Multi Org Structure?

First, we should understand multiple organizations. We have multiple organizations as:

 Business Groups - The largest grouping of employees across which you may report.
 Legal Entities - An Organization Unit that is registered with the legal governmental authorities.
 Ledgers - Accounting records of your business's financial transactions over time.
 Operating Unit - An organization that is used to divide the control of economic resources and operational processes.
 Inventory Organizations - The facility to store and transact an item.
So, when an enterprise or a business wants to implement multiple organizations using ERP or any other application is called
Multi Org Structure.

ERP: Enterprise Resource Planning (Oracle application)

Type of software that organizations use to manage day-to-day business activities such as accounting, project management,
and supply chain operations. It has a Human Resource navigation hierarchy for multi org setup.

Example:

Here we can see multi org structure for Office Smart. It has 2 business groups, 3 legal entities, 3 ledgers, 3 operating units and
5 inventory organizations.

Business group: - It can be in the same country or different.

1. US – has 2 legal entities.
2. India – has 1 legal entity.
Legal entities: - Every legal entity has its own ledger and operating unit.
1. US – has 1 ledger and 1 operating unit.
2. India – has 1 ledger and 1 operating unit.
3. Canada - has 1 ledger and 1 operating unit.
Operating unit: - it has one or more inventory at different locations for the same operating unit.
1. US – has 2 inventories.
2. India – has 2 inventories.
3. Canada - has 1 inventory.
Inventory: - An inventory can be classified into sub-inventories, and sub-inventories can be further classified into locators.
There can be sub-inventories in different locations for the same operating unit.