Oracle E-Business Suite R12 Financials: Defining Multi Organization

MULTI ORGANIZATION STRUCTURE

Multi-org it is used to capture the Multiple Organization information in single Data base.

Business Group:

Its Heights level in Multi-Org structure it secures the Human Resource information.

Ledger:

It is a Reporting entity. In which recording day to day business transitions and also it will determined by 4c’s for our Organization.

One Business group contains multiple ledgers but one ledger must associate with one business group.

Legal Entity:

Legal entity is nothing but a tax authority, one ledger contains multiple legal entities. But one legal entity must be associate with one ledger only.

Operating Unit:

It is nothing but a Major business group division. One legal Entity contains multiple operating units but one operating unit must be associated with one legal entity.

Inventory Organization:

It’s nothing but a ware house or manufacturing plan. Were storing the goods one operating contains multiple inventory organization. But one inventory organization must be associated with operating unit only.

Sub Inventory:

It’s a part of in inventory organization. One inventory organization contains multiple sub inventories, but one Sub-Inventory Must is associated with the inventory organization.

Step-1

Define Currencies

Navigation: SetupàCurrenciesàDefine

It’s all ready defined in the system.

Step-2

Define Location

Switch to USHRMS Responsibility.

NAV: Work structureàLocation.

Address Details:

Save it

And enter Shipping Details:

Save it

Step-3

Define Business Group.

Switch to HRMS Responsibility.

NAV: Work structuresàOrganization àDescription

Click on NEW (A)

Save it.

Than Go To Organizations Classifications:

Enter Business Group

Save it

Go to Others

Then select Business Group Info

Click ok. Then Give business group info.

Click ok.

Step-4

Create Ledger

4.1

Define Chart of Accounts

Switch to GL Responsibility.

NAV: SetupàFinancialsàFlex fieldsàKeyàSegments

Save it

Then go to segments

Save it

Go to Flex field Qualifiers Tab

Company: Balancing Segment

Department: Cost center Segment

Accounts: Natural Account Segment

Management: Management Segment

Save it

Ø Select Future Segment

Ø Click on open.

Ø Enable Allow Dynamic Inserts

Ø Enable Freeze Flex Field Definition

Ø Say OK

Ø Than Compile the Structure

Ø Say OK.

Click OK.

Save it.

4.2

Define Ledger

NAV: SetupàFinancialsàAccounting Setup ManageràAccounting Setups

Go Create Accounting Setup Tab.

Click Next

Ø Click Next

Ø Again Say Finish

Ø Go to Define Accounting Options.

Ø Primary Ledger Setup step

Ø Go Ledger Options Than Click on Update.

Ø Click Next

Ø Go to Ledger Options.

Give Retained Earnings Account

Click Next

Again say Finish.

Go to setup step 2 Reporting Currencies and Update

Click Complete

Ø Setup step Balancing segment value assignments and go to Update.

Ø Click on Complete.

Ø And Sequencing segment go to Update

Ø Change the status In progress to Complete

Click Apply.

Again say Complete

System through the Warring Massage

Click Yes

After that you will get conformation Message.

Step-5

Define HRMS Responsibility.

Switch to Sys-Admin

NAV: Security à Responsibility à Define

Save it.

Step-6

Assign Profile Options to HRMS Responsibility

NAV: ProfileàSystem

Ø HR: Business Group

Ø HR: Security Profile

Ø HR: User Type

Ø GL: Ledger Name

HR: Business Group:

It is used to assign business group to the responsibility.

HR: Security Profile:

It is used to bring the default futures for our business group.

HR: User Type:

It Will Determined were we can access or Organization window.

In Responsibility Window

Site:

If you define profile option at site level it is veiled for entire server.

Application:

If you define profile option at application level it is valid for particular application.

Responsibility:

If you define profile option at responsibility level It is Valid for only particular Responsibility.

Organization:

If you define profile option at organization level than it valid for particular organization only. The organization like Business Group and Operating Unit.

