WHLE DEFINING MULTI-ORG...

[ush]

HELLO EVERY ONE,
I HAVE A DOUBT RELATED TO MULTI -ORG SETUP...

AS WE ALL KNOW
BUSINESS GROUP IS THE TOPMOST HIERARCHY
LEGAL ENTITY IS AT NEXT LEVEL
NEXT IS OPERATING UNIT
NEXT IS INVENTORY ORG.
(BG-->LE-->OU-->IO)

AFTER YOU CREATE A BUSINESS GROUP, YOU CREATE LEGAL ENTITIES.
WHILE DEFINING LEGAL ENTITY, WE GIVE THE INFORMATION OF SET OF BOOKS AND VAT REGISTRATION NO.

THEN, WE MOVE ON TO NEXT STEP TO DEFINE OPERATING UNITS AND ASSIGN IT TO A LEGAL ENTTITY.
THEN WE WILL DEFINE INV.ORG AND ASSIGN IT TO A OPERATING UNIT.

<b>IN THE WHOLE PROCESS, WE NEVER ATTACHED LEGAL ENTITIES TO THE BUSINESS GROUP.
BUT AT THE END OF SETUP...THE STRUCTURE IS CREATED WITH BUSINESS GROUP AT THE TOP AND LEGAL ENTITY ATTACHED TO IT AUTOMATICALLY. </b>
CAN ANY ONE EXPLAIN ME THE LOGIC BEHIND THIS...

[Dhananjay]

Hi

Question posed by you is too good. I am attempting to answer it.

Business group indicates typically, a cluster of legally distinct firms with a managerial relationship. Or group of companies that does business in different markets under common administrative or financial control.
Lets take example of TATA Group of Companies: There are many companies under one banner. When a business group exists as a legal entity itself, it may be a type of conglomerate or holding company.
TATA SONS is a holding company for ulmost all companies under the banner. The relationship between the firms in a group may be formal or informal. A Group is a multienterprise firm that draws its capital from sources extending beyond a single nuclear family. The Groups invest and produce in several product markets rather than in a single product line. For example, a Group's single decision-making center may encompass activities ranging as widely as textiles, cement, fabricated steel, zinc mining, and automobile.

Therefore naturally the business group remains at the top of all associated entities.

Hope I answered your query.

[C-MOON]

i think your question is different , before defining legal entity we define set of books and attach this SOB with LE , then each OU is attached with each LE where we attach LE with a BG?

[amar_babu]

Hi,

I am attempting to answer this question. There is no relation between BG and LE while we define the BG, LE, OU, IO in HRMS. But after defining them, there are certain Profile options should be enabled. They are

1. HR Business Group
2. HR Security Group etc.,

Here we give the Business Group Information for that particular responsibility. I think here we have link of Business Group.

Hope it clears your doubt. Please any one let me if I am wrong.

Thanks,
Amar

[ramesh.nalem]

Hi Amar Babu,

There is Relationship between BG and LE that could be direct or indirect relationship.
BG-SOB-LE-OU-INV-Sub INV-Shelves-Rocks

Read the fallowing defination of BG and you may find the relationship between them

<b>Business Group </b>

The purpose of the Business Group is to partition human resource information.
A Business Group is the highest level of the structure and has no accounting impact.
Legal Entities, Operating Units and Inventory Organizations all belong to a single Business Group.
The Business Group also determines which employees will be available to the Sets of Books and Operating Units related to that Business Group.

[P_MANMOHAN]

HI,

The Legal Entity wont get attach to Business Group automatically. We need to attach it to the Business Group while defining Organisation Hirarchy.

Suppose if ur company has multiple Business Groups, how the system will attach Legal Entity to the Business Group automatically until unless we define that.

Here we need to think one more point. We attach the following profile options to the responsibilities
1) HR: Business Group
2) HR: Secutiry Profile
3) HR: HR User
4) GL: Set of Books

We attach Set of books to the Legal Enity, we define SOB in GL Responsibility for the same Responsibility we also attach Business Group through HR: Business Group Profile. So that it will get automatically.
Think of it.

Still if u have any queries let me know. If Am wrong correct the same.

[dhaimes]

From a financials point of view the Legal Entity defined in that HR form are quite likely a 'dummy' LE and actually the hierarchy you discuss does not hold true. You may account for many Legal Entity in a single OU, this is the most common case in the US. See this post.

http://davidhaimes.wordpress.com/2007/1 ... -entities/

In R12 - the picture from the financials point of view is much clearer because a new product is introduced - Legal Entity Configurator. http://davidhaimes.wordpress.com/2007/1 ... -entities/

It is certainly worth looking at the post belwo which explains the relationship between Legal Entity-Set Of Books (in R12 called a Ledger) and Operating Unit.

http://davidhaimes.wordpress.com/2007/1 ... -entities/

Now for your HR system - you still need to use those Legal Entity in the HR Org form - they are not merged into the New R12 Legal Entity

Hope this helps
David
Blog: http://davidhaimes.wordpress.com

[ush]

u guys rock...i thank everybody for sharing their kowledge.
i got the answer..which is expained by evry1 here direcly or indirectly.

as told by u all...(trying to summerize ur points)

when u assign ur bg using profile option hr: business group under ur responsibility, thatz will be the default bg.
and when u define any legal entity to that responsiblity...it is "automatically" assigned to your pr defined bg.

thanx folks.