Technical and Functional Planning for your New Environment

Chapter 5

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2

Technical and Functional Planning for your New Environment

Section Objective
At the end of this section, you should &e a&le to' (iscuss Technical and Functional Planning to your e! "nviron#ent

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page )

Technical and Functional Planning for your New Environment in !"#

Oracle $pplication !elea e "# %pgrade Si&ing and 'e t Practice The follo!ing docu#ent contains ta&lespace and sche#a si*ing infor#ation, infor#ation on re+uired post upgrade concurrent ,o&s, upgrade ti#ing and so#e &est practices to #anage the upgrade of -elease 12. The si*ing data is &ased on upgrading an 11...10 C/2 internal volu#e data&ase of $.. Tera&ytes in si*e.

Po t %pgrade ( )i torical Financial *ocument

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 0

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page .

The upgrade is a very I1 intensive process2 #oving, updating and inde3ing large a#ounts of data, as such I1 su&syste# perfor#ance and &and!idth are critical to achieving the least a#ount of do!nti#e possi&le. (uring the !ave of 11.0 to 11i custo#er upgrades, poor I41 su&% syste# perfor#ance !as one of the #a,or sources of upgrade perfor#ance TA-s. (uring the upgrade testing process, you should #onitor I1 perfor#ance and act to correct any issues found. As a reference, !e include here the I1Ps rates and &and!ith #easure#ents o&tained !hile testing the upgrade of the $.. T5 1-AP-1( data&ase. The nu#&ers !ere calculated &ased on data fro# A6- and 17 #onitoring utilities. I1P7' 8a3i#u# I1P7 value is .091.:. (uring upgrade iops range is fro# 1$9 to .091.:. 8a3 value is reported during ;arge inde3es creation phase. <igh I1P7 value = 1100 to 0.00> is seen during /P? phases. I41 -ead &and!idth =in 85>' 8a3i#u# I41 -ead &and!idth =in 85>' 1.1..$ (uring upgrade I41 -eads = in 85> per second range is fro# 1... to 1.1..$ 8a3 value is reported during ;arge inde3es creation phase.

I41 6rite &and!idth =in 85>' 8a3i#u# I41 6rite &and!idth =in 85>' $@.0$ (uring upgrade I41 6rites =in 85> per second range is fro# 1.0@ to $@.0$ 85. 8a3 value is reported during upgA:0 phase.

I41 -esponse Ti#es = in #illiseconds >' 5elo! 20 #s for the vast #a,ority of A6- snapshot periods. <igher values !ere present !ith spiBes a&ove .0 #s during the ;arge inde3es create phase and so#e upg phases. E+'u ine Suite *iagno tic Overview 1racle "%5usiness 7uite (iagnostics is a free tool provided &y 1racle to ease the gathering and analy*ing of infor#ation fro# your "%5usiness 7uite specific to a e3isting issue or setup For#atted output displays the infor#ation gathered, the findings of the analysis and appropriate actions to taBe if necessary This tool is easy to use and is designed for &oth the functional and technical user
Oracle E+'u ine Suite *iagno tic are de igned to improve,

Problem $voidance % resolving configuration and data issues that !ould cause processes to fail Self Service !e olution % resolving pro&le#s !ithout the need to contact 1racle 7upport !eduction in !e olution Time % #ini#i*ing the ti#e spent to resolve an issue &y increasing support engineer efficiency <o! (o I ?et the ;atest "%5usiness 7uite (iagnosticsC The diagnostic tests are delivered in a standard 1racle patch and are applied using the adpatch utility.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page $

Note: It is important to understand that all diagnostic patches may be safely and timely applied to any instance (production included) without months of integration and functional testing. Dey ite#s to note' "%5usiness 7uite (iagnostics do not alter the data or setup in your syste# "%5usiness 7uite (iagnostics are organi*ed into one of the follo!ing groups' Setup (iagnostic tests are designed to assist in resolving product setup issues $ctivity (iagnostic tests gather infor#ation a&out data and configuration relevant to a particular functionality 4 issue, e3a#ine that infor#ation, provide feed&acB, and suggest appropriate actions *ata Collection tests gather infor#ation relevant to a particular product 4 functionality 4 issue Functional Categorie typically align !ith the product #enu structure and include &oth activity and data collection tests Security -elease 11i and -elease 12 &oth use the -ole%&ased Access Control =-5AC> security #odel. For a &asic understanding of -5AC and ho! it relates to diagnostics, please clicB here e! to -elease 12.0.$ security' user #ust have a diagnostics role assigned % ) seeded roles are delivered that can &e used !ithout additional setup the EApplication (iagnosticsE responsi&ility is used to e3ecute tests in the diagnostic fra#e!orB Additionally, output logs fro# previously e3ecuted tests can only &e revie!ed &y the user !ho e3ecuted the# or the syste# ad#inistrator.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page @

