As salamo alaikum wa rahmatullah
Oracle Applications uses multiple types of organizations to
build the business
execution structure. At the top of the structure is the
accounting set of books
SOB), defined in the General Ledger. Next, different types
of organizations are
used to further define the organization structure and
relationships. All organizations are defined and updated with the Define
Organization form.
Set of Books: A
General Ledger SOB, linked to the inventory organization,
controls the financial accounting of inventory transactions.
A SOB is made up
of a chart of accounts, a financial calendar, and a
currency.
The general ledger secures transactions (journal entries, balances) by
SOB.
Legal Entity. A
legal entity organization defines the tax and fiscal reporting
level. The legal entity represents the legal company.
Operating Unit:
An operating unit organization defines the Purchasing, Order
Entry, Accounts Payable and Accounts Receivable level of
operation. An operating unit may span multiple manufacturing facilities,
distribution points and sales offices, or it may be limited to a single site.
Inventory
Organization: Two flavors of inventory organizations are found in
Oracle Applications. They are defined the same, and both are
assigned a set
of books, a legal entity organization, an operating unit
organization, and a
location. An item master organization is used for item
number maintenance and
validation. This master organization serves as a data
repository storing items
and item attributes, master level categories and category
sets, master level
cross references, and numerous data defaults. On-hand
balances, inventory
movements, and other on-going inventory activities are not
performed in an item master organization. Generally, the master organization is
used as the
validation organization for Purchasing and Order Entry. It
is recommended
that a single item master organization be defined, even in
multiple organization,
multiple sets of books environments.
In addition to the item master organization there are one or
more non-master
inventory organizations. Like the item master inventory
organization, the
non-master organizations are assigned a set of books, a
legal entity organization and an operating unit organization. The non-master inventory
organization points to a master organization and looks to the master
organization for master level item attributes, master level categories, and other master
level controlled data.
Note that each organization has its own set of books/legal
entity/operating unit
relationship, so inventory organizations with differing
SOB’s or operating units
may share the same master organization.
These non-master inventory organizations are the execution
level organizations.
They hold on-hand balances and transaction history. Here is
where inventory
users execute their daily activities, such as receiving and
issuing material,
performing cycle counts, and viewing material availability
and transaction
history. A single organization therefore generally
represents a single
manufacturing site or distribution center.
Locations: A
location code is an address. Each inventory organization must
be assigned at least one location code.
Subinventories: A
subinventory is used as a holding point for on-hand
inventory and generally represents a stockroom, stocking
area or cage used
for storing material. Subinventories are defined within
inventory
organizations. An inventory organization may have any number
of
sub inventories, and an asset account is assigned to each sub inventory.
Since the subinventory entity is logical, as there is not an
address or
physical location description associated with it, clients
may define
sub inventories for any physical or logical grouping of
inventory
Stock Locators:
Stock locators are an optional entity that may be used to
represent physical locations within a subinventory. You may
choose to use
stock locators for selected subinventories or selected items
within selected
subinventories. If locators are used, subinventory and
locator track on-hand
balances. Therefore, if locators are defined to represent a
shelf within a
stockroom, on-hand balances on the system would show the
item and quantity
down to the physical location within the facility.
Oracle Inventory uses a key flexfield for stock locators.
This presents a few
limitations for its use. Only one locator flexfield
definition is allowed per
install. Therefore, if the stockroom (subinventory) wants to
track material
by row, bin and shelf, it will likely define a three-segment
flexfield with
segments for row, bin, and shelf. If locators are desired
for another
sub inventory, even in another organization, the structure
will again be 3
segments for row, bin and shelf. In addition to this limitation,
locators
must be unique within an organization; you cannot use the
same locator in
different sub inventories within an organization, but you can
use the same locator in sub inventories in a different organization.
--
Ma Asalaam
Passion 4 Oracle
