1. Re: Difference between Org_id ,organization_id and operating_unit

For instance let us say you are having Inventory Store.You have Inventory Stores in two different countries like India and USAYou have installed Oracle Apps single instance and entered all the suppliers information,customers data,tax rules etc.

And your business requirement is like this, all the rules and the data corresponding to indian store shouldnt be applicable/available to american store and vice versa.

So to meet the above requirements you will define two operating units one for india and one for USA.Now each operating unit will have an ID known as ORG ID.

And we use ORG ID to secure our business data.

Now to do transactions for indian operations you need to define one responsibility and attach indian ORG ID to this responsibility.By this an indian will not see any data/rules applicable to USA.

Similarly you will define another responsibility for USA and attach USA's ORG ID to this responsibility so that an american will not see any data/rules corresponding to India.

This is the concept of ORG ID.

Now let us see what is Organization ID.

Within India you have got various branches in different parts of the country in different states like AP,UP,MP etc.And the business requirement is like this in AP you will maintain stock of Rice,UP for Wheat and MP for Maize.To meet this business requirement you will define 3 Inventory Organizations under Indian Operating Unit to maintain the respective stocks of the states..

Each Inventory Organization will have an Organization ID.

This is the outline of the differences between ORG ID and Organization ID.

Operating Unit and Inventory Organization link Query which gives Operating Unit Information and corresponding Inventory Orgs related information also

SELECT hou.NAME operating_unit_name, hou.short_code,hou.organization_id operating_unit_id, hou.set_of_books_id,hou.business_group_id,ood.organization_name inventory_organization_name,ood.organization_code Inv_organization_code, ood.organization_id

Inv_organization_id, ood.chart_of_accounts_idFROM hr_operating_units hou, org_organization_definitions oodWHERE 1 = 1 AND hou.organization_id = ood.operating_unitORDER BY hou.organization_id ASC

MULTI-ORG CONCEPT(for beginners)

In ORACLE we use multi-org concept to maintain globalization.  Multi-org is a server side enhancement  where multiple bussiness units use a single installation oracle product.

                       Multi Org is the future used to store the data of multiple organizations in a single Database instance.

Basic Business Needs:

  Use a single installation of any Oracle Applications product to support any number of organizations, even if those

organizations use different sets of books.

  Define different organization models.

  Support any number of legal entities within a single installation of Oracle Applications.

  Secure access to data so that users can access only the information that is relevant to them.

  Sell products from a legal entity that uses one set of books and ship them from another legal entity using a different set

of books, and automatically record the appropriate intercompany sales by posting intercompany accounts payable

and accounts receivable invoices.

  Purchase products through one legal entity and receive them in another legal entity.

     Multi-org terminology/ multi-org entities:

1. Bussiness group2. legal entity3. set of books4. operating units5. inventory organization6. sub inventory7. stock locator   

   Business   group    : It is a logical business unit by maintaining employees,customers,vendors,and all hrms modules.              For Example:- US business group,UK business group. 

   legal entity           : It is a legal business, which is going to have its own legislation code or taxregistration number. At this level we are going to prepare all our financial statements.

               for example: india vat,us tax.

  

  Set Of Books(sob)   : A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar.

                                            (OR)

                                    It is a collection of 3c's:

                                          currency,calander,chart of accounts.

   We have mainly 2 types of sob's

1. Primary sob   :A financial reporting entity in which you conduct business. The primary set of books uses a particular chart of accounts, accounting calendar, and functional currency (in the primary set of books, the functional currency isalways the primary functional currency).

2. Reporting sob:     A financial reporting entity that is associated with a primary set of books. The reporting set of books has the same chart of accounts and accounting calendar as the primary set of books, but usually has a different functionalcurrency. The reporting set of books allowsyou to report in a different functional currency than that of your primary set of books.        

reporting sob is consolodated into primary sob and we consolidate  8 reportin sob's in to single primary sob.

currency: we have mainly two types of currencies 

1. Primary functional currency:The currency you use to record transactions  and maintain your accounting data within  Oracle Applications. The primary functional currency is generally the currency in which you perform most of your business transactions and the one you use for legal reporting.

