Defining Organization Structure:
It is Very important to define the Multi Organization Structure in most effective and Optimum manner. The Success of the Multi Organization Support in Oracle applications depends on how different Business Entities in an enterprise are modeled in a Multi Organization hierarchy in Oracle Applications.
The Organization Structure should not only be compliant from legal perspective but should also be effective from operational management and accounting perspective.
Below Mentioned are some points which can be used while planning the Organization Structure.
The Organization Structure should not only be compliant from legal perspective but should also be effective from operational management and accounting perspective.
Below Mentioned are some points which can be used while planning the Organization Structure.
- Business group is the highest level in the Organization Structure and is used for managing human resource information and does not have an accounting impact. It determines the availability of the employees to the ledger, Operating Units Attached to it.
- Ledger is the highest level which impacts and controls accounting, Multiple Ledgers can be associated with a single Business group but a Ledger can be associated to only One Business group.
- A legal Entity can be associated to Single Ledger, Multiple Legal Entities can be Associated to a Ledger.
- Multiple Operating units can be associated with a Single Legal Entity, but One Operating Unit can be Associated to only one Legal Entity.
- An inventory Organization points to only one Operating Unit but can be referenced by any Operating unit within the same Ledger.
