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June 22, 2015

6/22/2015 12:37:00 AM
Multiple Organizations in Oracle Applications 11i
(Multi-org Feature)

Questions


1)       List the multi-org features supported by Oracle Applications 11i
2)       Mention the roles / types / hierarchy of organization in Oracle Apps : Multi-org.
3)       What is business group ?
4)       What is Set of books ?
5)       What is Legal entity ?
6)       What is Balancing entity ?
7)       What is Operating Unit ?
8)       What is Inventory Organization ?
9)       How many operating units can be attached to a legal entity ?
10)   What is the relationship between legal entity and balancing entity?
11)   How many inventory organizations can be attached to an operating unit ?
12)   List the organization(s) required for defining an Inventory organization ?
13)   Can we call a manufacturing plant as operating unit  & Inventory organization ? When ?
14)   The Database architecture is same for multi-org and Non-multi-org installation. (TRUE/FALSE)
15)   What is the name of RDBMS global variable used from 10.7 version onwards w.r.t multi-org ?
16)   What is the significance of the RDBMS global variable used w.r.t multi-org ?
17)   Data partitioning in Oracle Apps database is physical : ( TRUE/FALSE )
18)   Data partitioning is performed using database views. : ( TRUE/FALSE )
19)   List the applications partitioned and the entities used for partitioning ?
20)   All the applications in Oracle Applications are secured w.r.t data access.                ( TRUE/FALSE )
21)   ‘Accounts Payable’ Module is partitioned using Set of Books. (TRUE/FALSE)
22)   ‘Order Entry’ module is partitioned using Inventory Organization ( TRUE/FALSE)
23)   List the items required for creating Set Of Books (SOB) ?
24)   What is significance of the profile option ‘MO : Operating Unit’ ?
25)   Name the utility used in ‘auto install’ to define/convert to multi-org feature ?
26)   What is seed data ?
27)   What is seed data replication ?
28)   How seed data is replicated ?
29)   Mention the events triggering seed data replication ?
30)   List the operating modes of seed data replication w.r.t multi-org feature ?
31)   What is the significance of ‘OE : Item validation organization’ ?
32)   What is the significance of ‘OE : Set of Books’ ?
33)   What is the significance of ‘MO : Top Reporting Level’ ?
34)   List the parameters added to the reports that are enabled for multiple organizations reporting ? Specify the purpose of these parameters.
35)   What is the significance of  conflict domain w.r.t multi-org feature ?
36)   List the applications/modules to be set-up at the enterprise level ?
37)   List the applications/modules to be set-up at the operating unit level ?
38)   Is there is any way to check the parameters/profiles configured in a multi-org set-up ? If yes how it can be checked ?
39)   What are the contents or aspects checked by the multi-org validation report ?
40)   What are the limitations in Oracle Applications 11i - multi-org features ?


Case Study

XYZ company has three manufacturing plants at Chennai, New Delhi and Pune. It has sales offices at Bangalore, Calcutta, Chennai, Mumbai, New Delhi and Lucknow. It has warehouses at Bhopal, Cochin, Hyderabad, Mysore and Jaipur.

The company’s headquarters is Chennai.

XYZ has two businesses ;
·         Manufacturing & selling plastic furniture and
·         Plastic products for Industrial applications

XYZ needs to report profit/loss for each business. It’s manufacturing plants at Delhi and Chennai are dedicated to plastic furniture. Pune plant has two divisions: The first division takes care of design, manufacture and maintenance of  the tooling such as mold for Delhi and Chennai plants. Second division produces Industrial Products on a make to order basis.

41)   How many set of books are to be created to meet the reporting needs of XYZ ?
42)   How many segments are to be defined in the Chart of Accounts for the above scenario and identify each segment with an entity ?
43)   List the legal and balancing entities in the above case study ?
44)   Identify the Operating units and Inventory Organizations in the above case study to configure multi-org set-up.
45)   List the locations that will have multiple roles ?



Multiple Organizations in Oracle Applications 11i
(Multi-org Feature)

Questions & Answers


1)       List the multi-org features supported by Oracle Applications 11i

Multiple organizations using different SOBs in a single installation.
Secure access to data, Users can see data relevant to their orgn.
Sell & ship products from different legal entities.
Purchase & receive products from different organizations.

2)       Mention the roles / types / hierarchy of organization in Oracle Apps : Multi-org.

Business group
Set of Books
Legal Entity
Balancing Entity
Operating Unit
Inventory Organization

In HRMS
Internal
External

3)       What is business group ?
It is the consolidated enterprise. It represents the highest level.

4)       What is Set of books ?
It is the Financial Reporting Entity.

5)       What is Legal entity ?
It is an entity for which fiscal or tax reports are prepared.

6)       What is Balancing entity ?
It is an entity for which financial statements are prepared. It can be a part of a legal entity.
It is identified by a separate segment in the accounting flexfield.

7)       What is Operating Unit ?
It is an entity representing a sales office or division.

8)       What is Inventory Organization ?
It is an entity representing a manufacturing plant or a ware house.

9)       How many operating units can be attached to a legal entity ?
There is no limit and this can be used depending on the reporting requirements.


10)   What is the relationship between legal entity and balancing entity?
One to many.
One legal entity can have many balancing entities.

11)   How many inventory organizations can be attached to an operating unit ?
There is no limit.

12)   List the organization(s) required for defining an Inventory organization ?
Set of books, Legal entity and Operating Unit.

13)   Can we call a manufacturing plant as operating unit  & Inventory organization ? When ?
Yes, when a location plays both manufacturing and selling.

14)   The Database architecture is same for multi-org and Non-multi-org installation.
(TRUE/FALSE)

TRUE


15)   What is the name of RDBMS global variable used from 10.7 version onwards w.r.t multi-org ?

CLIENT_INFO

16)   What is the significance of the RDBMS global variable used w.r.t multi-org ?
A global variable ‘Client_info’ exist, which is 64 bytes long.  The first 10 bytes store
The org_id ( Operating Unit ID ). Organization context is derived using this.

17)   Data partitioning in Oracle Apps database is physical : ( TRUE/FALSE )

 

FALSE

Logical partitioning.

18)   Data partitioning is performed using database views. : ( TRUE/FALSE )

TRUE.

19)   List the applications partitioned and the entities used for partitioning ?

Application                    Partitioned by                Secured (Y/N)

GL                                SOB                             Y
Fixed Assets                 Corp Book                     N
HR                               Business group              Y
OM / AR / PO / AP        Operating unit                Y
      Inventory                       Inventory organization    Y

20)   All the applications in Oracle Applications are secured w.r.t data access.( TRUE/FALSE )

FALSE


21)   ‘Accounts Payable’ Module is partitioned using Set of Books. (TRUE/FALSE)

FALSE.
It is partitioned using operating unit.

22)   ‘Order Entry’ module is partitioned using Inventory Organization ( TRUE/FALSE)

FALSE.
It is partitioned using operating unit.

23)   List the items required for creating Set Of Books (SOB) ?
Its created for a combination of  3 Cs
Functional Currency, Accounting Calendar, Chart of Accounts.
It needs to be attached to a business group.

24)   What is significance of the profile option ‘MO : Operating Unit’ ?

Operating unit context is set through this profile option.
For a fresh installation, any operating unit can be specified as default.
For an existing installation(while upgrading to multi-org mode), assign an operating unit to which all existing data should belong.

25)   Name the utility used in ‘auto install’ to define/convert to multi-org feature ?

‘Adadmin’.

26)   What is seed data ?
It is the base data supplied by Oracle Corporation as a default value and in certain situations can be modified.

27)   What is seed data replication ?
An enterprise structure consisting of multiple organization requires the ability to replicate seed data to multiple operating units. The Multiple Organization Support feature provides a program that performs this function.

28)   How seed data is replicated ?
It is automatically triggered as a concurrent program on the occurrence of certain pre-defined events.

29)   Mention the events triggering seed data replication ?
An install or upgrade is received.
The auto-install  adadmin option, convert to multi-org architecture is selected.
Replicate seed data program is submitted thro submit request window.

30)   List the operating modes of seed data replication w.r.t multi-org feature ?

Single organization : Replicates seed data for one organization
All organizations : Replicates seed data for all organization



31)   What is the significance of ‘OE : Item validation organization’ ?
‘Order management’  module use this profile option to determine the inventory organization.

32)   What is the significance of ‘OE : Set of Books’ ?
The set of books used by the Order management module set at the responsibility level.

33)   What is the significance of ‘MO : Top Reporting Level’ ?
This profile option determines the level in which the users can report.
Available options are SOB, Legal entity and operating unit.

34)   List the parameters added to the reports that are enabled for multiple organizations reporting ? Specify the purpose of these parameters.
Reporting level  :  Allows users to select the level in which they want to report.
Reporting context : Allows the users to choose an entity within the reporting level they have selected.

35)   What is the significance of  conflict domain w.r.t multi-org feature ?
A conflict domain is the abstract representation of the groupings used to partition your data. All concurrent programs are assigned to a conflict domain when they are submitted.
2 incompatible concurrent programs can’t run simultaneously on the same conflict domain.
2 incompatible concurrent programs may run simultaneously if they are submitted in different conflict domains.
To maximize concurrency in a multi-org environment, you can set-up conflict domains for your operating units.

36)   List the applications/modules to be set-up at the enterprise level ?
Product                                                             Level                Set-up frequency
GL,  Assets, Inventory & mfg modules                Enterprise         Only once
Flex Field defn, Customer & supplier hdr             Enterprise         Only once

37)   List the applications/modules to be set-up at the operating unit level ?

Product                                                             Level                Set-up frequency
Order Management, Accounts Receivables          Operating unit    For every operating unit
Purchase, Accounts Payables               

38)   Is there is any way to check the parameters/profiles configured in a multi-org set-up ? If yes how it can be checked ?
Yes.
By running multi-org validation report.

39)   What are the contents or aspects checked by the multi-org validation report ?

Report Sections
The report consists of the following sections:
§  Active Responsibilities
§  Customers with Operating Unit Specific Attributes
§  Suppliers with Operating Unit Specific Attributes
§  Profile Option Errors and Warnings

Active Responsibilities Only
The report prints the value of the Active Responsibility Only parameter you specified in the first page of the report.

Customers with Operating Unit Specific Attributes
This section of the report indicates that you have data defined at the customer level that is allowed only at the customer site level. This generally occurs when you convert to Multiple organization support from a non–Multiple Organization implementation. The report indicates if any data has been entered at the customer level in the following fields by printing an asterisk (*) in the column for a particular customer:

§  Salesperson (report data appears under the Primary Salesrep column)
§  Order Type
§  Dunning Site
§  Statement Site
§  Tax Code
§  Carrier (report data appears under the Ship Via column)

The report warns you that this data exists in the database. If you choose Yes for the correct Customer Attributes report parameter, the report deletes the operating unit–specific data from the customer records.

Suppliers with Operating Unit Specific Attributes
This section of the report indicates that you have data defined at the supplier level that is allowed only at the supplier site level. This generally occurs when you convert to Multiple Organization support from a non–Multiple Organization implementation. The report
indicates if any data has been entered at the supplier level in the following fields by printing an asterisk (*) in the column for a particular supplier:
§  Liability Account
§  Prepayment Account
§  Distribution Set
§  Statement Site
§  Invoice Tax Name
§  Offset Tax Name
The report warns you that this data exists in the database. If you choose Yes for the Correct Supplier Attributes report parameter, the report deletes the operating unit specific data from the customer records.

