OAUG

Oracle Applications Users Group Implementing Oracle Financials Under Multi-Org

Allison G. Fisher Laura B. DeSantis

Agenda
Introduction Oracle V8 DB, V10 Applications and Multi-Org Multi-Org Definitions and Implementation Applications Modified for Multi-Org Example Oracle Payables Applications not Modified for Multi-Org Examples Oracle General Ledger Oracle Assets

Conclusion

Introduction

The Multi-Org Presentation Team Consists of . . . .

Allison G. Fisher

Author and Presenter Associate Consultant PricewaterhouseCoopers LLP Author and Presenter Senior Associate PricewaterhouseCoopers LLP

Laura B. DeSantis

Oracle V8 DB, V10 Applications and Multi-Org

Oracle V8 DB, V10 Applications and Multi-Org

Oracle V8 Databases offer the following advantages over previous Versions . . . .

Increased Data Storage Faster Handling of Data Easier Access to Data Advanced Queuing Increased Scalability Higher Efficiency Levels

Oracle V8 DB, V10 Applications and Multi-Org V10.7 SC Applications are not directly compliant with Oracle V8 Databases. The only Oracle Certified method of using an Oracle V8 Database with V10.7 SC Applications involves a technique called Server Partitioning . . . .
Oracle 8.0.3 Database Client

RDBMS_HOME SQL*Net v. 2 Listener SQL*Net v.2

LINK_HOME Oracle Applications Oracle Reports

Multi-Org Definitions and Implementation

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
Step 1 Develop Organizational Structure Define Set(s) of Books Define Organizations and Relationships Set Profile Option for Organization Unit Responsibilities Define Organization Unit Responsibilities Convert to Multi-Org (Run Adadmin Utility) Define Inventory Organization Security (optional)

Step 2
Step 3 Step 4 Step 5 Step 6

Step 7
Step 8 Step 9 Step 10 Step 11

Implement Oracle Applications

Define Organization Unit Security Rules (optional) Verify Multi-Org Validation Report (optional)

Implement Document Sequencing (optional)

Multi-Org Definitions and Implementation

The importance of investing the time and effort necessary to properly define the Organizational Structure cannot be over-emphasized . . . .
Business Group 1 Business Group 2

Set of Books 3 Set of Books 1

(G/L, F/A)

Set of Books 2
(G/L, F/A)

(G/L, F/A)

Legal Entity 3 Legal Entity 1 Legal Entity 2 Operating Unit 4

(A/P, A/R, P/O, O/E)

Operating Unit 1
(A/P, A/R, P/O, O/E)

Operating Unit (A/P, A/R, P/O, O/E) 2

Operating Unit 3
(A/P, A/R, P/O, O/E)

Inventory Org. 3
(INV and all MFG Apps)

Inventory Org. 2
(INV and all MFG Apps)

Inventory Org. 1
(INV and all MFG Apps)

Inventory Org. 4
(INV and all MFG Apps)

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEVELOP ORGANIZATION STRUCTURE

*
* *
Implement Oracle Applications

Implement Document Sequencing

(1) (3)

Define Business Group(s)

(2)

Define Set(s) of Books

Verify Multi-Org Validation Report

Define Legal Entities

Operating (4) Define Unit(s)

(5)

Define Inventory Organization(s)

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities Define Organizations and Relationships

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Step 1
Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEFINE SET(s) OF BOOKS

*
* *
Implement Oracle Applications

Implement Document Sequencing

Verify Multi-Org Validation Report

(1)

Define Within the General Ledger Module

(2)

Define the same for both Multi-Org and non Multi-Org

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Step 2

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEFINE ORGANIZATIONS AND RELATIONSHIPS Specify required information for each organization type
None if HR not installed G/L Set of Books Associated Legal Entity Accounting Information

*
* *
Implement Oracle Applications

Implement Document Sequencing

Verify Multi-Org Validation Report

(1)
Business Group

GRE/Legal Entity Operating Unit

*
Set Profile Option for Org Unit Responsibilities

Define Inventory Organization Security

Inventory Organization -

Convert to Multi-Org (Run Adadmin Utility)

Step 3

Define Organization Unit Responsibilities

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEFINE ORGANIZATIONS UNIT RESPONSIBILITIES

*
* *
Implement Oracle Applications

Implement Document Sequencing

(1)

