5 enterprise structures

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Enterprise Structures
Oracle Fusion
Human Capital Management

Concepts
 Enterprise
 Division
 Legal Entity
 Business Unit
 Department

Enterprise
 Captures the name of the deploying enterprise and
the location of the headquarters
 Three Fundamental structures - legal, managerial,
and functional
 Legal structure implemented using legal entities
 Management / Business structure implemented using
divisions and business units
 Functional structure is implemented using
departments and organizations
 Enterprise is mandatory and serves as an umbrella for the
entire implementation and all organizations are created
within an enterprise

Enterprise Structures – Business Axis
Division
 Segregate multiple businesses by their strategic objectives and measure their results
 Companies may choose to represent product lines, brands, or geographies as their divisions
 Division manager typically reports to a top corporate executive
 Fusion Applications supports a qualified management segment and recommends that you use this segment to represent
your hierarchy of business units and divisions
 If managers of divisions have return on investment goals, make the management segment a balancing segment
 Used in HCM to define the management organization hierarchy, using the generic organization hierarchy
 This hierarchy can be used to create organization based security profiles
 Divisions are optional and can be represented with a hierarchy of cost centers or by a second balancing segment value

Enterprise Structures – Business Axis
Business Unit
 Unit of an enterprise that performs one or many business functions that can be rolled up in a management hierarchy
 Normally, it will have a manager, strategic objectives, a level of autonomy, and responsibility for its profit and loss
 Use business units in the following ways:
Management reporting
Processing of transactions
Security of transactional data
Reference data definition and sharing
 Perform one or many business functions like Payables invoicing, Payables payments, Procurement, Sales, Marketing etc
 Business function logically indicates a presence of a department in the business unit with people performing tasks associated with
these business functions
 Optionally, you can define a hierarchy of divisions, business units, and departments as a tree over HCM organization units to
represent your enterprise structure
 When a business function produces financial transactions, a business unit must be assigned to a primary ledger, and a default legal
entity
 A business unit can process transactions on behalf of many legal entities

Enterprise Structures – Legal Axis
Legal Entity
 Define a legal entity for each registered company or other entity recognized in law for which you want to record assets, liabilities,
expenses and income, pay transaction taxes, or perform intercompany trading
 Required to publish specific and periodic disclosures of your legal entities‘ operations based on different jurisdictions' requirements
 Your legal entities can be identified as legal employers and therefore, are available for use in Human Capital Management (HCM)
applications
 Frequently, a business unit is part of a single legal entity.
 Division is an area of management responsibility that can correspond to a collection of legal entities. Divisions and legal entities are
independent concepts
 Legislative data groups are a means of partitioning payroll and related data. At least one legislative data group is required for each
country where the enterprise operates. Each legislative data group is associated with one or more payroll statutory units.
 Legal entities are mandatory

Enterprise Structures – Functional Axis
Department
 Department is an organization with one or more operational objectives or responsibilities that exist independently of
its manager
 Has one or more workers assigned to it
 Departments are mandatory because they track your employees

Reference Data Sets – Example
Fusion Insurance USA
Jobs: Insurance Rep, Senior Insurance Rep
Grade: FUSIONGRD
Locations: California, Texas
Fusion Insurance UK
Grade: FUSIONGRD
Locations: London, Liverpool
Fusion Bank UK
Jobs: Attendant, Cashier
Grade: FUSIONGRD

Reference Data Sets – Example
Fusion Insurance USA
Grade: FUSIONGRD
Locations: California, Texas
Fusion Insurance UK
Grade: FUSIONGRD
Fusion Bank UK
Jobs: Attendant, Cashier
Grade: FUSIONGRD
Insurance Job Set
Insurance Rep
Senior Insurance Rep
Banking Job Set
Attendant
Cashier
Common Set
FUSIONGRD
US Location Set
California
Texas
UK Location Set
London
Liverpool

Reference Data Sets – Common Set
The Common Set is a predefined set that enables you to share reference data across business units.

Reference Data Sets
 Oracle Fusion Applications reference data sharing feature is also known as SetID
 The reference data sharing features use reference data sets to which reference data is assigned
 Can be understood as buckets of reference data assigned to multiple business units or other application components.
 You begin by creating and assigning reference data to sets
 You will then assign the reference data set to one of more business units
 You can assign a separate set to each business unit for the type of object that is being shared
 For example, assign separate sets for payment terms, transaction types, and sales methods to your business units.
 Make changes carefully as changes to a particular set will affect all business units or application components using that set..
 The reference data sharing functionality supports operations in business units thereby reducing the administrative burden and
decreasing the time needed to implement new business units.

Reference Data Sets - Data Objects shared across BUs
Grades Lockbox
Jobs Memo Lines
Locations Payment Terms
Departments Remit To Address
Customer Account Relationship Revenue Contingencies
Customer Account Site Transaction Source
Sales Person Transaction Type
Sales Method Group Collections Setups
Assessment Templates Dunning Plans
Contract Types Tax Classification Codes
Sales Method Performance Templates
Activity Templates Project and Contract Billing
Payment Terms Project Accounting Definition
Accounting Rules Project Rates
Aging Buckets Hold Codes
Auto Cash Rules Orchestration Process
Collectors

What’s Changed?
SetID to allow reference data
sharing
Explicit Shared Service Center
Definition and ability to view
service providers and clients
Explicitly define the Legal Entities
(instead of GL BU)
Explicit Shared Service Center
Definition
A Business Unit performs many
business functions
Operating Units now called
Business Units
Operating Unit setup data is now
Set enabled setup data
HR Org now called Department
SetID to allow reference data
sharing
Business Unit terminology
(although slightly different
definition as now a single
Business Unit performs many
business functions)
AdoptedNew
From Oracle EBS From PeopleSoft

Enterprise Structures Configurator (ESC)
 An interview-based tool that guides you through the process of
setting up a basic enterprise structure
 By answering questions about your enterprise, the tool creates a
structure of divisions, legal entities, business units, and reference
data sets that reflects your enterprise structure
 After you create your enterprise structure, you also follow a
guided process to determine whether or not to use positions,
and whether to set up additional attributes for jobs and positions
 After you define your enterprise structure and your job and
position structures, you can review them, make any necessary
changes, and then load / rollback the final configuration.
 In summary,
Create all the organizational structures at one time
Create multiple configurations to test multiple scenarios
Review the enterprise configuration prior to loading it
Rollback an enterprise configuration after loading it

ESC Demo

ESC Activity

5 enterprise structures

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5 enterprise structures