E+'u ine

Suite *iagno tic Overview

1racle "%5usiness 7uite (iagnostics is a free tool provided &y 1racle to ease the gathering and analy*ing of infor#ation fro# your "%5usiness 7uite specific to a e3isting issue or setup For#atted output displays the infor#ation gathered, the findings of the analysis and appropriate actions to taBe if necessary This tool is easy to use and is designed for &oth the functional and technical user
Oracle E+'u ine Suite *iagno tic are de igned to improve,

Problem $voidance % resolving configuration and data issues that !ould cause processes to fail Self Service !e olution % resolving pro&le#s !ithout the need to contact 1racle 7upport !eduction in !e olution Time % #ini#i*ing the ti#e spent to resolve an issue &y increasing support engineer efficiency

<o! (o I ?et the ;atest "%5usiness 7uite (iagnosticsC The diagnostic tests are delivered in a standard 1racle patch and are applied using the adpatch utility. Note, It is i#portant to understand that all diagnostic patches #ay &e safely and ti#ely applied to any instance =production included> !ithout #onths of integration and functional testing. Dey ite#s to note' "%5usiness 7uite (iagnostics do not alter the data or setup in your syste# "%5usiness 7uite (iagnostics are organi*ed into one of the follo!ing groups' Setup (iagnostic tests are designed to assist in resolving product setup issues $ctivity (iagnostic tests gather infor#ation a&out data and configuration relevant to a particular functionality 4 issue, e3a#ine that infor#ation, provide feed&acB, and suggest appropriate actions *ata Collection tests gather infor#ation relevant to a particular product 4 functionality 4 issue Functional Categorie typically align !ith the product #enu structure and include &oth activity and data collection tests Security -elease 11i and -elease 12 &oth use the -ole%&ased Access Control =-5AC> security #odel. For a &asic understanding of -5AC and ho! it relates to diagnostics, please clicB here e! to -elease 12.0.$ security' user #ust have a diagnostics role assigned % ) seeded roles are delivered that can &e used !ithout additional setup
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page :

 the EApplication (iagnosticsE responsi&ility is used to e3ecute tests in the diagnostic fra#e!orB Additionally, output logs fro# previously e3ecuted tests can only &e revie!ed &y the user !ho e3ecuted the# or the syste# ad#inistrator.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 9

Oracle $pplication File Sy tem, $pplication Tier

Oracle $pplication File Sy tem, $pplication Tier 1racle Applications uses co#ponents fro# different 1racle products. The product files are stored in several top%level directories, including the follo!ing' The app -app . t-appl =APPL_TOP> directory contains the product directories and files for 1racle Applications. The app -app . t-comn or =COMMON_TOP or COMN_TOP> directory contains directories and files used across products. The app -tech. t-"/0"0# directory contains the ORACLE_HOME used for the Applications Technology stacB tools co#ponents. The app -tech. t-"/0"01 directory contains the ORACLE_HOME used for the Applications Technology stacB Fava co#ponents.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 10

Oracle $pplication File Sy tem, *ataba e Tier

Oracle $pplication File Sy tem, *ataba e Tier 1racle Applications uses co#ponents fro# different 1racle products. The product files are stored in several top%level directories, including the follo!ing' The db-app . t-data =DATA_TOP> directory is located on the data&ase node #achine, and contains the syste# ta&lespaces, redo log files, data ta&lespaces, inde3 ta&lespaces, and the data&ase files. The db-tech. t-"/0#0/ directory is located on the data&ase node #achine, and contains the ORACLE_HOME for the 1racle10g (ata&ase.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 11

Oracle )ome

Oracle )ome 1racle "%5usiness 7uite ="57> uses the latest data&ase version, 1racle 10g. 1n the #iddle tier, -elease 12 uses 1racle Application 7erver 10g and 1racle F(eveloper 10.1.) for 6e&% &ased Fra#e!orB applications. 1n the client, 1racle "57 uses version ..0 of the 7un Fava Plug%in.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 12

