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Bibaswan Barpanda

MSOBA Vs. Multi-Org Oracle Applications

          What is MSOBA? What is Multi-Org? Major Features Advantages of Multi-Org Multi-Org Definitions Intercompany Transactions Determining Your Organization Structure Setting Up a Multiple Organization Enterprise Overview on iMerge Q&A

MSOBA(Multiple Set Of Books Architecture)
Level 1


Level 2




Level 3





MSOBA(Multiple Set Of Books Architecture)
 Also known as multiple product installation architecture.  MSOBA refers to installing products such as AP, PO, AR, OE, etc multiple times in different schemas.  In the MSOB architecture, some products require only one base schema to store data from multiple sets of books, while others require multiple base schemas - one base schema for each set of books (see SOA and MOA products).

 Each Set of Books in the MSOB architecture has a separate APPS schema.  SOA Product (Single Oracle Account)A product that only requires one base schema to support multiple sets of books functionality in MSOBA viz. (ad,ak,alr,au,ax,az,dt,fa,ff,fnd,ghr,gl,hxt,icx,ota ,pay,per,qa,rla, rg,ssp,veh)

 MOA Product (Multiple Oracle Account) -A product that requires one base schema per set of books in the MSOB architecture.

What is Multi-Org?
 The Oracle Applications organization model (Multi-Org), defines the organizational structure and organizational relationships of an enterprise within Oracle Applications.  The cornerstone of all Oracle Application products.  Dictates how transactions flow through different organizations and how those organizations interact with each other.

What is Multi-Org?
 An Oracle Applications server-side configuration that enables multiple business units in an enterprise to use a single installation of Oracle Applications products.  Consolidate all operations under one installation of Oracle Applications, keeping your data resident on a single database, yet keeping transaction data separate and secure within the logical confines of individual operating units.

Major Features
    Many Organizations in One Installation. Multiple Legal Entities in One Installation. Secure Access to Data. Sell and Ship Products from Different Legal Entities.  Purchase and Receive Products between Organizations.  Automatic Accounting for Internal Requisitions.

Advantages of Multi-Org
Multiple financials sets of books in single installation Secure access to globally combined data by operating unit Global customer and supplier registries Automatic intercompany accounting Reduced maintenance of applications software Reporting across Operating Units

Multi-Org Definitions

 A level of authority in an Application.  Determines data, forms, menus, reports, and concurrent programs users may access in Oracle Applications.  Several users may share a responsibility and a single user may have multiple responsibilities.

 A business unit such as a plant, warehouse, division, department, company….

Profile Options
 Also called System Profiles  Changeable options that control the way applications run.  Assign organizations and security profiles to responsibility.  Can be set at multiple levels - Site, Application, Responsibility, User,Server & Organization

The Multi-Org Model
Vision Corporation (Business Group)
Vision Corporation (GL Set of Books)

LE: Vision Corp (Legal Entity) Balancing Entity 1 Balancing Entity 2

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.

OU: Vision Corp (Operating Unit)

INV: Vision Corp (Inventory Org.)

Human Resources Organization Model
Business Group



HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

HR Org

Accounting/Distribution/Materials Management Organization Model
Set of Books

Legal Entity

Legal Entity

Operating Unit

Operating Unit

Operating Unit

Operating Unit

Inventory Org

Inventory Org

Inventory Org

Inventory Org

Inventory Org

Inventory Org

Business Group
 An organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact.  Employee/HR information is secured by business group

 Partitions HR information and PO Approval Hierarchy
 Attached to Responsibilities via Profile Option HR:Business Group  Must have at least one business group

HR Organization
 An internal organization such as a department, section or project team which facilitates a complex organization structure for HR tracking.  Utilized only by Oracle HR/Payroll and Projects applications and have no impact on the Financial or Manufacturing applications.

Set of Books
 A financial reporting entity that partitions General Ledger information and uses a single chart of accounts, accounting calendar, and functional currency.  Secures General Ledger transaction information such as journal entries and account balances.  Attached to Responsibility via Profile Option  May have one or more within a single business group.

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.
 Each Legal Entity is attached to a single GL Set of Books  No data is stored at the LE level  Currently limited functionality  Future enhancements to include greater functionality

Operating Unit
 An organization that partitions data for Oracle subledger applications (AP, AR, PO, OM)  Attached to a single legal entity.  Associated with a single GL Set of Books.  All subledger application transaction data is secured at the Operating Unit level.  Attached to Responsibility via Profile Option MO: Operating Unit

Inventory Organization
 An organization that tracks inventory transactions and balances, and/or that manufactures or distributes products.  Manufacturing plants, warehouses, distribution centers, and sales offices.  Applications that secure data by Inventory Organization include (Inventory, BOM, Engineering, WIP, MRP, Capacity, and Purchasing

Master Inventory Organization
 Top-level inventory organization that controls the attributes assigned to an item and where items and bills of materials are set up.  The Master Inventory Organization dictates the costing settings of an inventory organization (this does not apply to OPM, which has it’s own costing functionality).  Cannot be shared across sets of books but can be shared across operating units within the same set of books.

ERP Organization Relationships
Business Group Set of Books

Highest Level Org Controls HR Functions and Access to employees

Calendar, Currency, and Chart of Accounts

Legal Entity
Operating Unit Inventory Org.

