Overview on Multi-Org Structure

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What is Multi-Org

Multi-Org is an enhancement to Oracle applications that enables you to model multiple business units in an enterprise using a single installation of Oracle applications. In a multi-org architecture you can keep data secure and separate from each business unit.

The following are the benefits of multi-org:

•          You can use a single installation of any Oracle Applications product to support any 
         number of business units, even if those business units use different set of books.

•          Secure access to data so that users can access only information that is relevant to them.

•          You can define an organizational model that best suits your business requirements.

Organization Model

The multi-org model provides a hierarchy that dictates how transactions flow through different business units and how those business units interact. You define the organizations and the relationships between them.

Business Group

This 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 and the Purchasing Approval Hierarchy. 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 a new installation, Oracle Applications provides a default business group called Setup Business Group. You can define additional business groups as required for your enterprise.

Set of Books

A set of books (SOB) is a financial reporting entity that shares the three Cs: a particular chart of accounts (accounting flexfield structure), functional currency, and financial accounting calendar. You create sets of books using the Set of Books window in Oracle General Ledger. You define all other types of organizations using the Organizations window.

Legal Entity

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.

Operating Unit

An operating unit represents an organization that uses any Oracle subledger application, for example, Order Management, Payables. 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. Responsibilities are linked to a specific operating unit by the MO: Operating Unit profile option.