Difference between Single SOB and Multiple SOB

[SIVAKUMAR_G]

Dear All

Can anyone outline the situation under which the Single SOB with Multiple Values for Balancing Segment is used and the situation under which Multiple SOB's are created?

As for as I know if I use single SOB with Multiple Balancing Segment Values
a) You cannot use this Option if each segment is a separate Legal Entity
b) If you want to give flexibility in terms of Flexfield Definition
(i.e) You have to use same valueset for all Companies
c) Consolidation is little simple compared to multiple SOB

We advise most of the client to use multiple SOB due to following reason
a) Flexibility in using Felxfields
b) Each can be a separate Legal entity
c) In future if they decide to hive off or acquire new company it is easy to separate the data or merge the data respectively.

Is there any other specific reason based on your practical implementation experience?

Looking forward your response

Thanks
Sivakumar

[SIVAKUMAR_G]

I am aware if anyone of the three C's (Currency, Chart of Accounts and Calendar) changes obviously we need to use Multpiple SOB.

My question is more specific only in case if all the three are same

[abhgaur@gmail.com]

I think whether to use Single SOB with Multiple Balancing Segments or Multiple Segments depends

a) How you want to structure your chart of Accounts
As incase if you are using single SOB then each balancing would represent an Entity within the organization whereas when you use multiple SOB then each SOB would be used to represent an Entity.

b) Thus Maintenance is also an important aspect .As maintaining multiple COA is tedious task.

c) Consolidation :
This can be considered to some extent as complexity does not matters in this . In both the cases mapping needs to be informed . The difference that i think is may be if they have same COA then its a bit easier in terms of mapping.


d) How country handles Issues related to local and statutory requirements for a chart of accounts may be an important criteria
For eg - Incase if there are single SOB with multiple balancing segments then for handling country identifier /specific requirements may be a segment may be required to identify country/local identification which may not be required if multiple SOB are there.


e) Incase if the organization is having different chart of Accounts in various countries then may be creating multiple SOB be an option . Ex- Companies getting merged where Oracle is already Implemented so consolidating final results may be easier then changing the entire COA.

Thanks
Abhishek