P2209: Oracle - Multiple Organizations In Oracle Applications, Release 11i

Release 11i


March 2002

Contents
 

Preface
 

This user guide includes the information you need to work with Multiple Organizations in Oracle Applications effectively. It contains detailed information about the following:

• Overview and reference information
• System setup for Multiple Organizations in Oracle Applications
• A description of intercompany accounting in Oracle Applications
• A technical overview of Multiple Organizations in Oracle Applications
• Multiple Organizations Reporting

See Other Information Sources for more information about Oracle Applications product information.

This preface Explains how this user guide is organized and introduces other sources of information that can help you. This guide contains the following chapters:

• Chapter 1 provides a brief introduction to Multiple Organizations in Oracle Applications.
• Chapter 2 describes how to set up Multiple Organizations in Oracle Applications.
• Chapter 3 describes how intercompany accounting works in a Multiple Organizations installation.
• Chapter 4 provides an overview of the technical architecture of Multiple Organizations in Oracle Applications.
• Chapter 5 provides an overview of Multiple Organizations Reporting.
• The appendices include the following information:
  • Default navigation paths for windows described in this guide
  • Instructions for using the Account Generator to generate the intercompany Cost of Goods Sold account

If this guide refers you to other Oracle Applications documentation, use only the Release 11i versions of those guides unless we specify otherwise.

Electronic Technical Reference Manuals (eTRM) are available through the Metalink Web site provided by Oracle Support Services.

The HTML version of this guide is optimized for onscreen reading and may contain information that was not available when this guide was printed.

You can read the guides online by choosing Library from the expandable menu on your HTML help window, by reading from the Oracle Applications Document Library CD included in your media pack, or by using a Web browser with a URL that your system administrator provides.

If you require printed guides, you can purchase them from the Oracle store at http://oraclestore.oracle.com.

You can also access this user guide online by choosing "Getting Started and Using Oracle Applications" from the Oracle Applications help system.

Installing Oracle Applications

Upgrading Oracle Applications

Maintaining Oracle Applications

Oracle Applications Product Update Notes

Oracle Applications System Administrator's Guide

You can order a technical reference guide for any product you have licensed. Technical reference guides are available in paper format only.

Oracle Workflow Guide

Oracle Applications Electronic Technical Reference Manuals (eTRM)

Electrofiic Technical Reference Manuals (eTRM) are available through the Metalink Web site provided by Oracle Support Services.

Training professionals can show you how to plan your training throughout the implementation process so that the right amount of information is delivered to key people when they need it the most. You can attend courses at any one of our many Educational Centers, or you can arrange for our trainers to teach at your facility. We also offer Net classes, where training is delivered over the Internet, and many multimedia-based courses on CD. In addition, we can tailor standard courses or develop custom courses to meet your needs.

Support

Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you use Oracle tools such as SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your data and you lose the ability to audit changes to your data.

Because Oracle Applications tables are interrelated, any change you make using an Oracle Applications form can update many tables at once. But when you modify Oracle Applications data using anything other than Oracle Applications forms, you might change a row in one table without making corresponding changes in related tables. If your tables get out of synchronization with each other, you risk retrieving erroneous information and you risk unpredictable results throughout Oracle Applications.

When you use Oracle Applications forms to modify your data, Oracle Applications automatically checks that your changes are valid. Oracle Applications also keeps track of who changes information. But, if you enter information into database tables using database tools, you may store invalid information. You also lose the ability to track who has changed your information because SQL*Plus and other database tools do not keep a record of changes.

Oracle products are available for mainframes, minicomputers, personal computers, network computers, and personal digital assistants, enabling organizations to integrate different computers, different operating systems, different networks, and even different database management systems, into a single, unified computing and information resource.

Oracle is the world's leading supplier of software for information management, and the world's second largest software company. Oracle offers its database, tools, and application products, along with related consulting, education and support services, in over 145 countries around the world.

We value your comments and feedback. This guide contains a Reader's Comment Form you can use to explain what you like or dislike about Multiple Organizations or this user guide. Mail your comments to the following address or call us directly at (650) 506-7000.

Or, send electronic mail to appsdoc@us.oracle.com.

Overview

This chapter introduces you to the basic concepts of Multiple Organizations in Oracle Applications and describes how to model your complex enterprise with multiple organizations. It includes discussions of:

• Types of organizations
• Controlling access
• Selling, shipping, purchasing, and receiving
• Intercompany accounting
• Reporting at the legal entity or set of books level

Generally, a complex enterprise has several organization structures, such as Internal, Accounting, and Human Resources. You are able to define different structures to customize Oracle Applications according to your business needs.

• Use a single installation of any Oracle Applications product to support any number of organizations, even if those organizations use different sets of books.
• Define different organization models
• Support any number of legal entities within a single installation of Oracle Applications.
• Secure access to data so that users can access only the information that is relevant to them.
• Sell products from a legal entity that uses one set of books and ship them from another legal entity using a different set of books, and automatically record the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices.
• Purchase products through one legal entity and receive them in another legal entity.

Secure Recess

Sell And Ship Products From Different Legal Entities

Receive Goods Into Any Inventory Organization

Automatic Accounting for Internal Requisitions

Multiple Organizations Reporting

Organizations that share the same functional currency, Accounting Flexfield structure, and calendar can post to the same set of books.

Set of Books

Business Group

Multiple sets of books can share the same business group if they share the same business group attributes, including HR flexfield structures.

Legal Entity

Balancing Entity

Operating Unit

Inventory Organization

You create sets of books using the Define Set of Books window in Oracle General Ledger. You define all other types of organizations using the Define Organization window.

HR Organization

Organizations in Oracle Projects

Asset Organizations

Define Organizations (Implementing Oracle HRMS)

Define Organization (Oracle Inventory User's Guide)

Employees and Organizations (Oracle Projects User Guide)

Asset Organizations (Oracle Assets User Guide)

After defining one or more business groups for your enterprise, you set up one or more government reporting entities (GREs) within each business group. The GRE is the organization that federal, state, and local governments recognize as the employer.

Below this level, you represent the groupings in which employees work, such as branches, departments, or sections, by means of internal organizations. To enable the assignment of employees to an internal organization, you classify the internal organization as an HR organization.

You can define external organizations in the same way as internal organizations, so that you can represent organizations that are not part of your enterprise (such as training vendors or tax offices). The major difference between internal and external organizations is that you cannot assign people to an external organization.

Operating Units Are Part of a Legal Entity

Inventory Organizations are Part of an Operating Unit

Inventory Organization Determines Items Available to Order Management

See: Enabling Parameters (Oracle Order Management User's Guide)

Inventory Organization Determines Items Available to Purchasing

See: Define Organization (Oracle Inventory User's Guide)

Inventory Organization Security by Responsibility

Responsibility Determines Operating Unit

See: Define Responsibility (Oracle Applications System Administrator's Guide)

Use the Choose Organization Window to Choose Inventory Organization

See: Define Intercompany Relations

See: Define Intercompany Relations

Posting Intercompany Invoices to Different Accounts

See: Intercompany Invoicing Accounting Details

See: Multiply Organizations Reporting

See: Limitations on Multiple Operating Units per Set of Books

For more detailed information about complying with country-specific statutory requirements and common business practices when using Oracle Financials, please refer to the User Guide for your country or region.

Multiple Organizations Setup and Implementation

This chapter tells you everything you need to know about setting up multiple organizations, including:

• Developing the organization structure
• Defining organizations and their relationships
• Implementing Applications products
• Adding a new operating unit
• Using the Multiple Organizations Validation Report

See: Overview

These are the steps to follow when implementing the Multiple Organization support feature in Oracle Applications. Perform these steps when you are converting from a non-Multiple Organization setup to a Multiple Organization setup. If you need to add a new operating unit to an existing Multiple Organization setup, see: Adding a New Operating Unit.

1. Develop the Organization Structure
2. Define Sets of Books
3. Define Locations
4. Define Business Groups (optional)
5. Associate Responsibilities with Business Groups
6. Define Organizations
7. Define Organization Relationships
8. Define Responsibilities
9. Set MO: Operating Unit Profile Option
10. Convert to Multiple Organization Architecture
11. Change Order Management Profile Option
12. Set Profile Options Specific to Operating Units
13. Define Inventory Organization Security (optional)
14. Implement the Applications Products
15. Secure Balancing Segment Values by Legal Entity (optional)
16. Run the Multi-Org Setup Validation Report (recommended)
17. Implement Document Sequencing (optional)
18. Define Intercompany Relations (optional)
19. Set Top Reporting Level Profile Option (optional)
20. Set Conflict Domains (optional)

• Business groups
• Accounting sets of books
• Legal entities
• Operating units
• Inventory organizations

Example 1 illustrates the organization structure.

