Customer Submitted Case Studies

Case Study: Defining MOAC (Multi Org Access Control) in R12

Author: Raghuraman, Chartered Accountant, Cost Accountant and MBA Freelancer, United Kingdom Skill Level Rating for this Case Study: Intermediate About Oracle Customer Submitted Case Studies

Oracle Customer Submitted Case Studies are intended as learning tools and for sharing information or knowledge related to a complex event, process, procedure, or to a series of related events. Each case study is written based upon the experience that the writer/s encountered. Customers should not interpret or use information in these case studies as solutions or recommendations without first contacting Oracle Support. Each Case Study contains a skill level rating. The rating provides an indication of what skill level the reader should have as it relates to the information in the case study. Ratings are: • Expert: significant experience with the subject matter • Intermediate: some experience with the subject matter • Beginner: little experience with the subject matter

Case Study Abstract

This case study describes how I defined the new functionality of MOAC in R12. To understand this, the reader must know how to configure ledger and accounting options in GL, which had not been discussed in this case study. This case study is for Intermediate level, with basic knowledge of defining ledger, accounting setup and multi org feature in 11i.

Case History

This case study shares my experience on how I defined the new feature of MOAC for accessing multiple operating units with single responsibility. In 11i I had to define multiple responsibilities to access multiple operating units. In other words, it was not possible for me to use single responsibility to access multiple operating units as MO: Operating Unit profile option can have only one operating unit value assigned to it. This case study is only for defining MOAC and not for defining ledger, accounting options and configuring payables.

Pre-Analysis Work

As Is process analysis: • Client was operating in multiple countries. • Client had multiple legal entities even within a country. • Client was operating on 11i and hence was forced to define multiple

responsibilities to access multiple legal entities. This was reported as an administrative hassle as multiple responsibilities, mapping responsibilities to operating units through profile option, and attaching different responsibilities to different users had to be performed.

Process Analysis

Summary

I listed out the number of legal entities and Ledger to be configured based on the As Is process and business requirements gathering workshop. All the legal entities that were sharing the same ledger were identified for the purposes of MOAC configuration. Detailed Analysis Steps that I had followed: Sl.No Particulars Application Covered in

this study or not

Step

1 Profile option for Legal Entity Numbering

System Administrator Yes 1.1

2 Configuration of Legal Entity Legal Entity Configurator Yes 1.2

3 Define Ledger General Ledger No N.A. 4 Define Accounting Setup General Ledger No N.A. 5 Link Legal entity to Ledger General Ledger No N.A.

6 Profile option to attach Ledger to Responsibility

System Administrator Yes 2

7 Create Business Group Human Resources Yes 3.1

8 Define Multiple Organizations Human Resources Yes 3.2, 3.4

9 Link the Multiple Organizations to Ledger Human Resources Yes 3.3

10 Define Organization Hierarchy Human Resources Yes 4

11 Define Security Profile Human Resources Yes 5

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12 Profile option to attach security profile to responsibility

System Administrator Yes 6

13 Complete configuration of Payables Payables No N.A

14 Check the Result Payables Yes 7 Comparison of 11i Vs 12 11i 12 Set of books Ledger Multi Org MOAC GRE Legal Entity Org classification in Organization window

Not required

3 C’s – Chart of Account, Calendar, & Currency

Accounting Setup

GL Set of Books GL Ledger Name Profile Option for Multi Org MO: Operating Unit

Profile Option for MOAC MO: Operating Unit (to use the same feature of 11i) Or MO: Security Profile to use the MOAC available in R12

I defined three responsibilities MOAC HR, MOAC General Ledger and MOAC Payables and used the seeded responsibility ‘Legal Entity Manager’ to define legal entity for MOAC configuration. Step – 1 Step 1.1 Profile option for legal entity numbering I need to number the legal entity, which can be manual or automatic. To generate the number automatically, I need to set LE: Generate Legal Entity Identifier to set ‘Yes’. If I set this profile option set it to “No”, I will be forced to enter the legal entity identifier manually. The default value is No.

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I defined this profile option with the value No to use manual numbering. Step 1.2 Configuration of Legal Entity This can be defined in Legal Entity Configurator or General Ledger responsibility while defining ledger. I used Legal Entity Manager Responsibility Legal Entity Manager > Legal Entity Configurator > Legal Entities > Create Legal Entity

Named the LegalEntity

Selected the existingaddress

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Selected the country name in territory field, named the legal entity and organization and entered LE number manually and selected the address > completed the LE creation by clicking the apply button.

