jump to navigation

Sample Organization Structure July 19, 2007

Posted by Muhammad Habib in Oracle Applications, Oracle Financials.
Tags: ,

While using Oracle Applications, this can be a sample organizational structure.

Sample Organization Structure

With Oracle Applications accounting, distribution, and materials management functions, we define the relationships between inventory organizations, operating units, legal entities, and sets of books to create a multilevel company structure.

Legal Entities Post to a Set of Books

Each organization classified as a Legal Entity must specify a Set of Books to post accounting transactions. A Legal Entity can point to one and only one Set of Books.

Operating Units are Part of a Legal Entity

Each organization that you classify as an Operating Unit must reference a legal entity. An Operating Unit can point to one and only one Legal Entity.

Inventory Organizations are Part of an Operating Unit

Each organization that you classify as an Inventory Organization must reference an operating unit. An Inventory Organization points to one and only one Operating Unit, but through standard functionality can be referenced by any Operating Unit having the same Set of Books as the attached Operating Unit. Items are defined in the master inventory organization (master parts list) and added to the appropriate child inventory organizations. Any inventory transactions are then secured by operating unit.

(Oracle Corporation)



1. davidhaimes - November 21, 2007

If your balancing segments represent the true Legal Entity and you account many balancing segments in one set of books then you may have many LE in a single OU, this is a typical set up for the US where you must report all LE in a group together. The LE you have to assign to a set of books can be a ‘dummy’ LE in 11i in that case. In R12 the new LE product allows this relationship to be more explicitly defined.

I’ll blog about the organization set up options very soon as it is a topic I am asked about a lot.


2. davidhaimes - November 21, 2007
3. davidhaimes - November 21, 2007

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: