DIVERSIFIED COMPUTER CONSULTANTS

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Consulting, Education, Software
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Multi-Org Oracle Release 11

• Jan Cooper
• Diversified Computer Consultants
• National Practice Director
• Oracle Applications

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What Is Multi-org?

• Architecture
• Definitions
• Relationships
• Applications
• Why run multi-org
• Setting Up

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Architecture

• Before Multi-Org
• Need server for every set of books

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Architecture

• With Multi-Org
• One server, multiple sets of books

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Architecture

• The multiple organization structure simply
  partitions key tables to allow for an ORG_ID
  number per row
• Used to provide security and data segregation.

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Architecture

• Criteria used to partition tables includes
• The table contains a GL Account Code (code
  combination ID).
• There is a business reason for the table to be
  partitioned (for example, the entity should not
  be shared).
• The table contains transaction data.

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Architecture

• Criteria used to partition tables includes
• The table is an interface table where data being
  loaded is partitioned.
• The table includes a foreign key to a partitioned
  table and is accessed independently (in other
  words, not just as a child of a partitioned
  table).

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Definitions

• Set of Books - The 3 Cs
• Currency, Calendar, Chart of Accounts
• Balancing Entity
• An entity for which you prepare a balance
  sheet
• Represented as a balancing segment within
  your accounting flexfield

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Definitions

• Business Group
• One for each Government Reporting Entity (GRE)
• Highest level HR organization
• All employees
• Human Resource Organization
• Used by HR module to segregate employees
  into reporting groups

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Example of HR Org Structure
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Definitions

• Legal Entity (same as Government Reporting
  Entity
• Represents a legal company for which you
  prepare fiscal or tax reports

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Definitions

• Operating Unit
• An organization that uses Oracle Payables,
  Receivables, Purchasing, Cash Management,
  Projects, Order Entry, Sales and Marketing,
  Service, Sales Compensation
• Information is secured by operating unit
• Each user sees information for ONLY their own
  operating unit

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Example of a Legal Entity Structure

• A Legal Entity may have multiple Operating
  Units

Legal Entity
Operating Unit 1
Operating Unit 3
Operating Unit 2
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Example of a Legal Entity Structure

• An Operating Unit may have only one Legal
  Entity

Operating Unit
Legal Entity 1
Legal Entity 3
Legal Entity 2
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Centralized Processing?

• Centralized GL, AP, AR, PO, CE, OE, PA,
  Sales/Mkt, and SC
• You can use your balancing segment within
  your Chart of Accounts to segregate legal
  entity data
• Decentralized GL, AP, AR, PO, CE, OE, PA,
  Sales/Mkt, and SC
• you must have an Operating Unit for each
  group

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Definitions

• Inventory Organization
• An organization that tracks inventory
  transactions and balances, and/or that
  manufactures or distributes products.

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Definitions

• Responsibility
• Defines what functionality of an
  application is available to a user
• Assigned to users
• System Profile Options
• You link a responsibility to
• A Set of Books
• Operating Unit
• Business Group

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Relationships

• Business Group, Legal Entity and Master
  Inventory Organization are all separate
  structures

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Relationships

• Business Group and Legal Entity are linked
  through Responsibilities using the System
  Profile Options

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Relationships

• Legal Entities and Inventory Organizations
  are linked by Set of Books

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We only have one Set of Books, Business Group,
Legal Entity and Operating Unit. Why Run
Multi-Org?

• Future growth and acquisitions
• Change in company directions
• Conversion from single org to multi-org is
  
• Difficult in Release 10,
• Still optional in Release 11
• Definitely (?) required in Release 11i

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We only have one Set of Books, Business Group,
Legal Entity and Operating Unit. Why Run
Multi-Org?

• Why not???
• Most of the steps need to be completed
  anyway!!!!!

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Required Set Up Steps for Multi-org Release 11

• 1. Develop the organization structure
• 2. Define sets of books
• 3. Define organizations
• 4. Define organization relationships
• 5. Define responsibilities

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Required Set Up Steps for Multi-Org Release 11
6. Set the Operating Unit Profile Option for
Each Responsibility 7. Convert to Multiple
Organization Architecture 8. Update Profile
Options Specific to Operating Units 9. Run the
Setup Validation Report (recommended)
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Develop the Legal Entity Structureon PAPER
First!!!
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Add Inventory Organizationson PAPER!!!!!
USA Set of Books
Legal Entity A
Legal Entity B
Operating Unit 3
Operating Unit 2
Operating Unit 1
Inventory Org
Inventory Org
Inventory Org
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Add Business Group and HR Organizations on PAPER
!!!!!
Business Group
USA Set of Books
Legal Entity A
HR Org
Legal Entity B
HR Org
Operating Unit 1
Operating Unit 3
Operating Unit 2
Inventory Org
HR Organization
HR Organization
HR Organization
Inventory Org
Inventory Org
HR Organization
HR Organization
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In the System

• Set up all General Ledger Set of Books
• See Define Set of Books
• Oracle General Ledger Reference Manual
• Oracle Flexfields Reference Manual
• Define Business Groups
• Link the Business Group to a Responsibility

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In the System

• Using the correct Responsibility for the
  Business Group define Organizations and
  Organizational Relationships
• Assign a classification to each organization
• Set up Legal Entities FIRST
• Set up Operating Units SECOND
• Set up Inventory Organizations THIRD

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Mandatory Information

• Each type of classification requires the
  mandatory information below

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Define Responsibilities

• Must be defined for each application within
  each Operating Unit
• Set up System Profile Options at the
  Responsibility Level for
• HR Business Group
• MO Operating Unit
• GL Set of Books

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Run Conversion to Multi-Org

• Database Administrator should run the
  Autoinstall utility adadmin
• This is run whether you choose to go
  multi-org or not
• Be sure to choose the option to convert to
  multi-org
• Should only take a few minutes to run

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Multi-Org Audit Reports

• Using the System Administrator Responsibility
• Run Set Up Validation Report

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New Operating Units

• Oracle runs the seed data replication program
  as a concurrent program
• May need to run the Replicate Seed Data process
  if seeded data does not replicate correctly
• Remember to set up Responsibilities and System
  Profile Options

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Oracle Applications directly impacted by
theMultiple Organizational process

• Order Entry/Shipping
• Receivables
• Sales Compensation
• Sales and Marketing

• Oracle Cash Management
• Purchasing
• Payables
• Projects
• Service

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New Feature in Oracle Release 11

• Some functionality across sets of books
• Ability to sell and ship products from different
  legal entities and across sets of books

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BUT

• Still some areas that do not provide automatic
  journal entries across sets of books
• Example
• Entering purchase orders in one inventory
  organization and assigning the receipt of the
  inventory in another inventory organization. This
  is still an automatic process as long as the
  inventory organizations involved share the same
  set of books.

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Limitations of Multi-Org

• Document Sequencing
• Legal entities sharing the same set of books
  share document sequences
• Period Statuses
• Operating Units that share the same set of books
  share the same Payables, Receivables and
  Purchasing period statuses

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Limitations of Multi-Org

• Posting to General Ledger
• Each operating unit in a set of books creates
  their own journal entries
• Drilldown
• Drilling down from the General Ledger is
  restricted by operating unit.

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Questions?
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Jan L Cooper National Practice Director Oracle
Applications [phone] [phone]
(Cell) [phone] (Fax) jcooper_at_divcomp
com 200 North LaSalle Street Suite 950 Chicago,
IL 60601