User:

If you define profile potion at user level that it is valid for particular user.

Save it

Step-7

Assign HRMS Responsibility to the User

NAV: SecurityàUseràDefine

Save it

Step-8

Define GL Responsibilitys

Switch to Sys-Admin

NAV: SecurityàResponsibilityàDefine

Save it

Step-9

Assign profile options to GL Responsibility.

Switch to Sys-Admin

NAV: ProfileàSystem

Save it

Assign profile options To GL Respo

I. HR: Security Profile

II. HR: User Type

III. GL: Ledger Name

And Save it

Step-10

Assign GL Responsibility to the User

Save it

Step-11

Define Legal Entity

Switch to GL Respo

NAV: Setupàfinancials-->Accounting setup ManageràAccounting Setups

Accounting setup Steps Tab
Than go to Update Accounting options
Go to Legal Entity Tab
Say Create Legal Entity

Say Apply

Step-12

Assign Legal entity to the ledger

Switch to GL

NAV: SetupàFinancialsàAccounting Setup ManageràAccounting Setups

· Now go to Accounting Setups tab

· Quarry your Ledger

· Go to Update Accounting option

· And go to Legal Entity Region

· Say Add Legal Entity

· Search Legal Entity and Say Apply

Say Apply

Step–13

Define Operating Unit

Switch to GL

NAV: SetupàFinancialsàAccounting Setup ManageràAccounting Setup

Select Operating Unit Go to Update.

And Say Operating Unit

Say Add Another

Step-14

NAV: ViewàRequestàSubmit a New RequestàSelect Single Request

Say Ok

Run Replicate seed data Program For each Operating Unit

“Replicate seed data Program” Will bring the Default futures from operating unit

Say OK

And Say Submit

Say Find

And Again Run Replicate Seed data Program For Operating Unit 2

Click Ok

Click Submit

Again Click Find

Step-15

Open the periods in GL

Switch to GL Respo

NAV: Setup Open/Close

Step-16

Define Inventory Responsibility

Witch to Sys-Admin

NAV: SecurityàResponsibilityàDefine

Save it

Step-17

Assign profile option to Inventory Responsibility

Switch to Sys-Admin

NAV: ProfileàSystem

HR: Business Group

HR: Security Profile

HR: User Type

GL: Ledger Name

MO: Operating Unit

MO: Operating Unit

It is used to Determined the which operating unit we are getting accesses from Particular responsibility

Click Find

Save it

Step-18

Assign Inventory Responsibility to the User

Switch to Sys-Admin

NAV: SecurityàUseràDefine

Quarry your User and Assign Respo

Save it

Step-19

Define Work day calendar

Switch to Inventory Respo

NAV: SetupàOrganizationsàCalendars

Go to Work Day Pattern

Save it

Then Go to Shifts Tab

Go to Times Tab

Save it

Place Curser on work day Calendar name

Than go to Tools

Select Build

Click Ok

See Build Work day calendar is Normal.

Step-20

Define Inventory Organization

Switch to HRMS Responsibility

NAV: Work StructuresàOrganizationàDescription

Save it

Than go to others

Select Accounting information

Click ok

Again go to others

Select inventory Information.

Click ok

Go to Inventory Parameters Tab

Go to Costing Information Tab

Go to Revision, Lot, Serial and LPN Tab

Than go to Other Accounts Tab

Save it

Step-21

Define Sub Inventory

NAV: SetupàOrganizationsàSub inventories

Select your inventory organization

Click Ok

Then go to Item/Sub inventory Tab

Save it

MOAC

(Multiple organization Access Control)

MOAC:

It is used to access the multiple operating information from single responsibility we will use

“MO: Operating Unit, MO: Security Profile “to access the multiple organization information from single Responsibility.

Step-1

Define multi-org Security profile

Switch to HRMS

NAV: SecurityàProfile

Step-2

Run security list maintence program

Switch to HRMS

NAV: Process and Reports àSubmit Processes and Report

Select Single Request

MOAC Done

RESPONSIBILITIES

1. Define all responsibilities:

(AP, AR, CM, FA, OM, PO, EBT)

Step-1

Define PO Responsibility

Switch to Sys-Admin

NAV: SecurityàResponsibilityàDefine

Save it.