Preparing Cu tom *evelopment for Ne2t Oracle E+'u ine !elea e

Suite

In -elease 12, 1racle "%5usiness 7uite is #igrating to ne! technologies in certain areas and deprecating the corresponding technologies that !ere for#erly used. 1racle "%5usiness 7uite -elease 11i custo#ers !ho have &uilt custo# develop#ent on the deprecated technologies should #igrate to the ne! technologies as part of the upgrade to -elease 12. Gou can optionally &egin this #igration no! to prepare your 1racle "%5usiness 7uite instance and reduce the ti#e re+uired for the upgrade. These technologies are disa&led in 1racle "%5usiness 7uite -elease 12' #odHpls+l 1racle -eports 7erver -eports 1racle ?raphics integrations !ith 1racle For#s

AD #ode The #ost current version of this docu#ent is 1racleMetaLink ote )@0)9:.1. Please ensure that you have the #ost current version &efore you &egin. #odHpls+l If you have custo# develop#ent on #odHpls+l, you should #igrate your 6e& pages to 1racle Application Fra#e!orB. For #ore infor#ation, see the Oracle Application Framework e!eloper"s #uide, availa&le fro# Oracle Application Framework $elease %%i ocumentation $oad Map =1racleMetaLink ote 2@.::0.1>.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1)

Oracle !eport Server !eport

If you have custo# develop#ent that uses reports run through 1racle -eports 7erver, the follo!ing #igration alternatives are availa&le' Convert the reports to 1racle I8; Pu&lisher. This #ethod is reco##ended as it has several advantages. It prepares your application &oth for 1racle "%5usiness 7uite -elease 12 and for 1racle Fusion Applications. It also lets you taBe advantage of the &enefits of 1racle I8; Pu&lisher, including superior ease of #aintenance. Additionally, so#e auto#ated tools are availa&le to help you #igrate fro# 1racle -eports to 1racle I8; Pu&lisher. For #ore infor#ation, see the Oracle &ML 'ublisher (ser)s #uide, availa&le fro# the 1racle Applications 1nline (ocu#entation ;i&rary. Convert the reports to 1racle Application Fra#e!orB. (epending on your reporting needs, this #ethod #ay &e an appropriate alternative. <o!ever, note that no auto#ated #igration tools are availa&le for this conversion. Gou !ill need to re!rite any charts using the 1racle Application Fra#e!orB Charting tool =5I Chart 5ean>. For #ore infor#ation, see the Oracle Application Framework e!eloper"s #uide, availa&le fro# Oracle Application Framework $elease %%i ocumentation $oad Map =1racleMetaLink ote 2@.::0.1>. -un the reports through the Concurrent 8anager. 6ith this #ethod, if you follo! 1racle "%5usiness 7uite coding standards, then you #ust #odify your P;47J; code to #eet the Concurrent 8anager standards. In particular, you !ill need to use so#e user e3its. Gou !ill also need to re!rite any charts using the 1racle -eports Charting tool =5I Chart 5ean>. ote that this #ethod !ill not &e supported in 1racle Fusion Applications, &ecause 1racle -eports is not part of the 1racle Fusion technology stacB. For #ore infor#ation, see the Oracle Applications e!eloper"s #uide, availa&le fro# the 1racle Applications 1nline (ocu#entation ;i&rary, and Oracle $eports* +uilding $eports, availa&le fro# the 1racle Technology et!orB.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 10

