Multi-organization, legal entity, and ou)

Generally, if a company has multiple subsidiaries, the company is Le (legal representative) and the subsidiary is balancing entity (balance segment), which is also a profit center. Define the legal entity (LE) at the place where the organization is set, specify the account book, set the subsidiary to the business entity (OU), and specify the legal entity, set a balance segment value for each subsidiary when defining COA. The legal entity itself can be a balancing segment.

The General Department is only used as a cost center for finance. A subsidiary can be set as an ou. Each subsidiary has a company segment and the inventory organization corresponding to the workshop and warehouse.

The following are the technical terms mentioned. The specific explanations are as follows:
Set of books Financial reporting entities that use specific accounting subject (COA), ledger currency, and calendar. If there is a difference between the three elements, different sets of books must be created. Oracle general ledger sets security control for Business Information (journal entries and balances) by set of books.
Organization Any entity defined by the "define organization" window is called "Organization". "Organization" has different categories, and the classification of the organization determines the type and purpose of the organization. Organization types include business group, legal entity, operating unit, inventory organization, and HR organization ). An organization can be specified as a multi-category organization. For example, an organization may be a legal person organization, but also a business unit, inventory organization, and asset organization.
Business Group The business group represents the highest level of the structure, such as the merger of an enterprise or the highest department of the company. The current business group has no other purpose except for isolating personnel information. Only the employees of the business group to which the accounting unit belongs can be viewed in any module. Multiple legal entities can be specified to the same business group.
Legal Entity Representative of the legal representative company that wants to submit financial and tax reports. Specify the tax registration number and other legal person information to this type of organization, the legal person organization should specify its accounting set.
Business Unit Use an independent accounting entity for Oracle receivables, Oracle payables, Oracle sales, Oracle procurement, Oracle cash management, and Oracle project accounting modules. Any organization with independent accounting is the "Business Unit" of the specified legal entity ". In the above modules, business information is set to security by "Business Unit", and some information is shared.
Inventory Organization Use Inventory organization to track inventory business and balance, and/or manufacturer to distribute goods. Oracle inventory, Oracle bill of materials, Oracle process design, Oracle product, Oracle Master Production Plan/MRP, Oracle capability, Oracle quality, Oracle cost management, Oracle Supply Chain plan, and Oracle procurement (receiving function) security Control is set up according to the inventory organization. An inventory organization can specify any business unit under the same set of books. The relationship between an inventory organization and a set of books is limited to financial accounting purposes, the inventory organization determines the materials available to the sales and procurement modules (items ).
Personnel Organization Personnel Organizations are only used in the Oracle HR and Oracle project accounting modules. They have no impact on the financial and manufacturing modules, so that they can adapt to complicated organizational structures and simplify the organizational structure of business operations.

The three elements of a set of books are the flexible domain structure, currency, and calendar of accounting subjects. If multiple legal entities have the same structure, then multiple legal entities can share one set of books. A business group is an organizational structure of Oracle multi-organization architecture. By default, the Oracle system has a business group: Setup business group. Generally, you only need to apply this default business group. For multinational corporations, for example, if IBM China and IBM Hong Kong want to share a system, they need to set up two business groups: IBM China Business Group and IBM Hong Kong business group. I understand that a legal person is an entity that needs to independently publish financial reports to the public. For example, if a listed company is a subsidiary of a listed company, or even a branch company, it can be set as a business unit.