Multiple Organizations (Multi-Org)

1. What is Multi-Org? Introduced as standard functionality in Release 10.7, Multi-Org is a key component of Oracle's EBusiness Suite that: Allows you to logically partition all your application data in one database. A type of Organization called an "Operating Unit" secures your application data. Supports multiple organizations of the enterprise structure in a single database Provides secure access to the data of the different organizations in your enterprise. Each application Responsibility is associated with an individual Operating Unit. To see and work with application data that is relevant to a specific Operating Unit, you choose the appropriate Responsibility after logging on to Oracle Applications.

For an overview of Multi-Org, please refer to the white paper, "Multi-Org Release 11i Today." For detailed information on Multi-Org, please refer to the "Multiple Organizations in Oracle Applications" user's guide. 2. Where do I find the Multi-Org users guide? The user's guides, "Multiple Organizations in Oracle Applications" for Release 11i, Release 11 and Release 10.7 can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Multiple Organizations Architecture (Multi-Org) / Manuals and eTRMs / Release 11i, Release 11, or Release 10 / Architecture

The user's guide, "Multiple Organizations in Oracle Applications" for Release 11i can be found in the following location: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org)

3. What is an Operating Unit? In the financial applications of Oracle's E-Business Suite, an Operating Unit is a type of Organization Classification through which you secure transaction data. You create, process, and report on financial applications data within the context of an Operating Unit. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact. For an overview of Multi-Org, please see the white paper, "Release 11i Multi-Org Today". For detailed information on Multi-Org, please refer to the "Multiple Organizations in Oracle Applications" user's guide. 4. Is Multi-Org required in the E-Business Suite? Oracle Applications strongly recommends that our customers convert to Multi-Org as soon as

possible. We are making this recommendation in order to prepare for improvements to performance across the E-Business Suite as well as to prepare for supporting Multi-Org Access Control, an upcoming feature of the E-Business Suite. There is no loss of functionality when migrating from a default of no organization to a default of one organization for your installation. For more information, please read the technical white paper: "Release 11i Use of Multiple Organizations in Oracle Applications". For detailed information on Multi-Org, please refer to the "Multiple Organizations in Oracle Applications" user's guide. Who is required to convert to Multi-Org? The conversion must be run regardless of what products are installed. The reason for this is that even though a product may not use the Multi-Org feature directly, you may have components of other products installed as shared that do use Multi-Org. For example, GL is not a Multi-Org product, but you can create tax amounts on journalsTax is a feature of AR and AR is a Multi-Org product; therefore, you would be required to run the conversion. Why is Multi-Org strongly recommended? Multi-Org is strongly recommended in Release 11i in order to prepare for performance improvements and Multi-Org Access Control. Performance Improvement: the Multi-Org functionality is being improved to take advantage of the new core database features of Oracle Release 9i, which improves the overall performance of the E-Business Suite. In future releases, the existing Multi-Org view layer will be replaced with the Oracle 9i Virtual Private Database technology. Multi-Org Access Control: Multi-Org Access Control is an upcoming feature of the EBusiness Suite that will allow a user to process and report on data that resides in an unlimited number of Operating Units from within a single applications Responsibility.

How do I determine if I need to convert to Multi-Org? The Convert to Multi-Org process is an option available from the Database Objects menu of the ADADMIN utility. You can choose this option only if you do not already have Multi-Org set up. 5. What E-Business Suite products are directly using the Multi-Org feature? Financials Oracle Payables Oracle Receivables Oracle Cash Management Regional Localizations Latin America Localizations European Localizations Asia/Pacific Localizations Oracle Property Manager Subledger Accounting Trading Community Architecture iReceivables iExpenses Oracle Collections Global Accounting Engine AP AR CE JG JL JE JA PN XLA TCA

AX

Public Sector Financials Procurement

Manufacturing

Projects CRM Sales Service Other

Global Accounting Engine Oracle Grants Management Oracle Grants Oracle Federal Financials Oracle Purchasing Oracle Sourcing iSourcing iProcurement iSupplier Poral Oracle Order Management Oracle Release Management Oracle Release Management Integration Kit Oracle Shipping Oracle Pricing Oracle Projects CRM Administrator Oracle Sales Compensation Oracle Sales Oracle Service Oracle Scheduler Oracle Banking Center IStore

