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MULTIORGCONCEPT(forbeginners)
In ORACLE we use multi-org concept to maintain globalization.
Multi-org is a server side enhancement where multiple bussiness units use a single installation oracle
product.
Multi Org is the future used to store the data of multiple organizations in a single Database instance.
Basic Business Needs:
Use a single installation of any Oracle Applications product to support any number of organizations, even if those
organizations use different sets of books.
Purchase products through one legal entity and receive them in another legal entity.
legal entity
: It is a legal business, which is going to have its own legislation code or tax
registration number. At this level we are going to prepare all our financial statements.
for example: india vat,us tax.
Set Of Books(sob) : A financial reporting entity that uses a particular chart of accounts,
functional currency, and accounting calendar.
(OR)
It is a collection of 3c's:
currency,calander,chart of accounts.
We have mainly 2 types of sob's
1. Primary sob :A financial reporting entity in which you conduct business. The primary set of
books uses a particular chart of accounts, accounting calendar, and functional currency (in
the primary set of books, the functional currency isalways the primary functional currency).
2. Reporting sob: A financial reporting entity that is associated with a primary set of books. The
reporting set of books has the same chart of accounts and accounting calendar as the primary set
of books, but usually has a different functionalcurrency. The reporting set of books allowsyou to
report in a different functional currency than that of your primary set of books.
reporting sob is consolodated into primary sob and we consolidate 8 reportin sob's in to single primary
sob.
1. Primary functional currency:The currency you use to record transactions and maintain your
accounting data within Oracle Applications. The primary functional currency is generally the
currency in which you perform most of your business transactions and the one you use for legal
reporting.
2. Reporting functional currency: A currency, other than your primary functional currency, for which
you need to report.
The table for currency is fnd_currency
1. accounting calander
2. fiscal calander
the tables are:
GL_PERIODS,,GL_PERIODS_TYPES,,GL_PERIOD_STATUS.
chart of accounts(coa): It is an accounting structure for an organization & it is a key flex feild.
OPERATING UNITS: It is a logical bussiness unit area from where we can run our bussiness.
(OR)
An organization that uses Oracle CashManagement, Oracle Order Management and Shipping Execution,
Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division, or a
department. An operating unit is associated with a legal entity. Information is secured by operating unit for
these applications; each user sees information only for his operating unit. To run any of these
applications, you choose a responsibility associated with an organization classified as an operating unit.
The above is the organization structure for Office Smart Solutions, which is a major office
supplies retailer, headquartered in Naperville, Illinois, USA. The organization operates in three
countries the US, Canada and India.
Office Smart has an organization structure with the following:
2 Business Groups one in the US, which controls the organization structure in North
America, and one in India
3 Legal Entities one in the US, one in Canada, and one in India
3 Primary Ledgers one in the US, one in Canada, and one in India
3 Operating Units one in the US, one in Canada, and one in India
5 Inventory organizations two in the US, one in Canada, and two in India
Subinventories and locators exist beneath the inventory organizations, but they are not
relevant for the session on multi org structures.
With this, let us step back and reflect