Step-2

Define AP Responsibility

NAV: SecurityàResponsibilityàDefine

Save it

Step-3

Define OM Responsibility

NAV: SecurityàResponsibilityàDefine

Save it

Step-4

Define AR Responsibility

NAV: SecurityàResponsibilityàDefine

Save it

Step-5

Define FA Responsibility

NAV: SecurityàResponsibilityàDefine

Save it

Step-6

Define CM Responsibility

NAV: SecurityàResponsibilityàDefine

Save it

Step-7

Define EBT Responsibility

NAV: SecurityàResponsibilityàDefine

2. Assign Profile Options to all responsibilities

HR: Business Group

HR: Security Profile

HR: User Type

GL: Ledger Name

MO: Security Profile OR MO: Operating Unit

Step-1

Switch to Sys-Admin

NAV: ProfileàSystem

Click Find

Save It

In the same way all profile options assign to Responsibilities

Step-2

Assign all Responsibilities to the User

NAV: SecurityàUseràDefine

Save it

PURCHASING

Purchasing Application is used to capture the all purchasing Related Activities our Organization

There are two types of Purchasing order cycle

1. Procure to pay cycle ( P2P)

Order to Cash Cycle (O2C)

Procure to pay:

It is used to procure the goods or services from vendors and make payment to them.

Purchase Order Setups:

1. Options

2. Employee

3. Item

4. Supplier

5. Purchasing option setups

Options:

Options are nothing but Controlling futures at operating unit level

There are 3 types of Options

1. Financial Options

2. Purchasing Options

3. Receiving Options

1. FINANCIAL OPTIONS

Financial options will be shared by Purchasing, Payables, Fixed Assets, Web expenses.

Step-1

Define financial options

Switch to PO Respo

NAV: SetupàOrganizationsàFinancial Options

Click New

Accounts Tab

Then go to

Supplier Purchasing Tab

PO Rate Variance Gain & Loss:

This two accounts be used to record the gain or loss which are accruing due to the following foreign currency exchange rate fluctuations between invoice price and PO

Free On Board:

It will Determined were worship of the goods changing from supplier to Organization.

Freight terms:

Nothing but a Transport expenses. Freight terms will be determined the transport charges.

Than go to Human Resource Tab

Save it.

2. Purchasing Options:

Purchasing options will be shared by only purchasing option.

NAV: SetupàOrganizationsàPurchasing Options

Enforce full lot quantity:

Ti will determine whether we can enter Purchasing document with lot quantity.

Receipt close point:

It will determined the please whether organization conforming the goods as been received from supplier

Cancel Requisitions:

Ti will determine whether we can cancel or not when we cancel the purchase order.

Notify if blanket exists:

It will determine where system will pop let warning message or not while creating second blanket purchase agreement for same supplier.

Allow item description update:

It will determine whether we can update or not item description at the time of purchasing document creation.

3. Receiving Options:

Receiving options nothing but a Controlling future at inventory organization level. This option will be shared by only inventory organization.

Step-1

Define receiving options

NAV: SetupàOrganizationsàReceiving Options

Select your INV Organization.

Click on save

Employee:

Step-1

Define Jobs

Switch to HR Respo

NAV: Work StructuresàJobàDescription

Step1.1

Define PO Clark Job

Click NEW

Click OK

Step-2

Define Employees

NAV: PeopleàEnter And Maintain

Save it

Click on Address

Save it

Step-3

Assign job to employees

NAV: PeopleàEnter And Maintain

3.1

Assign job to employee 1

Give your Employee Name

Click Find

Then go to Assignment

Save it

Step-4

Assign PO Manager to PO Clark

NAV: PeopleàEnter And Maintain

Find Po Clark

Go to Assignment

Than go to Supervisor Tab.