Profile Option Errors and Warnings
This section provides information on profile options that may be invalid. All profile option values in question are listed for your review. You need to correct the profile options manually. The report may list any combination of the following violations:

Not all responsibilities in current operating unit have the same option value
All responsibilities in one operating unit must share the same values for
the following profile options:
§  HR: Business Group
§  OM: Item Validation Organization
§  Tax: Allow Override of Tax Code
§  Tax: Invoice Freight as Revenue
§  Tax: Inventory Item for Freight
The Validation Report indicates a violation for the operating units with inconsistent profile option values and lists the values, which are set at the responsibility level, or are defaulted from the site or application level.

Inventory organization references a different set of books
For accounting purposes, you should ensure that an operating unit and the item validation organization that you choose for it share the same set of books. The Validation Report indicates any violations if an operating unit and item validation organization do not share the same set of books.

Inventory organization references a different operating unit
The OM: Item Validation Organization must be an inventory organization that references t   the operating unit defined in the MO:Operating Unit profile option.

Option is not set to correct value
The INV: Intercompany Currency Conversion profile option must be the same for the  responsibilities involved in intercompany transactions. The system predefines a value of Corporate for this profile at the site level. The Multi–Org Setup Validation Report indicates a violation for the operating units if the value is overridden at the site or application levels.

Sequential Numbering option differs among responsibilities
All responsibilities in one operating unit must share the same sequence numbering option. The Multi–Org Setup Validation Report indicates a violation for the operating units with inconsistent profile option values and lists the values, which are set at the responsibility level, or which are defaulted from the site or application level.

40)   What are the limitations in Oracle Applications 11i - multi-org features ?

Combinations of  Centralization / Decentralization not supported
·         Centralized Payables with decentralized purchasing.
·         Centralized purchasing with decentralized payables.
·         Centralized AR with decentralized OE
·         Centralized disbursement with decentralized vouchering

Case Study

XYZ company has three manufacturing plants at Chennai, New Delhi and Pune. It has sales offices at Bangalore, Calcutta, Chennai, Mumbai, New Delhi and Lucknow. It has warehouses at Bhopal, Cochin, Hyderabad, Mysore and Jaipur.

The company’s headquarters is Chennai.

XYZ has two businesses ;
·         Manufacturing & selling plastic furniture and
·         Plastic products for Industrial applications

XYZ needs to report profit/loss for each business. It’s manufacturing plants at Delhi and Chennai are dedicated to plastic furniture. Pune plant has two divisions: The first division takes care of design, manufacture and maintenance of  the tooling such as mold for Delhi and Chennai plants. Second division produces Industrial Products on a make to order basis.

41)   How many set of books are to be created to meet the reporting needs of XYZ ?
Only one set of books needs to be created when the functional currency, accounting calendar &  chart of accounts are same for both the businesses. However chart of accounts should have a separate segment to identify the business.

42)   How many segments are to be defined in the Chart of Accounts for the above scenario and identify each segment with an entity ?

Segment           Entity
1                      Balancing segment ( Business identity)
2                      Department
3                      Account code
4                      Sub-account code

43)   List the legal and balancing entities in the above case study ?

Balancing entities represent business divisions
·         Manufacturing & selling plastic furniture and
·         Plastic products for Industrial applications

Legal entity is only one.

44)   Identify the Operating units and Inventory Organizations in the above case study to configure multi-org set-up.

Location            Operating Unit               Inventory organization
     
Chennai                        ##                                ##
      New Delhi                     ##                                ##
      Pune                                                                 ##
      Bangalore                      ##
      Calcutta                        ##
      Mumbai                         ##
      Lucknow                       ##
      Bhopal                                                              ##
      Cochin                                                              ##
      Hyderabad                                                        ##
      Mysore                                                             ##
      Jaipur                                                               ##

45)   List the locations that will have multiple roles ?

Location            Operating Unit               Inventory organization
      Chennai                        ##                                ##

      New Delhi                     ##                                ##