. Secure access to data so that users can only access relevant information
2. Reporting Requirements ? Some reports gives output only for an OU. Reports may have to be consolidated
3. Localization Requirements
4. Transaction approval requirements
Cheers,
Saravanan
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