Setting Up Organization in Oracle Applications R12

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.