Step – 2

Profile option to attach Ledger to Responsibility Name of the Profile Option: GL Ledger Name This profile option has been used to attach the ledger to General Ledger and Payables responsibilities. I defined MOAC Ledger with accounting setup and attached this ledger to MOAC General Ledger and MOAC Payables responsibility. Attached MOAC Ledger to MOAC General Ledger Responsibility

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Attached MOAC Ledger to MOAC Payables responsibility

Step - 3 Step – 3.1 Create Business Group HR Responsibility Navigation – Workstructure > Organization > Description Created Business Group

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|

Selected Business Group in Organization classification and completed the Business group configuration>Saved the records. Attached business group to all the responsibilities by using HR profile options HR: Business Group and HR: Security Profile. Step 3.2 Define Multiple Organizations

Navigation – HR>Workstructure > Organization > Description

Defined first multi org

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Step – 3.3 Link the Multiple Organizations to Ledger

From the 3.2 screen shot Selected the Operating Unit in organization classification > Saved the records > Clicked Others button > Selected Operating unit information

Selected the Ledger and Legal Entity defined from LOV

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Step – 3.4 I followed the same steps 3.2 & 3.3 to define second operating unit. Here I attached the same legal entity and ledger to second operating unit as follows:

Selected the Ledger and Legal Entity defined

I configured two operating units MOAC Org 1 and MOAC Org 2 using the same MOAC Ledger and MOAC LE. I created one inventory organization to attach in Financial Options window in Oracle Payables, which has not been discussed here.

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Step – 4 Define Organization Hierarchy Navigation – HR>Workstructure > Organization > Hierarchy This is an additional setup compared to 11i. I had used the same 11i Organization Hierarchy model configuration to define organization and its relationship to subordinate organizations.

Named the Org Hierarchy

Selected the BusinessGroup defined in Step 3.1

Selected the Multi Org defined in Step 3.2 and

Step – 5 Define security profile Navigation – HR>Security > Profile This is another additional setup compared to 11i. Defined security profile by linking the organization hierarchy defined in step 4 to the business group and grouped the operating units under this security profile.

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Ran the security list maintenance request from HR responsibility

I ensured that it was completed successfully.

Selected the Business Group

Named the securityprofile

Selected the Organization Hierarchy defined in Step 4

Selected the Org Subordinates

Selected security profile defined in step 5

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Step – 6 Profile option to attach security profile to responsibility I attached the multi org security profile defined in Step 5 through profile option MO: Security Profile to MOAC Payables responsibility.

Step 7 Check the Result

I configured Oracle Payables for both the operating units MOAC Org 1 and MOAC Org 2 before testing the results. Tested the results as follows:

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Payables> Invoice window > Checked the LOV in operating unit field

I was able to see and access multiple operating units defined (Multi Org 1 and Multi Org 2) in LOV within a responsibility for invoice creation.

Additional step for using Vision Instance

Payables > Setup > Option > User Operating Unit preference Here I can optionally define user operating unit preference. If I use my own BG (Example in this study I had configured MOAC Group) for configuration, I will see only what have been defined as operating units. If I use Vision Corporation, I may see other ledgers also attached to Vision Corporation apart from my ledger. Example if I use Vision Corporation for practice, I need to configure the following to see only my operating units User Operating Unit preference window Payables > Setup > Option > User Operating Unit Preference

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Select MOAC Org 1 and MOAC Org 2 are preferred or Vision Corporation as Clear Preferred.

Results

I was able to access multiple operating units through single responsibility that are linked to the same ledger and business group.

Conclusion and Learning

MOAC facilitates accessing different operating units within a responsibility. It saves time on shifting responsibilities to access multiple operating units, reduces configuration of multiple responsibilities and setting up of profile option to attach respective operating units to responsibilities. In R12 Profile Option MO: Security Profile groups the operating units that can be accessed by single responsibility through MOAC functionality. The Security Profile form allows selecting operating units from only one Business Group. If I use Global Hierarchy and Global Security profile, I can select operating units from multiple Business Groups.

References

R12 Multi Org guide. DISCLAIMER: The information in this document is the opinion of the author, not of Oracle Corporation. Any content, materials, information or software downloaded or otherwise obtained through the use of the site is done at your own discretion and risk. Oracle shall have no responsibility for any damage to your computer system or loss of data that results form the download of any content, materials, information or software.

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