Creating Organization Hierarchies (Using Oracle HRMS -The Fundamentals)

Deciding on the Organization Structure

First, you need to decide on the organizations you will use in your multiple organization implementation. The figure below shows a corporation with two business groups, three legal entities, four operating units, and five inventory organizations. This example organization structure is used throughout most of this chapter.

Organization Structure Example

The US Western Division legal entity consists of two operating units — Northwest Region and Southwest Region. The Northwest Region consists of two inventory organizations — Plant1 and Plant2. The Southwest Region has one inventory organization, named Plant 3. The US Eastern Operations legal entity is also an operating unit and inventory organization.

The UK Division legal entity has one operating unit, named UK Sales Office. The operating unit has one inventory organization, named UK Plant.

The table below explains what the set of books parameters are for our example hierarchy.

See: Define Set of Books (Oracle General Ledger User Guide)

Oracle Applications secures human resources information, including organization definition, by business group.

You must have at least one business group. For a fresh installation, Oracle Applications provides a pre-defined business group, Setup Business Group. You can define additional business groups as required for your enterprise. We recommend that you modify the pre-defined business group rather than defining a new one. If you define a new business group instead of modifying the pre-defined business group, you need to set the Business Group profile option at the responsibility level for the new business group. Oracle Human Resources automatically creates a security profile with the business group name when you define a new business group.

You should define all your business groups before defining any other type of orgaiuzation.

1. Set the responsibility from which you define the organizations in the profile option HR: User Type to HR User, to get access to the Define Organizations window. This profile must be set for all responsibilities that use tables from Oracle Human Resources (for example, responsibilities used to define employees and organizations).
2. Define all of your business groups at this step from a responsibility. Do not define any new organizations or organization hierarchies until you have associated each business group with a responsibility. You do this by setting the HR: Security Profile profile option for each responsibility.

   See: Profile Options (Customizing, Reporting, and System Administration in Oracle HRMS)

3. After you have correctly associated your business groups with a responsibility, sign off and sign on again using the correct responsibility for the business group you want to define. For example, if you have a U.S. business group and a U.K. business group, select the responsibility attached to the U.S. business group to define the U.S. organization structure.
   Note: Oracle Human Resources automatically creates a view all security profile with the business group name. This enables you to view all records for your business group.

   Note: Oracle Human Resources allows you to use a single responsibility security model by enabling the Security Group. This allows you to access more than one business group from a responsibility. You should not use the single responsibility model in Multiple Organization products.

   See: Customizing, Reporting, and System Administration in Oracle HRMS

If you have multiple business groups, you must associate each responsibility to one and only one business group. You associate a business group with a responsibility via the HR:Business Group system profile option. If you are upgrading to Multiple Organizations, you must also associate previously created responsibilities to the appropriate business group.

1. Log in to the responsibility associated with the business group for which you are defining an organization.
2. Define a legal entity. It is then automatically attached to the correct business group.
3. Define operating units.
4. Define your inventory organizations for each operating unit that will have an inventory organization.

   Note: Do not define the inventory parameters at this point.

5. If you have more than one business group, switch to the responsibility associated with the other business group and continue to define your organization structure.

The following table summarizes information about the different organizations for our example hierarchy.

See: Define Organization (Oracle Inventory User's Guide)

1. Legal Entities

   Attach organizations designated as legal entities to a set of books. You must also specify a location in the Define Organization window. Use the Define Location window to define locations for your legal entities.

2. Operating units

   Attach the operating units to the correct set of books and legal entity.

3. Inventory organizations

   Attach the inventory organizations to the correct operating unit, legal entity, and set of books.

If you have more than one business group, change to the responsibility associated with the other business group and continue defining your organization classification.

Table 2-3 shows the information you must enter for each organization classification.

Special Considerations for Inventory Organizations

All the inventory organizations in the above chart have been set up with the minimal amount of information to enable them in the Multiple Organization environment. This minimal amount is detailed in the table below.

If you plan to implement Oracle Inventory, you need to follow the setup procedures for that product.

See: Oracle Inventory User's Guide

For a standalone Oracle Purchasing installation (without Oracle Inventoty), you must specify the minimum information shown in the following table:

Location: You must specify a location for an organization classified as an inventory organization. You can assign any locations that is not assigned to a different inventory organization, or you can assign a location that is linked to the current inventory organization.

Receiving Information: When you select the Receiving Information type, you navigate to the Receiving Options window. Use the Receiving Options window to define options that govern receipts in your system. You cannot receive items into an inventory organization until you specify receiving options for the organization.

Inventory Information: When you select the Inventory Information type, you navigate to the Organization Parameter window. You must define the control options and account defaults for one inventory organization, the item master organization. Then you can easily assign items to other inventory organization without recreating all the item information. Use the Organization Parameter window to assign inventory organizations to the item master. The item master organization uses itself as the item master.

There is no functional or technical difference between the item master organization and other inventory organizations. However, we recommend that you limit the item master to just an item definition organization. If you set up new inventory organizations in the future, you can assign the new items to only the item master and the new inventory organization.

You should consider using naming conventions for the responsibility names id a Multiple Organization environment. It is a good idea to use abbreviations of the business function and the organization name to uniquely identify the purpose of the responsibility, for example, Payables Manager Northwest or Western Receivables Super User.

See: Define Responsibility (Oracle Applications System Administrator's Guide)

When you connect to the Oracle Applications, you sign on by entering your username and password. Then, you choose a responsibility that is available to your user. After you choose your responsibility, there is an initialization routine that reads the values for all profile options assigned to that responsibility, including the value for MO: Operating Unit. Oracle Applications allows you to see only the information for that particular operating unit that is assigned to your responsibility.

You must also define the default operating unit by setting the MO: Operatiitig Unit profile option at the site level. If this is a fresh installation, the default operating unit can be any operating unit you have defined. If this is an existing installation, you should assign as the default operating unit the operating unit to which all existing data should belong.

If you use Oracle General Ledger with automatic tax calculation enabled in a Multiple Organization environment, you must set the MO: Operating Unit profile option. Since General Ledger shares input and output tax codes with Oracle Payables and Oracle Receivables, you can use only tax codes that belong to your current responsibility's corresponding operating unit.

However, General Ledger's Account Inquiry window ignores the operating unit profile setting. This allows you to drill down to your subledger details, regardless of which operating unit originated the transaction.

If you use Oracle Training Administration (OTA) in a Multiple Organization environment, you must set the MO: Operating Unit profile option. This ensures that the OTA customer and supplier function woifks correctly in a Multiple Organization environment.

Before running this step, you must define an operating unit and set the site-level AOL profile option MO: Operating Unit to use your new operating unit. This profile option tells adadmin what operating unit it should use when converting your existing data. If you define additional operating units, the seed data will be replicated for all operating units.

The Convert to Multiple Organization Architecture option does not display on the menu if you already have Multiple Organizations installed in your database. You no longer need to run the Convert to Multiple Organizations Architecture option again since the Multiple Organizations architecture is built into the underlying applications.

See: Maintaining Oracle Applications Manual

See: Enabling Parameters (Oracle Order Management User's Guide)

The following profile options need to be set for each responsibility for each operating unit where applicable:

• HR: Business Group (all responsibilities)
• HR: User Type

  The HR: User Type profile option limits field access on windows shared between Oracle Human Resources and other applications. If you do not use Oracle Payroll, it must be to HR User for all responsibilities that use tables from Oracle Human Resources (for example, responsibilities used to define employees and organizations).

• GL: Set of Books Name

  Oracle General Ledger forms use the GL:Set of Books profile option to determine your current set of books. If you have different sets of books for your operating units, you should set the GL:Set of Books profile option for each responsibility that uses Oracle General Ledger forms.

• INV: Intercompany Currency Conversion
• Tax: Allow Override of Tax Code
• Tax: Invoice Freight as Revenue
• Tax: Inventory Item for Freight
• Sequential Numbering

• Until you assign an organization to a responsibility in this window, all responsibilities have access to all organizations. Once you have restricted any responsibilities to certain organizations, you must then explicitly define the organizations that all responsibilities can access.
• This feature does not restrict access once the user is in the product. Users with access to functions that cross multiple organizations (such as ATP, Inter-Organization Transfers, Item Search, Multi-Org Quantity Report, and so forth) can still specify any valid organization when running these functions.

• Oracle Cash Management
• Oracle Order Management and Shipping Execution
• Oracle Payables
• Oracle Projects
• Oracle Purchasing
• Oracle Property Manager
• Oracle Receivables
• Oracle Release Accounting
• Oracle Sales Compensation
• Oracle Sales and Marketing
• Oracle Service
• European Localizations
• Latin America Localizations
• Regional Localizations

Oracle Assets Oracle General Ledger, Oracle Inventory, and the rest of the Oracle Manufacturing products need to be set up only once for the installation, not once for each operating unit. To perform these setup procedures, follow the instructions in the product user guides.