Users are confined to Operating Units via responsibilities

Verify Multi-Org Validation Report

(2)

Responsibilities are defined from within the System Administrator Responsibility

This step is no different from creating custom responsibilities in a non Multi-Org environment

(3)

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Step 4
Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
SET PROFILE OPTION FOR ORG UNIT RESPONSIBILITY

*
* *
Implement Oracle Applications

Implement Document Sequencing

(1)

Users are confined to Operating Units via responsibilities Responsibilities are defined from within the System Administrator Responsibility

Verify Multi-Org Validation Report

(2)

(3)

This step is no different from creating custom responsibilities in a non Multi-Org environment

Step 5

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility) Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
CONVERT TO MULTI-ORG

*
* *
Implement Oracle Applications

Implement Document Sequencing

Verify Multi-Org Validation Report

(1)

Run the AutoInstall Utility Adadmin

(2)

This step is usually performed by the DBA

Step 6

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility) Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEFINE INVENTORY ORGANIZATION SECURITY

*
* *
Step 7
Implement Oracle Applications

Implement Document Sequencing

Verify Multi-Org Validation Report

(1)

This step is optional for those implementing Oracle Inventory

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
IMPLEMENT ORACLE APPLICATIONS

*
* *
Implement Oracle Applications Define Inventory Organization Security

Implement Document Sequencing

Verify Multi-Org Validation Report

(1)

Some ORACLE Applications require a separate setup for each operating unit

Step 8

(2)

Some ORACLE Applications only need be setup once for the entire enterprise

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Convert to Multi-Org (Run Adadmin Utility)

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
IMPLEMENT ORACLE APPLICATIONS

*
*
Step 8

Implement Document Sequencing

(1)

Some ORACLE Applications require a separate setup for each operating unit

Verify Multi-Org Validation Report

*
Implement Oracle Applications Define Inventory Organization Security

- Order Entry - Payables - Projects - Sales Compensation -

Service

Purchasing Receivables Cash Management Sales & Marketing

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Convert to Multi-Org (Run Adadmin Utility)

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
IMPLEMENT ORACLE APPLICATIONS

*
* *
Implement Oracle Applications Define Inventory Organization Security

Implement Document Sequencing

Verify Multi-Org Validation Report

(2)

Some ORACLE Applications only need be setup once for the entire enterprise
- General Ledger - Inventory Assets Remaining Manufacturing Applications

Step 8

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Convert to Multi-Org (Run Adadmin Utility)

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
DEFINE ORGANIZATION UNIT SECURITY RULES

*
Step 9

Implement Document Sequencing

* *
Implement Oracle Applications

Verify Multi-Org Validation Report

(1)

Security Rules restrict access to specified account segments

Rules are set-up (2) Security in the General Ledger Module

*
Set Profile Option for Org Unit Responsibilities

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Define Organization Unit Responsibilities Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
VERIFY MULTI-ORG VALIDATION REPORT

Step 10

*
* *
Define Organization Unit Security Rules Implement Oracle Applications

Implement Document Sequencing

(1)

The Set-Up Validation Report should be run following the conversion to Multi-Org

(2)

Not a required step, but strongly recommended

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Define Organizations and Relationships Define Set(s) of Books Define Organization Structure

* Optional

Multi-Org Definitions and Implementation

The following steps must be executed in the sequence indicated to properly configure Oracle Applications within a Multi-Org environment . . . .
IMPLEMENT DOCUMENT SEQUENCING

Step 11 (1)
Not a required step

*
* *
Verify Multi-Org Validation Report Define Organization Unit Security Rules

(2)
Treats each transaction as a document and assigns a document number for a complete audit trail

Implement Oracle Applications

*
Set Profile Option for Org Unit Responsibilities Define Organization Unit Responsibilities

Define Inventory Organization Security

Convert to Multi-Org (Run Adadmin Utility)

Define Organizations and Relationships Define Set(s) of Books

* Optional

Multi-Org Definitions and Implementation

To add more operating units after the initial Multi-Org configuration, perform the following . . . .

Revise the Organization Structure Setup New Operating Unit(s) Configure New Applications (If Any) Update Security Rules (If Necessary)

Multi-Org Definitions and Implementation

The following areas should be given special consideration when implementing Oracle Applications within a Multi-Org environment . . . .

