You are html tracking Visitor

Friday, June 27, 2008

Multi Org Concept


Any enterprise has several organization structures. These organizations interact with each other for various purposes. While interacting with other organizations data has to be secure and should be transferred to the correct organization.

What is Multi Org

Multi Org is a feature, which helps us to classify and define various organizations in such a way that hierarchy is maintained and data is secure across organizations. It also decides how transactions flow through different organizations and how those organizations interact with each other.

Types of Organizations

The various organizations that can be defined within Oracle Applications are as follows:

Business Group. The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company. Oracle Apps provides with a predefined Business Group ‘Setup Business Group’. Reliance Group of Companies is an example of Business Group.

GRE/Legal Entity. The company for which we prepare tax returns. You assign tax identifiers and other legal entity information to this type of organization. If there are several subsidiary companies for which tax returns are filed, each company is a separate legal entity. Reliance Group of Companies consists of several companies like Reliance Industries ltd, Reliance Info-comm, Reliance Energy ltd etc. Each company is a separate Legal Entity.

Note: The Set of Book can contain multiple Legal Entities.

Operating Unit. Each group company will have several branch offices involved with purchasing, order management, shipping execution etc. Each such branch will be an Operating Unit.

It could be a sales office, a division, or a department. An operating unit is associated with a legal entity.

For implementing Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Projects, Oracle Purchasing, Oracle Property Manager, Oracle Receivables and Sales and Marketing Operating Unit is required.

Information is secured by operating unit for these applications. Each user sees information only for their operating unit.

Inventory Organization. An organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products. Inventory organization is generally assigned to a manufacturing plant. An operating unit can also be an Inventory Organization. Many branches (operating units) might be Manufacturing Plants and will be attached to an Inventory/Warehouse. Such inventory/warehouses will be Inventory Organizations.

HR Organization. HR organizations represent the basic work structure of any enterprise. They usually represent the functional management, or reporting groups that exist within a business group.

Asset Organization. An asset organization is an organization that allows you to perform asset–related activities for a specific Oracle Assets corporate depreciation book. Any organization (legal entity, operating unit, inventory organization), which has Fixed Assets can be classified as Asset Organization. For implementing Oracle Assets, this type of organization is used.

Secure Access within Multi Org

An individual Operating Unit is assigned to an individual application Responsibility. To see and work with data that is relevant to a specific Operating Unit, users choose the appropriate Responsibility after logging on to Oracle Applications.

The current Multi-Org architecture utilizes database objects like Views to build a security layer that allows you to logically partition all your application data in one database, instead of physically partitioning data with multiple instances and even multiple application installations.

In earlier versions of Oracle Applications data partitioning was done using multiple instances and therefore installation had to be done several times for various operating units.

Note: All Multi Org tables in the database will be suffixed with ‘_ALL’.

HRMS Organization Model

The business group is the largest organization unit you set up in Human Resources to represent your enterprises as an employer. After defining one or more business groups for your enterprise, you set up one or more Government Reporting Entities (GREs) within each business group. The GRE is the organization that federal, state, and local governments recognize as the employer.

Needless to say, HR does not require Operating Units, Inventory Organization and Asset Organization.

Multi Org Setup

The following are the summarized steps for implementing Multi-Org in Oracle Applications or when converting from a Non Multi-Org environment to a Multi-Org environment.

1.1 Develop an Organization Structure

1.2 Define Set of Books

1.3 Define Locations

1.4 Define Business Groups (Optional)

1.5 Define Responsibilities

1.6 Associate Responsibilities with Business Groups

1.7 Define Organizations

1.8 Define Organization Relationships

1.9 Set MO: Operating Unit Profile Option

1.10 Convert to Multi-Org Architecture

1.11 Define Inventory Organization Security

1.12 Define Inter-company Relations


How to set Org_id at back-end

We have a API to set the org_id from the backend.


Note:- Org_id indicates the "Operating Unit" in the Business Structure.

How to I know what Org_id is set at back-end

We can use userenv function to know the Org_id set at backend.

select userenv('CLIENT_INFO') from dual;

Why we need to set org_id at back-end

We usually, set org_id at back-end. So that we can get the org_id records from the Multi Organization views.

What happens if I try to query records from Multi-Origination views without setting Org_id at back-end

It will not fetch any records. As, "where" condition fails (org_id = Userenv('CLIENT_INFO'));

Note:- If you set org_id from back-end, then you get org_id value populated by above userenv function.

Is this Multi -Org concept is same for all the Oracle Application versions

No. Above Technical points are applicable only till 11i version. It is different in Release 12.


Anonymous said...

Hi Phani, welcome to Blog, great article..

phani said...

