Multi Org Configuration Guide

Revised 9/12/00

R2 i
Config
Step

Oracle
Guide
Step

MO-01

MO-01

Navigation Path

Setup Explanation

Setup Document
Refer to Multi Org Setup
document.

Define Organization Structure

Prior to commencing the configuration of the multi-org set-up, the project
manager should ensure that the client has a basic understanding of 11i and
the Multi-Org architecture.
The definition of the client organization structure needs to be developed.
The definition should include the naming of the Set of Books, Legal Entity,
Operating Units, Inventory Organization and Master Inventory Organization.
You must define at least one Business Group. For a fresh install, Oracle
applications provide a default Business Group: Set-up Business Group. You
can define additional Business Groups as required by your client.
NOTE: The R2i Control Environment is multi-org enabled and is predefined
with one Legal Entity (R2i LE), one Operating Unit (R2i OU), one Set of
Books (R2i Client), one Item Master Organization (GLOBAL) and one
Inventory Organization (COM).
If the client structure requires that you define a Business Group, you
must define the Set of Books before Business Groups.

MO-02

MO-02

Refer to the General Ledger

Configuration Guide.

If the client requires multiple Business Groups, you must define all of the
Business Groups at this point. DO NOT DEFINE ANY NEW
ORGANIZATIONS OR ORGANIZATION HIERARCHIES UNTIL
YOU HAVE ASSOCIATED EACH BUSINESS GROUP WITH A
RESPONSIBILITY. See Define Responsibilities.
General Ledger Base Line Set Up
General Ledger set up needs to be completed through the creation of the Set
of Books

MO-03

MO-04

System Administrator

Define Multiple Business Group (if not using default)

Human Resources, Inventory

and Purchasing Super User
Responsibility

Oracle Applications provide a default business group, Setup Business

Group. Create additional Business Group(s) associated with the planned
Organization Structure. Currently Business Group has no other purpose but
to segregate HR information.

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All Rights Reserved

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

Hold a workshop with the client and define

the Organization Structure in a hierarchical
form format to use in the development of the
client organization. Use the forms attached
to the training and reference guide.
Note: During the workshop make the client
aware that Oracle recommends that in
developing a Multi-Org structure it is
important to keep a one-one-one relationship
between the Set of Books, Legal Entity and
the Operating Unity. This restriction is
recommended based on the following
reasons:
Document Sequencing (important in
European Countries) is at set of Books
Level.
Standard Reports are at Operating Unit
Level.
Period Status Control is at Set of Books
Level. For example if you close the
period in Oracle Payables, all equivalent
Oracle Payables periods will close in all
Operating Units within the same set of
Books / Legal Entity.
Perform R2I checklist steps GL-01 through
GL-17 (Oracle Setup Steps 1 through 7).
Note that if your client structure requires
that you define a business group you should
define your set of books first.
Define all business groups at this step, but do
not define any new organizations or
organization hierarchies until the
appropriate business group is assigned to a
responsibility. Use this responsibility for the
remaining set up steps.

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Revised 9/12/00

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Setup Explanation

Setup Document

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

To setup new business groups, set the profile option HR: User Type to HR
User for the responsibility that you will be defining the new business groups
from.
Then define all your business groups from this responsibility. Do not
define a new organization or organization hierarchies until each business
unit is associated with a responsibility in the following step.
MO-04

MO-05

System Administrator
Security
Responsibilities Define

Profile
System

MO-05

MO-06

Inventory Responsibility

Create an Inventory Responsibility and assign the Set of Books and

Business Group
Define a default Inventory Responsibility for the specific Organization(s).
Assign the necessary system profile options:
HR: Business Group
GL: Set of Books Name
Log on to the new Inventory Responsibility with the assigned Business
Group and Set of Books.

This step is a prerequisite to defining the

Multi-Organization Structure. Define a
default Inventory responsibility for the
specific organization. This responsibility
should have access to all necessary menu set
up options.