Oracle 3raphic 4ntegration with Oracle Form

If you have custo# develop#ent that uses 1racle ?raphics =Charting> integrated !ith 1racle For#s, the follo!ing #igration alternatives are availa&le' Convert &oth the for# and the chart to an 1racle Application Fra#e!orB%&ased application. This #ethod prepares your application &oth for 1racle "%5usiness 7uite -elease 12 and for 1racle Fusion Applications. For #ore infor#ation, see the Oracle Application Framework e!eloper"s #uide, availa&le fro# Oracle Application Framework $elease %%i ocumentation $oad Map =1racleMetaLink ote 2@.::0.1>. Convert the chart to an 1racle Application Fra#e!orB%&ased page that can &e launched fro# 1racle For#s. This #ethod re+uires less ti#e to prepare for 1racle "%5usiness 7uite -elease 12. <o!ever, it !ill not &e supported in 1racle Fusion Applications, &ecause 1racle For#s is not part of the 1racle Fusion technology stacB. For #ore infor#ation, see the Oracle Application Framework e!eloper"s #uide, availa&le fro# Oracle Application Framework $elease %%i ocumentation $oad Map =1racleMetaLink ote 2@.::0.1>. AD 8ode If you still have personali*ations of 1racle Application Fra#e!orB%&ased pages in the AD repository, then !hen you upgrade fro# -elease 11i to -elease 12, your custo# personali*ations !ill auto#atically &e #igrated fro# AD to 8(7, if the AD and 8(7 repositories are in the sa#e data&ase instance. The upgrade !ill not auto#atically #igrate your custo# personali*ations if the AD and 8(7 repositories are in separate data&ase instances. Gou !ill need to run the Personali*ation 8igration tool #anually to #igrate your personali*ations in this case. For detailed instructions on ho! to use this tool, see' 8igrating AD Personali*ations, Oracle Application Framework 'ersonali,ation #uide, availa&le fro# the 1racle Applications 1nline (ocu#entation ;i&rary. If you have previously used AD4ICI 6e& In+uiries, you should use the 1racle Application Fra#e!orB 7earch feature to recreate your personali*a&le search regions. For detailed infor#ation a&out the 7earch feature, see I#ple#enting 7pecific /I Features in the Oracle Application Framework e!eloper"s #uide, availa&le fro# Oracle Application Framework $elease %%i ocumentation $oad Map =1racleMetaLink ote 2@.::0.1>.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1.

Functional planning for your new environment

5ultiple Organi&ation
Gou can define #ultiple organi*ations and the relationships a#ong the# in a single installation of 1racle Applications. These organi*ations can &e ledgers, &usiness groups, legal entities, operating units, or inventory organi*ations. Secure $cce Gou can assign operating units to a security profile and then assign the security profile to responsi&ilities or users. If #ultiple operating units are assigned to the security profile, then a user can access data for #ultiple operating units fro# a single responsi&ility. 6ith the a&ility to access #ultiple operating units fro# a single application responsi&ility, you can enter setup and transaction data and run concurrent progra#s for the operating units !ithout s!itching responsi&ilities. All #ultiple organi*ations ena&led setup and transaction data user interface, e3cept so#e interfaces, include the 1perating /nit field. The 1perating /nit field in the setup and transaction data user interface allo!s the user to' 7elect the operating unit conte3t for a transaction fro# a list of values, !hich displays the operating units the user can access. Note: The 1perating /nit field is displayed across products in 1racle "%5usiness 7uite, such as -eceiva&les, Paya&les, Purchasing, 1rder 8anage#ent, etc. -efer to your product docu#entation for infor#ation on the user interfaces !here the operating unit is displayed. Juery setup and transaction data for one or all operating units that the user can access. Note: If you do not partition the setup data for #ultiple organi*ations, then the operating unit does not appear !hen you access the setup step. K "na&le faster data setup or transaction entry &y copying a record fro# one operating unit to a different operating unit. K (efault or derive the operating unit conte3t fro# another operating unit sensitive attri&ute. *ata Security Gou can li#it users to infor#ation relevant to their organi*ation. For e3a#ple, you can li#it access for order ad#inistration clerBs to sales orders associated e3clusively !ith their sales office. 4nventory Organi&ation Security by !e pon ibility Gou can specify the inventory organi*ations that are availa&le to users in each responsi&ility. The Choose Inventory 1rgani*ation !indo! auto#atically li#its availa&le inventory organi*ations to those authori*ed for the current responsi&ility. $cce to Operating %nit Gour responsi&ility deter#ines !hich operating units you can access !hen you use 1racle Applications. If you !ant a responsi&ility to access only one operating unit, then set the profile option called 81' 1perating /nit. If you !ant a responsi&ility to access #ultiple operating units, then define a security profile !ith #ultiple operating units assigned and assign it to the 81' 7ecurity Profile profile option. Additionally, if using the 81' 7ecurity Profile profile option, you can also set the 81' (efault 1perating /nit profile option to specify a default operating unit that !ill default in transaction entry pages.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1$

