7

Fundamentals of Multi-Org

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Objectives
After completing this lesson, you should be able to do the
following:
Define Multiple Organization (Multi-Org)
Discuss the types of organizations supported in the MultiOrg model
Explain the entities of Multi-Org
Explain how Multi-Org secures data
Identify key implementation considerations
Define Multi-Org Access Control (MOAC)
Explain Multi-Org preferences
Explain Enhanced Multiple-Organization Reporting

7-2

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

What Is Multi-Org?

7-3

A server-side (applications and database) enhancement

that enables single installation of Oracle Applications
Keeps transaction data and some setup data separate and
secure by different lines of business

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Basic Business Needs

The Multi-Org enhancement provides features that enable you
to:
Support multiple business units even if they use different
ledgers
Secure access to data on a single instance by line of
business
Define different organizational models
Sell and ship from different legal entities
Procure and receive from different legal entities
Produce reports across entities or within a single entity

7-4

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Organization Types Supported in

the Multi-Org Model

7-5

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Types of Organizations Supported

in the Multi-Org Model
Business Group

Ledger

Bal Seg 1

GL, FA

Bal Seg 2
Flexfield
Security Rule

GRE/Legal entity

7-6

Balancing
Entity/Funds

HR

Operating Unit

AP, PO,
AR, OM,
and so on

Inventory
Organization

INV, MFG
Ship

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Business Group
Business Group

HR

A Business Group can be set up to

model a consolidated enterprise, a
major division, or an operating
companywithout any accounting
impact.
You must have at least one Business
Group.

7-7

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LedgerA Ledger is a financial reporting entity

Business Group

HR

Accounting Setup Manager

GL

The Ledger concept is similar in a

Multi-Org environment. General Ledger Ledger
secures transaction information
(journal entries, balances) by Ledger.
When you use General Ledger, you
select a responsibility that specifies a
particular Ledger with information
relevant to only that Ledger.

7-8

Ledger
US GAAP
US COA
US Calendar
EURO $
$- Reporting Currency

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Legal Entity
Business Group

HR

Ledger

GL

GRE/Legal entity
A Legal entity identified through the registration
with Legal Authority represents a legal
company for which you prepare fiscal or tax
reports
7-9

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Operating Unit
Business Group

HR

Ledger

GL

Legal entity

Operating Unit

7 - 10

AP, PO,
AR, OM, and
so on

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Balancing Entity
Business Group

HR

GL, FA

Ledger

GRE/Legal entity

Balancing
Entity/Funds
Bal Seg 1
Bal Seg 2
Flexfield
Security Rule

AP, PO,
Operating Unit AR, OM, and
so on

7 - 11

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Balancing Entity: Examples

2

LE1

1
10

LE1

10

C1

3
Div 1

Balancing
segment
values

7 - 12

LE1

Div 2

10

20

C2

LOB 1

LOB 2

20
30

10

20

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30

Inventory Organization
Business Group

HR
GL, FA

Ledger

Inventory
Organization

7 - 13

Bal Seg 1
Bal Seg 2
Flexfield
Security Rule

GRE/Legal entity

Operating Unit

Balancing
Entity/Funds

AP, PO,
AR, OM, and
so on
INV, MFG
Ship

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Sample Organization Structure

Ledger

LE

LE

OU

OU

OU

MIO
IO

7 - 14

IO

IO

IO

IO

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IO

Define the Organization Structure

Corporate
US

Canada

Japan

US

Canada

Japan

Chicago

West

Inventory

Warehouse

Calgary
Manufacturing
7 - 15

Tokara
Islands

East

Montreal
Inventory

Quebec
Manufacturing

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Adding to the Organization Structure

7 - 16

Original

Add New

Wid Co.
Ledger

Wid Co.
Ledger

US 1
(LE)

US 1
(LE)

US 2
(LE)

West Ops
(OU)

West Ops
(OU)

East Ops
(OU)

Plant 1
(IO)

Plant 1
(IO)

Plant 2
(IO)

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

How Multi-Org Secures Data

7 - 17

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Security Model
The responsibility is key to multi-org security and reporting. It
determines:
Operating unit
Reporting ability

Select

Users

7 - 18

Tied to an

Responsibilities

Operating
Unit

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Data Security by Application

7 - 19

Application

Partitioned By

GL

Ledger

FA

Asset Book

HR

Business Group

OM, AR, AP, PO, CE, PA,

AS, SC, ASO, ASN, AST

Operating Unit

INV, MFG

Inventory Organization

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Global Registries
Operations
US

New York

Supplier ABC
Corporation
Address 1:
New York, NY

Address 1:
Austin, TX

Address 2:
Orlando, FL

Address 2:
New York, NY

Address 3:
Green Bay, WI

Note the separation of supplier sites by OU.

