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:
- Bussiness group
- legal entity
- set of books
- operating units
- inventory organization
- sub inventory
- 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 tax
registration 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
- 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).
- 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
- 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.
- 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 :
- accounting calander
- 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.
Installing all transactional modules like AP,PO,OM,AR,PA.
All operating unit module tables have suffix _all.
example: AP_INVOICES_ALL.
_all tables have a specific coloumn called' org_id' to identify operating unit id.
AP_INVOICES_ALL------->TABLE
AP_INVOICES------------->MULTI-ORG VIEW.
Tables contaion all org_id data wjere as view contains specific org_id.By default view doesnot contain any data by following API we can set org_id.
" FND_CLIENT_INFO.SET_ORG_CONTEXT('ORG_ID') ";
Inventory organization : It is a warehouse producing the raw material, finished goods,transactions,quantites e.t.c,.
All inventory tables having specific coloumn called as 'oranization_id' to identify specific inventory organization.
we have mainly two types of organisations:
- master oranization(main inventory)
- child organization(sub inventory)
The table is org_organization_definations.
note : every project must be having a minimum of 2 business groups,4-6 sob's ,6-8 operating units,more than 10 inventory organization.
LEDGER R12 CONCEPT
Ledgers and Ledger Sets:
The ledger replaces the
11i concept of a set of books. It represents an accounting representation
for one or more legal entities or for a business need such as consolidation or
management reporting.
R12 = Ledgers (4 C’s)
§ Chart of accounts
§ Ledger currency
§ Accounting calendar
§ Accounting method – new 4th
While a set of books is
defined by 3 C’s, chart of accounts, functional currency, and accounting calendar,
the ledger is defined by a 4th C: the accounting method. This 4th C
allows you to assign and manage a specific accounting method for each
ledger. Therefore, when a legal entity is subject to multiple reporting
requirements, separate ledgers can be used to record the accounting
information.
Primary Ledger:
§ The main “Activity” Ledger
§ Usually in the local currency
§ For Operational reporting
Secondary Ledger:
§ Differs from Primary Ledger by Chart of Account,
Calendar, and/or Accounting Method
§ For Statutory, Tax or Consolidated reporting
Reporting Currency Ledger:
§ Differs from Primary Ledger by Currency ONLY
§ Just a translation of the Primary Ledger – no
rules required
§ For Consolidated reporting
LEDGER SETS:
§ Grouping of ledgers with the same chart of
accounts and calendar/period type combination
§ Essentially treats multiple ledgers as one
