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If an enterprise or a business wants to implement multiple organizations such as multiple Ledgers (Sets
of Books), or Legal Entities, or Business Groups within a single installation of the data of Human
Resource, Financials, Sales, Purchasing, and material etc… Multi-Org provides secure access to the
different organizations throughout the enterprise.
Designing the Organization Structure – Implementation Considerations:
A blueprint of the multi org structure that we intend to create, would reflect the organization structure
that the business maintains, in executing its day-to-day operations. Questions to be asked are
• Is there a Business Group? If yes, is there one or more of these, how many?
• How many countries does the enterprise structure cover? Typically, as many countries, so many
government regulations and currencies. There will need to be that many Legal Entities and Primary
Ledgers.
• How many operating units? Where do the Purchase Orders and Sales Orders originate, in the business
process? There may be more than one such point, under each Legal Entity and Primary Ledger.
• Inventory organizations or warehouses, sub-Inventories and stock locators are the last building
blocks, which can be accommodated with relative ease, once the other entities are put in place. Each
operating unit would have one or more inventory organizations under it. An inventory organization is
either a manufacturing facility or an independent warehouse. Therefore, inventory organizations need to
have an address or location.
• Sub-Inventories are storage areas within an inventory organization. For example, an inventory
organization, which is a manufacturing facility may have a section on the shop floor designated as raw
materials, another section is designated as work in process (this area would typically store sub
assemblies), and an area called QA inspection.
So, we have performed a top-down analysis that should help us draw our organization structure with the
clarity that is required for a successful implementation.
1). Business Group: Is a highest level in the Organization structure. At this level we secure Work
structure and Remuneration policies.
2). Ledgers: Is use to secure Journals and Ledger balances of a company. A ledger is a collection of 1)
Currency 2) Calendar 3) Charted of accounts 4) Sub-ledger Accounting Method.
3). Legal Entity: It is a legal Business purpose at this level we are going to prepare income tax
reports., We need pan(permanent account number) for taxation, other use for internal banking task.
4). Operating Unit: Is a strategic Business Unit. At this level we secure and partition sales and
purchase transaction data.
5). Inventory Organizations: It is use to control/secure inventory transactions for a particular
Operating Unit. Like Oracle Inventory, BOM, WIP and Master Scheduling etc…
Based on a top-down analysis of MCR Industries Pvt Ltd, we define the organization structure for
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MCR Industries, as shown below.
The above is the organization structure for MCR Industries Pvt. Ltd, which is a major comany,
headquartered in India. The organization operates in the same country with different operations like
Motors, Software and Finance. MCR Industries has an organization structure with the following:
· 1 Business Groups – one in in India.
· 1 Primary Ledgers –one in India.
· 3 Legal Entities – three in India.
· 6 Operating Units – all are in India.
· 2 Inventory organizations – two in India for MCR Cars OU.
· Sub-inventories and locators exist beneath the inventory organizations.
Setup Manager is a feature introduced in R12 that acts as a centralized setup tool for defining 3 critical
entities in the multi org setup. These are the Legal Entity, the Primary Ledger ( Set of Books in 11i)
and the Operating Unit.
Note: In 11i, the Legal Entity, the Set of Books and the Operating Unit… all of these were defined using
the Organizations form typically through the HRMS or Inventory responsibilities.
To define complete Multi-Org setup we need to create separate HRMS and GL responsibilities and add
those to user.
Define a HRMS responsibility:
Navigation: System Administrator > Responsibility > Define
Define Locations:
Navigation: MCR HRMS > Work Structures > Locations > Define
Enter the values like below and save the changes.
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Navigation: MCR HRMS > Work Structures > Organization > Description > New
Save the changes and click on Others button and select Business Group Info enter the below values and
click OK and save the changes.
Note: When we define business group, system internally generate a default security profile with the
same name as our business group. The default security profile is going to give access to the data of all
the organizations defined under business group. The organizations which comes under business groups
are Operating Units, Inventory Organizations, HR Organizations etc.
To Check the Security Profile Option
Navigation: MCR HRMS > Security > Profile query for Business Group MCR BG
To do the transactions in SCM Modules (PO, INV and OM etc…) we need to define Ledger (Primary
Ledger and Secondary Ledger) setups in General Ledger with the help of Accounting Setup Manager.
Define General Ledger:
Navigation: System Administrator > Security > Responsibility > Define
Enter the values as per the below and save the changes and add to our user.
Define Ledgers:
Ledger is used to secure the journals and journal balances of a company. A Ledger is collection of
Currency, Calendar, Chart Of Account, and Conversion of Methods (Sub-Ledger Accounting
Method).
In order to define Ledger, first we need to define ledger components like Currency, Calendar, Chart Of
Account, and Sub-Ledger Accounting Method.
Define Currency:
We can also call it as functional currency. By default system has define currencies for major countries
else we can also define.
Navigation: MCR GL > Setup > Currencies > Define
Query for INR (INR is an India Rupee defined by the system)
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Define Calendar:
Calendar is used to determine the periods for an financial year, which are used to secure and control the
financial transactions at ledger.
In GL we have two types of calendars
· Accounting Calendar
· Transaction Calendar
Accounting Calendar: Accounting calendars are used to determine periods and financial years which
are used to secure and control financial transactions across all the financial operations.
Transaction Calendar: Transaction calendars are used to determine the list of holidays which are used
to calculate average balances.
Define Perid Type: Period type is used to determine the number of periods are required for a financial
year.
Navigation: MCR GL > Financials > Calendars > Types
Here Year Type is used to define suffix to our period name by using Calendar and Fiscal.
If the year type is Fiscal, period names are suffix with last two digits of the year.
If the year type is Calendar, period names are suffix with last two digits of the from date.
Define Accounting Calendar:
Navigation: MCR GL > Financials > Calendars > Accounting
Enter the the values as per the below screen and save the changes and close the form.
When we close the form we will get below message and click on current tab to validate the current
defined calendar. System will submit a program called Other-Calendar Validation Report to validate.
The report status should be Complete and Normal then only the calendar is validated. We have to
validate the calendar for every modification/change.
Chart Of Account:
The Structure created by using Accounting Flex Fields are called as a Chart Of Account.
Chart of Accounts is a key flexfield having one or more data segments as defined by the user. Chart of
accounts is the accounting structure used to record financial and accounting transactions of an
organization to help maintain accounting balances.
An Oracle Chart of Accounts can have up to 30 segments in a flexfield. Of these, 2 of the segments are
mandatory viz. Balancing segments and natural account. This means that there must be at the
minimum 2 segments defined which can go up to 30.
Flex Fields are two types.
· Key Flex Fields: Used to capture the mandatory and key business information of the
organization.
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· Descriptive Flex Fields: Used to capture the additional and extra business information of the
organization.
Note: There are almost 39 Key Flex Fields which are going to come with the package, which will be
used in different functional areas.
A Key Flex Field is a collection of structure, each structure is a collection of segments, each segment is
associates a Value Set and each Value Set is a collection of values.
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It's just an example where I can get all required seeded details for my setups. If you are looking for country specific,
you can create your own request group.
Hope this may helps you better understanding... Thanks for your feedback.
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