Thank you :)

dutt said...

Hi phani,

it will be a great help so that u r helping people by the effort you are putiing ,

can u please make a detailed description of flexfields and the different types and description of each flex field

Anonymous said...

hi phani
ur doing a great job it's really wonderful.can u send be information about record groups in forms.

phani said...

You welcome.

In oracle Forms you can uses the record Groups to get some list of values for a particular field in the form. But when it comes to the Oracle Applications, we use the Values set attached to the Text fields in the Oracle application forms.

I will try to prepare some article related to the record groups in the forms soon as per you request.


Anonymous said...


Is this Phanidhar Parasuram???

phani said...

No, I am Phanindhar Reddy from IBM.

Anonymous said...

how can we make out the difference between ,, org_id (i-e is it a legal entity id or operating unit id or inventory org id) as at the table level we will be having only org_id or organization_id. Is there a way to make it out what value is it storing ?

phani said...
This comment has been removed by the author.
phani said...

org_id would always store the value of the Operating Unit. It will never those any other organization values. Organization_id always store the value of the Inventory Organization.

If you want to know the name of the Inventory name or Operating Unit name etc then there many tables to know based on the ID.

Execute the following query.


check out the different column names and it's values. By adding conditions to the above query, we can always know what all the organizations comes in what organization.


There is some operating Unit and it ID value is say 204.

The multi-organization table if it has any record agaist this operating unit then there would be records for the org_id = 204.

If you want to know the all the Inventory organization definited in 204 Operating unit.

Then you can query the following.



Anonymous said...

hi phani, i m new to oracle financials and i want to pratice, can u mail me a dummy project which all the setups, this is my id thanks in advance

phani said...

Finance modules are vast. There are many modules which comes under Financial like PO, AP, GL, AR etc. You need to start understanding the Business flow of any module before you start your ERP step-up practice.


sittu said...

i m pure in supporting role,
i want to implemented one demo version,
pls provide me one demo link to implemented real time .

phani said...

Hi Sittu,
I understand you are asking for the URL where you have all these Organization setup information which you can try implementing in your local Instance. I don't know any URL as such. But, I have few documents which has steps to do. If you send the email to my email address then I can forward that document to you.

My Email Address:

Thanks and regards,

Anonymous said...

Hi Phani,

I am new to oracle apps,please suggest me the books available for reference
thank you

Bujji said...

Hi Phani ,
It is an absolutely nice article for a beginner like me . I'm planning to start up my career in Oracle Apps manufacturing stream .

Could you please guide me on steps that i need to follow i mean i'm looking for guidance on it .

1. What are the prerequisites ?
2. What are the supporting documents i need to follow ?
3. Where do i start up with ?
4. Is there any manual that i can go through .

My problem is i can't spend much have interest in learning . After searching sites on Google , i found this is one such blog that atleast gave me an idea on what is Oracle Apps all about where as most of them i searched( may be im wrong in searching ) directly jumped in to technical part .

Hopefully you can give me some direction on where to start and what terminologies i need to know to work on it .


vinod said...

Hi Phani,

Thanks for providing the valuable information. Can you please provide the details to build a query i.e if i give any Business group name as input, i want to get how many ledgers, legal entities, operation units for that particular business group.

aparna john said...

Hi,In addition to a local sponsor, most of us will need to open a bank account with Business setup in Qatar as part of your company formation in Qatar.Thanks....

Sridevi Koduru said...

Sridevi Koduru (Senior Oracle Apps Trainer
LinkedIn profile -
Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, OAF, SQL, PL/SQL, D2K at | +91 - 9581017828.

Pratik Shekhar said...

I really appreciate information shared above. It’s of great help. If someone want to learn Online (Virtual) instructor lead live training in TECHNOLOGY , kindly contact us
MaxMunus Offer World Class Virtual Instructor-led training on TECHNOLOGY. We have industry expert trainer. We provide Training Material and Software Support. MaxMunus has successfully conducted 100000+ pieces of training in India, USA, UK, Australia, Switzerland, Qatar, Saudi Arabia, Bangladesh, Bahrain and UAE etc.
For Demo Contact us.
Pratik Shekhar
Ph:(0) +91 9066268701

suma Latha said...

Great Site, The Course were so simple and easy to understand. I would surely recommend it to others who are also looking to learn Oracle Course for Development.

Complete Multi Org Structure in Oracle Apps R12 Actual cost of this single course is Rs 3,200/- in Udemy. Use this Coupon Code "UMORG01" to get 78% Discount. Offer will expire soon Hurry-up Enroll now with this coupon code or click below link it will redirect to the page and it will apply the coupon code automatically.

Coupon UMORG01