Business Group: This is the top-most entity with in a given company's organization
hierarchy. A business group serves the sole purpose of being an employer
operating in a specific business area. This is the first organization you must
setup. All the other organizations will belong to this organization. A
corporation may choose to setup more than one Business Group.
Set of Books:
The purpose of Set of Books is to facilitate recording financial information
for any number of entities within a company with complex hierarchy. Each Set of
Books belongs to a single Business Group, but a Business Group may have
multiple Sets of Books. The criterion for creating a new Set of Books is based
on Currency, Chart of Accounts and Calendar.
1.
Currency: USD,
GBP, etc.
2.
Chart of Accounts (CoA):
This is the basic information structure for all financial systems within
the E-Business Suite. The purpose of CoA is to easily identify the nature
of transaction and facilitate reporting on specific kind of transactions. A
given organization within the company will setup the CoA in an intuitive manner
to capture the following information:
a.
Who is the owner of the
transaction? E.g. Purchasing within Procurement Organization
b.
What type of transaction
is it? E.g. Office Supplies, Amenities
c.
What is the source of
funds? E.g. Generic, Training, Fun
d.
What is the fund being
used for? E.g. Recreation, Education, Sports
For Eg: If a Procurement Org Member would like to request
for a recreation equipment. The chart of accounts could potentially look like:
|
APPS
|
PRC
|
AME
|
FUN
|
REC
|
1OP579
|
Such flexibility in setting up CoA structure is essential to
facilitate grouping and reporting financial transactions. In E-Biz Suite this
is facilitated by Accounting flexfield in GL.
3. Calendar: You define a Calendar to capture your company’s
financial year. You can split this Calendar into different periods. The
company's business cycle will determine the calendar and the type/number of
periods within the calendar. It offers flexibility to choose a specific period
type such as Month, Day, etc
GRE/Legal Entity: This is the organization that is recognized by the Government to
represent the company in the country of operation. All necessary information
that a Government requires such as EEO statistics, etc will be addressed by
this organization. Each Legal Entity is associated with a single Set of Books,
and a Set of Books may have multiple Legal Entities.
Operating Unit: This can be defined as a business unit that performs one or more
business activities and in the process creates transactions with financial
impact. In E-Business Suite, the actions that can be performed by a given user
is based on the chosen responsibility. This responsibility is exclusively tied
to a specific Operating Unit by setting a profile option named “MO:Operating
Unit”. The MO stands for Multi-Org. This is how all the transactions created by
a given user with a specific responsibility tie to a specific Operating Unit.
An Operating Unit belongs to a particular Legal Entity, and a Legal Entity may
own multiple Operating Units.
Inventory Organization: The sole purpose of this organization is to facilitate stocking
goods and act as a source for all the items (say raw material) required by the
Operating Units for the purpose of manufacturing and also items (say
manufactured finished goods) for distribution to the company's clientele. An
Operating Unit may own multiple Inventory Organizations, and each Inventory
Organization belongs to a particular Operating Unit. However, an Inventory
Organization can serve multiple Operating Units within the same Set of Books.
How a corporation is represented within E-Business Suite:
The sole purpose of E-Business suite is to
capture transactions generated by the company as information, facilitate
sharing of this information between the entities within a company and provide a
security blanket to control access to the companys information. To do all this
there are certain steps that need to happen:
1.
Represent the Company
and its hierarchy as an entity in E-Business Suite using the organization model
defined above.
2.
Associate Employees that
are responsible for all the actions a company does to the above entity
3.
Capture transactions the
employees generate by virtue of their actions in conducting business.
Figure
1: A portion of GE's Organization Hierarchy.
Figure
2: A portion of Vision's Organization Hierarchy.
Defining Organizations
Purchasing: Setup -> Organizations ->
Organizations
Business Group, Legal Entity, Operating Unit,
and Inventory Organization are simply different roles (classifications)
assigned to an organization. Because of this, a single organization can be both
an Operating Unit and an Inventory Organization (ex. Vision Operations). Such
an organization can create transactions with financial impact as well as manage
an inventory of goods. In fact, small companies may choose to define a single
organization as the Business Group, Legal Entity, Operating Unit, and Inventory
Organization, so that it can serve all of these roles. This flexibility allows
you to define the organization hierarchy in the way that best suits your
business.
All organizations are defined in the
Organization form. In the Organization Classifications region, you can assign
one or more classifications to each organization. For example, Figure 3 shows
that Vision Services R&D is classified as an HR Organization, an Inventory
Organization, and an Operating Unit.
Figure
3: Defining the Vision Services R&D organization.
Select an organization classification and click
the Others button to configure the options for that classification. For
example, here you can attach a legal entity to a set of books (Legal Entity
Accounting), an operating unit to a legal entity and a set of books (Operating
Unit Information), and an inventory organization to an operating unit, a legal
entity, and a set of books (Accounting Information). In Figure 4, I selected
Operating Unit, clicked the Others button, and then selected Operating Unit
Information from the Additional Information LOV. In the Operating Unit
Information window, you can assign the OU to a Legal Entity and Set of Books.
Here we see that Vision Services R&D is assocaited with the Vision
Services Legal Entity and the Vision Services (USA) Set of Books.
Figure
4: Configuring the Operating Unit options for Vision Services R&D.
Organizations Data Model
Tables
All organizations and classifications are
defined in HR_ALL_ORGANIZATION_UNITS and HR_ORGANIZATION_INFORMATION. Sets of
books are defined in GL_SETS_OF_BOOKS.
HR_ALL_ORGANIZATION_UNITS
Columns: ORGANIZATION_ID, BUSINESS_GROUP_ID,
NAME, LOCATION_ID...
This table contains basic organization
information. It corresponds to the Organization window of the Organization
form. It has one record for each organization defined in the system.
HR_ORGANIZATION_INFORMATION
Columns: ORGANIZATION_ID, ORG_INFORMATION_CONTEXT,
ORG_INFORMATION1...20
This table contains the classifications for each
organization as well as the options settings for each classification. It
corresponds to the Additional Organization Information window of the
Organization form. Its columns provide storage for the developer descriptive
flexfield Org Developer DF.
The table has 20 flexfield segments
(ORG_INFORMATION1, ORG_INFORMATION2, ORG_INFORMATION3 ... ORG_INFORMATION20).
The meaning of these segments depends on the value of ORG_INFORMATION_CONTEXT,
which is called the structure defining column. For example, for records
with ORG_INFORMATION_CONTEXT = 'CLASS', segment 1 is the classification name,
and segment 2 indicates whether the classification is enabled.
|
ORG_INFORMATION_CONTEXT
|
Segment
|
Meaning
|
|
'CLASS'
(Used for all organizations)
|
1
|
Organization classification name
|
|
2
|
Enabled
|
|
|
'Legal Entity Accounting'
(Used for legal entities only)
|
1
|
Set of Books
|
|
'Operating Unit Info'
(Used for operating units only)
|
2
|
Legal Entity
|
|
3
|
Set of Books
|
|
|
'Accounting Information'
(Used for inventory organizations only)
|
1
|
Set of Books
|
|
2
|
Legal Entity
|
|
|
3
|
Operating Unit
|
GL_SETS_OF_BOOKS
Columns: SET_OF_BOOKS_ID, NAME,
CHART_OF_ACCOUNTS_ID, CURRENCY_CODE, PERIOD_SET_NAME...
This table contains all the sets of books
defined in General Ledger.
Convenience Views
When querying for information about specific
types of organizations, you can use several convenience views that already
include joins between the relevant tables:
Business Groups -
PER_BUSINESS_GROUPS
Columns: ORGANIZATION_ID, BUSINESS_GROUP_ID,
NAME, LOCATION_ID...
Legal Entities -
HR_LEGAL_ENTITIES
Columns: ORGANIZATION_ID, BUSINESS_GROUP_ID,
NAME, SET_OF_BOOKS_ID...
Operating Units -
HR_OPERATING_UNITS
Columns: ORGANIZATION_ID, BUSINESS_GROUP_ID,
NAME, LEGAL_ENTITY_ID, SET_OF_BOOKS_ID...
Inventory Organizations
- ORG_ORGANIZATION_DEFINITIONS
Columns: ORGANIZATION_ID, BUSINESS_GROUP_ID,
ORGANIZATION_CODE, ORGANIZATION_NAME, SET_OF_BOOKS_ID, LEGAL_ENTITY,
OPERATING_UNIT...
The ORGANIZATION_CODE here is the 3-letter
abbreviation for the inventory org, such as V1, M1, or VSD.
