1. 7 Copyright © 2010, Oracle and/or its affiliates. All rights reserved. Fundamentals of Multi-Org

2. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 2 Objectives After completing this lesson, you should be able to do the following: Define Multiple Organization (Multi-Org) Discuss the types of organizations supported in the Multi- Org model Explain the entities of Multi-Org Explain how Multi-Org secures data Identify key implementation considerations Define Multi-Org Access Control (MOAC) Explain Multi-Org preferences Explain Enhanced Multiple-Organization Reporting

3. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 3 What Is Multi-Org? A server-side (applications and database) enhancement that enables single installation of Oracle Applications Keeps transaction data and some setup data separate and secure by different lines of business

4. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 4 Basic Business Needs The Multi-Org enhancement provides features that enable you to: Support multiple business units even if they use different ledgers Secure access to data on a single instance by line of business Define different organizational models Sell and ship from different legal entities Procure and receive from different legal entities Produce reports across entities or within a single entity

5. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 5 Organization Types Supported in the Multi-Org Model

6. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 6 GL, FA AP, PO, AR, OM, and so on INV, MFG Ship Balancing Entity/Funds HR Inventory Organization Operating Unit GRE/Legal entity Ledger Business Group Bal Seg 1 Flexfield Security Rule Types of Organizations Supported in the Multi-Org Model Bal Seg 2

7. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 7 Business Group HRBusiness Group A Business Group can be set up to model a consolidated enterprise, a major division, or an operating company—without any accounting impact. You must have at least one Business Group.

8. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 8 Ledger- A Ledger is a financial reporting entity Ledger US GAAP US COA US Calendar EURO $ Ledger Accounting Setup Manager GL $- Reporting Currency HRBusiness Group The Ledger concept is similar in a Multi-Org environment. General Ledger secures transaction information (journal entries, balances) by Ledger. When you use General Ledger, you select a responsibility that specifies a particular Ledger with information relevant to only that Ledger.

9. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 9 Legal Entity GL Ledger GRE/Legal entity HRBusiness Group A Legal entity identified through the registration with Legal Authority represents a legal company for which you prepare fiscal or tax reports

10. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 10 Operating Unit AP, PO, AR, OM, and so on Operating Unit GL Ledger Legal entity HRBusiness Group

11. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 11 Balancing Entity AP, PO, AR, OM, and so on Operating Unit GL, FA Ledger GRE/Legal entity HRBusiness Group Balancing Entity/Funds Flexfield Security Rule Bal Seg 1 Bal Seg 2

12. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 12 Balancing Entity: Examples C1 LE1 C2 2010 2 LOB 1 LE1 LOB 2 103020 3 1 Div 1 LE1 Div 2 10 30 20 Balancing segment values

13. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 13 Inventory Organization INV, MFG Ship Inventory Organization AP, PO, AR, OM, and so on Operating Unit GL, FA Ledger GRE/Legal entity HRBusiness Group Balancing Entity/Funds Flexfield Security Rule Bal Seg 2 Bal Seg 1

14. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 14 Sample Organization Structure LE Ledger IO OU IO MIO OU

15. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 15 Define the Organization Structure US Chicago Japan Corporate Canada East Tokara Islands Inventory Calgary Manufacturing Warehouse West Quebec Manufacturing Montreal Inventory

16. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 16 Adding to the Organization Structure West Ops (OU) Plant 1 (IO) Wid Co. Ledger US 1 (LE) Original Plant 1 (IO) Wid Co. Ledger East Ops (OU) Plant 2 (IO) US 1 (LE) US 2 (LE) West Ops (OU) Add New

17. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 17 How Multi-Org Secures Data

18. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 18 UsersResponsibilities Operating Unit SelectTied to an Security Model The responsibility is key to multi-org security and reporting. It determines: Operating unit Reporting ability

19. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 19 Data Security by Application ApplicationPartitioned By GLLedger FAAsset Book HRBusiness Group OM, AR, AP, PO, CE, PA, AS, SC, ASO, ASN, AST Operating Unit INV, MFGInventory Organization

20. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 20 Singapore Operations US New York Supplier ABC Corporation Address 1: New York, NY Address 2: Orlando, FL Address 3: Green Bay, WI Address 1: Austin, TX Address 2: New York, NY Note the separation of supplier sites by OU. Global Registries Distribution SNG

21. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 21 Organization Naming Considerations Ledger_ COB_ ROB_ BG_ HR_ LE_ OU_ IO_ LedgersInventory Organization Organization GM_ VO_

22. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 22 Define Multi-Org Access Control (MOAC) User access to multiple operating units is called Multi-Org Access Control. The primary topics of discussion for MOAC are: Features that support various functionalities Benefits Setup and process Dependencies and interactions

23. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 23 Features of MOAC Access one or more operating units using single responsibility. Enhanced reporting capability using: –Reporting-level parameter –Reporting context

24. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 24 Benefits of MOAC Using MOAC, a user can perform tasks for multiple operating units (OU) without changing their responsibilities. Responsibility Mexico Operating Unit Canada Operating Unit US Operating Unit Tasks users can perform using MOAC in multiple OUs: Enter Payables Invoices. View Consolidated Requisitions. Perform Collections. Process Receiving and Drop Shipments. Perform Customer Data Management. Perform Accounting Setup.

25. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 25 MOAC: Setup and Process Automated process SETUP Create security profile. Set profile options. Run Security List Maintenance. Define Operating Units. PROCESS Login and select a responsibility. Launch a Form. Process data for Operating Units. Application checks user’s access privilege.

26. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 26 Accounting Setup Manager (ASM) Define Legal Entities Dashboard. Define Ledger. Define OU. Assign/view Legal Entities.

27. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 27 MOAC Setup: Create an Operating Unit Financials Accounting Setup Manager (Or) HRMS Organization Form

28. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 28 Dependencies and Interactions of MOAC Oracle HRMS: –Define operating units. –Set up Multi-Org Security Profiles. Accounting Setup Manager: –Define operating units. –View all operating units assigned to the primary ledger. Oracle E-Business Suite products that use Operating Units: –Process data across multiple operating units using MOAC.

29. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 29 Dependencies and Interactions of MOAC Product nameLeveraging Multi-Org Access Control feature PayablesReduce processing time with the ability to enter invoices for multiple operating units without switching responsibilities. Reduce processing cost with the ability to pay invoices for multiple operating units in a single pay run. ReceivablesProvide global information for decision making purposes with new cross-organization reports. PurchasingProvide the ability to negotiate discounts armed with consolidated requisition demands. CollectionsIs a global collections agency with consolidated view of customer accounts and collection tasks for multiple operating units Accounting Setup Manager Create ledgers and operating units through the Accounting Setup Manager.

30. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 30 Multi-Org Preferences: Description User Level Preferences: Specify User Level Preferences. Identify a subset of operating units to access. Set default Operating Unit specific to that user.

31. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 31 Enhanced Multi-Org Reporting: Setup and Process Program checks access privilege. Automated process PROCESS SETUP Set up Multi-Org Access Control. Select a responsibility. Open Requests Program. Select Operating Unit and Run Report. Run reports for multiple operating units from a single responsibility. Reduce reporting time. Improve efficiency.

32. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 32 Quiz Users can change the responsibility to access different operating units by using MOAC. a.True b.False

33. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 33 Quiz An inventory organization represents an organization, for which you track inventory transactions and balances, and manufacture or distribute products. a.True b.False

34. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 34 Quiz Multi-Org is a server-side (applications and database) enhancement that enables single installation of Oracle Applications. a.True b.False

35. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 35 Quiz Which of the following profile options links an Operating Unit to a Responsibility? a.MO: Operating Unit b.MO: Security Profile c.MO: Set Client_Info for Debugging d.MO: Default Operating Unit

36. Copyright © 2010, Oracle and/or its affiliates. All rights reserved. 7 - 36 Summary In this lesson, you should have learned how to: Define Multi-Org Explain the Multi-Org entities Explain how data is secured Identify key implementation considerations Define Multi-Org Access Control Explain Multi-Org preferences Explain Enhanced Multiple-Organization Reporting