11i-Multi Org Overview & Setup

By: Sathish K
Sr. ERP Consultant.
 What is multi-org?
Multi-org is a server-side (applications and database) enhancement that enables
multiple business units in an enterprise to use a single installation of oracle
applications products while keeping transaction data separate and secure. The
multi-org enhancement uses native database views to build a security layer on top of
a single installation of oracle applications.

In oracle applications release 11i, the following products support multi-org

capabilities
- Cash management.
- Order management, shipping execution and release management.
- Payables
- Property manage
- Projects
- Purchasing
- Receivables
- Sales compensation
- Sales and marketing
- services
Multi Org Structure – 11i

Business Group (BG)

Set Of Books (SOB)

(LE) Legal Entity

Operating Unit (OU)

Inventory Organization (IO)

 What is a Business Group (BG)?
This is an organization that represents the consolidated enterprise, a major
division, or an operation company and has no accounting impact. The business
group partitions human resources information and the purchasing approval
hierarchy .

What is Set of Books (SOB) ?

It is a financial reporting entity that shares the 3Cs :
- A particular Chart of accounts (accounting flex field structure).
- Functional Currency.
- Financial accounting Calendar.
General Ledger secures transaction information (journal entries, balances) by set of
books. When you use General Ledger, you choose a responsibility that specifies a set
of books. You then see information only for that Set of Books. You create Set of
Books using the Set of Books window in General Ledger. You define all other types of
organizations using the organizations window.

What is a Legal Entity (LE) ?

Represents a legal company for which you prepare fiscal or tax reports.
After defining a Business Group in the installation process (Note: you can define more
Business Groups later) do the following steps:

Step 1: Design Organization Structure

Step 2: Define Location & Business Group
Step 1: Define Set of Books (SOB) - 3Cs (Chart of accounts – Calendar – Currency).
Step 2: Define Legal Entity (LE).
Step 3: Define Operating Units (OU).
Step 4: Define Inventory Organizations (IO).
Step 5: Define a Responsibility or use an existing one.
Step 6: Link the Responsibility with an application at the OU security level.
Step 7: Run Request (Replicate Seed Data) to test the Operating Unit.
Step 8: Create Profile (MO: Operating Unit) at the Responsibility level.
 Step 1: Designing Organization Structure
Business Group
ABC Corporation India

SOB - America SOB- India SOB - England

Legal Entity Legal Entity Legal Entity

“B” Corporation “A” Corporation “C” Corporation

Operating Unit Operating Unit Operating Unit Operating Unit

“B1” Operations “A1” Operations “A2” Operations “C1” Operations

Inventory Org Inventory Org

A10 Inventory A20 Inventory
 Step 2 : Define Set Of Books (SOB)

Chart of Accounts: Structure

Segment Value Set Name Security type List type Format type Maximum Uppercase Validation
size only type

Company ABC Corp Company Non -Hierarchical List of Char 2 Yes Independent
Security Values

Branch ABC Corp Branch Non -Hierarchical List of Char 2 Yes Independent
Security Values

Cost Centre ABC Corp Cost Non -Hierarchical List of Char 3 Yes Independent
Centre Security Values

Account ABC Corp Account Non -Hierarchical List of Char 4 Yes Independent
Security Values

Activity ABC Corp Activity Non -Hierarchical List of Char 4 Yes Independent
Security Values

Future1 Future1 Non -Hierarchical Pop list Char 3 Yes Independent

Security

Future2 Future2 Non -Hierarchical Pop list Char 3 Yes Independent

Security

Table # 1A
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Value set (For Segment "Company”)
General Ledger – Setup >Financials >Flex fields > Validation > Sets20

Complete the Setup for all Value sets of Accounting Flex field(AFF)with Value set name &
Parameters as mentioned in Table # 1A in similar way.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF)
General Ledger – Setup >Financials >Flex fields > Key > Segments
Select the Application  General Ledger
Flex field Title  Accounting Flex field
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF)
Insert the new Record under Structures with following details:
Code Title Description View Name
ABC CORP_ACCOUNTING_FLEX ABC Corp Accounting ABC Corporation Accounting Flex field ABC_CORP_ AFF
Flex

Select Period(.) from Segment Separator. SAVE. Click on Segments

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF)
Insert the Following Records against each field:

