Hi Oracle Forum,
I wonder if you can help ? Can you advise when we creating your Enterprise Structure when does one consider the following :-
1.One LE to One BU
2 Many LE's to One BU
We have just gone through a global implementation and some of the considerations put forward by the previous Solution Architect have proven to be troublesome. For example as a result of not having a one to one relationship between LE and BU is presenting challenges. When raising requisitions we cannot choose a legal entity its default from the BU. This is presenting a challenge for tax. I would be great to have some insight from the professionals on this forum as to what are the rules before deciding the structure.
kind regards
Balwinder Kler
Dear Balwinder,
There’s no direct relationship between business units and legal employers, it’s recommended that you either maintain a 1:1 relationship between the two or have many business units within a legal employer.
In Oracle Fusion Cloud Applications you do the following:
Assign your business units to one primary ledger. For example, if a business unit is processing payables invoices, then it must post to a particular ledger. This assignment is required for your business units with business functions that produce financial transactions.
Use a business unit as a securing mechanism for transactions. For example, if you run your export business separately from your domestic sales business, then secure the export business data to prevent access by the domestic sales employees. To accomplish this security, set up the export business and domestic sales business as two separate business units.
- In particular to your query on BU relationship, pls see below answers:
1. One LE to one BU is case of normal scenario where we can maintain transaction security between different users. For eg. Each BU will process their own invoices and data is secured with their respective users.
2. Many LE's to One BU is a case of shared service center. For eg. Company can assign its payables invoice processing work of all entities to a different entity. In such as case, we can create one BU and it will process invoices for other legal entities.
- To your query related to requisition scenario:
While raising a requisitions we cannot choose a legal entity its default from the BU -
Suggest to go for a shared service center setup in this case as one BU will process requisitions for all entities. Raise an Oracle SR for more clarity in case required.
Regards,
Mohit