!eceive 3ood into any 4nventory Organi&ation Gou can enter purchase orders and assign for receipt any inventory organi*ation. Gour purchase order operating unit and receiving inventory organi*ation can &e in different ledgers to receive against a purchase order. $utomatic $ccounting for 4nternal !e6ui ition Gou can create an internal re+uisition =sales order> in one organi*ation, then ship fro# another organi*ation, !ith correct Interco#pany invoicing. 5ultiple Organi&ation !eporting Gou can run your reports at the ledger level, or operating unit level. If you run reports at the ledger level, then the report !ill su&#it data for all operating units assigned to that ledger that you have access to as defined &y the 81' 7ecurity Profile profile option.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1@

Type of Organi&ation
Gou can define organi*ations and the relationships a#ong the#. Gou can define security for either an organi*ation hierarchy or list of organi*ations. 'u ine 3roup The &usiness group represents the highest level in the organi*ation structure, such as the consolidated enterprise, a #a,or division, or an operation co#pany. The &usiness group secures hu#an resources infor#ation. For e3a#ple, !hen you re+uest a list of e#ployees, you see all e#ployees assigned to the &usiness group of !hich your organi*ation is a part. Note: This is true in all applications e3cept the <- applications, !hich support #ore granular security &y a lo!er%level organi*ation unit, the security profile. 8ultiple ledgers can share the sa#e &usiness group if they share the sa#e &usiness group attri&utes, including <- fle3field structures. 7egal Entity A legal co#pany for !hich you prepare fiscal or ta3 reports. Gou assign ta3 identifiers and other legal entity infor#ation to this type of organi*ation. Gou can define legal entities using ;egal "ntity Configurator or Accounting 7etup 8anager in ?eneral ;edger. Operating %nit An organi*ation that uses 1racle su&ledgers, such as 1racle Cash 8anage#ent, 1rder 8anage#ent and 7hipping "3ecution, 1racle Paya&les, 1racle Purchasing, 1racle -eceiva&les, and related products. It #ay &e a sales office, a division, or a depart#ent. 1perating units are not associated !ith legal entities. 1perating units are assigned to ledgers and a default legal conte3t. Infor#ation is secured &y operating unit for these applications using responsi&ilities. "ach user can access, process, and report on data only for the operating units assigned to the 81' 1perating /nit or 81' 7ecurity Profile profile option. The 81' 1perating /nit profile option only provides access to one operating unit. The 81' 7ecurity Profile provides access to #ultiple operating units fro# a single responsi&ility. Gou can define operating units fro# the (efine 1rgani*ation !indo! in 1racle <-87 or fro# Accounting 7etup 8anager in ?eneral ;edger. 4nventory Organi&ation An organi*ation for !hich you tracB inventory transactions and &alances, and4or an organi*ation that #anufactures or distri&utes products. "3a#ples include =&ut are not li#ited to> #anufacturing plants, !arehouses, distri&ution centers, and sales offices. The follo!ing applications secure infor#ation &y inventory organi*ation' 1racle Inventory, 5ills of 8aterial, "ngineering, 6orB in Process, 8aster 7cheduling48-P, Capacity, and Purchasing receiving functions. To run any of these applications, you #ust choose an organi*ation that has &een classified as an inventory organi*ation. Gou can create ledgers using the Accounting 7etup 8anager in 1racle ?eneral ;edger and define organi*ations using the (efine 1rgani*ation !indo!. )! Organi&ation <- organi*ations represent the &asic !orB structure of any enterprise. They usually represent the functional #anage#ent, or reporting groups that e3ist !ithin a &usiness group. In addition to these internal organi*ations, you can define other organi*ations for ta3 and govern#ent reporting purposes, or for third party pay#ents.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 1:

Organi&ation in Oracle Project 1racle Pro,ects allo!s you to define organi*ation hierarchies to reflect your co#panyEs organi*ations structure. Gou can add 1racle Pro,ects%specific organi*ation types to the organi*ation hierarchy =for e3a#ple, pro,ects organi*ations or "3penditure organi*ations> to help you #anage your pro,ect control re+uire#ents. Gou assign pro,ect and e3penditure hierarchies to operating units. $ et Organi&ation An asset organi*ation is an organi*ation that allo!s you to perfor# asset%related activities for a specific 1racle Assets corporate &ooB. 1racle Assets uses only organi*ations designated as asset organi*ations 4nformation Shared $cro Organi&ation The follo!ing infor#ation is glo&al. It #ust &e set up once for the enterprise' Fle3field definitions Custo#er <eader =custo#er site is at the operating unit level> 7upplier <eader =supplier site is at the operating unit level>