AX GMS IGW FV PO PON POS ONT RLM RLA WSH QP PA JTF CN AS CS CSR FPT IBE

6. What is the difference between multiple databases, multiple instances, and multiple installations? In Oracle database terminology, an instance is the combination of background processes and memory structures that allow the user to access data in an Oracle database. In an applications context, instance and database are often used interchangeably. Multiple installations, or "installs" means that Oracle Applications are installed multiple times on a single database. Multiple databases or instances refer to a scenario in which there may exist numerous databases, each with one or more installations and implementations of the Oracle Applications. 7. Is Multiple Sets of Books Architecture -MSOBA- supported in Release 11i? No. Multiple Sets of Books Architecture -MSOBA- is obsolete and not supported in Release 11i. Customers who implemented the Multiple Sets of Books Architecture -MSOBA- should migrate to Multi-Org before upgrading to Release 11i. What is Multiple Sets of Books Architecture -MSOBA-? Multiple Sets of Books Architecture -MSOBA-allowed multiple installations of an application on one database. Each installation of the applications mapped to a unique Set of Books. Multiple Sets of Books Architecture -MSOBA- was intended to help companies meet their application data security requirements for statutory, tax, reporting and other reasons by providing for separate installations of Oracle Applications, such as the Oracle Payables, Receivables and Purchasing modules within the same database instance. The multiple installation implementation allowed for physical partitioning of application data, but was

also necessary if multiple Sets of Books were required. For example, a company could install Oracle Payables multiple times, once for each business unit and Set of Books needed. AP1 might represent the installation for the tires business unit, AP2 the metals business unit, AP3 the upholstery business unit, and so forth. Each installation of the Financial Applications would then have its own Set of Books. This allowed all of the sub-ledger information to flow to the correct business unit for financial reporting. Multi-Org architecture eliminated the need to have such separate installations of the subledger applications in order to support multiple Sets of Books, or provide the desired data partitioning. For more information on the transition away from Multiple Sets of Books Architecture -MSOBA-, please see the following documents: "Problems Running R11i in Multiple Sets of Books Architecture" "Supported Approaches for Migrating a Multiple Install Architecture (MSOBA) to Multi-Org and 11i" "The Advantages of Moving to Multi-Org"

Specific examples of why Multiple Sets of Books Architecture -MSOBA- is not supported in a Release 11i environment are: Workflow has difficulty identifying and referencing the correct schemas for activities held for background processing Difficulties in identifying correct attachments for attachment document usage in a Multiple Sets of Books Architecture -MSOBA-environment with multiple schemas It is not possible to implement Oracle iReceivables or iProcurement with the Multiple Sets of Books Architecture -MSOBA-model still in place Oracle Process Manufacturing requires that Multi-Org be enabled. See the "Oracle Process Manufacturing Implementation Manual" for further information

Customers who need assistance with planning their migration from Multiple Sets of Books Architecture -MSOBA- should contact Oracle Support Services or Oracle Consulting. 8. Is there a utility to consolidate applications from multiple instances into one instance? Yes. iMerge is a utility developed and used exclusively by Oracle Consulting to assist customers with migrations from Multiple Sets of Books Architecture -MSOBA- to Multi-Org or for consolidation of multiple Oracle Applications instances into a single instance. Oracle's iMerge Utility is currently available with Oracle Applications Release 10.7 only. With iMerge, you can: Consolidate data held in multiple application schemas into one schema within the same instance. The existing data conforms to Multiple Sets of Books Architecture -MSOBA-, which in the course of consolidation into a single applications schema is converted into Multi-Org architecture. Consolidate data held in multiple instances into a single instance. In each of the instances, the data should be held in a single schema (i.e. should comply with Multi-Org architecture). Consolidate multiple GL Sets of Books into a single GL Set of Books when the Chart of Accounts, Calendar and Currency are the same.

Customers can thereafter successfully migrate from Oracle Applications Release 10.7 to Release 11i.