Log on to the appropriate responsibility from

which to create the new Organization
Structure.

In the responsibility create the organization structure and relationships

associated with the Business group
If there is more than one Business Group, change to the inventory
responsibility associated to the other Business Group and continue defining
the organization classification.
MO-06

MO-03

Setup Organization
Location

Define Locations
Create the location(s) for the Legal Entity, Operating Unit and Inventory
Organization. Used during the set up of Legal Entities, Operating Units and
Inventory Organizations.

Define the location. For multiple locations,

define a naming convention for each defined
address associated with its purpose.

Use the appropriate address style. Address style United States validates city
and state against lookup tables that must be populated prior to creating an
address. Address style United States (International) is not validated against
lookup tables.
MO-07

MO-06

Setup Organization
Organization

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Define Organization Structure & Relationship Legal Entity

Define the Legal Entity. Assign a location to

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Step

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Setup Explanation

Setup Document

&
MO-07

Create the Legal Entities for the Business Group. The Legal Entity will be
tied to a set of books defined in General Ledger
If you have multiple Business Groups, before creating the structure, verify
the HR: Business Group profile option for the responsibility from which you
are creating the Legal Entity is the correct one.

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

the legal entity (Address, City, Postal Code).

Assign a Tax id number to the Legal Entity
through Employer Identification. Link the
Legal Entity to the Set of Books by clicking
on the Others button and going to Legal
Entity Accounting.

For an organization that is a legal entity, the location is required. Zoom to

the Define Location window if the location is not already defined.

MO-08

MO-06
&
MO-07

Setup Organization
Organization

Note: There is nothing to stop one structure from being a Business

Group, Legal Entity, Operating Unit, and Inventory Organization all at
the same time (or any combination). This would assume a very simple
organization structure
Define Organization Structure & Relationship Operating Unit
Create the Operating Units for each legal entity. The Operating Units will be
tied to the legal entity defined in the Multi-Org Set Up.

Define the operating units. Assign a

location to the operating units (Address,
City, Post Code). Link each operating unit
to the legal entity by clicking on the Others
button.
Note: If the Operating Units are associated
with a different Business Group, you must
switch responsibilities and logon to the
appropriate one.

MO-09

MO-10

MO-06
&
MO-07

Setup Organization
Organization

MO-08

System Administrator

Define Organization Structure & Relationship Inventory Organization

Create an inventory organization for each operating unit. The inventory
organization will be tied to the set of books, legal entity, and operating unit
defined in the Multi Org Set Up. Define one master inventory org.
Determine the number of other inventory organizations to be defined.

Security
Responsibilities Define

Create Responsibilities for each Operating Unit by Application

Define the inventory organizations. Assign a

location to the inventory org (Address, City,
Postal Code). Link each inventory
organization to the appropriate set of books,
legal entity, and operating unit through
Accounting Information
Create the responsibilities for each operating
unit for each sub ledger application.

Create a responsibility at the Super User / Manager level for each Sub
Ledger application being implemented that is secured by operating unit.
These responsibilities will be used for setup.
Applications secured by operating include:

Copyright 2000 KPMG Consulting, LLC

All Rights Reserved

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Revised 9/12/00

R2 i
Config
Step

Oracle
Guide
Step

Navigation Path

Setup Explanation

Setup Document

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

Oracle Purchasing
Oracle Property Manager
Oracle Payables
Oracle Order Management
Oracle Receivables
Oracle Projects
Oracle Sales and Marketing Oracle Sales Compensation
Oracle Cash Management
Oracle Service
Oracle Release Accounting
Once the implementation is underway, the client requirements will be
reviewed to determine the responsibilities that are required by the user
community.
MO-11

MO-05

System Administrator
Profile System

MO-12

MO-09

System Administrator
Profile System

Set Business Group Profile Option for Each Responsibility

In System Administration, for each responsibility, set the Business Group
profile option to the appropriate Business Group.
Oracle Applications provides a default business group: Setup Business
Group. Additional Business Groups may be defined as part of the
organization structure.
Set Operating Unit Profile Options for Each Responsibility
In System Administration, define the MO: Operating Unit for each
responsibility based on the naming convention for each responsibility as
defined within the Client setup criteria.