• Flexfield definitions
• Customer Header (customer site is at the operating unit level)
• Supplier Header (supplier site is at the operating unit level)
• All other information that is not listed below

Cash Management

• System parameters
• Bank accounts
• Bank transaction codes
• Bank Statement open interface
• Reconciliation open interface
• Forecasting open interface
• Cash forecasting templates

Order Management

• Hold sources
• Order types
• Holds

Payables

• Supplier sites
• Matching tolerances
• Distribution sets
• Bank accounts
• Tax names and groups
• Reporting entities
• Financial options
• Expense report templates
• System options

Projects

• Implementation options
• Expenditure types
• Non-labor resources
• Usage cost rate overrides
• Expenditure type cost rates
• Employee rates
• Burden schedules
• Bill rate schedules
• Resource list
• Project types
• Project templates
• AutoAccounting

Purchasing

• Supplier sites
• Financial options
• Control rules/groups
• Purchasing options
• Job/position controls
• Freight carriers
• Document controls

Receivables

• AutoAccounting
• Contact phones
• Customer address
• Customer relationships
• Customer bank accounts
• Customer call information (call records, topics)
• Distribution sets
• Transaction sources
• Lockbox definitions
• Memo lines
• Receipt sources
• Receivables activities
• Remit to address
• Remittance bank accounts
• Salesperson, sales territories assigned to salespersons
• System options
• Tax exemptions and exceptions
• Tax codes
• Tax rates
• Tax names and groups
• Transaction types
• VAT taxes

Sales and Marketing

• Territories
• Territory types
• Territory groups
• Territory qualifiers
• Territory Accesses
• Interest types
• Interest codes
• Interest category sets
• Promotion word processors
• Collateral categories
• Sales stages

Services

• Service parameters
• Access control templates

For more information, see the Setup chapter for your product.

Organization Structure with Balancing Entities Example

Use the Assign Security Rules window to assign the same rule(s) to all responsibilities associated with the legal entity's operating units. The following table lists the responsibilities, value sets, and security rules for our example hierarchy.

If you need to further secure balancing segment values for each operating unit of a legal entity, you can define additional rules and assign them to all responsibilities associated with the relevant operating units. If, for example, you need to restrict the Northwest Region operating unit to balancing segment value 01 and the Southwest Region to balancing segment value 04, you can add the rules described in the following table.

In addition to the previous rule assignments, you can assign the new rules to all responsibilities associated with the two operating units, as illustrated in the table below. When you assign multiple rules to the same responsibility, only the overlapping values of the rules are available to users of the responsibility.

See: Multi-Org Setup Validation Report

See: Document Sequences (Oracle Applications System Administrator's Guide)

• Define Customers
• Define Suppliers
• Define Transaction Type
• Define Intercompany Relations
• Define Oracle Receivables System Options
• Define Oracle Receivables Invoice Batch Source
• Define Oracle Receivables Invoice Profile Options
• Define Oracle Payables Invoice Profile Options
• Use the Account Generator to generate the Cost of Goods Sold account

Using the Account Generator to Generate Intercompany COGS Accounts

• Set of Books
• Legal Entity
• Operating Unit

You will foe able to report on anything that is within the reporting level. The default value is Operating Unit.

See: Multiple Organization Reporting

All programs are assigned a conflict domain when they are submitted. The following determines the conflicts domain you use when you submit a concurrent request:

• The value of the concurrent program parameter which is defined as Conflict Domain parameter
• The value of the Concurrent: Conflicts Domain profile option

If you do not define any conflict domain, the Standard conflict domain is used.

1. Define Concurrent Conflict Domains

   Any alphanumeric string can be used as a Conflicts Domain name. You can use an operating unit name, a legal entity name, or a set of books name as the domain name. You are allowed to define as many as domains as you need. Since you cannot delete conflicts domains, you should keep the domains to a necessary minimum.

2. Set the Concurrent: Conflicts Domain profile option

   The profile can be set at Site, Application, Responsibility and User levels.

1. Navigate to the Concurrent Program window. Query up the program you want to define conflict domain.
2. Click on the Parameters. Use the Concurrent Program Parameter window to define the conflict domain parameter. You can choose one of the concurrent program parameters as the conflict domain parameter.

One type of organization change you can make is to discontinue one organization. You can use the Define Organizations window to discontinue one organization by putting an end date in its definition.

You can perform other organization changes by enabling or disabling organization classifications, or changing the classification attributes. When you do that, you must consider the following:

• The Define Organizations window does not re-validate the relationships among legal entities, operating units, and inventory organizations.
• You should not try to move one set of books or legal entity to another because your data may not be valid for the new set of books or legal entity. Instead, you should disable the old organization and create a new one for the appropriate set of books or legal entity. The new organization will contain your new data, and the disabled organization will act as an old or history entity that stores past transactions.
• If you create a new organization, you can still access your historical transactions by logging to the responsibility tied to the disabled organization. To enter new transactions, you must log into the responsibility tied to the new organization. The data for each of the two organizations are kept separate from one another, and must be accessed separately.

1. Revise the Organization Structure. See: Develop the Organization Structute.
2. Define Sets of Books (optional). See: Define Sets of Books.
3. Define Locations. See: Define Locations.
4. Define Organizations. See: Define Organizations.
5. Define Relationships. See: Define Organization Relationships.
6. Define Responsibilities. See: Define Responsibilities.
7. Set Profile Options for Each Responsibility linked to the new Operating Unit. See: Set MO: Operating Unit Profile Option.
8. Run the Replicate Seed Data concurrent program. See: Seed Data Replication.
9. Set profile options specific to operating units. See: Set Profile Options Specific to Operating Units.
10. Define Inventory Organization Security (optional). See: Define Inventory Organization Security.
11. Implement the Application Products. See: Implement the Application Products.
12. Secure balancing Segment Values (optional). See: Secure Balancing Segment Values by Legal Entity.
13. Run the Setup Validation Report (recommended). See: Run the Multi-Org Setup Validation Report.
14. Implement Document Sequencing (optional). See: Implement Document Sequencing.
15. Define Intercompany Relations (optional). See: Define Intercompany Relations.
16. Set the top reporting level (optional). See: :Set Top Reporting Level Profile Option.
17. Set up conflict domains (optional). See: :Set Up Conflict Domains.

To submit the Multi-Org Setup Validation Report, use the Submit Request window in the System Administrator responsibility.

Active Responsibility Only: Enter Yes or No to indicate whether you want to validate only the active responsibilities on the report. The default Value is Yes.

Correct Customer Attributes: Enter Yes or No to indicate whether you want to correct the customer attributes. If you choose Yes, the report deletes the operating unit-specific data from the Customer records. The default value is No.

Correct Supplier Attributes: Enter Yes or No to indicate whether you want to correct the supplier attributes. If you choose Yes, the report deletes ihe operating unit-specific data from the supplier records. The default value is no.

• Active Responsibilities
• Customers with Operating Unit Specific Attributes
• Suppliers with Operating Unit Specific Attributes
• Profile Option Errors and Warnings

• Salesperson (report data appears under the Primary Salesrep column)
• Order Type
• Dunning Site
• Statement Site
• Tax Code
• Carrier (report data appears under the Ship Via column)

The report warns you that this data exists in the database. If you choose Yes for the Correct Customer Attributes report parameter, the report deletes the operating unit-specific data from the customer records.

• Liability Account
• Prepaytnent Account
• Distribution Set
• Statement Site
• Invoice Tax Name
• Offset Tax Name

The report warns you that this data exists in the database. If you choose Yes for the Correct Supplier Attributes report parameter, the report deletes the operating unit specific data from the customer records.

Not all Responsibilities in current operating unit have the same option Value

All responsibilities in one operating unit must share the same values for the following profile options:

• HR: Business Group
• Tax: Allow Override of Tax Code
• Tax: Invoice Freight as Revenue
• Tax: Inventory Item for Freight

The Validation Report indicates a violation for the operating units with inconsistent profile option values and lists the values, which are set at the responsibility level, or are defaulted from the site or application level.

Option is not set to correct value

The INV: Intercompany Currency Conversion profile option must be the same for the responsibilities involved in intercompany transactions. The system predefines a value of Corporate for this profile at the site level. The Multi-Org Setup Validation Report indicates a violation for the operating units if the value is overridden at the site or application levels.

Sequential Numbering option differs among responsibilities

All responsibilities in one operating unit must share the same sequence numbering option. The Multi-Org Setup Validation Report indicates a violation for the operating units with inconsistent profile option values and lists the values, which are set at the responsibility level, or which are defaulted from the site or application level.

Intercompany Accounting

This chapter tells you everything you need to know about intercompany accounting, including:

• Selling from one organization and shipping from another
• Automatic creation of intercompany invoices

• Enter sales orders from one operating unit and assign a shipping warehouse under a different operating unit.
• Automatically create intercompany payable and receivable invoices to record intercompany revenue, payables and receivables.
• Eliminate intercompany profit in the general ledger.