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 19

Prere6ui ite for Setup and 4mplementation

5efore &eginning the setup, checB that you have the follo!ing' Access to the (efine 1rgani*ations and (efine ;egal "ntity Configurator pages, or the Accounting 7etup 8anager page. Note: Accounting 7etup 8anager is seeded in 1racle ?eneral ;edgerEs 7etup #enu. Access to the (efine 7ecurity Profile and4or (efine ?lo&al 7ecurity Profile !indo!s that are seeded in 1racle <-87 responsi&ilities Access to the 7ecurity ;ist 8aintenance progra#, the <u#an -esources concurrent progra#.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 20

*evelop the Organi&ation Structure

A successful i#ple#entation of 8ultiple 1rgani*ation support in 1racle Applications depends pri#arily on defining your organi*ational structure in the #ulti%level hierarchy used &y 1racle Applications. The levels are' 5usiness groups Pri#ary ledgers =as defined in Accounting 7etup 8anager> ;egal entities 1perating units Inventory organi*ations

The 1rgani*ation 7tructure "3a#ple in the figure &elo! illustrates the organi*ation structure. *eciding on the Organi&ation Structure First, you need to decide on the organi*ations you !ill use in your #ultiple organi*ations i#ple#entation. The figure &elo! sho!s a corporation !ith t!o &usiness groups, three legal entities, four operating units, and five inventory organi*ations. This e3a#ple organi*ation structure is used throughout #ost of this chapter. Organi&ation Structure E2ample

The &usiness groups are /.7. and /.D. The /.7. &usiness group consists of t!o legal entities % 6estern (ivision and "astern 1perations. These legal entities are assigned to the sa#e ledger =/7 1perations> &ecause they share the sa#e ledger currency, accounting fle3field structure, and calendar. The /.D. legal entity % /D (ivision L is assigned to a separate ledger =/D 1perations> &ecause its ledger currency is different fro# that of the /.7. legal entities. The /7 6estern (ivision legal entity consists of t!o operating units L orth!est -egion and 7outh!est -egion. The orth!est -egion consists of t!o inventory organi*ations % Plant 1 and Plant 2. The 7outh!est -egion has one inventory organi*ation, na#ed Plant ). The /7 "astern 1perations legal entity is also an operating unit and inventory organi*ation. The /D (ivision legal entity has one operating unit, na#ed /D 7ales 1ffice. The operating unit has one inventory organi*ation, na#ed /D Plant.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 21

*efine $ccounting Setup /se the Accounting 7etup 8anager in 1racle ?eneral ;edger to define accounting setups that include the follo!ing co##on financial co#ponents' 1ne or #ore legal entities =optional> Pri#ary ledger -eporting Currencies =optional> 5alancing seg#ent value assign#ents =optional> 7u&ledger Accounting 1ptions 1perating /nits =availa&le if legal entities are assigned> Interco#pany Accounts =availa&le if legal entities are assigned> Intraco#pany 5alancing -ules =optional> 7e+uencing =optional> 7econdary ;edger =optional>

To use #ultiple organi*ations, you #ust define an accounting setup !ith at least one legal entity, a pri#ary ledger that !ill record the accounting for the legal entity, and an operating unit that is assigned to the pri#ary ledger and a default legal conte3t =legal entity>. It is also reco##ended that &alancing seg#ent values &e assigned to the legal entity to help you identify legal entity transactions during transaction processing and reporting and to taBe advantage of Interco#pany Accounting. Note: If your enterprise structure re+uires that you define a &usiness group, you should define accounting setups &efore &usiness groups. The follo!ing ta&le e3plains the ledger para#eters for our e3a#ple.