Save it

Step-5

Define users and assign employees to the user

Switch to Sys-Admin

NAV: SecurityàUseràDefine

Save it

ITEM

Item nothing but a product. Item will be defined in the inventory.

There are 7 types of key Flex Fields in inventory.

1. Item categories

2. Account analyses

3. Item catalogs

4. Sales orders

5. System items

6. Stock locaters

7. Oracle service item FF

1. Item categories:

It is used to determine the item. Item categories are used to categories the item based on organization requirement.

Up to 20 segments we will define in item categories structure.

Step-1

Switch to PO

Define item categories structure

NAV: SetupàFlex fieldsàKeyàSegments

Go to Segments

Save it

Place curser on item categories than go to Value set

And change the Validation type

(Item Categories is Independent) and (Item Class Categories is Dependent)

Save it

Than Freeze Flex Field definition

And Compile the Structure

Click OK

Step-2

Define Values for item categories structure

NAV: SetupàFlex FieldsàKeyàValues

Click Find

Save it

Step-3

Define Class Segment values

NAV: SetupàFlex FieldsàKeyàValues

Click Find

Save it

Step-4

Define item categories

Item categories to group the item based on reporting requirement.

Switch to Inventory

NAV: SetupàItemsàCategoriesàCategory Codes

Click NEW

And give item parameters

Click Ok

Save it

Step-5

Define Category set

Category set is used to group the category codes

NAV: SetupàItemsàCategoriesàCategory Sets

Save it

Step-6

Define Item

NAV: ItemsàMaster Items

Save it

Than go to inventory Tab

Enable inventory item

Then go to purchasing Tab

Enable Purchased (Z)

And Give Expense Account

Then go to order Management Tab

Enable Customer Ordered

Then go to Invoicing Tab

Enable Invoiceable Item

Save it

Place causer on item name than go to Tools and select Categories

See the items

Suppliers: (Wander)

Ether person or organization who is supplying goods or services is called a supplier

It contains of 3 levels of information

1. Header (HO): Global àAccess to Business Group

2. Address

3. Site (Branches): Specific to Operating Unit

Step-1

Define Supplier

Switch to PO

NAV: Supplier BaseàSuppliers

Click on Create Supplier

Click Apply

Than go to Suppliers tab

Update Company Profile Organization Tab

Click On Save

Confirmations to Organization have been saved.

Than go to Address Book

And Click Create

Click Continue

Click Apply

Confirmation

Sony Hyderabad has been added to the Address Book for Sony Corporation

Then go to Contact Directory

Click on Create

Then go to Product Services

Click on Add

Select your Product

And Enable

Click Apply

After that you get confirmation

After that go to Freight Tab

Country of Origin (Change the Status)

You got Confirmation message

Then go to Receiving Tab

Click on save

After you get confirmation

Than go to Invoice Management Tab

Change the currencies

Click Save

And after that you get confirmation message

Step-2

Open periods in PO

NAV: SetupàFinancialsàAccountingàControl Purchasing Periods

Select your Operating unit

And Click GO And Open Starting period to current Period

Click Save

Approval Groups:

Approvals groups are used to define approval authorization limits

Step-1

Define approval groups

NAV: SetupàApprovalsàApproval Groups

Select your operating unit

Save it

Step-2

Define PO Manager

NAV: SetupàApprovalsàApproval Groups

Save it

Approval Assignments:

Approval assignment window is used to assign approval groups for jobs and purchasing documents.

Assign approval groups

Step-1

PO clerk job

NAV: SetupàApprovalsàApproval Assignments

Save it

Step-2

PO General Manager

NAV: SetupàApprovalsàApproval Assignments

Save it

Document Types

It is used to determine the future data or purchasing documents.

Define document types

NAV: SetupàPurchasingàDocument Types

Select your Operation Unit

And again select Purchasing Requisition and go to update

Click Apply

Buyers

UN employee who is buying goods are services be huff of organization is called a buyer

NAV: SetupàPersonalàBuyers

Click Add buyer

Click Save

Requisition

Requisition is created by employee in the organization. If there is a requirement.

