Oracle Fusion Enterprise Struture

Overview:

Oracle Fusion Applications have been designed to ensure your enterprise can be modeled to meet legal and management objectives.

The decisions about your implementation of Oracle Fusion Applications are affected by your:

• Industry

• Business unit requirements for autonomy

• Business and accounting policies

• Business functions performed by business units and optionally, centralized 
   in shared service centers

• Locations of facilities

Every enterprise has three fundamental structures, legal, managerial, and functional, that are used to describe its operations and provide a basis for reporting. In Oracle Fusion, these structures are implemented using the chart of accounts and organizations. Although many alternative hierarchies can be implemented and used for reporting, you are likely to have one primary structure that organizes your business into divisions, business units, and departments aligned by your strategic objectives.

Different Structure:

1.       Legal Structure

2.       Management Structure

3.       Functional Structure

Business Process Model:

In Oracle Fusion Applications, the Enterprise Performance and Planning Business Process Model illustrates the major implementation tasks that you perform to create your enterprise structures.

This process model includes the Set Up Enterprise Structures business process, which consist of implementation activities that span many product families. Information Technology is a second Business Process Model which contains the Set Up Information Technology Management business process. Define Reference Data Sharing is one of the activities in this business process and is important in the implementation of the enterprise structures. 

This activity creates the mechanism to share reference data sets across multiple ledgers, business units, and warehouses, reducing the administrative burden and decreasing the time needed to implement. The following figure and chart describes the Business Process Model structures and activities.

Business Process Model Activities:

1.      Define Enterprise

2.      Define Enterprise Structures

3.      Define Legal Jurisdictions and Authorities

4.      Define Legal Entities

5.      Define Business Units

6.      Define Financial Reporting Structure

7.      Define Chart of Accounts

8.      Define Ledgers

9.      Define Accounting Configurations

10.  Define Facilities

11.  Define Reference Data Sharing

Organization Classifications:

Organization classifications define the purpose of the organization, whether it's a department, a division, or a legal entity. In some enterprises, organization classifications overlap, which means that the same organization can be assigned multiple classifications.

Organization With One Classification:

Define each organization in your enterprise as a separate organization with a single classification to reflect your enterprise structure and provide flexibility for growth and expansion. The advantage of setting up separate organizations is the ability to add further organizations to expand the enterprise easily.

Organization With Multiple Classifications:

Define an organization with multiple classifications if the organization has multiple purposes.

(For example, if you want to use an organization within the Oracle Fusion Customer Relationship Management applications as a department that employs sales people, you can classify it as a department and a sales organization. Or, if your enterprise operates and employs people in multiple countries, you can create a legal entity for each country using the Oracle Fusion Legal Entity Configurator and then use the Manage Departments task to classify them as a department as well.)

Configuration Workbench:

 The Oracle Fusion Enterprise Structures Configurator (ESC) is an interview based tool to help you analyze how to represent your business in the Oracle Fusion Applications. The interview process poses questions about the name of your enterprise, legal structure, management reporting structure, and primary organizing principle for your business. Based on your answers, the applications suggest the best practices to use to implement business units in your enterprise.

You can use or modify these answers to ensure that both your reporting and administrative goals are met in your Oracle Fusion deployment.

Global Enterprise Configuration:

Start your global enterprise structure configuration by discussing what your organization's reporting needs are and how to represent those needs in the Oracle Fusion Applications. Consider deployment on a single instance, or at east, on as few instances as possible, to simplify reporting and consolidations for your global enterprises.

The following are some questions and points to consider as you design your global enterprise structure in Oracle Fusion

• Enterprise Configuration

• Business Unit Management

• Security Structure

• Compliance Requirements

Thanks & Regards,

S.Grace Paul Regan