How to define multi-org ?
How to define multi-org ?
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
pls give me some suggetions
Rgds
Muthyala
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
Uma
~~~~~~~~~~~~~~~~~~~~~~
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
Regards,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>
Uma
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
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
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
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
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.
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.
-
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- Location: United Arab Emirates
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
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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