It contains 3 levels of information

1. Header

2. Lines (Item or Product information)

3. Distributions (Accounting Level information)

There are two types of purchase requisitions

1. Internal requisition

2. Purchase requisition

Internal Requisition:

It is used to move goods from one inventory organization to another inventory organization.

Purchase Requisition:

It is used to buy goods or services from external source.

Step-1

Create purchase requisition

NAV: RequisitionsàRequisitions

Lines Tab

Go to Source Details Tab

Than go to Details Tab

Then go to Currency Tab

Click on Distributions

Save it

Go to Approve

Click ok

Step-2

Quarry Purchasing Requisition to check the status

NAV: RequisitionsàRequisition Summary

Step-2

Quarry Purchasing Requisition to check the status

NAV: RequisitionsàRequisition Summary

RFQ’S

RFQ will be created by buyers and send to suppliers obtain quotation

It contains of 3 levels of RFQ’s

1. Catalog RFQ

2. Standard RFQ

3. Bid RFQ

RFQ can be created 2 ways

1. Manual

2. Automatic

Manual Creation:

Entering RFQ’S manually in the purchasing is called a manual creation.

Catalog Creation:

It is used for regular items which are used on daily bases.

It contains 3 levels of information

1. Header

2. Lines

3. Price Bricks

1. Catalog RFQ:

Step-1

Create catalog RFQ

NAV: RFQ’S and QuotationsàRFQ’S

Then go to More Tab

Then go to Price Breaks

Then go to More Tab

Save it

Go to Suppliers Tab

Save it

Step-2

Print the RFQ

NAV: ViewàRequestàSubmit a New RequestàSelect Single RequestàOk

Click Submit

Click find

Save it

2. Standard RFQ

It is used to buy item or goods (Items) occupationally from suppliers.

It contains of 3 levels of information.

1. Header

2. Lines

3. Price Breaks

Step-1

Create Standard RFQ

NAV: RFQ’S and QuotationsàRFQ’S

Go to Price Breaks Tab

Go to RFQ Windows

Then go to RFQ Window change the status in process to Active

After that click on Suppliers

Save it

Step-2

Print the standard RFQ

NAV: ViewàRequestàSubmit a New RequestàSelect Single RequestàOk

Click Submit

3. Bid RFQ

It is used for high value of items which are required special shipment details

It contains 3 level of information

1. Header

2. Lines

3. Shipment

Step-1

Create Bid RFQ

NAV: RFQ’S and QuotationsàRFQ’S

Then go to Shipment Tab

More TAB Details

Again go to more Tab

Save it

Then go to RFQ Window change the status in process to Active

Go to Suppliers Tab

Save it

Auto Creation of RFQ

Auto creating RFQ with reference of Requisition is called a automatically

Step-1

Create RFQ automatically

NAV: Auto Create

Go to Automatic

Click Create

Auto create RFQ Widow

Change the status

Quotations:

Quotations will be received from suppliers and entered with purchasing by buyers

There are 3 types of Quotations

1. Catalog Quotation

2. Standard Quotation

3. Bid Quotation

Quotations can be created in 2 ways

1. Manual

2. Automatic

Manual Creation:

Entering quotations manually the oracle purchasing is called a manual creation.

1. Catalog Quotation:

Step-1

Create catalog Quotation

NAV: RFQ’S and QuotationsàQuotations

Go to Terms

If any Payment terms any change (Change the Payment terms)

Then go to Items Tab

Then go to more Tab

Save it

Then go to Single Quotation approve

2. Standard Quotation

Step-1

Create Standard Quotation

NAV: RFQ’S and QuotationsàQuotations

Go to Price Breaks

Then go to RFQ Window change the status in process to Active

Save it

3. Bid Quotation

Step-1

Create Bid Quotation

NAV: RFQ’S and QuotationsàQuotations

Go to Shipment Tab

Then go to more Tab

Then go to RFQ Window change the status in process to Active

Save it

Auto Create Quotations

Creating quotation with reference of RFQ is called a auto create

Step-1

Quarry the RFQ for which auto create Quotation.

