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Organization Structure in Oracle Applications The classifications that map an organization structure in Oracle Applications are described below:

Business Group: This refers to the consolidated enterprise, a major division, or an operation company and has no accounting impact. You need to have at least one business group in your business hierarchy. Oracle Applications provides a default business group, Setup Business Group. You can define additional business groups as required for your enterprise. Set of Books (Ledger): A set of books is a ledger into which journal entries are entered for one or more operating units for an organization. A set of books is created using the Set of Books window in General Ledger. You need to specify the 3 Cs that define a set of books: Chart of Accounts (accounting flexfield structure), Functional Currency and Financial Accounting Calendar. Legal Entity: A legal entity is a legal company for which you prepare tax and fiscal reports. Operating Unit: An organization that uses Oracle subledgers, such as Oracle Cash Management, Oracle Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales office, a division, or a department. Operating units are associated with legal entities. Operating units are assigned to ledgers and a default legal context. Information is secured by operating unit for these applications using responsibilities. Each user can access, process, and report on data only for the operating units assigned to the MO: Operating Unit or MO: Security Profile profile option. The MO: Operating Unit profile option only provides access to one operating unit. The MO: Security Profile provides access to multiple operating units from a single responsibility. Inventory Organization: An organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization. Subinventory: Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material. All material within an organization is held in a subinventory therefore, you must define at least one subinventory.

Multi-Org Access Control (MOAC) MOAC addresses the need to secure data to users that have access to specific operating units that are assigned to them. It provides the ability to access and process transactions for multiple operating units under one responsibility. Some key aspects of MOAC: Multiple Organizations in a single installation: You can define various organizations within a single installation of Oracle Applications. These organizations can be business groups, legal entities, operating units, inventory organizations.

Secure Access: You can assign many operating units to a single responsibility using the security profile MO: Security Profile that is set at site level or responsibility level. You should have assigned multiple operating units to the security profile so that the responsibility can access data only in these assigned multiple operating units. Responsibility determines access to operating unit or units: If MOAC is not enabled, you can implement security at the operating unit level through the MO: Operating Unit profile option called, which is set at the site, responsibility or user level. If MOAC is enabled, you can implement security at the operating unit level using the MO: Default Operating Unit and MO: Security Profile profile options. All tables in Purchasing, Payables, Order Management, and Receivables, except vendors and customers tables, contain an ORG_ID column. When you open a window in these applications, you are actually looking at a view of the underlying table. The window will show only those records where the value in the ORG_ID (operating unit) column corresponds to the value of the profile option for the responsibility you are logged in with. Inventory Organization Access: You can specify the inventory organizations that are available to users in each responsibility. The Choose Inventory Organization window automatically limits available inventory organizations to those authorized for the current responsibility. Setting Up MOAC 1. Define Organizations and Relationships 2. Define Responsibilities 3. Define Organization Hierarchy (optional) 4. Define Security Profile 5. Run Security List Maintenance concurrent request 6. Set the Security Profile option for each Responsibility 7. Set up a default operating unit 8. Run the Setup Validation Report