Important points stated in the Oracle User Guide:
- Operating units can be defined from the Define organisation window in oracle HRMS or from Accounting Setup Manager in General Ledger.
There are two options, one in the organisation window, in the HRMS responsibility it is defined or it in the General ledger responsibility as well. In the previous version it was only from the HRMS or the inventory organisation.
For fresh installation, Oracle Applications provides a predefined business group, setup business group. It is recommended that the predefined business group is modified rather than defining a new one.
Which means the name could be changed for the predefined business group, following the naming convention of the organisation. EG: company name_BG and then the settings could be modified. So there is a predefined business group given at the time of doing the configuration. If there is a single business group, the predefined business group could be renamed and used. If there are multiple business groups, then we have to define separately for each business group.
Example: Some companies may want a separate HR, business group in the HRMS level, in order to have a different business group, to have different payroll and HRMS mapped across countries, a multiple business group concept has to be used. For a single business group in the centralised HR and the employee business group numbering should be standard across, in different countries then there would be a single business group
- HRMS does not have to do anything with the operating units; HRMS would be interested in knowing the payroll information or employee data. So employees are mapped at the business group level. Operating unit is for the accounting purposes. AP and AR is at the operating unit level whereas HRMS work at the BG level, the payroll or HR transaction employees are mapped at the HRMS level. They don’t get linked to the operating unit level respectively.
Example: If the Head quarter is in USA, HRMS is compiled in USA but it is split across multiple organisations. For India there could be a separate business group, for USA a separate one and for UK separate.
Pre requisites for setting Multi org in Release 12
- Access to define organisations and define legal entity configurator pages, or the accounting setup manager page.
So the organisation has to be defined first and then the HR organisation, then the ledger and legal entity. In order to achieve that there should be access to GL, access to purchasing for inventory and HRMS for business group.
System administrator is a known concept in oracle. The system administrator grants responsibility access, profile options, what needs to setup, what needs to be access to what. All this is the responsibility of the system administrator. Only the person having a system administrator access can give users access to various operating units or business group or inventory org or profiles being set up. All this is done in the system administrator level. So system administrator is the ones who create users, who enable access, who drive the responsibility access and all responsibility definitions are done under the system administrator roles. The system administrator gives the actual access. It is the most important role. The role should be limited to the one who is actually the administrator of the system, who would actually give the required roles or let’s say a new person joins the organisation, the user id creation, his access, his AP access, all that is done by the system administrator. It is the most critical responsibility so it should not be given to anybody; it has be to a limited access people.
- It is advised to have access to HRMS, General Ledger, purchasing and system administrator responsibilities.
Setting up Multi Org in release 12:
The sequence of steps to be carried out:
Develop or design a structure
Define location
Define business group
Define or use an existing accounting key flex field structure
Create Legal entity
Create Ledgers
Create and Assign operating units and legal entities
Create Inventory Organisation
Run reports
The first step is to develop or design a structure. Here the number of business groups required is decided, what is the kind of ledger structure, what is the kind of account structure that has to be there. How many segments are required? Once the structure is defined it has to be linked. The structure is discussed with the customer and decided.
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