Segregating Trade and Intercompany COGS and Revenue

Overview of Pricing (Oracle Order Management and Shipping Execution User's Guide)

The Oracle Receivables Interface process in Oracle Order Management and Shipping Execution creates the invoice distributions shown in the following table, in Oracle Receivables (applicable taxes excluded) for the French operating unit:

The Create Intercompany AR Invoices process generates an intercompany receivable invoice from the German legal entity to the French legal entity using the AutoInvoice mechanism. The transaction date stamp on the inventory shipment transaction is the transaction date in the invoice lines. The transfer price of the product is extracted from the price list associated with the two legal entities.

The inventory transaction in the German shipping organization is shown in the following table:

The customer invoicing transaction in the French sales organization is shown in this table:

The intercompany receivable set up in the German shipping organization is shown in the following table:

The currency defined in the price list is the transaction currency for the new accounting distributions. The applicable exchange rates are applied by AutoInvoice if the currency of the price list is different from functional currencies of the two legal entities. After AutoInvoice is invoked to process the intercompany Oracle Receivables invoices, a second concurrent program, Create Intercompany AP Invoices, creates intercompany payable invoices from the intercompany receivable invoices and the corresponding accounting distributions.

The following table shows the inventory transaction recorded in the German shipping organization:

The next table shows the recording of the customer invoice by the French sales organization:

The next table shows the intercompany Oracle Receivables invoice to the French sales organization, recorded by the German shipping organization:

The last table shows the intercompany Oracle Payables invoice to German shipping organization, recorded by the French sales organization:

• Define your intercompany relations.
• Define your Oracle Receivables system options.
• Define your Oracle Payables system options.
• Define your tax structures in Oracle Payables and Oracle Receivables.
• Set up the Account Generator for the Cost of Goods Sold accounts.

Define Intercompany Relations

• a customer/customer site combination, defined in the shipping organization's operating unit, to represent each selling entity. This customer /customer site combination is used in intercompany receivable invoices
• an invoice transaction type defined in the shipping organization's operating unit
• a supplier/supplier site combination, defined under the selling organization, to represent each shipping entity. This supplier/supplier site combination is used in intercompany payable invoices
• am operating unit to each inventory organization for creating an intercompany Oracle Receivables invoice

Define Intercompany Relations

Define System Options (Oracle Receivables User Guide)

Attention: AutoAccounting uses sales credit records to construct distribution accounts based on salesreps. If you use salesreps in one or more account segment assignments for a particular operating unit, set the Allow Sales Credit Flag to Yes for the Intercompany batch source in that operating unit.

Tax Structure in Oracle Payables and Oracle Receivables

	Taxes (Oracle Payables User Guide)
	Tax Overview (Oracle Receivables User Guide)

Account Generator

	Create Intercompany AP Invoices
	Using the Account Generator to Generate the Intercompany COGS Account

Foreign Currency Exchange Rates

Each intercompany invoice line you create is inserted into the Oracle Receivables invoice interface tables and is processed by Oracle Receivables' AutoInvoice process. The Create Intercompany AR Invoices process uses its own batch source, Intercompany, and its own Transaction Line Flexfield definition. Other information required to create an invoice, such as customer, customer site, and transaction type, is retrieved from the intercompany relations.

Attention: To insert rows for multiple operating units, use the ALL views and populate the org_id column explicitly. You can determine an operating unit's org_id by querying the HR_OPERATING_UNITS view: SELECT name, organization_id FROM HR_OPERATING_UNITS; When you import rows from open interface tables, only rows for your current operating unit are processed.

Profile Options

Attention: The Create Intercompany AR Invoices program examines the profile option values of all the responsibilities for an operating unit. If only one responsibility has a particular profile option set, that value is used. If values exist for two or more responsibilities, and the values are identical, the value is used. If profile option values differ between responsibilities, the Create Intercompany AR Invoices program produces an error. Finally, if a profile option is not set for any responsibility, the site value is used.

Invoicing Shipment Transactions

Invoicing Freight Charges

AutoInvoice

Using AutoInvoice (Oracle Receivables User Guide)

Line Description

Profile Option

Payables Invoice Import

Invoice Import (Oracle Payables User Guide)

Attention: To insert rows for multiple operating units, use the ALL views and explicitly populate the org_id column. You can determine an operating unit's org_id by querying the HR_OPERATING_UNITS view: SELECT name, organization_id FROM HR_OPERATING_UNITS; When you import rows from open interface tables, only rows for your current operating unit are processed.

Intercompany Cost of Goods Sold Account

Using the Account Generator to Generate the Intercompany COGS Account

Header Description

Line Description

• Define a customer and customer site in the inventory organization's operating unit that corresponds to the order entry operating unit.
• Define a supplier and supplier site in the order entry operating unit that corresponds to the shipping organization.
• Define the invoice transaction type.

Shipping Operating Unit

Customer

Enter Customer Information (Oracle Receivables User Guide)

Transaction Type

Define Transaction Types (Oracle Receivables User Guide)

About Suppliers (Oracle Payables User Guide)

Freight Account

Revalue Average

Technical Overview

This chapter gives you an overview of the technical architecture of multiple organizations, including:

• Oracle schemas
• Data partitioning via database views
• Case study of a multiple organization implementation
• Converting to Multiple Organizations
• Seed data replication
• Multiple Organizations Reporting API
• Limitations

For ERP applications, data partitioning is performed by database views. These views reside in the APPS Oracle schema and derive the appropriate operating unit context from an RDBMS variable. See: RDBMS Variable.

All applications code is run against the APPS schema. The Applications database architecture is now the same for a Multiple Organizations and non-Multiple Organizations implementation.

In general, thtf following criteria determine if a table needs to be partitioned:

• The table contains a GL Account Code (code combination ID).
• There is a business reason for the table to be partitioned (for example, the entity should not be shared).
• The table contains transaction data.
• The table is an interface table where data being loaded is partitioned.
• The table includes a foreign key to a partitioned table and is accessed independently (in other words, not just as a child of a partitioned table).

Applicatjons with Partitioned Tables

• Oracle Cash Management
• Oracle Order Management and Shipping Execution
• Oracle Payables
• Oracle Property Manager
• Oracle Projects
• Oracle Purchasing
• Oracle Release Management
• Oracle Receivables
• Oracle Sales Compensation
• Oracle Sales and Marketing
• Oracle Service
• European Localizations
• Latin America Localizations
• Regional Localizations

For detailed information about tables in each of these products, refer to the Technical Reference Manual for each product. The Technical Reference Manuals contain a list of Single Organization Views, each of which corresponds to a partitioned table. The name of each corresponding partitioned table is the view name appended by "_ALL" or "_ALL_B (for MLS tables).

Tables Partitioned by Business Group

• PA_IND_RATE_SCHEDULES (Burden Schedules)
• PA_RESOURCE_LISTS (Resource Lists)

Setting Up a Multi-Organization Enterprise

Multi-Org views are partitioned by ORG_ID. The ORG_ID value is stored in the CLIENT_INFO variable.

In Release 11i, it is as follows:

select * from _ALL
where
NVL(0RG_ID, NVL(TO_NUMBER (DECODE (SUBSTRB(USERENV('CLIENT_INFO
'),1,1,
` `, NULL, SUBSTRB(USERENV('CLIENT_INFO'),1,10))),-99)) =
NVL(T0_NUMBER(DECODE(SUBSTRB(USERENV('CLIENT_INFO'),1,1) ,
` `,
NULL,
SUBSTRB(USERENV('CLIENT_INFO'),1,10))),-99)

