# Organization Structure in Oracle EBS: Ledger, Legal Entity, Operating Unit, Inventory Org > Source: https://netray.co/erp-help/oracle-ebs-organization-structure-security-and-data-masking > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer Oracle EBS R12 organizes the enterprise as ledgers (accounting), legal entities (legal and tax), operating units (transactions for AP, AR, PO and OM) and inventory organizations (stock and manufacturing), usually under a business group for HR. Operating units are assigned to a ledger and a legal entity, and access is controlled through the MO security profile. Mask personal and financial data before copying production into test. ## Kind how-to ## System oracle-ebs ## Erp Oracle E-Business Suite R12 ## Module Organization Structure / Security / Data Masking ## Query organization structure in oracle ebs ## Alternate Queries - oracle ebs ledger legal entity operating unit inventory organization - oracle ebs security issue - oracle ebs data masking - oracle ebs multi org access control ## Applies To Oracle E-Business Suite R12.1 and R12.2. Names are the same in both; some setup screens differ slightly. ## Steps ### How to review and set up the structure **Items:** - Draw the hierarchy first: ledger, legal entities, operating units, and inventory organizations, with the business group on top for HR. - In Accounting Setup Manager, define the ledger, its chart of accounts, calendar and currency, then assign the legal entities and operating units to it. - Define legal entities in the Legal Entity Configurator and register their legal address and tax details. - Create operating units and link each to a ledger and a default legal entity; set up the HR organization classifications if required. - Create inventory organizations under the operating unit with an organization code, and set their parameters (costing, calendar, locators, lot and serial control). - Set MO: Operating Unit, MO: Security Profile and MO: Default Operating Unit at responsibility level so users see only the units they need. - Verify the setup with SQL on the organization views and with a test user in each responsibility. ## Sections ### What each level is for **Body:** The ledger is the accounting book: chart of accounts, calendar, currency and accounting method. The legal entity is the company that owns assets and files returns. The operating unit is the level at which payables, receivables, purchasing and order management transactions exist; most transaction tables carry an ORG_ID. The inventory organization is where stock, items and manufacturing live, and it belongs to an operating unit. Get the number of operating units right. Too many make reporting and approvals painful; too few make it hard to separate companies, currencies or tax regimes. A legal or tax boundary usually justifies a new operating unit, a location difference alone usually does not. ### Checking the structure with SQL **Body:** The views below show the common relationships. HR_OPERATING_UNITS lists operating units with their ledger and default legal context, and ORG_ORGANIZATION_DEFINITIONS lists inventory organizations with their operating unit. Check column names in your release before relying on them. Run these as a read-only user in a non-production instance first. **Code:** - SELECT organization_id, name, set_of_books_id, default_legal_context_id FROM hr_operating_units ORDER BY name; - SELECT organization_id, organization_code, organization_name, operating_unit, set_of_books_id, legal_entity FROM org_organization_definitions ORDER BY organization_code; ### Security issues to check **Body:** Most EBS security issues come from over-wide responsibilities, shared accounts, the APPS password known too widely, and operating unit access that exceeds a user's job. Review who holds system administrator, application developer and functional administrator responsibilities, and remove inactive users. Use MO security profiles to limit a responsibility to specific operating units. Review function and menu exclusions so users cannot reach screens they should not. Keep up with Oracle's critical patch updates and the Secure Configuration guidance on My Oracle Support for your release. ### Data masking for non-production **Body:** Copying production into test brings real employee, supplier, bank and customer data into less protected environments. Mask it after each clone: national identifiers on person records, bank account numbers on external bank account tables, contact emails and phones, and free-text notes. Oracle offers a data masking pack for EBS through Enterprise Manager; many sites instead run scripted updates after clone, plus disabling outbound email and integrations so that test systems never contact real people. Whatever you choose, test that the masked data still supports your test scenarios, and keep the script under version control. ## Pitfalls - Creating operating units for convenience instead of a legal, currency or tax boundary. - Leaving MO profile options unset so users see all operating units or none. - Cloning production to test without masking and without turning off outbound email. - Sharing the APPS password across teams and tools. - Changing the ledger or legal entity assignment after transactions exist. ## Ai Angle Understanding which operating unit a transaction belongs to, and whether a user can see it, is a common support question. An assistant grounded in your EBS metadata can explain the structure, list users with access to each operating unit, and show the SQL it used, read-only. Netray runs it on-prem beside EBS, so security and organization data do not leave your network. ## Faq ### What is the difference between a legal entity and an operating unit? **Answer:** A legal entity is the company that is legally accountable and files returns. An operating unit is the level at which sub-ledger transactions are processed. One legal entity can have several operating units, and each operating unit is tied to a ledger and a default legal entity. ### Where do inventory organizations fit? **Answer:** Inventory organizations sit under an operating unit and represent a warehouse, plant or similar site. They hold items, stock and manufacturing data, and carry their own parameters such as costing and calendar. ### How do I limit users to specific operating units? **Answer:** Use MO: Security Profile with a security profile defined for the operating units the responsibility may access, and set a default operating unit with MO: Default Operating Unit. Test with a real user in that responsibility. ### How should I mask EBS data in test? **Answer:** After each clone, run a controlled masking script or use Oracle's data masking tooling to replace national identifiers, bank details, emails and phone numbers, and disable outbound email and integrations. Keep the script versioned and verify with sample queries. ## Search terms organization structure in oracle ebs, oracle ebs operating unit, oracle ebs legal entity ledger, oracle ebs inventory organization, oracle ebs multi org, oracle ebs security issue, oracle ebs data masking, oracle ebs MO security profile --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json