Organization Structure In Oracle Apps

,
Set Of Books

L L
E E

O OU O OU
U U

INV IN INV INV INV IN INV INV

V V
SI SI SI SI

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L L
SOB :- SET OF BOOKS
A set of books (SOB) is a financial reporting entity that shares the
three Cs: a particular chart of accounts (accounting flex-field
structure), functional currency, and financial accounting calendar.
The SOB concept is similar in a Multi-Org environment. General
Ledger secures transaction information (journal entries, balances) by
set of books. When you use General Ledger, you choose a
responsibility that specifies a set of books. You then see information
only for that set of books.
You create sets of books using the Set of Books window in General
Ledger. You define all other types of organizations using the
Organizations window.

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LE:- Legal Entity

A legal entity represents a legal company for which you prepare

fiscal or tax reports. You assign tax identifiers and other legal entity
information to these types of organizations. Future enhancements
will include greater functionality at this organization level.
Each organization classified as a Legal Entity must specify a Set of
Books to post accounting transactions. A Legal Entity can point to
one and only one Set of Books.

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OU:- Operating Unit

An operating unit represents an organization that uses any Oracle sub-ledger

application, for example, Order Management, Payables. It may be a sales office, a
division, or a department. An operating unit is associated with a legal entity.
Information is secured by operating unit for these applications. Each user sees
information only for their operating unit. Responsibilities are linked to a specific
operating unit by the MO: Operating Unit profile option.
Each organization that you classify as an Operating Unit must reference a legal
entity. An Operating Unit can point to one and only one Legal Entity.

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INV / IO - Inventory Organization
An inventory organization represents an organization for which you track
inventory transactions and balances, and manufactures or distributes products.
Examples include manufacturing plants, warehouses, distribution centers, and
sales offices. The following products and functions secure information by
inventory organization: Inventory, Bills of Material, Engineering, Work in Process,
Master Scheduling/MRP, Capacity, and purchasing receiving functions. To run any
of these products or functions, you must choose an organization that is classified
as an inventory organization.
Each organization that you classify as an Inventory Organization must reference
an operating unit. An Inventory Organization points to one and only one Operating
Unit, but through standard functionality can be referenced by any Operating Unit
having the same Set of Books as the attached Operating Unit. Items are defined in
the master inventory organization (master parts list) and added to the appropriate
child inventory organizations. Any inventory transactions are then secured by
operating unit.

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SI :- Sub-Inventories
Sub-Inventories are further classification of Inventory Orgs for the purpose of
tracking stored material.

SL :-Stock Locators
Stock Locators are the further classification of Sub-Inventories which track the
material stored at Rack, Row & Bin Level.

Location :-
Location is the physical postal address of organizations such as LE, OU and
Inventory org.

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