7 - 20

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Distribution
SNG

Singapore

Organization Naming Considerations

Ledgers
Ledger_
COB_
ROB_

Inventory
Organization

Organization

IO_

GM_
VO_

BG_
HR_
LE_
OU_

7 - 21

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Define Multi-Org Access Control (MOAC)

User access to multiple operating units is called Multi-Org
Access Control. The primary topics of discussion for MOAC are:
Features that support various functionalities
Benefits
Setup and process
Dependencies and interactions

7 - 22

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Features of MOAC

Access one or more operating units using single

responsibility.
Enhanced reporting capability using:
Reporting-level parameter
Reporting context

7 - 23

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Benefits of MOAC
Using MOAC, a user can perform tasks for multiple operating
units (OU) without changing their responsibilities.
Tasks users can perform using
MOAC in multiple OUs:
Enter Payables Invoices.
View Consolidated
Requisitions.
Perform Collections.
Process Receiving and
Drop Shipments.
Perform Customer Data
Management.
Perform Accounting
Setup.
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Mexico
Operating Unit

Canada
Operating Unit

Responsibility

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

US
Operating Unit

MOAC: Setup and Process

SETUP

PROCESS

Define
Operating Units.

Login and select

a responsibility.

Create
security profile.

Launch a Form.

Run Security List

Maintenance.

Application
checks users
access privilege.

Set profile options.

Process data for

Operating Units.

Automated process

7 - 25

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Accounting Setup Manager (ASM)

Define
Legal Entities
Dashboard.

Assign/view
Legal
Entities.

Define
Ledger.

Define OU.

7 - 26

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MOAC Setup: Create an Operating Unit

Financials Accounting
Setup Manager

(Or)

HRMS Organization
Form

7 - 27

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Dependencies and Interactions of MOAC

Oracle HRMS:
Define operating units.
Set up Multi-Org Security Profiles.

Accounting Setup Manager:

Define operating units.
View all operating units assigned to the primary ledger.

Oracle E-Business Suite products that use Operating Units:

Process data across multiple operating units using MOAC.

7 - 28

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Dependencies and Interactions of MOAC

Product name

Leveraging Multi-Org Access Control feature

Payables

Reduce processing time with the ability to enter invoices for

multiple operating units without switching responsibilities.
Reduce processing cost with the ability to pay invoices for
multiple operating units in a single pay run.

Receivables

Provide global information for decision making purposes with

new cross-organization reports.

Purchasing

Provide the ability to negotiate discounts armed with

consolidated requisition demands.

Collections

Is a global collections agency with consolidated view of customer

accounts and collection tasks for multiple operating units

Accounting Setup Create ledgers and operating units through the Accounting Setup
Manager
Manager.

7 - 29

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Multi-Org Preferences: Description

User Level Preferences:
Specify User Level Preferences.
Identify a subset of operating units to access.
Set default Operating Unit specific to that user.

7 - 30

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Enhanced Multi-Org Reporting:

Setup and Process
SETUP

PROCESS
Set up Multi-Org
Access Control.

Run reports for

multiple operating
units from a single
responsibility.
Reduce reporting time.
Improve efficiency.

Select a
responsibility.

Open Requests
Program.

Program
checks
access privilege.

Select Operating Unit

and Run Report.
Automated process

7 - 31

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Quiz
Users can change the responsibility to access different
operating units by using MOAC.
a. True
b. False

7 - 32

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Quiz
An inventory organization represents an organization, for which
you track inventory transactions and balances, and
manufacture or distribute products.
a. True
b. False

7 - 33

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Quiz
Multi-Org is a server-side (applications and database)
enhancement that enables single installation of Oracle
Applications.
a. True
b. False

7 - 34

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Quiz
Which of the following profile options links an Operating Unit to
a Responsibility?
a. MO: Operating Unit
b. MO: Security Profile
c. MO: Set Client_Info for Debugging
d. MO: Default Operating Unit

7 - 35

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Summary
In this lesson, you should have learned how to:
Define Multi-Org
Explain the Multi-Org entities
Explain how data is secured
Identify key implementation considerations
Define Multi-Org Access Control
Explain Multi-Org preferences
Explain Enhanced Multiple-Organization Reporting

7 - 36

Copyright 2010, Oracle and/or its affiliates. All rights reserved.