Multi Org Setup Cont-4

Similarly define Operating Units for MCR Consulting and MCR Training under Legal Entity MCR Soft LE and MCR Auto Finance  and MCR Genaral Finance under Legal Entity MCR Finance LE.

The overall operating units will be like below screen shot.
 
Note: We can define Operating Unit in two levels, 1^st one level is in GL Responsibility at Primary Ledger (MCR Ledger) when we add legal entity to our Primary Ledger we will get an option called Operating Unit.  2^nd level is we can create Operating Unit from HRMS responsibility. Here we will create two Operating Units MCR Auto Finance  and MCR Genaral Finance under Legal Entity MCR Finance LE.

Define Operating Unit in HRMS Responsibility under Legal Entity MCR Soft:

Navigation: MCR HRMS > Work Structures > Organization > Description

Here we have created Operating Unit OU1 after we define our Business Group MCR BG.

Here the question is how the system know created operating unit OU1 comes under our business group (MCR BG) only?

When we define all Operating Units in GL at Primary Ledger, all are comes under same business group id i.e 8414 (MCR BG), but when we create operating unit OU1 in HRMS which comes under default business group id i.e 202 (Vision Corporation at site level).

To avoid this issue we need to set a profile called HR: Security Profile at our HRMS responsibility.

Navigation: System Administrator > Profile > Systems
 
When we set profile HR: Security Profile system internally sets one more security profile option called HR: Business Group to associate the business group of the security profile.

Now if we define Operating Unit in HRMS, the operating unit will comes under business group MCR BG.

Note:When we set the security profile, it is going to give access to the data of all the organizations defined under business group. The organizations which comes under business groups are Operating Units, Inventory Organizations, HR Organizations etc…

Navigation: MCR HRMS > Work Structures > Organization > Description

And we have been associated our Primary Ledger mcr ledger and legal entity MCR Soft, but we have not associated our business group (MCR BG) to OU1.


 
Now we can observe that the operating units MCR Auto and Gen. Finance comes under business group MCR BG with reference of business group id 8414 in below screen shot.

To set the HR privileges set one more profile option called HR: User Type.

Navigation: System Administrator > Profile > Systems
 
Define Inventory Organization:
Navigation: MCR HRMS > Work Structures > Organization > Description

Inventory Organization having below Parameters

·         Accounting Information

·         Inventory Information

·         Receiving Information

Go to Others select Accounting Information and enter the values and save.

Assign the following to the Accounting Information,

·         Primary Ledger

·         Legal Entity

·         Operating Unit

Go to others button and select Inventory Information

You can define and update default inventory and costing parameters for your current organization in the following areas:

1. Inventory Parameters

2. Costing Information

3. Other Account Parameters

4. Revision, Lot, Serial, LPN Parameters

5. ATP, Pick, Item–Sourcing Parameters

6. Defining Inter–Organization Information 
Inventory Parameters:

1. Enter an organization code for which you want to set up the organization parameter.

2. Select an Item Master organization. Oracle Inventory only defines items in the Item Master organization of the organization from which you enter the Items window.

3. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle Supply Chain Planning is installed.

4. Optionally, select a demand class. Demand classes segregate scheduled demand and production into groups, allowing you to track and consume those groups independently. Oracle Master Scheduling/MRP and Oracle Supply Chain Planning use this demand class during forecast consumption, and shipment and production relief.

5. In the Move Order Timeout Period field, enter the number of days a move order requisition can wait for approval. The workflow approval process sends a notification to the item planner when a move order requisition requires approval. After the first timeout period, if the recipient has not approved or rejected the order, a reminder notice is sent. After the second timeout period, the order is automatically approved or rejected, depending on whether you select Approve automatically or Reject automatically in the Move Order Timeout Action field. If you want to bypass the move order approval process and automatically approve move order requisitions, enter 0 days in the Move Order Timeout Period field and select Approve automatically in the Move Order Timeout Action field.

6. Select a move order timeout action

·         Approve automatically: After the second timeout period, move order requisitions are automatically approved. Select this option and set the Move Order Timeout Period to 0 if you want to bypass the move order approval process and automatically approve move order requisitions.

·         Reject automatically: After the second timeout period, move order requisitions are automatically rejected.

7. Select a locator control option:

None: Inventory transactions within this organization do not require locator information.

Pre specified only: Inventory transactions within this organization require a valid, predefined locator for each item.

Dynamic entry allowed: Inventory transactions within this organization require a locator for each item. You can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.

Determined at sub inventory level: Inventory transactions use locator control information that you define at the sub inventory level.

·         Indicate whether to allow negative balances. Determines whether inventory transactions can drive the inventory balance of an item negative.

Attention: If insufficient quantity on hand exists in a supply sub inventory to satisfy back flush demand, Oracle Work in Process forces the supply sub inventory balance negative, ignoring this option setting.

·         Auto delete allocation at Move Order cancellation

·         Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can use WMS features such as LPNs, task management, warehouse execution rules and cost groups in this organization. Locator control must be enabled in order to enable WMS. Once this has been enabled and transactions have been entered in this organization, this box cannot be unchecked.

·         Indicate whether this organization is enabled for Quality inspection.

·         Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.

·         Enter a total load weight and unit of measure for this organization.

·         Enter a total volume and unit of measure for this organization.

Costing Information:

The costing organization that controls the costs in your current organization and the costing method are displayed. You cannot make changes to these fields.

Costing Organization:

Costing Method: Standard, Average, FIFO and LIFO (Go through the Cost Management for detail).

Transfer to GL: Indicate whether all transactions are posted in detail to the general ledger. Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due to the number of records created.

Optionally, enter a Cost Cutoff Date if you leave this field blank, all available transactions will be cost, as usual. If you enter a date, all transactions prior to this date will be cost. All transactions on or later than this date will not be cost.
For inter–organization transfers, a standard costing, receiving organization will not cost a receipt if the sending organization did not already cost the transaction. The default time is the first instant of the date. You can optionally choose another time.
The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by changing the cutoff date to blank, or a future date.
Reverse Encumbrance Indicate whether to reverse encumbrance entry upon receipt in inventory. You normally select this option if you use encumbrances with Oracle Purchasing.

Default Material Sub element: For standard costing; select a material sub–element that this organization uses as a default when you define item costs. For average costing, the default material sub–element you select can be used for cost collection when Project Cost Collection Enabled is set.

The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost Rollup identifies an organization with a default material overhead sub–element not set up, a corresponding warning message will be printed in the log file.
Material Over head Sub Element: Optionally, select a Default Material Overhead Sub–Element from the list of values. During the Supply Chain Rollup process, when costs are merged from another organization, markup and shipping costs will use this value.

Default Cost Group: Indicate the default cost group for the organization. This will default into the Default Cost Group field for each sub-inventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used.

Valuation Accounts:

We choose a default valuation account when you define organization parameters. Under standard costing, these accounts are defaulted when you define Sub-inventory and can be overridden. Under average costing, these accounts (except for Expense) are used for sub-inventory transactions and cannot be updated.

For a detailed discussion of cost elements…

Material: An asset account that tracks material cost. For average costing, this account holds your inventory and in-transit values. Once you perform transactions, you cannot change this account.

Material Overhead: An asset account that tracks material overhead cost.

Resource: An asset account that tracks resource cost.

Overhead: An asset account that tracks resource and outside processing overheads.

Outside processing: An asset account that tracks outside processing cost.

Expense: The expense account used when tracking a non–asset item. 

Multi Org Setup Continuation...