Multi Org Concept in Oracle Applications E-Business Suite

Multi Org Concept in Oracle Applications E-Business Suite

Oracle R12

Multi-Org in simple term means the implementation of multiple business units (or Organization) under a single installation of Oracle Applications or using the single Oracle Instance for multiple business units.

Oracle has an architecture called MultiOrg or “Multiple Organization”.  Multi Org is the future used to store the data of multiple organizations in a single Database instance.

The Multi Org structure in Oracle consists of following organizations

·         Business Group or HR Business Group

·         Ledger

·         Legal Entity or GRE

·         Operating Unit

·         Inventory Organization

Multi-Org Structure

BUSINESS GROUP (BG)

A business group is the top level in multi org structure.

In Oracle EBS, Business Group holds the employee information. It is a logical business unit by maintaining employees, customers, vendors, and all hrms modules. For Example: - US business group, UK business group.

A BG can have multiple ledgers attached to it and there can be Multiple Business Groups in one instance.




LEDGER

A financial reporting entity, that uses a particular chart of accounts, functional currency, and accounting calendar.


This is similar to what we do in a ledger. There are 4C’s concepts in Ledger.

·         Chart of Account (Particulars of Goods)

·         Currency (Amount)

·         Calendar (Date)

·         Subledger Accounting Convention (Cash / Accrual)

Oracle General Ledger resides at this level.

LEGAL ENTITY

Legal Entity definition by book is any company which is reporting to Government, an entity which exists. In Oracle EBS a company is also referred to as GRE – Government Reporting Entity.

 A legal entity has a disclosure requirement of their annual revenue. An organization which prepares its Balance Sheet and Income Statement.




OPERATING UNIT

it is a logical business unit area from where we can run our business.

In organization that uses Oracle Cash Management, Oracle Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, and Oracle Receivables. 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 his operating unit. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit.

INVENTORY ORGANIZATION

Inventory Organization is last or the lowest level of MultiOrg structure. It is a warehouse producing the raw material, finished goods, transactions, quantities etc. Inventory organization refers to any kind storage of item, finished goods and raw materials, etc. This storage can be Warehouse, Floors, Cabinets, Drawers, or a logical store which doesn’t exists physically.

Inventory in general refers to storage and movement of goods from one Inventory organization to another. Inventory has two types of inventory: Master Item Inventory Org, Inventory Organization and Sub-Inventory Org.