How to define multi-org ?

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muthyala
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How to define multi-org ?

Post by muthyala »

I have to Create Multi-Org With 5 Set of books . whta is the process of the multi-org.......

pls give me some suggetions

Rgds
Muthyala
anu_uma
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Post by anu_uma »

Multiple Organizations
~~~~~~~~~~~~~~~~~~~~~~
Multiple organizations and their relationships are defined in a single
installation of Oracle Applications. Multiple organizations can be

characterized as:

1. Set of books
2. Business groups
3. Legal entities
4. Balancing entities
5. Operating units
6. Inventory organizations

Set the operating unit profile option for each responsibility. The profile option is "MO: Operating Unit."

Convert to Multiple Organization Architecture. When your setup is complete, have your database administrator run the AutoInstall utility adadmin. Be sure to choose the option to convert to multi-org. This process should only take a few minutes to run.

Set the profile option "OM: Item Validation Organization" if you have a different item validation organization.

Set profile options specific to your operating units. For each responsibility, set the following:

HR: Business Group

HR: User Type

GL: Set of Books Name

OM: Item Validation Organization

INV: Intercompany Currency Conversion

TAX: Allow Override of Tax Code

TAX: Invoice Freight as Revenue

TAX: Inventory Item for Freight

Sequential Numbering

I have to Create Multi-Org With 5 Set of books . whta is the process of the multi-org.......

pls give me some suggetions

Rgds
Muthyala

<i><div align="right">Originally posted by muthyala - 06/05/2007 : 10:58:00 PM</div id="right"></i>
Regards,
Uma
anu_uma
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Post by anu_uma »

Hi,

OM: Item Validation Organization --- is now provided in System parameter's of order management.

Thanks
muthyala
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Joined: Wed Apr 11, 2007 5:02 am
Location: India

Post by muthyala »

Thank u for ur reply UMA

Rgds
Muthyala
muthyala
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Post by muthyala »

hi uma
i have smale doute ...
i now how to set the one set of book ..but i want how to set the one more set of books

Rgds
Muthyala
anu_uma
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Post by anu_uma »

Hi,
Under your Business group create a new SOB....

Regards,
muthyala
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Post by muthyala »

Thank u uma

Rgds
Muthyala
muthyala
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Post by muthyala »

hi Uma
give me one example to multi-org creation process
yemfola
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Post by yemfola »

Hi Anu,

Practically, do we put all our SOBs in the same business group like 5 sobs as the guy asked. I was reading oracle manual and I discover that oracle creates different business groups for Uk and another one for US. what practice is the best? One business group containing many SOBs for the company as a whole or business group for each country?

Regards

Yemfola
admin
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Post by admin »

Hi,
There are two things one is that you design a financial system for an organization and 2nd is you fit organization into financial system. For a moment forget the financial portion. First you have to know that where your company is registered (Legal Entity). Secondly you need to have HRMS setup for employees. If you view the business group screen there are fields like employee id, flexfields check topic Business Group in the HRMS document. Once you have finalized organization setup then design financial system for the organization. So I recommend first approach that first design organization and then financial system.

Comments are welcome from all members on this.

Thanks
yemfola
Posts: 104
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Location: United Kingdom

Post by yemfola »

Hi admin,
The relationship between SOBs and business group is many to one which means many SOBs could belong to one Business group if they are operating in the same country or within the same human resources law. In two countries or cities where we do not have the same human resources laws, it means each country or city could only have the SOB that relates to that city or country. That is why Oracle has two different business groups, one for Uk another for US as they do operate the same human resources law including tax.

Pls if anybody disagree, you could correct me.
thinktank
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Joined: Sat Dec 22, 2007 7:25 am
Location: Australia

Post by thinktank »

Hi

what is the conclusion. If the company operates in US , UK and China, is it going to be

a. 3 business group , 3 books , 3 ou

b. 1 business group , 3 books, 3 ou


Following which , the balancing segment will have 3 values pointing to 3 companies or 1 value only in each of the book ?
SIVAKUMAR_G
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Post by SIVAKUMAR_G »

Hi

I would suggest as admin mentioned draw the HR Organization structure first and then decide on the Financial system. The Reason being the concept in Finance is very simple.

As long as if any one of the three (Currency, Calendar and Chart of Account) varies you need a separate set of books, but still it can be under single Business Group.

I would say both the choices are possible

a. 3 business group , 3 books , 3 ou - If you use Oracle Payroll

b. 1 business group , 3 books, 3 ou - If you do not use Oracle Payroll

The reason being employees are for a Business Group and not for a Set of book and when you run the Payroll Process in Oracle, the system looks at the currency defined in the Business Group. So if your appointment order to employees are in three currencies, then you need to define three Business Groups.

There is a workaround in Payroll to change the currency in Payment method which will result in exchange rate gain or loss every month which is not a right solution.

<font color="red"><b>IMPORTANT NOTE:</b></font id="red"> If you carefully go through the Oracle Multiple Organization structure it would be very clear.

Think and analyze each of the above like Business Group, Set of Books, Legal Entity,Operating Unit and Inventory Org as a separate object and whether to define single or multiple depends on How clearly the Organization structure is defined and mode of operation is currently being done by the client and what is there future expansion plans.

You can have 'N' number of permutations and combinations

Multiple Business Group with Single SOB, Single OU

Single Business Group with Multiple SOB and Single OU

Single Business Group with Multiple SOB and Multiple OU

Hence treat each of the above as a Separate Object and understand the client Business better and determine which is best suitable for client Business taking into account their future expansion plans

Hope this helps

Regards
Sivakumar
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