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Type of Organizations in Oracle Apps

Every enterprise has an organizational hierarchy for easy management and process streamlining. Each sub organizations serve a different purpose and improves efficiency of the enterprise. To acheive this efficiency oracle apps provies 6 Types of Organizations.
Set of Books
A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. Oracle General Ledger secures transaction information (journal entries, balances) by set of books. When you use Oracle General Ledger, you choose a responsibility that specifies a set of books. You then see information for that set of books only.

Business Group
Represents the consolidated enterprise, a major division, or an operation company. Human resources information is secured by business group. For example, when you request a list of employees, you see all employees assigned to the Business Group of which your organization is a part.

Legal Entity
Represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.

Balancing Entity
An entity for which you prepare a balance sheet, represented as a balancing segment value in your accounting flex field. Each legal entity can have one or more balancing entities. You can use Flex field Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit.

Operating Unit
An organization that uses Order Entry, Oracle Payables, Oracle Purchasing, or Oracle Receivables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications; each user sees information only for their operating unit. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit.

Inventory Organization
An organization for which you track inventory transaction and balances, and/or that manufactures or distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices. The following products secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these products, you must choose an organization that has been classified as an inventory organization. You create sets of books using the Define Set of Books window in Oracle General Ledger. You define all other types of organizations using the Define Organization window.

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