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Organization Hierarchy model

Posted on July 7th, 2008 by Sanjit Anand |

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It was request from one of reader to provide some information for new organization Hierarchy model between two release of
11i and R12.Therefore invite you to run through the following diagram as below with some basics.
Here is Organization Hierarchy in 11i version.

This is Organization Hierarchy as per Manufacturing side(process as well as Discrete)

With change in new Financial architecture here is the changed schema.

Three additional steps you need to perform if you are coming from 11i.
You need to define the Legal Entity in the Accounting Setups
You need to attach your Legal Entity to the Ledger in Accounting Setups in General Ledger
You need to attach the appropriate Legal Entity at the Default Legal Context in the Operating Unit Information
What has changed between Release 11i and Release 12?
Refer to some earlier post related Legal entity.

Oracle Project and LE Context

As figure under #3 above , Oracle EBS maintains the default legal context on the Operating Unit.
There is not much change here from Projects perspective. Earlier in 11i we used to consider the
Legal Entity of the Operating Unit as the Legal Entity of the Projects Transactions. Now what we are
saying is that the Legal Entity attached at the Default Legal Context of the Operating Unit is the
Legal Entity of the Projects Transactions.
So the Legal Entity of the Projects expenditure transactions will be the Legal Entity attached at the
Default Legal Context of the Expenditure Operating Unit and the Legal Entity of the Project will be
the Legal Entity attached at the Default Legal Context of the Project owning operating unit.

Related Posts
1. Understanding Multi-Organization Structure in EBS(Technical) Part II
2. Release 12 : Legal Entity uptake
3. Understanding Multi-Organization Structure in EBS Part 1
4. R12 : EBS Banking Model in demanding and Changing World
5. R12 AOL : Server-Responsibility Profile Hierarchy Type
Posted in Functional, Oracle Legal Entity Configurator | 1 Comment

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One Response
1. Bill Loumeau Says:
July 21st, 2008 at 10:49 am

this appears misleading on its face in that r12 is presented as a single legal entity model when, as I see it, each balancing
segment (if representing a different LE, as often is the case) will have a LE defined and mapped to it rather than only
having one LE. In 11i there was usually only one GRE/LE, and there was no LE concept in addition to that. Now we
have both. I think that the the GRE/LE still only needs to have one set up, but I am not sure.
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