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What is the purpose of Business group in Financials.

Why We Define It.

Difference between Operating unit and Business Group

HI skhan

A business group in Oracle is a container of country specific data. Usually each business group will be tied to one and only one country, however sometimes if you do not have a large presence in a country a single business group may contain data from more than one country.
Operating Unit : Use the operating unit organization classification if you also use Multi-Org applications. You can associate an operating unit with an HR Organization. The application uses the R Organization to find the operating unit to which a person belongs.

Suppose you have ABC corporation company, & this company has a multi branches in the other countries so the structure will be like the following:
1- Business Group: ABC corporation.
2- 3 Ledgers related to business group in the countries.
3- Each ledger has 1 legal entity.
4- Each Legal Entity can has more than operation unit.

Thanks
Hisham

Thks Hisham to concider.


i tell u wat i understand abt ur reply.

u said that when v operate in different country/region/state

then v must have to define a Business Group

Business Group



Country Ledger Country Ledger


Legal Entity Legal Entity
Operating U1
Operating U2 Operating U1 Operating U2
then why we use multi operating units wat its purpose.plz in detail

Thanks for all for Valuable Suggestion

Can you please tell me what cases we need to go for Implementing New Operating Unit.

thanks