2. Reporting functional currency: A currency, other than your primary functional currency, for which you need to report.

The table for currency is fnd_currency

calander:calanders are periods in the format of  "mon-yy"

we have mainly two types of calander :

1. accounting calander2. fiscal calander

the tables are:    GL_PERIODS,,GL_PERIODS_TYPES,,GL_PERIOD_STATUS.

PERIODS ARE MONTHE,HALF MONTH,QUATER MONTH,HALF YEAR E.e.t.c,.

Period status are open,future open,never open,closed,permently closed.

TO do accounting transaction the perriod must be either open /future open.

chart of accounts(coa):   It is an accounting structure for an organization & it is a key flex feild.

The table is GL_CHART_OF_ACCOUNTS.

NOTE: IN R12 VERSION SOB IS REPLACED BY LEDGER CONCEPT.

OPERATING UNITS:    It is a logical bussiness unit area from where we can run our bussiness.

                                            (OR)

An organization that uses Oracle CashManagement, Oracle Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications; each user sees information only for his operating unit. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit.

Multi Org Structure in R12: An Overview

What is a Multi Org Structure?

If an enterprise or a business wants to implement multiple organizations such as multiple Ledgers (Sets of Books), or Legal Entities, or Business Groups within a single installation of Oracle Applications, then we can summarize that the enterprise is planning to implement a multi org setup.

How About a Close to Real Life Case Study?

Before we dive into this topic, let us draw a multi org structure on a whiteboard. It would help to analyze a real picture, as we pick at the concepts that go into designing a multi org structure.

The above is the organization structure for Office Smart Solutions, which is a major office supplies retailer, headquartered in Naperville, Illinois, USA. The organization operates in three countries – the US, Canada and India.

Office Smart has an organization structure with the following:

2 Business Groups – one in the US, which controls the organization structure in North America, and one in India

3 Legal Entities – one in the US, one in Canada, and one in India 3 Primary Ledgers – one in the US, one in Canada, and one in India 3 Operating Units – one in the US, one in Canada, and one in India 5 Inventory organizations – two in the US, one in Canada, and two in India Subinventories and locators exist beneath the inventory organizations, but they are not

relevant for the session on multi org structures.

With this, let us step back and reflect…

The way it was in 11i

In 11i, a user working with a specific responsibility, under a given operating unit, would need to switch responsibilities, if she were to access a sales order that was created from a different

operating unit. For this to happen, the user had to be assigned a second responsibility that was linked to the second operating unit.

From an implementation perspective, this implied that each responsibility could be linked to one and only one operating unit. Thus, if a user in Office Smart Canada, needed access to data in Office Smart US, then she would need to be assigned a responsibility that was tied to the US Operating Unit – Office Smart Operations.

Responsibilities were tied to operating units through the profile option MO: Operating Unit.

What R12 brings to the table

Release 12 brought with it, the philosophy of Multi Org Access Control (MOAC).

“Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed are positive about the impact that globalization will have on their organizations over the next three years.”

Source: 9th Annual Global CEO Survey – Globalization and Complexity; PwC 2006

With Release 12, Oracle Applications had to ensure that certain aspects of the applications were redesigned to meet the inevitable advance of Globalization.

Organizational changes in R12

The Set of Books evolved into Ledgers and Ledger Sets. The philosophy of Multiple Organization Access Control (MOAC) introduced in R12, ensured that the same user could perform multiple tasks across operating units without changing responsibilities. The use of Security Profiles was extended beyond HR to make MOAC possible.

Organization Access Control in R12

In a multi org environment, securing the data in each organization becomes a key task and concern for management and the implementation team. By creating custom responsibilities, management ensures that employees are given access to only those menus and functions that they need to perform their routine activities. However, an addition layer of security needs to be designed to ensure that using those menus and forms given to them, employees cannot trespass into an organization that they should not have access to.

As mentioned above, in 11i access to organizations was compartmentalized based on operating units. This ensured data security, but at the expense of making it a little cumbersome for the user to switch between organizations that belong to different operating units.

The Multi Org Access Control (MOAC) feature in R12 retains the data security aspect between organizations and users. However, it also brings with it a certain degree of user friendliness in navigating between different operating units.

How does R12 implement this change?

This series is designed to highlight all that it takes to implement a Multi Org Structure in Release 12.