5 enterprise structures

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

<Insert Picture Here>

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







Grade: FUSIONGRD


Fusion Insurance UK


Grade: FUSIONGRD


Fusion Bank UK


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






Grade: FUSIONGRD


Fusion Insurance UK


Grade: FUSIONGRD


Fusion Bank UK


Grade: FUSIONGRD


Insurance Job Set

Insurance Rep


Banking Job Set

Attendant

Cashier

Common Set

FUSIONGRD

US Location Set

California

Texas

UK Location Set

London

Liverpool






Grade: FUSIONGRD


Fusion Insurance UK


Grade: FUSIONGRD


Fusion Bank UK


Grade: FUSIONGRD


Insurance Job Set

Insurance Rep


Banking Job Set

Attendant

Cashier

Common Set

FUSIONGRD

US Location Set

California

Texas

UK Location Set

London

Liverpool






Grade: FUSIONGRD


Fusion Insurance UK


Grade: FUSIONGRD


Fusion Bank UK


Grade: FUSIONGRD


Insurance Job Set

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)

Ad

op

ted

N

ew

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


Technology

5 enterprise structures