Data Security (Applications) Centralization / Decentralization Global Supplier Tables Form and Report Titles Concurrent Programs

Oracle Payables

Oracle Payables

The following data must be set-up separately for each operating unit: Distribution Sets Bank Accounts

Matching Tolerances
Financials and Payables Options Expense Detail Report Format

Tax Names and Groups

Reporting Entities

Oracle Payables

Shared Supplier Header

Supplier header record shared between Operating Units

Payment sites are segregated by operating unit

Vendors with payment sites in multiple Operating Units cannot be merged

Applications Not Modified for Multi-Org Examples

Applications Not Modified for Multi-Org

The Context Diagram below depicts the Oracle Applications that have been modified to operate independently within a Multi-Org Configuration. Thus,each application requires a separate setup only for each Operating Unit within which it is to be utilized . . . .

Oracle Multi-Org Configuration

Order Entry Payables Purchasing

Projects

Receivables

Cash Management

Sales Compensation

Sales & Marketing

Service

Setup once per Operating Unit

Applications Not Modified for Multi-Org The Context Diagram below depicts both the Oracle Applications that have been modified to operate independently within a MultiOrg Configuration as well as those that have not (i.e. outside the circle). Each Application outside context requires a separate setup for each Enterprise only within which it is to be utilized . . . Oracle Multi-Org Configuration
General Ledger Order Entry Payables Purchasing Assets

Projects

Receivables

Cash Management

Inventory

Sales Compensation

Sales & Marketing

Service

Manufacturing

Setup once per Operating Unit

Oracle General Ledger

Oracle General Ledger

A Multi-Org configuration enables proper segregation of data across operating units . . . .

Business Group 1 Business Group 2

Set of Books 1
(G/L, F/A)

Set of Books 2
(G/L, F/A)

Set of Books 3
(G/L, F/A)

Legal Entity 1

Legal Entity 2

Legal Entity 3

Operating Unit 1
(A/P, A/R, P/O, O/E)

Operating Unit 2
(A/P, A/R, P/O, O/E)

Operating Unit 3
(A/P, A/R, P/O, O/E)

Operating Unit 4
(A/P, A/R, P/O, O/E)

Inventory Org. 2
(INV and all MFG Apps)

Inventory Org. 1
(INV and all MFG Apps)

Inventory Org. 4
(INV and all MFG Apps)

Inventory Org. 3
(INV and all MFG Apps)

Oracle General Ledger

Security Rules Vs. Cross-Validation Rules

Security Rules
Restricts access to a specific accounting flexfield segment(s) -e.g. company segment

Cross-Validation Rules
Used to control the set-up of account combinations across locations, departments, product codes, etc.

Oracle General Ledger

Steps in Defining Security Rules

Step 1:
Determine a companys business requirements

Step 2:
Define online security for account inquiry and data entry

Step 3:
Define security for FSGs and Standard reports

Oracle General Ledger

Step 1: Determine a Companys Business Requirements

Cross-Validation Rules Vs. Security Rules

Two or more companies operating independently within a single set of General Ledger books Autonomy across values associated with a particular accounting flexfield segment

Oracle General Ledger

Step 2: Define Online Security for Account Inquiry and Data Entry
Define Messages associated with a particular rule

Globally Include the range of values associated with a particular rule

Exclude all values not valid for a particular rule Assign Security Rule(s) to a particular responsibility

Oracle General Ledger

Step 3: Define Security for FSGs and Standard Reports

To define security for FSG Reports: System Administrator Responsibility

- set the System Profile Value

To define security for Standard Reports: this functionality is not currently available in Applications version 10.7SC

Oracle Assets

Oracle General Assets

Utilizing a common thread, such as company number, throughout the asset flexfields provides processing autonomy as well as security across the applications ...
Sample Asset Hierarchy
G/L Set of Books "Company X" Asset Book "Company Y" Asset Book "Company Z" Asset Book

Accounting Key Flexfield CO-DIV-LOC-DEPT-ACCT-SUB-PROD Asset Location Flexfield - "Company No."

- State - County - City

Asset Category Flexfield - "Company No." - Major Category - Minor Category

Asset Key Flexfield - "Company"

- Project - CEA - Business Segment

Conclusion

OAUG
Oracle Applications Users Group Implementing Oracle Financials Under Multi-Org
Allison G. Fisher Laura B. DeSantis