Multi Org Structure

Multi Org Structure

What is a Multi Org Structure?

If an enterprise or a business wants to implement multiple organizations such as multiple Ledgers (Sets of Books), or Legal Entities, or Business Groups within a single installation of Oracle Applications, then we can summarize that the enterprise is planning to implement a multi org setup.

How About a Close to Real Life Case Study?

Before we dive into this topic, let us draw a multi org structure on a whiteboard. It would help to analyze a real picture, as we pick at the concepts that go into designing a multi org structure.

The above is the organization structure for Office Smart Solutions, which is a major office supplies retailer, headquartered in Naperville, Illinois, USA. The organization operates in three countries – the US, Canada and India.

Office Smart has an organization structure with the following:

  • 2 Business Groups – one in the US, which controls the organization structure in North America, and one in India
  • 3 Legal Entities – one in the US, one in Canada, and one in India
  • 3 Primary Ledgers – one in the US, one in Canada, and one in India
  • 3 Operating Units – one in the US, one in Canada, and one in India
  • 5 Inventory organizations – two in the US, one in Canada, and two in India

Subinventories and locators exist beneath the inventory organizations, but they are not relevant for the session on multi org structures