Oracle R12 Oraganization Structure

Organization Structure in R12.

Business Group:

A business group is the highest level classification in the organization hierarchy of the Oracle E-Business Suite.  It may correspond to an entire enterprise or to a major grouping such as a subsidiary or operating division.

          For a fresh installation, Oracle Applications provides a predefined business group, Setup Business Group. We can setup additional Business groups as required for the defined Organization Structure.
      By Using a Single responsibility security model, more than one business group can be accessed from single responsibility.
      Profile option HR User type should be set against each responsibility which will use HRMS Tables and get access to define organization Window.
      Profile Options HR Security Profile should be set before creating any Organizations (Other than Business Group) for all responsibilities.

Ledger and Legal Entity:

Legal entities are formally the entities that actually enter into transactions. Individual legal entities own the assets of the enterprise, record sales and pay taxes on those sales, make purchases and incur expenses, and make other transactions.

The Ledger represents an accounting representation for an organization that is accountable in a self-contained way. A ledger provides balanced ledger accounting for the accounting entity and serves as the repository of financial information

Detailed transaction information is captured in the sub ledgers and periodically posted (in summary or detail form) to the ledger.

                 Accounting Setup Manager is Used for Creating the below mentioned setups.
1. Primary Ledger
2. Legal Entity
3. Reporting Currency
4. Balancing Segment Value
5. Sub ledger Accounting Options
6. Secondary Ledger

Operating Units:

An operating unit organization defines the Purchasing, Order Entry, Accounts Payable and Accounts Receivable level of operation. An operating unit may span multiple manufacturing facilities, distribution points and sales offices, or it may be limited to a single site.

Inventory Organizations:

The Inventory Organization represents an organization for which you track inventory transactions and balances. These organizations might be manufacturing or distribution centers. Several modules and functions in the Oracle Manufacturing and Supply Chain Management suite secure information by Inventory Organization

        A location code is an address. Each organization must be assigned at least one location code.

Sub Inventories:
         A sub inventory is used as a holding point for on-hand inventory. This is a Logical partition of an Inventory .Sub inventories are defined within inventory organizations.

Stock Locators:

Stock locators represents physical locations within a sub inventory.  if locators are defined to represent a shelf within a stockroom, on-hand balances on the system would show the item and quantity down to the physical location within the facility.

Limitations with Stock Locators:

Only one locator flex field definition is allowed per install.

1.If a sub inventory wants to track material by row, bin and shelf, it will likely define a three-segment flex field with segments for row, bin, and shelf. If locators are desired for another sub inventory, even in another organization, the structure will again be 3 segments for row, bin and shelf. 

2.Locators must be unique within an organization.