Multi Organization Structure

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.