What is Enterprise Structure?
Have a Good Construction Plan
Good to know: Doing questionnaires and interviews with customers can help to outline a good construction plan and provide a bird's-eye view of the project scope.
You've probably heard something about the construction process, and you're aware that it begins long before the foundation is poured. When a good plan is developed and an honest, competent builder is found, the construction process is most efficient and exciting.
In general, you will be the constructor when working with Cloud ERP, and you will need to know which construction plan must be used for each business scenario. How many rooms will you require in your home? Four bedrooms, three bathrooms, and one kitchen, or an open concept with a large cinema room.
The goal of Enterprise Structure is to define the construction plan for Cloud ERP modules such as Financials, Procurement, and Supply Chain.
Basic Concepts about Enterprise Structure
Good to know: Before you define your Enterprise Structure, take a look at these resources:
-MOS: Cloud ERP Enterprise Structures White Paper (Doc ID 2415848.1)
-MyLearn (Oracle): Onboarding and Planning Essentials for Oracle Cloud Applications
-Cloud ERP Documentation - https://docs.oracle.com
https://docs.oracle.com/en/cloud/saas/financials/23b/faigl/index.html
Draft Enterprise Structure & Module Effects
This is a basic example of an enterprise structure in Cloud ERP. Let us first define each of these groups.
Legislative Data Groups
Is a type of umbrella organization that houses a number of legal entities. Using the LDG - Legislative Data Groups configuration feature, you could partition your Enterprise by country. HCM and employee purposes.
Division
Are optional and may be represented by a profit center or a grouping of profit and cost centers. For reporting purposes.
Primary Ledger
A primary ledger is the primary record-keeping ledger that records transactional balances by utilizing a chart of accounts with a consistent calendar and currency, as well as accounting rules implemented in an accounting method.
Secondary Ledger
A secondary ledger is an optional ledger that is linked to a primary ledger to track alternative accounting.
Reporting Currency
Reporting currencies Maintain and report accounting transactions in additional currencies.
Legal Entity
Are distinct business units that are defined by the legal framework in which they operate.
Legal Reporting Unit
Are an extension of Legal Entities, specifically designed for legal and regulatory reporting purposes. They play a critical role in ensuring accuracy and compliance in legal reporting, enabling the company to maintain specific and detailed records, which are essential for meeting governmental standards and ensuring full compliance.
Business Unit
Financial transactions are also processed in business units, so they are required. Although each business unit can only post transactions to one primary ledger, it can process transactions for multiple legal entities.
Item Organization
Item organizations only contain item definitions. When inventory storage or movement does not need to be physically or financially tracked, use item organizations in implementations.
Inventory Organization
An organizational structure that necessitates business units and legal entities. Inventory quantities are controlled using this method.
Cost Organization
Cost organizations are used in Oracle Fusion Costing to define cost accounting policies, data defaults, and user security policies.
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