The contacts for the iMerge consulting solution at Oracle are: Lori Coleman, Practice Director, Global Applications Service Line John Lane, Practice Manager, Global Applications Service Line

9. Do I have to move to Multi-Org if consolidating multiple instances? If you are consolidating multiple instances, and wish to maintain more than one Set of Books in a single, consolidated instance, as well as partition application data by Operating Unit, you will need to use Multi-Org. For more information on instance consolidation, please refer to the following Multi-Org white papers: "Strategic Approaches for Consolidating Multiple Oracle Applications Instances" "Strategic Planning for an Oracle Applications Instance Consolidation Project" "The Advantages of Moving to Multi-Org"

10. What is new in Multi-Org for Release 11i? Cross-Organization Reporting functionality was introduced in Release 11i. It provides the ability to report on critical financial information at different levels of an enterprise. Selected standard reports for various applications of the Oracle E-Business Suite have been enhanced to allow you to report at the following levels: Set of books Legal entity Operating unit

Two new parameters have been added to the reports that are enabled for Cross-Organization Reporting: Reporting Level and Reporting Context. Reporting Level: Allows users to choose the level at which they want to report. The valid options are Set of Books, Legal Entity, and Operating Unit. The reporting level a user can choose is restricted by the setting of the profile option, "MO: Top Reporting Level." By default, the value of this profile option is set to Operating Unit at the site level. Your system administrator can set this profile option at the Responsibility level. To run reports across organizations, the profile option value should be set to Legal Entity or Set of Books. Reporting Context: Allows users to choose an entity within the reporting level that they have selected. Valid options are Set of Books names, Legal Entity names, or Operating Unit names, depending on the value of the "MO: Top Reporting Level" profile option.

The following is the list of currently available reports that have been enhanced with CrossOrganization Reporting functionality: Oracle Receivables Aging - 4 Buckets Report Aging - 7 Buckets Report Aging - 7 Buckets - By Amount Report Aging - 7 Buckets - By Account Report

Aging - 7 Buckets - By Collector Report Aging - 7 Buckets - By Salesperson Report Credit Hold Report Customer Credit Snapshot Payables

Oracle Payables Trial Balance Posted Invoice Register Posted Payment Register Payables Accounting Entries Report

Enterprise Tax U.S. Sales Tax Report Tax Reconciliation Report Canadian GST/PST Tax Report Tax Register Use Tax Liability Report Tax Audit Trail Intra-EU VAT Audit Trail Financial Tax Register

Oracle Financials Singaporean Localizations Singaporean GST F5 Report

Oracle Financials Thai Localizations Thai Payables Incomplete Tax Invoice Report Thai Payment Delivery Report Thai Input Tax Summary Report Thai Output Tax Summary Report

Oracle Financials Taiwanese Localizations Taiwanese Output VAT Report Taiwanese Receivables Government Uniform Invoice Report Taiwanese Receivables Zero-Rate Tax Report Taiwanese Payables Sales/Purchase Return and Discount Certificate Taiwanese Pro Forma 401 Report Taiwanese Purchase Return and Discount Report Taiwanese Sales Return and Discount Report

11. What does the future hold for Legal Entity organization types in Oracle's E-Business Suite? In the future there will be additional functionality around the GRE/Legal Entity organization type. The legal entity is a key component in current and future software development in the areas of accounting, reporting, intercompany accounting, accounting sequence numbering, document sequence numbering, bank account definition, cross Operating Unit transactions, and more.

12. Can I have a different Chart of Accounts structure for each Operating Unit? Each unique Chart of Accounts structure is associated with a unique Set of Books. Each Set of Books is then associated with an Operating Unit during the organization setup. A Set of Books can be tied to one or many Operating Units. Thus, each Operating Unit can be tied to a different Set of Books, each having a different Chart of Accounts structure. 13. How do I add a new Operating Unit? The following steps, excerpted from Chapter 2 of the "Multiple Organizations in Oracle Applications" users guide, explain how to add a new Operating Unit to your organizational structure. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Revise the Organization Structure. See: Develop the Organization Structure Define Sets of Books (optional). See: Define Sets of Books Define Locations: See: Define Locations Define Organizations: See: Define Organizations Define Relationships. See: Define Organization Relationships Define Responsibilities. See: Define Responsibilities Set Profile Options for Each Responsibility linked to the new Operating Unit. See: Set MO: Operating Unit Profile Option Run the Replicate Seed Data concurrent program. See: Seed Data Replication Set profile options specific to Operating Units. See: Set Profile Options Specific to Operating Units Define Inventory Organization Security (optional). See: Define Inventory Organization Security Implement the Application Products. See: Implement the Application Products Secure Balancing Segment Values (optional). See: Secure Balancing Segment Values by Legal Entity Run the Setup Validation Report (recommended). See: Run the Multi-Org Setup Validation Report Implement Document Sequencing (optional). See: Implement Document Sequencing Define Intercompany Relations (optional). See: Define Intercompany Relations Set the top reporting level (optional). See: Set Top Reporting Level Profile Option Set up conflict domains (optional). See: Set Up Conflict Domains

