1) What is Multi Org Structure?
If an enterprise or a business wants to implement multiple organizations such as multiple Ledgers (Set of Books), or Legal Entities, or Business Groups within a Single Installation of Oracle Application, then we can summarize that the enterprise is planning to implement a Multi Org Setup.
The Major Components of Multi Org:
Business Group:
It represents the highest level in the organization structure, Business Group secures work structures and Remuneration policies.
Ledger:
It uses to secure Journals and Ledger Balances of a company. A Ledger is a collection of Currency, Calendar, Chart of Accounts and Sub Ledger Accounting Method.
Legal Entity:
It is a Legal Business, at this level we are going to prepare all our financial statements.
Operating Unit:
It is an organization where company is going to do the main business operations like sales, purchasing, receiving, etc.
Inventory:
It is an organization that tracks Inventory transactions by item.
Sub Inventory:
Sub Inventories are unique physical or logical separation of material inventory, such as finished goods, or defective material.
Locators:
Stock Locators are used to identify physical areas where we store inventory items. item quantities can be tracked by locators.