Posts to a Single Set of Books

Part of a Legal Entity

Part of an Operating Unit

ERP Organization Examples
US Operations SOB

UK Operations SOB

Eastern Division (LE)

Western Operations (LE,OU,INO)

UK Division (LE)

Northeast Region (OU)

Southeast Region (OU)

UK Sales Office (OU)

UK Plant (INO) Pittsburgh Plant (INV Master Org) Atlanta Plant (INO) Orlando Plant (INO)

Intercompany Transactions

Intercompany Transactions
Sell and Ship Products from different Sets of Books

Customer Invoice

US Sales Office


Sales Order


Interco Invoice

Product Shipment

UK Sales Office

Sell from One Legal Entity, Ship from Another
 Segregation of Trade COGS, Intercompany COGS and Sales Revenue  Establish Transfer pricing through ordinary price lists in Order Management.  Create Automatic Intercompany AP and AR Invoices  Assign to a sales order a warehouse under a different Operating Unit posting to a different Set of Books.

Purchase and Receive Products Between Organizations
 Purchase order operating unit and receiving inventory organization must share the same set of books.  In a Future Release you will be able to receive to inventory organizations posting to a different set of books.

Global Customers and Suppliers
US West Operations (Operating Unit)

Supplier ABC Corp

US East Distribution (Operating Unit)

Site 1: Redwood City, CA Site 2: San Francisco, CA Site 3: Phoenix, AX

Site 1: Atlanta, GA Site 2: Iselin, NJ

Global Customers and Suppliers
 Customer and Supplier Header records are Global.  Customer and Supplier Addresses (Sites) are Operating Unit Specific.

Determining Your Organization Structure

Determining your Multi-Org Structure
      Business Groups Sets of Books Balancing Entities Legal Entities Operating Units Inventory Organizations

Business Unit Considerations
 Business Group determines list of employees available.  Must have at least One Business Group  Oracle Applications comes seeded with a Business Group called Setup Business Group which can be modified to match your organization requirements.

Business Unit Considerations
 As the highest level organization in Multi-Org, You must first setup Business Units.  You must setup all of your Business Units and appropriate responsibilities prior to setting up other organizations.  You need multiple business groups if your business requirements necessitate partitioning of employee/HR information such as for operations in different countries.

Set of Books Considerations
 Organizations with common functional currency, chart of accounts, and accounting calendar may share the same Set of Books.  If any one of the three C’s is different, you must have a separate set of books.  You may have as many GL sets of books as your enterprise requires.  Sets of Books are independent of the Business Unit.

Set of Books Considerations
 Local accounting and auditing standards or security requirements may necessitate additional sets of books.  You may set up multiple sets of books for additional security.  You may consolidate any number of sets of books to a consolidation set of books for your global consolidation reporting requirements

Balancing Entities
 A Balancing segment value  Required for all organizations for which a Balance Sheet is required

Legal Entity Considerations
 Currently limited functionality  Greatest risk in design of architecture as the future features for legal entities are not known.  EEC uses legal entity  Typically the same level as Balancing Entity

Operating Unit Considerations
 Evaluate the sales order entry, shipping, purchasing, accounts payable, and accounts receivable departmental requirements.  Separate autonomous operations require separate Operating Units.  Identify centralized and decentralized Processes.  You cannot mix centralized and decentralized processes within Operating Units.

Inventory Organization Considerations
 How many Inventory Locations?  Will you require multiple Item Master Organizations?  How many child inventory organizations will be required?  Will your Inventory Organization be completely functional or will it just contain inventory Master information.

Additional Considerations

Security Profile
 Supports service bureau requirements in CRM.  Uses HR organization hierarchies to restrict users to access one or more organizations.  Assign security profiles with different security rules to responsibilities.

How Security Profile Controls Access
User User



Security Profile 1

Security Profile 2

Operating Unit A

Operating Unit B

Operating Unit C

Setting Up a Multiple Organization Enterprise
         Develop the Organization Structure Define Sets of Books Define Locations Define Business Groups (optional) Associate Responsibilities with Business Groups Define Organizations Define Organization Relationships Define Responsibilities Set MO: Operating Unit Profile Option

Setting up cont…
      Convert to Multiple Organization Architecture Change Order Management Profile Option Set Profile Options Specific to Operating Units Define Inventory Organization Security (optional) Implement the Applications Products Secure Balancing Segment Values by Legal Entity (optional)  Run the Multi–Org Setup Validation Report (recommended)  Implement Document Sequencing (optional)

Setting up cont…
 Define Intercompany Relations (optional)  Set Top Reporting Level Profile Option (optional)  Set Conflict Domains (optional)

Overview on iMerge
 Consolidate data held in multiple application schemas into one schema within the same instance  Consolidate data held in multiple instances into a single instance  Consolidate multiple GL Sets of Books into a single GL Set of Books when the Chart of Accounts, Calendar and Currency are the same

Release 11.03 or 11i Multi Set of Books
Apps Schema (MTN SOB) Apps2 Schema (BTS SOB) Apps3 Schem a (MTNSP SOB)















Release 11.03 or 11i Multi Org
Apps Schema












Q U E S T I O N S A N S W E R S

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