14. How does the Convert To Multi-Org process work? The Convert to Multi-Org process is an option available from the Database Objects menu of the ADADMIN utility. The Convert to Multi-Org process upgrades a standard product group into a MultiOrg product group. You can choose this option only if you do not already have Multi-Org set up. The Convert to Multi-Org program does the following: Populates the ORG_ID column in the Multi-Org tables with the new operating unit value you defined at the site level profile option: MO: Operating Unit Sets the MULTI_ORG_FLAG in the FND_PRODUCT_GROUPS table to Y Runs the Replicate Seed Data program If you define more than one Operating Unit, the replicate seed data process is run for all Operating Units. The Convert to Multiple Organization Architecture is documented in Chapter 4 of the Multiple

Organizations in Oracle Applications User Guide. Read this section and Chapter 2 of this user guide for complete information on setting up and converting to Multi-Org. What should I do before running the Convert to Multi-Org process? Before running the Convert to Multi-Org process, make sure you do the following: Apply the AD Patch 2412184: ADADMIN Convert to Multi-Org Performance Improvement: Increase parallelization Define at least one Operating Unit, and set the profile option, "MO: Operating Unit" at Site level, to that Operating Unit's value

What should I do after running the Convert to Multi-Org process? After running the Convert to Multi-Org process, make sure you apply the following TCA patch as post conversion process: Patch 2451368: Migrate data from Customers to Site Uses

15. How does Business Group relate to Multi-Org? Business Group is a security concept used by Oracle HRMS products, and is typically tied to country-specific legislation. It represents the highest level in the organization structures that can be modeled in E-Business Suite. Business Group may represent the consolidated enterprise, a major division, or an operating company. The organization type of Business Group partitions data for the Human Resources applications within E-Business Suite. Each application Responsibility maps to a specific Business Group. This means that you can only see people and organizations (including Operating Units) that belong to the Business Group associated with your application Responsibility. All of your Sets of Books can share the same Business Group if they share the same Business Group attributes, including HR flexfield structures. For more information on Business Groups, please see the users guide, "Using Oracle HRMS - The Fundamentals (US)." 16. Can I use the seeded Setup Business Group? Oracle Applications seeds a default Business Group named "Setup Business Group". The seeded Setup Business Group applies to US legislation. It has a default Legislation Code of US, and a default Base Currency of USD (US Dollar). If you intend to process payrolls in your Business Group, or to implement Legislation for another Territory, you may need to create a new Business Group with the appropriate Legislation Code and Base Currency. You cannot change these definitions after they have been saved. For more information on the default Setup Business Group, please see Chapter 2 of the users guide, " Implementing Oracle HRMS 17. When converting to Multi-Org, in which Business Group should I define the Operating Unit?

