This is the continuation of Article-3 of Multiple organisations.
Sequence of steps:
Define the Structure:
In the above structure, ABC Corporation is the business group and has three ledgers, India, America and England. The first Ledger India is assigned to the legal entity A Corporation and it has A1 operating unit. Multiple operating units could also be linked to a single ledger, like in the second case. In the case of C it involves manufacturing so there is a inventory organisation linked to it.
A structure is defined by having the business group on the top and then the ledger and depending on the requirement it could be three business groups or it could be a single business group and then under each business group we will have ledgers and corresponding legal entities. One legal entity could be assigned to multiple operating units. B1 and B2 are to ledger America and legal entity B Corporation. This is how it could be linked across. In the third case there is an inventory compared with the first and second case where there is no inventory. If general ledger is used then there is no need to define an operating unit, legal is entity is sufficient. Operating uniits are used for sub ledger accounting. Ledger sets are multiple ledgers grouped together in one responsibility. It is grouping of similar ledgers. Sometimes we can create one ledger set and there would be an option where through a single responsibility we have access to multiple ledgers. It is not mandatory. It is an advanced feature in release 12.
Scenario where ledger sets could be used: Ledger sets can be used when there are multiple ledgers and everything has to come under one group. It would be a consolidation ledger where four or five ledgers having the same chart of account structure. In such a situation it could be assigned to a ledger set and then the ledger set could be assigned to a responsibility. The person having access to the responsibility will be able to see all the ledgers instead of a single ledger.
In the above structure ledger India, ledger America and ledger England could be combined to a ledger set and assigned to responsibility. Ledgers are separated based on the 4 Cs. The case for making a ledger set would be when the total revenue is to be valued. It could also have a read write access too in terms of data access set. A ledger set could be defined with the group companies and it could be attached to the main ledger. Then that ledger we could view read all information across ledgers. Consolidation point of view is the criteria. Another way of creating sets would be consolidating continent wise. All European countries could be clubbed to a set.
- Define a location:
For defining a location there should be access to a HRMS responsibility.
Navigate to Work Structures > Location
In the above example, instance is for vision enterprises. The first step would be to go into the HRMS responsibility, and then the location is defined. Here we define the address.
For Example, there is an Indian address, a US address and UK address.
All the locations/ addresses would be defined under the work structure window. It is not a legal address but the address mapped to the business group, operating unit or inventory organisation.
To define an address the navigation would be we select the responsibility as HRMS> the under work structure > location.
For the Indian address we choose the address style as India from the lookups, to facilitate the address updating for address as per the Indian context.
The address fields would then be populated and then we have to fill the fields appropriately.
It asks for the Locality, town, city, state, pin code and country.
It also has fields for the fax number and email. The same address could be attached to the operating unit, business group etc.
So based on the country selected the address style would change. The address style means the information would be displayed in a different way.
If it were for the country USA, it would be state, county, city and zip code. So in location the address style would be based on the country.
Select the respective time zone
The time zone could be selected. Then the shipping details are selected. What is the ship to location?
The to ship site; the bill to office site, receiving site, internal site, and office site are checked with the reference to the location.
The options could be checked based on the scenario. It is shown in the screen shot below.
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