For each responsibility, set the profile option

HR: Business Group to either the application
default Setup Business Group, or if
additional Business Groups were defined, the
appropriate one.

For the profile option MO: Operating Unit

set the profile option for each responsibility
to appropriate operating unit as it relates to
the naming conventions for responsibilities
within the R2i client set-up criteria.

At the site level, a default operating unit must also be set before you can
convert to multi-org. For a fresh installation, the default can be any
operating unit desired.
MO-13

MO-10

DBA Function / System

Administrator

Convert to Multi Org

The process needs to be initiated to convert the system to Multi Org. If the
initial conversion is taking place, run the AutoInstall utility, adamin job and
choose the option that will enable the Multiple Organization support feature.

Have the DBA run Adamin to convert the

instance to Multi Org. Or, run the System
Administration job, Replicate Seed Data.

If adamin has previously been run and more operating units have been
created, use the Replicate Seed Data job in system administration to update
the organization.

Copyright 2000 KPMG Consulting, LLC

All Rights Reserved

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Multi Org Configuration Guide

Revised 9/12/00

R2 i
Config
Step

Oracle
Guide
Step

Navigation Path

Setup Explanation

Setup Document

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

Run the multi org report Multi-Org Setup Validation from the system
administrator responsibility to verify the process.
MO-14

MO-11

Application Developer

Change Order Management Parameter

The Oracle documents Multiple Organization Setup and Implementation,
indicates that the OM: Item Validation profile must be set at the
responsibility level during the multi-org configuration. In prior releases of
the Oracle applications, there was an OE: Item Validation Org that needed to
be set at the responsibility level.

Set the Item Validation Org parameter in

Oracle Order Management during
configuration of that module.

However in release 11i, there is an Item Validation Org parameter in Oracle

Order Management that must be set to the proper operating unit during
configuration of that module.
Oracle is addressing this documentation bug.
MO-15

MO-12

System Administrator
Profile System

Set Profile Options Specific to Operating Units

These profile options need to be set for each operating unit at the
responsibility level where applicable:

MO-16

MO-13

Inventory Responsibility
Setup Organization
Organization Access

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All Rights Reserved

Set System Profiles Options at the

responsibility level.

HR: Business Group

HR: User Type
GL: Set of Books
INV: Intercompany Currency Conversion
TAX: Allow Override Tax Code
TAX: Invoice Freight as Revenue
TAX: Inventory Item for Freight
Sequential Numbering

Some other profile options such as AR: Receipt Batch Source and AR:
Transaction Batch Source are secured by operating unit. When they are set,
they need to be set for each operating unit at the responsibility level.
Define Inventory Organization Security (Optional)
Within Inventory Organization Security, you can restrict Inventory
Organization access to specific responsibilities. For example the client may

Discuss with the client and implement the

required changes to the Inventory
Organization Security.
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Multi Org Configuration Guide

Revised 9/12/00

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Setup Explanation

Setup Document

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

wish to restrict the Manufacturing users to certain organizations according to

the organization hierarchy.
MO-17

MO-14

Set Up Subledger Applications

Perform subledger set up for each operating

unit.

Subledger applications are now ready to be set up. Go into each operating
unit through the appropriate responsibility and set the following subledger
application for which the client intends to use:

Oracle Cash Management

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

Oracle General Ledger, Fixed Assets, Inventory and the rest of the
Manufacturing products need only to be setup once for installation, not once
for each operating unit.

MO-18

MO-15

System Administrator
Security Responsibility Value
Set Define
Security Responsibility Value
Set Assign

For clients that are multi-org, verify the multi-org setup in step MO-19
before defining document sequencing.
Secure Balancing Segment Values by Legal Entity (Optional)
Use the Define Security Window to create rules to secure data entry of the
balancing segment values for each legal entity. Each security rule is normally
composed of one or more security rule elements that specify a range of values
to include or exclude.

