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MULTI-ORG
Major Features:

1. Defining multiple organizations and relationships among them in a single installation of Oracle
Applications. These organizations could be set of books, business groups, legal entities, operating units
or inventory organizations.

2. Providing secure access to data by assigning users to particular organizations.

3. Selling from one legal entity and shipping from another and posting to both the

organizations’ sets of books.

4. Purchasing and receiving products between organizations.
5. Automatic accounting for internal requisitions through intercompany invoicing.

6. Reporting across multiple organizations by specifying the top reporting level. Reports could be run at the
set of books level, legal entity level or operating unit level.

Types of Organizations:
Business Group: This is the highest level of organizational classification and represents

a consolidated enterprise or a major company. It secures human resource information. It could be a

collection of multiple legal entities if they share the same business group attributes including the HR
Flexfield structure.

Set of Books: It is a financial reporting entity that uses particular Chart of Accounts,
Functional Currency and Accounting Calendar.
Legal Entity: It is a legal company that prepares separate legal or tax reports. The tax
identifiers are assigned to this organization.
Operating Unit: It is associated with the legal entity and could be a sales office, a
division or a department. Responsibilities are associated at this level to access the various
applications.
Inventory Organization: This is at the lowest level in the organizational classification.
It could be an organization for which we could track inventory transactions and balances
or an organization that manufactures of distributes products.
HR Organization: It represents the basic work structure of any enterprise. It usually
represents the functional management or reporting groups that exist within a business group. For any
organization definition, no employees can be defined and associated, unless ‘HR Organization’
classification is also assigned to the organization definition.
Approaches to Multi-org:
Human Resource Model:
Finance Model:
Business Group
HR Org1
HR Org2
HR Org3
HR Org4
HR Org5
HR Org6
Set of Books
Legal Entity1
Legal Entity2
Operating
Unit1
Operating
Unit2
Operating
Unit3
Operating
Unit4

Invento
ry
Organi
sation1

Sales
Orga
nisati
on1

Inven
tory
Orga
nizati
on2

Proje
ct
Burd
ening
Org1

Asset
Orga
nizati
on 1

Sales
Orga
nizati
on 2

Inven
tory
Orga
nizati
on3

Sales
Orga
nizati
on 3

The aforesaid approaches are not mutually exclusive. Both the models have to be mapped for a proper
organization structure. When both the approaches are combined the model would look as depicted
below:

Aspects to be noted:
1. Any number of Business Groups can be defined in Oracle Applications.
2. As many company values exist in the company segment in the Chart of Accounts,
that many i.e. equivalent numbers of legal entities must be established.
3. Legal Entities could share the same set of books are have different sets of books.
Business Group
Set of Books
Legal Entity1
Legal Entity2
Operating
Unit1
Operating
Unit2
Operating
Unit3
Operating
Unit4