$ ign 'alancing Segment 8alue by 7egal Entity 9optional: Assign specific &alancing seg#ent values to legal entities using Accounting 7etup 8anager. This allo!s users to identify and secure transactions &y legal entity. It also allo!s you to use Advanced ?lo&al Interco#pany 7yste# to enter interco#pany transactions &et!een legal entities.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 22

Organi&ation Structure with 'alancing Entity E2ample

The figure depicts a corporation !ith t!o &usiness groups, three legal entities, four operating units, and five inventory organi*ations. 5alancing entities are also sho!n. The &usiness groups are /.7. and /.D. The /.7. &usiness group consists of t!o legal entities % 6estern (ivision and "astern 1perations. These legal entities are assigned to the sa#e ledger =/7 1perations>. The 6estern (ivision is &alancing entity 01 and &alancing entity 00. "astern 1perations is &alancing entity 02. The /.D. legal entity % /D (ivision % is assigned to a separate ledger =/D 1perations> &ecause its ledger currency is different fro# that of the /.7. legal entities. The /D (ivision is &alancing entity 0). The /7 6estern (ivision legal entity consists of t!o operating units L orth!est -egion and 7outh!est -egion. The orth!est -egion consists of t!o inventory organi*ations % Plant 1 and Plant 2. The 7outh!est -egion has one inventory organi*ation, na#ed Plant ). The /7 "astern 1perations legal entity is also an operating unit and inventory organi*ation. The /D (ivision legal entity has one operating unit, na#ed /D 7ales 1ffice. The operating unit has one inventory organi*ation, na#ed /D Plant. If you need to further secure &alancing seg#ent values for each operating unit of a legal entity, you can define seg#ent value security rules and assign the# to all responsi&ilities associated !ith the relevant operating units. If, for e3a#ple, you need to restrict the orth!est -egion operating unit to &alancing seg#ent value 01 and the 7outh!est -egion to &alancing seg#ent value 00, &ecause you have t!o sets of users !ho process data for each of the legal entities, you can add rules as descri&ed in the follo!ing ta&le.

In addition to the previous rule assign#ents, you can assign the ne! rules to all responsi&ilities associated !ith the t!o operating units, as illustrated in the ta&le &elo!. 6hen you assign #ultiple rules to the sa#e responsi&ility, only the overlapping values of the rules are availa&le to users of the responsi&ility.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2)

*efine 7ocation /se the (efine ;ocation !indo! to define na#es and addresses for the locations you use !ithin your enterprise. Gou define each location once only. This saves you ti#e if you have #ultiple organi*ations !ith the sa#e location. Gou should define locations for your legal entities and inventory organi*ations. 1racle Applications products use locations for re+uisitions, receiving, shipping, &illing, and e#ployee assign#ents. *efine 'u ine 3roup 9optional: Note: This only applies if you have #ore than one &usiness group, or if you do not choose to use the predefined &usiness group provided &y 1racle Applications. 1racle Applications secures hu#an resources infor#ation, including organi*ation definition, &y &usiness group. Gou #ust have at least one &usiness group. For a fresh installation, 1racle Applications provides a predefined &usiness group, 7etup 5usiness ?roup. Gou can define additional &usiness groups as re+uired for your enterprise. 6e reco##end that you #odify the predefined &usiness group rather than defining a ne! one. If you define a ne! &usiness group instead of #odifying the predefined &usiness group, you need to set the 5usiness ?roup profile option at the responsi&ility level for the ne! &usiness group. 1racle <u#an -esources auto#atically creates a security profile !ith the &usiness group na#e !hen you define a ne! &usiness group. Gou should define all your &usiness groups &efore defining any other type of organi*ation. Note: If you plan to i#ple#ent <-87, you should consider its organi*ation re+uire#ents !hen defining the organi*ation structure. 6hen considering #ultiple &usiness groups, e#ployee data !ill have to &e entered and #aintained for every &usiness group using responsi&ilities linBed to each &usiness group. Consult your <- specialist for #ore infor#ation on <- organi*ation considerations. To define additional bu ine group , "0 7et the responsi&ility fro# !hich you define the organi*ations in the profile option <-' /ser Type to <- /ser, to get access to the (efine 1rgani*ations !indo!. This profile #ust &e set for all responsi&ilities that use ta&les fro# 1racle <u#an -esources =for e3a#ple, responsi&ilities used to define e#ployees and organi*ations>. #0 (efine all of your &usiness groups at this step fro# a responsi&ility. (o not define any ne! organi*ations or organi*ation hierarchies until you have associated each &usiness group !ith a responsi&ility. Gou do this &y setting the <-' 7ecurity Profile profile option for each responsi&ility. 10 After you have correctly associated your &usiness groups !ith a responsi&ility, sign off and sign on again using the correct responsi&ility for the &usiness group you !ant to define. For e3a#ple, if you have a /.7. &usiness group and a /.D. &usiness group, select the responsi&ility attached to the /.7. &usiness group to define the /.7. organi*ation structure.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 20

