Purpose of OU

[Lakshminarayanan]

Why do we define Operating units? what is the business purpose of it? Suppose we have two organizations one at Chennai and other at Bangalore. how do we conclude that these have to be defined as Inventory organizations or operating units?

Regards,
Lakshminarayanan.

[cnubandi]

<b>Operating Unit</b> is also an organization that uses Accounts Receivable, Oracle Payables, Oracle Purchasing, or Oracle Receivables. It may be a sales office, a division, or a department.Operating Unit nothing but where you can buy and sell the goods,means where the transactions takes place. 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. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit.

<b>Inventory Organization </b> nothing but where you can track inventory transactions and balances, and/or an organization that manufactures or distributes products.In simple words Inv Org is nothing but Stores or Godown.