Functional

Let us continue from Article 4: Multi Organisation

3. Define the business group:

Once the location is defined it has to be attached to the business group or the ledger etc. There can be one to one locations for a business group and a business group cannot have different locations. One operating unit can have one address. If there are multiple business groups there could be same locations or different locations.



Business group is a part of HRMS, so we have start by going to the HRMS responsibility to define a business group.

Navigate to work structures >organization > description

Click on new to create a new organization as a business group.

It would give the particulars of the organization.

Here the location is attached to the business group. ABC Corp business group is the name of the business group and it attached to the location as shown in the screen shot above.  The location that was defined is attached to the organization.  Whatever location is previously defined will appear here to attach. ABC Corp India is a location of ABC Corp business group. It is a one to one relationship. In the above screen shot the field in white – organization classification allows the system to know whether it is a business group or an operating unit.  Under this business group is to be selected.

After Saving. click the list of values icon beneath the Name field in the Organization Classifications Block.

From the Organization Classifications from select Business Group and click OK.

Once the box is checked after selecting the business group it would get enabled.

Check the Enabled option in line with the Business Group field and click Save.

This would indicate the business group definition. The most important step is classification because in classification it identifies whether it an operating unit or is it a business group etc. This classification is very important for identification.  The list of values in the option also has operating units.  In order to make the business group ready to work with the box has to be enabled or checked.

Select Business Group Info. FRom the Additional Organization window.
 
There is some additional information to be inserted at each business group level which is under the business group info.  In the list of values business group info has a *. The * character indicates it is mandatory.  Without giving this information we cannot go ahead.

Press TAB or Click in the white color field.

As shown in the above two screen shots, we would have to fill the information.  The short name is given, if the employee number generation is automatic then the field would have to indicate it as automatic. All the values are defined for the HRMS purpose like the job flex field, costing flex field, position flex field etc.  The legislation code is India and the currency is INR. This is specifically required for the purpose of the HRMS. These are the key flex fields. These are predefined flex field structures. The fields are not automatically populated but they have to be selected.  If the set up business group is used and is over written then filling the fields would be automatic.  The short name has to be given and the other fields would be automatically populated.  If required own ones can be defined also.  When a new one is defined all the fields have to be given manually.  The information is mandatory and without the information it cannot be saved.  The GO button is pressed after entering the information.  

Then click on OK and save the record. Click OK.

Click Yes to save your details entered.

4. Define or use an Accounting Key Flex field structure:
After the business group is configured, the next step is to define the accounting key flex field structure. Key flex field structure means the components used to define the structure.  What is referred here is the chart of account structure.
Ledger is a combination of 4 Cs – Chart of Account, Currency, Calendar and Sub ledger accounting methods (new in release 12).  All the four have to be defined and attached to be used.
It is defined by going to the general ledger. 

Switch Responsibility to General Ledger
 
GL owns the chart of account. Ledger configuration is completely owned by ledger responsibility. The first step would be to go the general ledger responsibility.

Navigate to Setup > Financials > Flexfields > Key > Segments

Then we have to go key flex fields> key> segments.  Segment means how the data to be shown or what is the structure, it could be a company, department, account. In some cases, there are intercompany segments and in some cases, there are cost inters. Depending on the business requirement, the chart of account is structured. Based on the requirement an existing chart of account structure could be used in a different ledger or a new ledger.
(For a functional consultant it takes time and effort to move into an ideal oracle application. It is important to ensure all client requirements or reporting requirements are met before the chart of account structure is defined.  The basis at which the structure is designed has to be looked into, the way it or how it is defined.)  Ideally, some things are mandatory like there should be a company (company code), assets liabilities have to be looked at.  Though these are mandatory they are not sufficient enough to give the complete chart of account structure. In some cases, companies have eight to nine structures. The components like company and nature of account is a segment in oracle. Based on the requirement we could define or use an existing chart of account structure in a different ledger or a new ledger. In most cases, companies may have different ledger but the chart of accounts remains the same so that consolidation could be done with ease. It important to know the basis of the chart of accounts structure, the number of segments, the size of the segment, the number of characters (EG: Is it a 2 character company code?)


To define a structure, like operation accounting flex, we have to go the segments and define individual fields i.e. fields that have to be populated for creating the chart of account structure. It is the chart of account structure name, for example the operation account. This structure is attached to the ledger.
The first step is to define the structure and then the segments under that. Here the structure code is operation accounting flex.
Then the segment is clicked as shown the screen shot and then the values are defined like company, department, account etc.

Anika Gupta

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