Setting Up Organization in Oracle Applications:
An Organization represents a business unit in an Enterprise
which has a business need to secure transaction data, Setups and Seed data. It
can be a major division, sales office, a department, or a separate company
within an enterprise. Since the transaction Information is secured at
organization level for the various modules within Oracle applications, A single
application responsibility can access, process, and report on data for one or
more operating units that is assigned to its Security profile.
An Operating unit can be associated to a Single Legal Entity
and Ledger. But multiple operating units can be Associated to a Single Legal
entity and Ledger.
Organization can be classified in to a set of system-defined
attributes that categorize an organization. Examples
- · Business group
- · operating unit
- · project expenditure organization
- · inventory organization
- · Human resources organization
Organization in Oracle Applications is an autonomous
Business Entity having business activities corresponding either of the below Modules
like Receivables, Order Management, Payables, Purchasing, Projects, Inventory.
Navigation to define Organization:
HR Responsibility à
Work Structure à
Organizations
Organization can also be defined and viewed from the
accounting Setup manager as well.
Whenever a New Organization is defined in oracle application
it needs to be added appropriately in the Security profile if the Security
Profile is a List of Organizations based Security profile and The Security List Maintenance programs
needs to be run.
Defining an Operating Unit:
In order to use an Organization for transactions in the
Oracle Applications in the Modules like Receivables, Order Management, Payables,
Purchasing. It is required to define the Organization as an Operating Unit.
It is Mandatory to decide and Setup the below mentioned
Oracle application multi organization entities before we setup an Operating
unit.
- · Business group
- · Ledger
- · Legal Entity
Operating unit is an Organization classification and once an
organization is defined as an operating Unit the Organization Attributes need
to be defined. Before setting UP operating unit below Profile options should be
defined so that the Organization gets created under appropriate business group
HR: Business Group at
Responsibility Level
HR: Security Profile
at Responsibility Level
As mentioned above The Ledger and Legal Entity needs to
defined in the organization Information. And this is how the Legal Entity and
Ledger are assigned to the Operating Unit.
Also It is important to note that in Oracle Applications R12
the Legal Entity which is Attached in the Organization information screen is
the Default legal Context. Transnational
Legal Entities Defined at the ledger level can be used on the basis of the Mapping Defined between the Balancing Segment and Legal Entity as per the Ledger Definition.
