Multi Org Structure in R12: An Overview

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.