Database Diagram
	The figure below shows the relationships between the various database objects.
[D]
Convert to Multiple Organizations
	The Convert to Multi-Org program is an option available in ADADMIN. This task converts a standard product group into a Multi-Org product group. You can choose this option only if you do not already have Multi-Org installed in your database and if you do not currently have Multiple Sets of Books Architecture installed in your database. Before running this step, you must define at lease one operating unit and set the site-level profile option MO: Operating Unit. The Convert to Multi-Org program does the following: Populates the ORG_ID column with the new operating unit you defined at the site level profile option MO: Operating Unit. Sets ORG_ID to NULL for records that are shared seed data. Sets the MULTI_ORG_FLAG in the FND_PRODUCT_GROUPS table to Y. The Convert to Multi-Org option is not displayed on the Database Objects menu if this flag is set to Y Runs the replicate seed data program. If you define additional operating units, the seed data is replicated for all operating units. Example This example examines the processes of the Convert to Multi-Org program when an upgrade is performed from a non Multi-Org setup to a Multi-Org setup. Step 0: Before upgrade (non Multi-Org) Consider a partitioned table in a non Multi-Org database, as depicted in the following table: ORG_ID ID (Primary Key) Description NULL 1 Existing Data NULL 2 Existing Data NULL 100 Existing Data Table 4-1 Non Multi-Org Database with Existing Data (Page 1 of 1) At this point, AutoUpgrade has not yet been executed. Therefore, the option to convert to Multiple Organization architecture has not yet been selected, and the MULTI_ORG_FLAG is not set to Y. Step 1: AutoUpgrade is Executed When AutoUpgrade is executed to upgrade to the current release, the null table row is replicated, and the ORG_ID column is populated with '-3113' to indicate that the row is seed data that should later be replicated to each operating unit. At this point, the adadmin option to convert to Multiple Organization architecture has not yet been selected. This is condition 4 in Table 4 - 5. The following table shows the results after AutoUpgrade is run. ORG_ID ID (Primary Key) Description -3114 1 Seed Data, Shared NULL 1 Existing Data. Replicated if the data does not exist -3113 2 Seed Data, Operating Unit-Specific NULL 2 Existing Data. Replicated if the data does not exist NULL 100 Existing Data Table 4-2 Replicate Seed Data and Set ORG_ID to NULL (Page 1 of 1) Step 2: Define Operating Units In this example, three operating units are defined with the following values for ORG_ID: 100, 101, 102 The site-level MO: Operating Unit profile option is set to the operating unit with the value ORG_ID 100. Step 3: Run Adadmin to Convert to Multiple Organization Architecture As described in the Multi-Org setup steps, you must define your organization structure before selecting the Convert to Multiple Organization architecture option in adadmin. When the adadmin option, Convert to Multiple Organization architecture is selected, the MULTI_ORG_FLAG is set to Y, and the ORG_ID column is automatically populated for the new operating units. In this example, the seed data is replicated for three operating units as follows: 100, 101, and 102. As part of the process of converting your existing installation to a multiple organization environment, you can choose an operating unit context for existing data. This "default operating unit" is established by setting the MO:Operating Unit profile at the site level. Suppose that in the example depicted in the following table, the null ORG_ID is replaced with the ORG_ID '100'. See: Installation Utilities (Oracle Applications Installation). ORG_ID ID (Primary Key) Description -3114 1 Seed Data, Shared NULL 1 Existing Data. ORG_ID is set to NULL -3113 2 Seed Data, Operating Unit-Specific 100 2 Existing Data. ORG_ID is set to 100 100 100 Existing Data. ORG_ID is set to 100 Table 4-3 Populate ORG_ID for the Existing Data (Page 1 of 1) At the last phase of the Convert to Multiple Organization architecture process, the seed data replication program is executed. Seed data is then replicated to each operating unit: 100, 101, 102. This is condition 2 in Table 4-5. The following table illustrates the results: ORG_ID ID (Primary Key) Description -3114 1 Seed Data, Shared NULL 1 Existing Data. ORG_ID is set to NULL -3113 2 Seed Data, Operating Unit-Specific 100 2 Existing Data. ORG_ID is set to 100 101 2 Seed Data for ORG_ID 101 102 2 Seed Data for ORG_ID 102 100 100 Existing Data. ORG_ID is set to 100 Table 4-4 Replicate Seed Data for all Operating Units (Page 1 of 1)
Seed Data Replication
	An enterprise structure consisting of multiple organizations requires the ability to replicate seed data to multiple operating units. The Multiple Organization Support feature provides a program that performs this function. Seed data is replicated under the following circumstances: An installation or upgrade is performed. The Convert to Multi Org task option available in the AD Administration utility (adadamin) is selected. The Replicate Seed Data program is submitted from the Submit Request window. Installation or Upgrade The seed data replication program is executedby AutoUpgrade during the conversion to Multiple Organizations architecture. Convert to Multiple Organization Architecture When the adadmin option, Convert to Multiple Organization architecture is selected, the Multi-Org switch is automatically turned on and the MULTI_ORG_FLAG in the _FND_PRODUCT_GROUPS table is set to Y. The seed data replication program is then executed and processes differently depending upon the value of the MULTI_ORG_FLAG. Submit the Replicate Seed Data Program You must run this process after you add new operating units and before you implement your products. You can submit the Replicate Seed Data concurrent program via the System Administrator responsibility. How Does the Seed Data Replication Program Work? The seed data replication program operates in two modes: single organization This mode applies when the seed data replication program is executed within the context of a particular operating unit (or ORG_ID). all organizations This mode applies when the seed data replication program is executed without an operating unit context. The seed data replication program performs different functions depending upon the mode in which it is operating the value of the MULTI_ORG_FLAG the value of the ORG_ID of each operating unit An ORG_ID of -3113 identifies a table row of seed data that should be replicated to each operating unit. An ORG_ID of -3114 identifies a table row of seed data that should be replicated as null, and shared across all operating units. The following table illustrates the seed data replication program functionality when the MULTI_ORG_FLAG is Y and when it is not Y. Each condition is numbered for reference. MULTI_ORG_FLAG Single Organization All Organizations =Y Replicates seed data for the one organization (condition 1) Replicates seed data for all organizations (condition 2) <>Y No action (condition 3) Replicates seed data for NULL ORG_ID (condition 4) Table 4 - 5 (Page 1 of 1)
Multiple Organizations Reporting API
	Oracle Applications products provide many predefined reports that you can use to report across operating units. However, nearly every organization occasionally needs to create custom reports for Multiple Organizations reporting. Oracle Applications provides the Multiple Organizations Reporting API that you can use to create custom multiple organizations reports.
Implementation Steps
	The following are the steps you need to complete to allow reports to run across multiple organizations. This section assumes you already have a thorough knowledge of: Oracle Reports The standards presented in the Oracle Applications User Interface Standards and in the Oracle Applications Developer's Guide
Step 1	Define report parameters Use the Oracle Reports designer to create the report parameters shown in the following table: Name Data Type Width Initial Value P_REPORTING_LEVEL Character 30 Null P_REPORTING_ENTITY_ID Number 15   P_ORG_WHERE Character 2000 Null The P_REPORTING_LEVEL and P_REPORTING_ENTITY_ID parameters Will contain data passed by the user, when the report is run. The P_ORG_WHERE lexical parameter is used in the where clause of your report query. You must create one P_ORG_WHERE lexical parameter for each partitioned table used in your report query.
Step 2	After parameter form trigger The following changes should be made in the after parameter form trigger of each report that is to be run across organizations: Initialize the security context Call the Initialize procedure in the XLA_MO_REPORTING_API server side package to initialize the security context for the current database session. XLA_MO_REPORTING_API.Initialize(:P_REPORTING_LEVEL,:P_REPORTING_ENTITY_ID,  ' AUTO'); Note: The last argument to the Initialize procedure is the predicate type (P_PRED_TYPE), which can be one of the following: AUTO - The API will determine the predicate type for you INSTR - Uses the database built-in function to check the existence of the ORG_ID value INSTR - Uses the IN (elementl, element2, ...) statement IN_SELECT - Uses a non correlated sub-query EXISTS - Uses a correlated sub-query Initialize the lexical parameters Call the Get_Predicate function in the XLA_MO_REPORTING_API server side package to initialize the lexical parameter(s) P_ORG_WHERE. You need to pass the table alias to this function. The function will generate the appropriate SQL predicate at runtime. For example: If you need to use AR_PAYMENT_SCHEDULES_ALL and RA_CUST_TRX_TYPES_ALL tables in your report, then you need to define lexical parameters P_ORG_WHERE_PS and P_ORG_WHERE_CTT and initialize them as shown below: :P_ORG_WHERE_PS  := XLA_MO_REPORTING_API.Get_Predicate('PS', null); :P_ORG_WHERE_CTT  : = XLA_MO_REPORTING_API.Get_Predicate('CTT', null);   Note: The Get_Predicate function has three arguments. The third argument, p_variable_override, uses a default value of P_REPORTING_ENTITY_ID. You must use P_REPORTING_ENTITY_ID as your parameter name in step 1, if you do not override the parameter name in the Get_Predicate function in XLA_MO_REPORTING_API. The API uses the bind variable P_REPORTING_ENTITY_ID in the generated predicates to make cursors shareable. Warning: You should not call the XLA_MO_REP0RTING_API from the Before Report trigger. If you call the Get_Predicate function in the Before Report trigger you receive the "ORA-1008: not all variable bound" error, since the generated predicate may contain a bind variable.
Step 3	Call FNP_SRWINIT in the Before Report Trigger Always call FND SRWINIT from the Before Report Trigger to set the profile option values and allow Oracle Application Object Library user exit to detect that they have been called by a Oracle Reports program. SRW.USER_EXIT('FND SRWINIT'); See: User Exits Used in Oracle Reports (Oracle Applications Developer's Guide)
Step 4	Call validation procedures to validate parameters (optional) If you do not use the predefined value sets to validate your report parameters, you should call the validation procedures from the Before Report trigger. XLA_MO_REPORTING_API.Validate_Reporting_Level(:p_reporting_level); XLA_MO_REPORTING_API.Validate_Reporting_Entity(:p_reporting_level,:p_reporting_entity_id);
Step 5	Call FND_SRWEXIT in the after report trigger Always call FND SRWEXIT from the After Report Trigger to ensure that all the memory allocated for Oracle Application Object Library user exits is freed up properly. SRW.USER_EXIT('FND SRWEXIT'); See: User Exits Used in Oracle Reports (Oracle Applications Developer's Guide)
Step 6	Refer to multi-org tables in report query and include the lexical parameters in the where clause You should uee the Multiple Organizations tables in the APPS schema to access the information instead of partitioned views. Include the P_ORG_WHERE parameter(s) in the where clause of your report query. For example: If you are modifying an existing report to run across organizations, then you need to change the report query reference to partitioned views as shown below : Before enabling Multiple Organizations Reporting: SELECT PS.PAYMENT_SCHEDULE_ID, PS.AMOUNT_DUE_ORIGINAL CUST.CUSTOMER_NAME, CTT. NAME FROM AR_PAYMENT_SCHEDULES_ALL PS RA_CUST_TRX_TYPES CTT , RA_CUSTOMERS CUST WHERE PS.CUSTOMER_ID = CUST.CUSTOMER_ID AND PS.CUST_TRX_TYPE_ID = CTT.CUST_TRX_TYPE_ID AND PS.CUSTOMER_ID = CUST.CUSTOMER_ID After enabling Multiple Organizations Reporting: SELECT PS.PAYMENT_SCHEDULE_ID, PS.AMOUNT_DUE_ORIGINAL, CUST.CUSTOMER_NAME, CTT.NAME FROM AR_PAYMEHT_SCHEDULES_ALL PS , RA_CUST_TRX_TYPES_ALL CTT, RA_CUSTOMERS CUST WHERE PS.CUSTOMER_ID = CUST . CUSTOMER_ID AND PS.CUST_TRX_TYPE_ID = CTT.CUST_TRX_TYPE_ID AND PS.CUSTOMER_ID = CUST.CUSTOMER_ID &P_ORG_WHERE_PS &P_ORG_WHERE_CTT At runtime, after enabling Multiple Organizations Reporting: The call to XLA_MO_REPORTING_API fills in the lexical parameters at runtime. As a result the query would look like: SELECT PS.PAYMENT_SCHEDULE_ID, PS.AMOUNT_DUE_ORIGINAL, CUST.CUSTOMER_NAME, CTT.NAME FROM AR_PAYMENT_SCHEDULES_ALL PS , RA_CUST_TRX_TYPES_ALL CTT , RA_CUSTOMERS CUST WHERE PS.CUSTOMER_ID = CUST.CUSTOMER_ID AND PS.CUST_TRX_TYPE_ID = CTT.CUST_TRX_TYPE_ID AND PS.CUSTOMER_ID = CUST.CUSTOMER_ID AND (NVL(PS.ORG_ID, -99) IN (-99, 204, 978)) AND (NVL(CTT.ORG_ID, -99) IN (-99, 204, 978))
Step 7	Register your report with the Applications Object Library Use the Concurrent Programs window to register your report (using a System Administrator responsibility). You need to register your report so that you can run it as a concurrent program. You need to define the Reporting Level and the Reporting Context parameters for your reports as follows: Seq 10 Parameter Reporting Label Enabled Yes Value Set XLA_MO_REPORTING_LEVEL Default type SQL Statement Default Value SELECT meaning    FROM fnd_lookups   WHERE lookup_type = 'XLA-MO_REPORTING_LEVEL'      AND lookup_code - (SELECT decode(nvl(mul-ti_org_flag,'N'), 'N','1000', 'Y','3000') FROM find_product_groups) Required Yes Prompt Reporting Level Token P_REPORTING_LEVEL
Seq 20 Parameter Reporting Context Enabled Yes Value Set XLA_MO_REPORTING_ENTITY Default Type SQL Statement Default Value SELECT DECODE(:$FLEX$.XLA_MO_REPORTING_LEVEL, '3000',o.name, '200O',o.name, '1000',g.name), g.name) FROM gl_sets_of_books g, hr_organization_units o, hr_organization_information o2, hr_organization_information o3, fnd_product_groups pg WHERE o.organizafiion_id = DECODE(:$FLEX$.XLA_MO_REPORTING_LEVEL, '2000',T0_NUMBER(o3 .org_information2) , o3.organization_id) AND o3.org_information3 = g.set_of_books_id AND o2.organization_id = o3.organization_id AND o2.org_infarmation_context || '' = 'CLASS' AND o3.org_inormation_context = 'Operating Unit Information' AND o2.org_informationl = 'OPERATING_UNIT' AND o2.org_information2 ='Y' AND o2.organizajtion_id = fnd_profile. value_wnps ('ORG_ID') AND NVL(pg.multi_org_flag,'N') = 'Y' UNION   SELECT sob.name, sob.name FROM gl_sets_of_books sob, fnd_product_groups pg WHERE set_of_books_id = fnd_profile.value_wnps('GL_SET_OF_BKS_ID') AND NVL(pg.multi_org_flag,'N') = 'N' Required Yes Prompt Reporting Context Token P_REPORTING_ENTITY_ID
	Warning: If you convert an existing report to run across operating units, you should verify if there are any value set reference to partitioned views and modify the value sets to reference the Multiple Organizations tables instead.
Multiple Organizations Reporting API
	This section describes the Multiple Organizations reporting API that you can use to report across organizations. Use the XLA_MO_RBPORTING_API to initialize the security context, generate the SQL predicate for the lexical parameters for ORG_ID at runtime, and validate the Multiple Organizations reporting parameters.
XLA_MO_REPORTING_API.Initialize Summary PROCEDURE Initialize (  p_reporting_level  IN VARCHAR2  DEFAULT '3000' ,   p_reporting_entity_id IN NUMBER ,  p_pred_type      IN VARCHAR2 DEFAULT 'AUTO'  ) ; Description Call this procedure in the After Parameter Form trigger to initialize the security context for the current database session. Arguments p_reporting_level - Indicates the level of reporting. Reporting Level can be Set of Books, Legal Entity or Operating Unit. p_reporting_entity_id - Indicates the entity ID of the entity name falling within the reporting level. p_pred_type - Indicates the SQL predicate type for the lexical parameters for 0RG_ID. You can use one of the following predicate types : AUTO - The API will determine the predicate type for you INETR - Uses the database built-in function to check the existence of the 0RG_ID value IN_LIST - Uses the IN (elementl, element2, ...) statement IN_SELECT - Uses a non-»correlated sub-query EXISTS - Uses a correlated sub-query XLA_MO_REPORTING_API.Get_Predicate Summary Function Get_Predicate (  p_alias  IN VARCHAR2  DEFAULT NULL ,  p_hint  IN VARCHAR2  DEFAULT NULL ,  p_variable_override  IN VARCHAR2  DEFAULT ':p_reporting_entity_id ' ) RETURN VARCHAR2; Description Call this function for each Multiple Organizations table used in the report in the After Parameter Form trigger to generate the SQL predicate for the lexical parameters for the ORG_ID that you can use in the report query. Arguments p_alias - Indicates the Multiple Organizations table alias. p_hint - Indicates the hints that you want to use in the SQL predicate. p_variable_override - Indicates the entity ID of the entity name falling within the reporting level. If you do not use P_REPORTING_ENTITY_ID as the reporting context parameter, you must pass the reporting context parameter as input. XLA_MO_REPORTING_API.Validate_Reporting_Level Summary Procedure Validate_Reporting__Level (  p_reporting_level &nbspIN VARCHAR2 Description Call this procedure optionally from the Before Report trigger to validate the reporting level. If the parameter p_reporting_level does not fall within the profile option value for MO: Top Reporting Level, you will see an error message in the log file. Arguments p_reporting_level - Indicates the level of reporting. Reporting level can be Set of Books, Legal Entity, or Operating Unit. XLA_MO_REPORTING_API.Validate_Reporting_Entity Summary Procedure Validate_Reporting_Entity (  p_reporting_level  IN VARCHAR2 ,  p_reporting_entity_id IN NUMBER ); Description Call this procedure optionally from the Before Report trigger to validate the reporting content parameter. If the parameter p_reporting_entity_id does not fall within the allowed values based on the profile option values for MO: Top Reporting Level and MO: Operating Unit, you will see an error message in the log file. Arguments p_reporting_level - Indicates the level of reporting. Reporting level can be Set of Books, Legal Entity, or Operating Unit. p_reporting_entity_id - Indicates the entity ID of the entity name falling within the reporting level. XLA_MO_REPORTING_API.Get_Reporting_Level_Name Summary Function Get_Reporting_Level_Name     RETURN VARCHAR2; Description Call this function to get the reporting level name. Arguments None XLA_MO_REPORTING_API.Get_Reporting_Entity_Name Summary Function Get_Reporting_Entity_Name Description Call this function to get the reporting context name. Arguments None
Limitations of Multiple Organization Support
General Limitations
	This section describes general limitations in the Multiple Organization Support feature. Data Security With the exception of data that is shared across organizations, all data is secured and striped by operating unit. Multiple Organizations enabled products do not support viewing secured data across operating units. However, you can create custom reports or windows to view secured data across operating units by using the full-table views. Centralization / Decentralization Multiple Organizations enabled products process transactions within an operating unit. There is no additional support for centralization/decentralization of business functions. For example, the following combinations are not supported: centralized payables with decentralized purchasing, centralized purchasing with decentralized payableis, centralized receivables with decentralized orders, and centralized disbursement with decentralized vouchering. Intercompany Support Oracle Applications provides intercompany support in the following cases: You can sell products through one legal entity and ship them from another. The system automatically recognizes the intercompany sale between the shipping organization and the selling organization by generating intercompany invoices. Oracle Projects supports cross-charge transactions, which result when a resource from one organization charges to a project owned by another organization. Oracle Projects automatically generates appropriate project cross-charge accounting entries and, as needed, legal documents. Global Supplier and Customer Registries Supplier and customer tables are shared across operating units. However, you must define supplier sites and customer addresses for each operating unit. For example, if multiple operating units buy from the same supplier site, the supplier site must be defined once for each operating unit. You continue to enter the Taxpayer ID and Federal/State Reportable options at the supplier and customer levels. If a global customer or supplier has subsidiaries in multiple countries, define a separate customer or supplier for each country. You should specify distribution sets at the supplier site level. You should specify the invoice and offset tax codes at the supplier level only if you have identical tax codes across operating units. You can specify tax codes at the supplier site level. You should not specify any centralized statements site, centralized dunning site, customer-level order type, or customer-level salesperson because customer addresses, order types, and salespeople are not shared across operating units. You should specify the tax code at the customer level only if you have identical tax codes across operating units. You should specify the carrier at the customer level only if you use the same item validation organization for all operating units, because carriers are secured by inventory organizations. You can specify order type, tax code, and carrier at the customer site level. The Customer Merge process allows you to merge only addresses and sites within the same operating unit, since transactions are secured by operating unit. If a customer has active addresses in other operating units, the Customer Merge process does not make the customer inactive. In addition, the Customer Merge window does not allow deletion of the old customer/site if the old customer has addresses (active or inactive) in other operating units. See: Oracle Receivables User Guide. Oracle Payables has a Supplier Merge process, which works similarly to the Customer Merge process in Oracle Receivables. See: Oracle Payables User Guide. Standard product features show supplier and customer transactions for a given operating unit. The Supplier Customer Netting report, for example, calculates the net balance of receivable and payable transactions for the current operating unit. However, Multiple Organization provides a structure for simpler custom reports or windows to view global supplier and customer activities. Receiving You can receive against purchase orders only in the operating unit to which your responsibility is connected. As before, a purchase order's ship-to organization must be in the purchase order's set of books. Internal Requisitions You can use internal requisitions to obtain inventory items from organizations that belong to a different operating unit, set of books, or chart of accounts. For internal sales orders, you can ship from an inventory organization belonging to another operating unit, set of books, or chart of accounts. However, intercompany payable and receivable invoices are not automatically generated for internal requisitions. Inventory Transfer between Organizations In-transit shipments across organizations in different sets of books are noL supported. Expense Reports Multiple operating units for different sets of books can share the same business group. Expense Reports defaults the Accounting Flexfield on the expense report header from the employee's primary assignment, provided that the primary assignment is for the same set of books as the current operating unit's set of books. If you are entering expense reports for an employee whose primary assignment is for another set of books, enter them in the appropriate Accounting Flexfield. Profile Options Certain profile options, such as AR: Receipt Batch Source and AR: Transaction Batch Source reference data that is secured by operating unit. The list of values containing the profile option values in the System Profile Values and Personal Profile Values windows shows valid values for all operating units. When you are setting a responsibility-level profile option for a specific operating unit, you should choose a valid value in that operating unit. Certain profile options in Oracle Sales and Marketing reference data that is secured by operating unit. You should set these profile options from a responsibility that links to a proper operating unit. Location Flexfield Structure Only operating units with the same Accounting Flexfield structure can share a Location Flexfield structure. If two operating units with the same tax structure cannot share the same Accounting Flexfield structure, each operating unit needs to have its own Location Flexfield structure. Location values then need to be defined for each Location Flexfield structure. Tax Name for Locations Tax names are defined for each operating unit, while locations are shared across operating units. If you assign a default tax name to a location, the tax name is a valid default only in operating units in which that tax name is defined. Kits on Intercompany Invoices When the Automatic Intercompany Invoices program generates receivable invoices for kits, individual item descriptions (rather than kit descriptions) are displayed. Window and Report Titles Report and window titles continue to show the set of books name, rather than the operating unit or legal entity name. User Primary Keys Most user primary keys only need to be unique within an operating unit. The order type name and picking batch name, for example, are exceptions; they are unique across operating units.
Limitations on Multiple Operating Units per Set of Books
	The following limitations apply only when you have multiple operating units per set of books. They do not apply if you have one operating unit per set of books. You can implement an enterprise structure that represents miultiple operating units per set of books, as long as it is understood tjhat these limitations apply. Tax/Fiscal Reporting Legal entities are used in two modules, Automatic Intercompany Invoicing and Movement Statistics. You can run some tax reports at the legal entity or set of books level. See: Multiple Organizations Reporting. For the other tax reports, in the products which previously required multiple installations, tax or fiscal reporting reflects transactions in one operating unit. Legal entity reporting (such as tax reporting) that involves subledger products is done at the operating unit level. If all the operating units for a given set of books belong to the same tax reporting entity, you must sum the tax data manually. You must be aware of this limitation if Oracle Financials for your country provides subledger VAT reports. Document Sequencing Document sequencing is available at the set of books level. Legal entities for the same set of books must share document sequences. If each legal entity requires its own numbering sequence, you must set up a separate set of books for each legal entity. Period Statuses All of the operating units that share a set of books also share the same period statuses. When you update the period status to Open in one operating unit, that period is opened for all operating units within the set of books. When you attempt to update the period status to Closed in one operating unit, the system checks for unposted transactions in all operating units within the set of books. If there are unposted transactions in any of the operating units, the system asks you to resolve the unposted transactions for those operating units before it allows you to close the period for the set of books. Posting to Oracle General Ledger When the Multiple Organizations enabled products post to Oracle General Ledger, you need to run the posting process from each operating unit. You cannot run the posting process for all operating units in the set of books in a single process.

C H A P T E R 5	Reporting This chapter contains information on reporting across operating units using Multiple Organizations Reporting.
Overview of Multiple Organizations Reporting
	Multiple Organizations Reporting enhances the reporting capabilities of Oracle Applications products by allowing you to report at the: Set of books level Legal entity level Operating unit level The Multiple Organizations Reporting feature is comprised of three components: Reporting Data Security The reporting level a user can choose is restricted by the profile option MO: Top Reporting Level. The value of this profile option is set to Operating Unit at the site level. Your system administrator can set this profile option at the responsibility level. To run reports across organizations, the profile option value should be set to Legal Entity or Set of Books. Reporting Parameters Two new parameters have been added to the reports that are enabled for Multiple Organizations Reporting: Reporting Level and Reporting Context. Reporting Level: Allows users to choose the level at which they want to report. The valid options are Set of Books, Legal Entity, and Operating Unit. Valid options are further restricted based on the profile option MO: Top Reporting Level. Reporting Context: Allows users to choose an entity within the reporting level they have selected. Valid options are set of books names, legal entity names, or operating unit names, depending on the reporting level value. Multiple Organizations Reporting API Multiple Organizations Reporting-enabled reports use the Multiple Organizations Reporting API to determine at runtime the operating units for which the report will be run. Set Top Reporting Level Profile Option
Running Reports
	Prerequisites Ensure you have set the MO: Top Reporting Level profile option. See: Set Top Reporting Level Profile Option
	To run reports at different reporting levels: Navigate to the Submit Request window. At the Submit Request window, choose the report you want to run. At the Parameters window, choose the reporting level (Set of Books, Legal Entity, or Operating Unit). Choose the reporting entity.
Example
	Assume Acme Inc. has Multiple Organization architecture set up as shown in the figure below. You are an Oracle Applications user connecting to a responsibility that is linked to the Western Division operating unit.
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	The top reporting level for your responsibility can be set to Set of Books, Legal Entity, or Operating Unit. These scenarios are discussed below. Top Reporting Level is Set to Set of Books If the top reporting level is set to Set of Books, you can run reports at the set of books, legal entity, or operating unit level. You can submit your reports with any of the reporting entities shown below:
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	When you submit a report at the set of books level, the reporting context automatically defaults and is restricted to the U.S. Set of Books, because this is the set of books for the Western Division operating unit. When you submit a report at the legal entity level, you can choose the U.S. legal entity or the Canada legal entity as your reporting context. The report will contain data for all operating units under the legal entity you select. When you submit a report at the operating unit level, you can choose Western Division, Eastern Division, or Canada as your reporting context. The report will contain data for the operating unit you select. Top Reporting Level is Set to Legal Entity If the top reporting level is set to Legal Entity, you can run reports at the legal entity or operating unit level. You can submit your reports with the reporting entities shown below:
[D]
	When you submit a report at the legal entity level, the reporting entity automatically defaults and is restricted to the U.S. legal entity, because this is the legal entity for the Western Division operating unit. The report will contain data for all operating units under this legal entity. When you submit a report at the operating unit level, you can choose either Western Division or Eastern Division as the reporting context. The report will contain data for the operating unit you select. MO: Top Reporting Level Profile Option is Set to Operating Unit If the top reporting level is set to Operating Unit, you can run reports at the operating unit level only. You can view data only in the operating unit assigned to your responsibility.
[D]
	Your current operating unit, Western Division, automatically defaults to the reporting context. The report will contain data for the Western Division operating unit only.
Reports
	You can run the following reports at the set of books, legal entity, or operating unit level: Oracle Payables Accounts Payable Trial Balance Payables Accounting Entries Report Payables Account Analysis Report Oracle Receivables Aging - 4 Buckets Report Aging - 7 Buckets Report Aging - 7 Buckets - By Salesperson Report Aging - 7 Buckets - By Collector Report Aging - 7 Buckets - By Account Report Credit Hold Report Customer Credit Snapshot Enterprise Tape Tax Audit Trail Tax Register Use Tax Liability Intra-BU VAT Audit Trail U.S. Sales Tax Report Tax Reconciliation Report Financial Tax Register Canadian GST / PST Tax Report Asia/Pacific Localizations Singaporean GST F5 Report Thai Payables Incomplete Tax Invoice Report Thai Payment Delivery Report Thai Input Tax Summary Report Thai Output Tax Summary Report Taiwanese Output VAT Report Taiwanese Receivables Government Uniform Invoice Report Taiwanese Receivables Zero Rate Tax Report Taiwanese Payables Sales/Purchase Return and Discount Certificate Report Taiwanese Pro Forma 401 Report Taiwanese Purchase Return and Discount Report Taiwanese Sales Return and Discount Report Taiwanese Input VAT Report Taiwanese EDI Government Uniform Invoice

A P P E N D I X B	Account Generator
Using the Account Generator to Generate the Intercompany COGS Account
	This essay describes how to use the Account Generator to generate the Intercompany Cost of Goods Sold account. The Account Generator uses Oracle Workflow to derive Accounting Flexfield combinations. The Create Intercompany AP Invoices process uses the Account Generator to construct an Intercompany Cost of Goods Sold Accounting Flexfield combination (Intercompany COGS account) for each regular invoice line in the intercompany payables invoices. The default process builds the COGS Account using the Cost of Sales Account for the item and organization for each inventory transaction line. You can optionally define functions and processes to customize the default process for each set of books that you have defined. You can view and customize Account Generator processes through the Oracle Workflow Builder. See: Oracle Workflow Guide. Create Intercompany AP Invoices Overview of the Account Generator (Oracle Applications Flexfields Guide)
Decide How to Use the Account Generator
	In Release 10, several Oracle Applications products used FlexBuilder to derive account code combinations for certain account transactions. In Release 11, FlexBuilder is replaced by the Account Generator to provide implementation teams with even greater flexibility and a better user interface with Oracle Workflow. If you are upgrading from Release 10 and used FlexBuilder, then you should perform the equivalent of this setup step as part of your upgrade. See the FlexBuilder chapter of the Oracle Applications Upgrade Preparation Manual for more information. If you are implementing Inventory for the first time, you need to consider whether the default Account Generator process is appropriate for each set of books that uses a unique Accounting Flexfield structure. For each structure and set of books, you can choose one of the following: Use the default Account Generator process, Generate Default Account Customize the default Account Generator process This decision determines which setup steps your implementation team needs to perform. Prerequisites to Using the Account Generator Before using the Account Generator on a production database to create a COGS Account, you must: Define your Accounting Flexfield structure for each set of books. Define flexfield segment values and validation rules. Choose whether you want to use the default Account Generator process, or if you need to customize it to meet your accounting needs. Then do one of the following for each set of books: Choose to use the default Account Generator process, or Customize the default Account Generator process, test your customizations, and choose the process for a flexfield structure, if necessary. Customizing the Account Generator
The Default Account Generator Process
	Evaluate whether the default Account Generator process meets your accounting requirements. No setup steps are required to use the default. The default process can also be updated later as your needs change. You can make minor changes to the default process without changing the name. Note: If you used FlexBuilder in Release 10 but did not customize the default configuration, you can use the default Account Generator process in Release 11, which gives you the same result as the default assignments in FlexBuilder. Each Account Generator workflow is called an item type. Oracle Inventory comes with the following Account Generator item type: Inventory Cost of Goods Sold Account The Inventory Cost of Goods Sold Account contains the following workflow processes: Generate Default Account Generate Account Using FlexBuilder Rules Generate Default Account Process The Generate Default Account Process consists of four unique activities to comprise the four activity nodes. In the workflow diagram shown below, the process activity nodes are numbered for reference in the descriptions that follow. (The numbers are not part of the process diagram.)
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	Start Generating Code Combination (Node 1) This is a standiard activity that marks the start of the process. Copy Values from Code Combinations (Node 2) This is a standard function that copies all the segment values from a given code combination to the combination that is being generated. This function has two attributes: Code Combination ID: The COGS account derived from the order type. Replace Existing Value: Set to 'True' to always copy the segment values. Validate Code Combination (Node 3) This is a standard function that executes after node 2. This function validates the code combination that has been generated and has two attributes: Validation Type: Set to 'Generate Code Combination ID' to do a full validation and generate a code combination ID. New Code Combinations are Allowed: Set to 'True' so that if the key flexfield structure has dynamic insert allowed, then the validation will not generate an error if the combination does not exist in the code combination table. End Generating Code Combination (Node 4) This standard function is called to end the Generate Default Account process. This function is marked as the End activity.
Generate Account Using FlexBuilder Rules Process
	If you used FlexBuilder in a previous release to generate account combinations, you can use the Generate Account Using FlexBuilder Rules process to replicate your FlexBuilder setup automatically, without changing any of your predefined FlexBuilder Rules, and without customizing the Account Generator. The Generate Account Using FlexBuilder Rules process includes a function generated during your upgrade from Release 10 to Release 11. If you are upgrading from Release 10, follow the guidelines in the FlexBuilder chapter of the Oracle Applications Upgrade Preparation Manual. Customizing the Account Generator
Customizing the Account Generator
	Oracle Inventory provides a default Account Generator process, Generate Default Account. If the default process does not satisfy your accounting requirements, you can use the Oracle Workflow Builder to customize the default process or create a new one. If you want to create a new process to meet your company's needs, use the Oracle Workflow Builder to create a new process, or copy the default process and change its name before making extensive changes to it. For more information on the generic features and functions of the Account Generator, see the Customizing the Account Generator section of the Oracle Applications Flexfields Guide. For more information on how to use the Oracle Workflow Builder, see the Oracle Workflow Guide. The Account Generator process used to construct the Intercompany COGS account is very similar to the Account Generator process Oracle Order Entry/Shipping uses to construct the COGS account. To see a customization example for the Generate COGS Account process in Oracle Order Entry/Shipping, see: Using the Account Generator in Oracle Order Entry/Shipping (Oracle Order Entry/Shipping User's Guide).
Attributes for the Inventory COGS Account Process
	The following table shows the attributes that are defined for the Inventory Cost of Goods Sold Account item type to fully identify the invoice for which the Account Generator generates a COGS account. The attributes are listed by display name in the following table. Attribute Name Description Internal Name Chart of Accounts ID Chart of Accounts ID CHART_OF_ACCOUNTS_ID COGS Account from item (derived) COGS account derived from item IC_ITEM_COGS COGS Account from order type (derived) COGS account derived from order type IC_ORDER_TYPE_COGS COGS Account from organization (derived) COGS account derived from organization IC_ORGANIZATION_COGS Customer ID (raw) Customer ID IC_CUSTOMER_ID Error Message Error Message ERROR_MESSAGE Inventory Item ID (raw) Inventory Item ID IC_ITEM_ID Order Header ID (raw) Order Header ID IC_ORDER_HEADER_ID Order line ID (raw) Order line ID IC_ORDER_UNE_ID Order Type ID (raw) Order Type ID IC_ORDER_TYPE_ID Organization ID (raw) Organization ID IC_ORG_ID Selling Operating Unit (raw) Selling Operating Unit IC_SELL_OPER_UNIT Table 5-1 Inventory COGS Account Process Attributes (Page 1 of 1)