Discuss on site with the client and determine

what if any security rules are to be
implemented.

OR

Copyright 2000 KPMG Consulting, LLC

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Multi Org Configuration Guide

Revised 9/12/00

R2 i
Config
Step

Oracle
Guide
Step

Navigation Path
Setup Document
General Ledger Responsibility
Setup Financials Flexfields
Key Security Define

MO-19

MO-16

Setup Financials Flexfields

Key Security Assign
System Administrator
Cuncurrent Requests

MO-20

Setup Explanation

MO-17

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

Use the Assign Security Rules Window to assign the same rule(s) to all
responsibilities associated with the legal entities and operating units.

Verify Multi Org Set Up

From the system administrator function, run the standard Multi-Org
Validation Setup Report, which will validate the successful completion of the
Multi Org, set up.
Implement Document Sequencing (Optional)

Submit the report to validate multi org.

Validate the set-up is good.

Discuss on site with the client and determine

if document sequencing is an option

After Multiple Organizations have been implemented, document sequencing

can be setup. This is a common requirement for European companies.
Document sequencing is included as a step in the configuration for
applications where it is an option such as Oracle General Ledger and Oracle
Receivables.

MO-21

MO-18

Oracle Inventory
Setup Organizations
Intercompany Relations

For clients that are multi-org, the multi-org setup should be validated before
proceeding with the document sequencing.
Define Intercompany Relations (Optional)
Define Intercompany Relations is only necessary when using the Multiple
Organization Intercompany Invoicing functionality. Intercompany relations
need to be defined for each Shipping/Selling relationship in the organization.

Discuss on site with the client and determine

if Multiple Organization Intercompany
Invoicing functionality is required. Then if
necessary define intercompany relations.

Defining these relations will allow for the creation of automatic

intercompany invoices. To enable this function the following must be
defined: Customers, Suppliers, Transaction Types, Intercompany Relations,
Receivables System Options, Receivables Transaction Batch Sources,
Receivables System Options, Payables System Options, the Cost of Goods
Sold Account through Account Generator.
MO-22

MO-19

System Administrator
Profile System

Set Top Reporting Level Profile (Optional)

The reporting level a user can choose is restricted by the reporting option
MO: Top Reporting Level. The three choices available for this profile are:
Set of Books Level, Legal Entity Level, and Operating Unit Level.

Copyright 2000 KPMG Consulting, LLC

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Discuss on site with the client to determine

who needs to run reports across legal entities
and sets of books. Then determine what
responsibilities will be used to run reports
across legal entities and sets of books, and
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Revised 9/12/00

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Setup Explanation

Setup Document

The value of this profile level is set to Operating Unit Level at the site. This
profile option can be set at the responsibility level. To run reports across
organizations this profile should be set to the Set of Books or Legal Entity
Level
MO 23

20

System Administrator
Concurrent Program
Definer
Concurrent Program Define
(to assign programs to
Domains)

Setup Conflict Domains (Optional)

A conflict domain is an abstract representation of the groupings used to
partition your data. When a program is listed as incompatible with another,
the two programs cannot run simultaneously in the same conflict domain.
Two incompatible concurrent programs may run at the same time if they are
in different conflict domains. To maximize the concurrency in a multiple
organization environment, conflict domains can be setup for operating units.

R2i Base Install Status

On-Site Tasks
On-Site Setup Changes

set the Top Reporting Level Profile option

accordingly.

Review the organization structure and

applications implemented for each operating
unit. Discuss with the client, and determine
if it is necessary to improve the concurrency
beyond the standard conflict domain. Setup
conflict domains as appropriate.

All programs are assigned a conflict domain when submitted that is

determined by:
The value of the concurrent program parameter which is defined as a
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.

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All Rights Reserved

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