All organizations defined in HRMS, including Operating Units, belong to a Business Group. A Responsibility is associated with a specific Business Group; you can only see the people and organizations that belong to the Business Group associated with your application Responsibility. If, prior to running the Convert to Multi-Org process, you have created HRMS data, e.g. organizations, jobs, positions and employees, you should create the new Operating Unit under the existing Business Group. Otherwise, from a single application Responsibility, you will not be able to view the HRMS data and the Multi-Org data. If you have not created HRMS data prior to running the Convert to Multi-Org process, depending upon your legislative requirements, you may create a new Business Group or use the seeded Business Group. 18. Can I run the Convert to Multi-Org process more than once? The conversion script can be run more than once. When the process has completed successfully, the Multi-Org conversion option will disappear from ADADMIN and it cannot be run again from that point. Will the conversion script prompt the user if it has already been run? The conversion script will not display a prompt if it has completed successfully. If the conversion script has completed successfully will no longer be available as an option from ADADMIN. How long will the conversion take? The conversion time is dependent on the volume of data. The Convert to Multi-Org process has recently undergone performance tuning to take advantage of the more advanced features of the Oracle database. These enhancements deliver a performance improvement of up to 54% over the previous version of the Convert to Multi-Org process. The enhancements are available by downloading AD patch 2412194. The conversion time is dependent upon several factors including the customers environment, volume of data, and hardware configuration. What is the difference between setting up Multi-Org and converting to Multi-Org? Setup is the process of defining your organizational structure. It includes defining the Operating Unit and Legal Entity. See Chapter 2 of the Multiple Organizations in Oracle Applications User Guide for detailed information. The Convert to Multi-Org process populates the ORG_ID column with the new Operating Unit value you define at the site level profile option: MO:Operating Unit. 19. How do Rapid Install and the AD Administration utilities relate to Multi-Org? Rapid Install is used to lay down the file system for a database and applications installation. You are not prompted for any Multi-Org related information while using Rapid Install. However, the Vision demo database can be installed along with your production and test database instances using Rapid Install. Vision is already Multi-Org enabled. For more information, see the manual, "Installing Oracle Applications." Once you have completed your initial installation tasks using Rapid Install, you then maintain

database objects, i.e. convert them to Multi-Org using the "Convert To Multi-Org" program embedded in the AD Administration utilities. For more information, see the manual, "Maintaining Oracle Applications." 20. Where do I find collateral mentioned in this F.A.Q.? The user's guides, "Multiple Organizations in Oracle Applications" for Release 11i, Release 11 and Release 10.7 can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Multiple Organizations Architecture (Multi-Org) / Manuals and eTRMs / Release 11i, Release 11, or Release 10 / Architecture

The white paper, "Release 11i Multi-Org Today" can be found in the following locations: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org) MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Multiple Organizations Architecture (Multi-Org) / Manuals and eTRMs / Release 11i / Architecture

The technical white paper, "Release 11i Use of Multiple Organizations in Oracle Applications" can be found in the following location: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Multiple Organizations Architecture (Multi-Org) / Manuals and eTRMs / Release 11i / Architecture

The white paper, "Advantages of Moving to Multi-Org" can be found in the following locations: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org) MetaLink or iSupport: Note 124264.1

The white paper, "Strategic Approaches to Consolidating Multiple Oracle Applications Instances" can be found in the following location: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org)

The white paper, "Strategic Planning for an Oracle Applications Instance Consolidation Project" can be found in the following location: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org)

The white paper, "Supported Approaches for Migrating a Multiple Install Architecture (MSOBA) to Multi-Org and 11i" can be found in the following locations: AppsNet: Navigate to Technology tab / Architecture / Multiple Organizations (Multi-Org) MetaLink or iSupport: Note 146678.1

The manual, "Installing Oracle Applications" for Release 11i can be found in the following locations:

MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Applications Installation and Upgrade / Manuals and eTRMs / Release 11i / General

The manual, "Maintaining Oracle Applications" for Release 11i can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Applications Core Technology / Applications Installation and Upgrade / Manuals and eTRMs / Release 11i / General

The user's guide, "Using Oracle HRMS The Fundamentals (US)" can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Human Resource Management Systems / Human Resources / Manuals and eTRMs / Release 11i Documentation / United States

The user's guide, "Implementing Oracle HRMS can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Human Resource Management Systems / Human Resources / Manuals and eTRMs / Release 11i Documentation / United States

The user's guide, "Oracle Process Manufacturing Implementation Guide" can be found in the following locations: MetaLink or iSupport: Navigate to Top Tech Docs / E-Business Suite: ERP / Industry Solutions / Process Manufacturing / Documentation / Release 11i / Product Documentation

The white paper, "Problems Running R11i in Multiple Sets of Books Architecture" can be found in the following locations: MetaLink or iSupport: Note 124262.1
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