*efine Organi&ation
/se the (efine 1rgani*ation !indo! to define organi*ations, such as operating units and inventory organi*ations. Gou can also define operating units and assign the# to a pri#ary ledger and default legal conte3t using Accounting 7etup 8anager in ?eneral ;edger. To define operating unit and inventory organi&ation , "0 ;og in using the responsi&ility associated !ith the &usiness group. #0 (efine operating units. 10 (efine inventory organi*ations for each operating unit that !ill have an inventory organi*ation. If you have responsi&ilities for different &usiness groups, s!itch responsi&ilities and define the organi*ation structure. The follo!ing ta&le su##ari*es infor#ation a&out the different organi*ations for our e3a#ple hierarchy.

*efine Organi&ation !elation hip /se the (efine 1rgani*ation !indo! to define organi*ation relationships &y assigning classifications to each organi*ation. The attri&utes of certain classifications relate organi*ations and the roles they play. Gou can classify an organi*ation as any co#&ination of legal entity, operating unit, and inventory organi*ation. 7pecify your organi*ation classifications in the follo!ing order' "0 1perating units Attach the operating units to the correct ledger and a default legal conte3t =legal entity>. #0 Inventory organi*ations Attach the inventory organi*ations to the correct operating unit, legal entity, and ledger.
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2.

The ta&le &elo! sho!s the infor#ation you #ust enter for each organi*ation classification. Cla ification 4nformation Type !e6uired $ttribute

Special Con ideration for 4nventory Organi&ation All the inventory organi*ations in the a&ove chart have &een set up !ith the #ini#al a#ount of infor#ation to ena&le the# in the 8ultiple 1rgani*ations environ#ent. This #ini#al a#ount is detailed in the ta&le &elo!. If you plan to i#ple#ent 1racle Inventory, you #ust follo! the setup procedures for that product. For a standalone 1racle Purchasing installation =!ithout 1racle Inventory>, specify the infor#ation sho!n in the follo!ing ta&le'

7ocation, Gou #ust specify a location for an organi*ation classified as an inventory organi*ation. Gou can assign any location that is not assigned to a different inventory organi*ation, or you can assign a location that is linBed to the current inventory organi*ation. !eceiving 4nformation, 6hen you select the -eceiving Infor#ation type, you navigate to the -eceiving 1ptions !indo!. /se the -eceiving 1ptions !indo! to define options that govern receipts in your syste#. Gou cannot receive ite#s into an inventory organi*ation until you specify receiving options for the organi*ation. 4nventory 4nformation, 6hen you select the Inventory Infor#ation type, you navigate to the 1rgani*ation Para#eter !indo!. Gou #ust define the control options and account defaults for one inventory organi*ation, the ite# #aster organi*ation. Then you can easily assign ite#s to
Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2$

other inventory organi*ations !ithout recreating all the ite# infor#ation. /se the 1rgani*ation Para#eter !indo! to assign inventory organi*ations to the ite# #aster. The ite# #aster organi*ation uses itself as the ite# #aster. There is no functional or technical difference &et!een the ite# #aster organi*ation and other inventory organi*ations. <o!ever, !e reco##end that you li#it the ite# #aster to ,ust an ite# definition organi*ation. If you set up ne! inventory organi*ations in the future, you can assign the ne! ite#s to only the ite# #aster and the ne! inventory organi*ation. *efine !e pon ibilitie /se the (efine -esponsi&ility !indo! to define responsi&ilities for each operating unit &y application. 6hen you sign on to 1racle Applications, the responsi&ility you choose deter#ines the data, for#s, #enus, reports, and concurrent progra#s you can access. Gou should consider using na#ing conventions for the responsi&ility na#es in a 8ultiple 1rgani*ation environ#ent. It is a good idea to use a&&reviations of the &usiness function and the organi*ation na#e to uni+uely identify the purpose of the responsi&ility, for e3a#ple, Paya&les 8anager orth!est or 6estern -eceiva&les 7uper /ser.

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2@

Copyright IT Convergence, 2010. All rights reserved.

Technical and Functional Planning for your

e! "nviron#ent Chapter $ % Page 2: