Organization Structure in Oracle EBS: Ledger, Legal Entity, Operating Unit, Inventory Org

How to review and set up the structure

1. 1Draw the hierarchy first: ledger, legal entities, operating units, and inventory organizations, with the business group on top for HR.
2. 2In Accounting Setup Manager, define the ledger, its chart of accounts, calendar and currency, then assign the legal entities and operating units to it.
3. 3Define legal entities in the Legal Entity Configurator and register their legal address and tax details.
4. 4Create operating units and link each to a ledger and a default legal entity; set up the HR organization classifications if required.
5. 5Create inventory organizations under the operating unit with an organization code, and set their parameters (costing, calendar, locators, lot and serial control).
6. 6Set MO: Operating Unit, MO: Security Profile and MO: Default Operating Unit at responsibility level so users see only the units they need.
7. 7Verify the setup with SQL on the organization views and with a test user in each responsibility.

Checking the structure with SQL

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;

Data masking for non-production

Common 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.