Place curser on RFQ Number Then go ToolsàCopy Document

Click ok

Quote Analysis:

Quote analysis window is used to analysis the Quotations and select the best one

NAV: RFQ’S and QuotationsàQuote Analysis

Save it

Purchase Orders:

Purchase orders can be created by organization. And send to the suppliers to buy goods or services.

It can be created by buyers only.

There are 4 levels of information

1. Header

2. Lines

3. Shipments

4. Distributions

There are 4 types of Purchase Orders

1. Standard Purchase Order (SPO)

2. Planed Purchase Order (PPO)

3. Blanket Purchase Agreement (BAP)

4. Contract Purchase Agreement (CPA)

Purchase Order cid divied into two types

1. Manual

2. Auto create

1. Manual Creation

a) Standard Purchase Order

It is a onetime Purchase order. This will be created by Organization and send to the suppliers to buy goods or services when we know the terms and conditions, Goods or services, Quantity, Price, distribution and Delivery schedules

Step-1

Create standard purchase order.

NAV: Purchase OrdersàPurchase Orders

Go to Price Reference Tab

Go to More Tab

If you are buying fixed asset you need enable Capital Expense

Then go to Shipments Tab

Place courser on Shipment number

Go to Receiving Controls Tab

Click ok

Then go to More Tab

Then go to Status Tab

Then go to Distributions Tab

Save it

Go to Approve

Step-2

Quarry the PO to check the status

NAV: Purchase OrdersàPurchase Order Summary

See the Approval Status

2. Planed Purchase Order

It’s an agreement between the supplier and organization to buy goods or services it will be created when we know the terms and condensations, Goods or services, Price, Quantity, Distribution and also delivery schedule may be or may not aware. Either should release will be created with reference of “Planed Purchase Order” (PPO) to obtain goods from suppliers

Step-1

Create Planed Purchase Order (PPO)

NAV: Purchase OrdersàPurchase Order

Then go Agreement Tab

After that go to Terms

If you want you can enter how many you want in this Delivery bar

And you can give terms also

Then go to Shipments Tab

Place Curser on Number Then go to Receiving Controls

Click ok

Then go to Distributions Tab

Save it

Click on Approval

Step-2

Quarry the PO to check the status

NAV: Purchase OrdersàPurchase Order Summary

Step-3

Create Shouldered Release

NAV: Purchase OrdersàReleases

Then go to More Tab

Then go to Status Tab

Then go to Distributions

Save it

Then go to Approve

Now see the status

Step-4

Check the Release amount in Planed Purchase Order

NAV: Purchase OrdersàPurchase Orders

Quarry the PPO

Then go to Agreement Tab

See the Quantity Released & Amount Released

3. Blanket Purchase Agreement:

It is an agreement between supplier and Organization to buy goods or services it will be created when we know the terms and conditions, Goods or services, price may be or may not be aware of.

Later Blanket releases will be creating with reference of BPA to obtain goods from supplier.

Step-1

Create Blanket Purchase Order

NAV: Purchase OrdersàPurchase Orders

Then go to Terms Tab

Then go to Price Breaks

Save it

Then go to Approve

Now status is Approve.

Step-2

Create Blanket Releases

NAV: Purchase OrdersàReleases

Then go to Distributions Tab Its automatically came No need to changes

After that save it

And go to Approve

Step-3

Quarry the BPA to check the releases amount

NAV: Purchase OrdersàPurchase Orders

To Check the Released Amount

4. Contract Purchase Agreement: (CPA)

It’s a long term agreement between the supplier and organization. It will be created when we know the terms and condensations latter standard purchase agreement will be created with reference of contract purchase agreement to obtain goods or services.

Step-1

Create Contract purchase agreement

NAV: Purchase OrdersàPurchase Orders