Using Organizations in Oracle Applications
Assigning Organizations to a Responsibility
Each responsibility is tied to a particular
business group, set of books, and operating unit. This is configured using
several system profile options.
|
Entity
|
Profile Option
|
|
Business Group
|
HR: Business Group
|
|
Set of Books
|
GL: Set of Books
|
|
Operating Unit
|
MO: Operating Unit
|
By convention, responsibilities are usually
named for their business function and operating unit. For example, Purchasing,
Vision Operations (US) provides purchasing functions for the Vision
Operations operating unit.
When you log in as a particular responsibility,
all of your actions take place in the assigned business group, set of books,
and operating unit.
Using Operating Units
The Operating Unit is an autonomous business
unit that creates transactions with financial impact. In the Oracle
Applications that use Multi-Org functionality (ex. Purchasing, Order
Management, Projects, Payables, Receivables), transactional data and some setup
data are partitioned by OU. When using one of these applications, you will only
be able to see the transactions that belong to the OU configured for your
responsibility. In addition, setup data such as the purchasing, receiving, and
financial options can be configured independently for each OU. For example, you
can set the minimum release amount to $1 for Vision Operations and $50 for
Vision Services.
Org
Context
At runtime, the current Operating Unit is stored
in the first 10 bytes of the CLIENT_INFO database variable. This is called the org
context. It can be accessed from SQL using the following expression:
TO_NUMBER(SUBSTRB(USERENV('CLIENT_INFO'),1,10))
You can programmatically set the org context by
calling the following API: FND_CLIENT_INFO.set_org_context()
When using Apps, you can see the org context by
using Help menu -> Diagnostics -> Examine on the following field:
Block: $PROFILES$
Field: ORG_ID
Org-Striped
Views
For every kind of transactional data that needs
to be partitioned by OU, there is an _ALL table with all the transactions and a
corresponding view with only the transactions that belong to the current org
context. For example, PO_HEADERS_ALL contains all the PO headers, while
PO_HEADERS contains only the PO headers that belong to the current org context.
Setup data is partitioned in a similar way. The
_ALL table contains records with the setup data for every operating unit, and
the view has a single record with the setup data for the current org context.
For example, FINANCIALS_SYSTEM_PARAMS_ALL contains the financial options for
all the operating units, while FINANCIALS_SYSTEM_PARAMETERS has a single record
with the financial options for the current org context.
Using Inventory Organizations
The Inventory Organization is an organization
used to track inventory transactions and balances. It is used to secure
information in applications such as Purchasing (receiving), Order Management
(shipping), Inventory, Master Scheduling, and Work in Progress. For example,
the ship-to organization that you specify on a Purchase Order is an Inventory
Org. You can choose any Inventory Org that has the same set of books as your
responsibility. When you receive against that PO, you should choose the same
Inventory Org.
Choosing
the Inventory Org
When you navigate to Choose Organization or open
a form that requires an Inventory Org, an LOV opens with a list of inventory
orgs. The org that you choose is stored in the global variables
GLOBAL.FND_ORG_ID, GLOBAL.FND_ORG_NAME, and GLOBAL.FND_ORG_CODE. In the
PRE-FORM trigger of the Receiving forms, this org is then copied to
PO_STARTUP_VALUES.ORG_ID and PO_STARTUP_VALUES.ORG_NAME.
Inventory
Org Security
You can restrict Inventory Org access to
specific responsibilities. In Inventory, navigate to Setup -> Organizations
-> Organization Access. Here you can add entries specifying that only
certain responsibilities can access an Inventory Org. If you do not specify any
entries for a particular Inventory Org, then all responsibilities can access
that Inventory Org. In Figure 5, only Shop Floor Manager and Shop
Floor Manager, Vision Operations can access Denver Manufacturing (M5),
but any responsibility can access Seattle Manufacturing (M1).
Figure
5: Defining access to Inventory Organizations.
Inventory
Orgs and Items
Each item is defined in a particular
organization, called the Master Inventory Organization. Once the item is
defined, it can be assigned to other inventory organizations (Master Item form,
Tools menu -> Organization Assignment). For example, CM13139 is defined in
Vision Operations (V1) and assigned to other orgs like M1, M2, M3, W1, W2, and
W3, so you can use the item in any of these inventory orgs. When you create a
PO, you can choose any item that is assigned to the ship-to organization.
Certain attributes of an item (Master level) are
the same across all organizations, while other attributes (Organization level)
may be configured differently for each organization. You configure Master-level
attributes using the Master Items form and configure Organization-level
attributes using the Organization Items form.
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