What is Multi-Org?

Its a feature used to store the data of multiple organization in a single instance by partitioning
the data of human resource, financials, sales, purchases, assets and materials

Examples of Multi Org are Tata Group, Reliance Group, Mahindra Group etc.

Let us consider Tata Group to illustrate more on Multi Org

In the above illustration Tata Finance, TCS, Tata Motors are individual organizations.

NOTE: The complete organization data are maintained at one place.

Financial statements are to be created for individual organization separately this is achieved
using E BUZ Suite.

Multi-Org has been categorized into:

1. Business Group
2. Ledger
3. Legal Entities
4. Operating Unit
5. Inventory Org

1. Business Group:

Business Group is a top level in the org structure. At this level we secure work structures (Job
Structure, Position structure, Grades structure) and remuneration policy (Pay roll Policy).

Structure for Jobs, Position, Grades may differ from organization to organization, say position
structure in a organization may have clerk, senior clerk, manager, senior manager. Where as in
another organization it may only have clerks and managers.

Based on the Work Structure and remuneration the business group are created. If all the 3
organization (Tata Finance, TCS, and Tata Motors) have different Work Structure and
remuneration then we need to define 3 business groups else if they have the same Work Structure
and remuneration then only one business group is defined.
HR_ORGANIZATION_UNITS_ALLOU,BG<location

HR_ LOCATIONS_ALL

Module involved is HR

2. Ledgers:

Ledgers are used to secure journals and ledger balances of the company. A ledger is a collection
of currency, calendar, chart of accounts and sub ledger accounting (SLA) methods.

Currency, here we setup the local currency for the organization where its business is defined say
INR (INDIAN Rupee) this is used only to report the balances but the transaction can be done in
other foreign currency also including INR.

Calendar, the financial year is been defined to control the transactions and secure them. We
divide the financial year into PERIODS, periods may be defined daily, Monthly, Quarterly this is
only to restrict the transaction as transaction can happen only for the period thats open, say in
July we can have transactions for the month of July and August as its open but we can restrict for
September by keeping it closed.

Chart of Accounts, here we define the accounts setup for an organization. For better
understanding let us take an example where in we need to create an account when a rent has been
paid. The account entry would be

Rent A/c

To Cash

Now to differentiate this based on the organization say if the rent is for Tata Finance or TCS or
Tata Motors. The entries can be
So for this when the transaction is recorded the entry in the system would be 01.1001

If there are any further division (category) then a new segment is created but if an organization is
not having any division then a default segment is also defined.

Now the account for tata motors having division for cars in a particular location say hyd and for
payables as an account would be 01.001.0001.1002, if tata finance has no division and location
but with rent account then the entry would be 02.000.0000.1001

Note: An account that is defined for an organization is a combination of Company code and
Account code, that are defined if there are no segments (Division, Location etc) been defined.
We should have minimum two segments and a maximum of 30 segments when defining an
account.

Sub Ledger Accounting: (SLA), how to maintain the account is been defined in SLA, the
accounts may be accrual based or cash based.

Module involved is GL

3. Legal Entities:
This is a legal business or a registered firm; at this level we prepare income tax reports.

In our example we would be having 3 legal entities (Tata Motors, TCS, and Tata Finance)

Legal Entries are used to report the Tax Reporting

4. Operating Unit: (OU)

An operating unit is division of legal entity, at this level we secure the sales and purchase
transactions.

Now we also need to keep in mind that an OU can be set at the division level or location level or
branches based on the sectors.

Here in the above illustration Cars and Trucks are division, Hyd, Pune and Bangalore are
location. OU can be set at Division level or Location level or Branch Level.

If the OU is set at branch 1 then branch 2 cannot see the details (Sales and purchases) of branch 1
and vice versa as they are secured. Similarly if set at the location then it is secured with that
location and restricted from other locations.

Module involved is AR, AP, PO, OM, CM etc

5. Inventory Org:

This is used to secure the materials of an organization.

Note: Legal Entity can also be an Operating Unit as there are no further division in a
organization.

Profile that need to be set:

HR:Business Group

HR:Security Profile

HR:User types

Multi Org Access Control (MOAC)

There is a lot of hype on MOAC. What is MOAC. MOAC stands for Multi Org Access Control.
It is simply access control where user can access multiple operating units from a single
responsibility. Before R12, each responsibility can have access to one operating unit. if user need
to do transaction in other operating unit, he or she needs to change the responsibility and then do
the transactions.

Profile options around MOAC

There are three profile options around MOAC

MO: Security Profile
MO: Operating Unit

MO: Default Operating Unit

MO Security Profile : If you are using the MOAC, Assign this profile option at responsibility
level. When you uses this profile option, MO: Operating Unit profile option is ignored.

MO: Operating Unit: This profile option works same as it is in 11i.

MO: Default Operating Unit: If you are using MO Security Profile and have multiple operating
units then this profile option defaults a operating unit on forms. you can manually change the
operating unit.

Steps Involved

1. Create Security Profile

2. Run Security List Maintenance program
3. Setup profile option MO: Security Profile
 4. Setup profile option MO: Default Operating Unit

Step 1) Navigate to Global HRMS > Security>Profile

By default Oracle provides a security profile named, Setup Business Group.

# Enter a Unique name for Security Profile

# Enter a Business Group for this Security Profile. If you have multiple business Groups then
you can also select Global Security Profile Form. Global security profile is not Business Group
Specific.
# Select Security type you want to use. Here we want to Secure Organizations by Operating
units. You can also select NO security and can view all organization or View only single
operating unit
# Select the Operating Units name under this Business Group which you want to access.

Save your changes

Step 2) Run Security List Maintenance Program

Make sure request completes successfully

Step 3) Create a custom Responsibility

And assign MO: Security Profile to it
Step 4) MO: Default Operating Unit

Now assign MO: Default Operating Unit

This Complete the setup Part

Test Case
Open "Test Security Profile for Purchasing" responsibility and Open new PO Form
You can see the operating unit field is defaulted to "Singapore Distribution Center" same as in
our setup