Single SOB v/s Multi SOB-adv/disadvantage

[kvn]

Hi,

We have 30 outstations which are not separate legal entities and not in OF. These stations are using an external application and financial data is interfaced to HO.

At HO, OF is implemented and we are using Finance, HRMS and Procurement modules. AT HO we have single SOB and the data received from outstations is consolidated into it.

I require suggestions/advise as to:

1. Shoud I go for single SOB or Multiple SOB?
2. Downside of both the options.
3. Maintenance of Asset register and movement of assets across outstations and between HO.
4. Should I go for multiple OU's instead of SOB's?
5. How difficult it is for implementing multiple SOB's and the efforts needed?
6. Any other areas of concern I should look for?

Would appreciate if any documentation is available on the above?

Rgds.
kvn

[pinnashanmukh]

<u><b>Reply</b></u>

1. Shoud I go for single SOB or Multiple SOB?

It is suggested to go for one SOB if the following conditions are met

Same COA
Same Calender
Same Currency
Same SLA ( R12)
No legal requirement of separate books

2. Downside of both the options.

It does not make much difference. Only period close for 11i has to be done separate for each SOB & only one responsibility will have the access to one SOB can be overcomed in R12

3. Maintenance of Asset register and movement of assets across outstations and between HO.

are u implementing FA also?

FA is totally linked to SOB. Depends on SOB decision

Multiple SOB means multiple FA books

4. Should I go for multiple OU's instead of SOB's?

Are u implementing other subledger like AP & AR?

If so decision has to be taken based on the security.

Why are u mixing SOB with OU. Two are different concepts used for different purposes

5. How difficult it is for implementing multiple SOB's and the efforts needed?

Implementing does not take mucht time but decision has to be taken based on the requirment

6. Any other areas of concern I should look for?

Multiple SOB & OU's decision needs to be taken based on the business requirment.

<u><b>SOB</b></u>

I feel that nature of business across all the locations are same and satisfy the conditions above ( Mentioned above).

better to go for one SOB

<u>Regarding OU's</u>

Decide based on data security is required or not between the outstation
if required then multiple OU otherwise single OU is enough

First check what is their long terms requirment if the data is continued to be integrated with legacy system from outstation then go only for one OU

Its a big topic. Cannot be explained more than this on the mails

Take the above as opion and consider all the options and take a decision before projecting to the client



Thanks,
Shanmukh

[kvn]

Shanmukh,

Thank you very much for the info.

The client is on 11.5.10.2. At outstations AR & AP will also be implemented.

Can I have one single asset register if I go for multiple SOB?

Rollout to all stations will be in a phased manner and staggered over a period of 6 to 9 months. As such, data will be interfaced to OF from Legacy system till individual station is in OF.

Rgds.

kvn

[AmanKhan]

pinnashanmukh

Multiple SOB means multiple FA books

You can define multiple FA books under one SOB. No. of FA books defined can be equal to no. of OUs.

KVN

Can I have one single asset register if I go for multiple SOB?

U cannot have single asset book related to multiple SOB. Read material about multi org structure. it will clear your most of doubts/questions.

Regards,

[oracleapps1983]

Hi KVN

What is OF, HO in the reply u kept.

Regards
Oracleapps1983

[kvn]

Hi,

OF means Oracle Financials and HO means Head Office.

[:)]

[pinnashanmukh]

Hi,

I suggest the following

Create one OU for each location
Create one SOB
Create one FA book

Asset tracking for each outstation can be managed through location flexifield.

Dont decide the multiple FA books for the asset tracking purposes.


You can create multiple FA book with one SOB and restric the functionality to OU through FA security but consider the followind disadvantages:

When a asset is transferred from one OU to other OU means one FA Book to Other FA book --> This functionality is not available in oracle applications you have retire in one FA book and add in Other FA book.

Thanks,
Shanmukh