Number Name Window Prompt Column Value Set

1 Company Company SEGMENT1 ABC Corp Company

2 Branch Branch SEGMENT2 ABC Corp Branch

3 Cost Centre Cost Centre SEGMENT3 ABC Corp Cost Centre

4 Account Account SEGMENT4 ABC Corp Account

5 Activity Activity SEGMENT5 ABC Corp Activity

6 Future1 Future1 SEGMENT6 ABC Future1

7 Future2 Future2 SEGMENT7 ABC Future2

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF)
Insert the Following Records against each field:
Click on “Open” to capture additional Information for each segment.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF)
Check the “Security Enabled” box. (otherwise the flex field security rules will not
work.)
Repeat the same step for All the segments.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF) – Flex field Qualifiers
Setup Flex field Qualifiers for Company, Branch, Department (Cost centre) and
Account.
Repeat the same step for All the segments.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF) – Flex field Qualifiers
Flex field Qualifiers Enabled for different segments:
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF) – Freeze & Compile
N >> General Ledger – Setup >Financials >Flex fields > Key > Segments
Check -> Freeze Flex field definition & Allow Dynamic inserts
Will get a warning message & Click OK.
Select Compile. Click OK for Messages & Notes.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Setup for Accounting Flex Field(AFF) – Check the request
Status.
N > View > Requests > Find
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets
N > Setup > Financials > Flex fields > Key > Values
Select Application -> General Ledger
Title -> Accounting Flex field
Structure -> ABC Corp Accounting Flex
Select “Find”
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Company”
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Company”
Define : Child Ranges.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Branch”
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Branch”
Define : Child Ranges.
 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Cost Centre”
Repeat the same step as before for “Cost Centre” Segment with Values
mentioned in below table.

Define Child Values:

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Cost Centre”
Repeat the same step as before for “Cost Centre” Segment with Values
mentioned in below table.

Define Child Values:

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Account”
Repeat the same step as before for “Account” Segment with Values mentioned in
below table.
 Step 2 : Define Set Of Books (SOB)
Account Segment Values
 Step 2 : Define Set Of Books (SOB)
Account Segment Values

Define Child Values:

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Activity”
Repeat the same step as before for “Activity” Segment with Values mentioned in
below table.

Define Child Values:

 Step 2 : Define Set Of Books (SOB)
Chart of Accounts: Filling Value sets -> For Segment “Future 1 & Future2”
Repeat the same step as before for “Future1” Segment with Values mentioned in
below table.

Repeat the same step as before for “Future2” Segment with Values

Define Child Values:

 Step 2 : Define Set Of Books (SOB)
Calendar : Calendar Type
N > Setup > Financials > Calendars > Types
 Step 2 : Define Set Of Books (SOB)
Calendar : Accounting
N > Setup > Financials > Calendars > Accounting

Prefix Type Year Qtr No. From To Name Adj.

Period

APR ABC Corp Period 2009 1 1 1-Apr-09 30-Apr-09 9-Apr

MAY ABC Corp Period 2009 1 2 1-May-09 31-May-09 9-May

JUN ABC Corp Period 2009 1 3 1-Jun-09 30-Jun-09 9-Jun

JUL ABC Corp Period 2009 2 4 1-Jul-09 31-Jul-09 9-Jul

AUG ABC Corp Period 2009 2 5 1-Aug-09 31-Aug-09 9-Aug

SEP ABC Corp Period 2009 2 6 1-Sep-09 30-Sep-09 9-Sep

OCT ABC Corp Period 2009 3 7 1-Oct-09 31-Oct-09 9-Oct

NOV ABC Corp Period 2009 3 8 1-Nov-09 30-Nov-09 9-Nov

DEC ABC Corp Period 2009 3 9 1-Dec-09 31-Dec-09 9-Dec

JAN ABC Corp Period 2010 4 10 1-Jan-10 31-Jan-10 10-Jan

FEB ABC Corp Period 2010 4 11 1-Feb-10 28-Feb-10 10-Feb

MAR ABC Corp Period 2010 4 12 1-Mar-10 31-Mar-10 10-Mar

Enable
ADJ ABC Corp Period 2010 5 13 31-Mar-10 31-Mar-10 ADJ-10
 Step 2 : Define Set Of Books (SOB)
Calendar : Accounting
N > Setup > Financials > Calendars > Accounting - Save
 Step 2 : Define Set Of Books (SOB)
Calendar : Check the concurrent requests
N > view > request > Find
 Step 2 : Define Set Of Books (SOB)
Currency: Define Currency
N > Setup > Currencies > Define
Enable the Currency by Checking the – Check box