Multi-Org or multiple organization access (MOAC) in R12


Multi-Org or multiple organization access (MOAC) in R12

What is MOAC?

Multi-Org or multiple organization access (MOAC) is basically an ability to access multiple operating units from a single application responsibility.

Why it has been created?

Prior to R12, end users use to toggle / switch / change responsibilities in order to do transactions (like invoice / payment processing in AP) in different operating units. This is a very time consuming and inefficient way of recording transactions when you have 100s of operating units specially Internet based organizations who have worldwide operations in almost all the countries.

To address this, a new feature in R12 has been introduced in which user can switch between operating units within a responsibility something similar to “Change Organization” feature in inventory. Prior to R12, user would have to switch responsibilities in order to enter transactions in respective operating units (tagged to the responsibility).

What are its advantages?

  • Multi-Org Access Control (MOAC) enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process and report on data for an unlimited number of operating units within a single applications responsibility.
  • This increases the productivity of Shared Service Centers, as users no longer have to switch application responsibilities when processing transactions for multiple operating units at a time.
  • Ability to view data from multiple operating units from a single responsibility, gives users more information. This enables them to make better decisions.

The following SQL will dump out the Security Profiles and Operating Unit Names assigned to them.

SELECT   psp.SECURITY_PROFILE_NAME,
         psp.SECURITY_PROFILE_ID,
         hou.NAME,
         hou.ORGANIZATION_ID
FROM     PER_SECURITY_PROFILES psp,
         PER_SECURITY_ORGANIZATIONS pso,
         HR_OPERATING_UNITS hou
WHERE    pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_ID
         AND pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;

There are three Profile Options you need to be aware of related to Multi-Org that should be set at the Responsibility Level.

  • MO: Security Profile– Always evaluated first.
  • MO: Operating Unit– Secondary priority being evaluated after ‘MO: Security Profile’
  • MO: Default Operating Unit– Sets the default Operating Unit for transactions when running under a Security Profile.

How it is done in R12?

In Release 12, one creates a Security Profile and assigns as many operating units as you required. One can tie that security profile to a single responsibility using a profile option called MO: Security Profile. For example, you could assign the security profile to the EMEA Payables responsibility to allow that responsibility to process invoices across all operating units.

In Release 12, define a security profile in HR using the Security profile form or the Global Security profile form, and assign all of the operating units that one would want a responsibility to access. The one needs to run a concurrent request called “Run Security List Maintenance” from HR which will make those security profile available and allow one to assign them to a responsibility via a profile option called MO: Security Profile.

One can define another profile option called MO: Default Operating Unit which is optional and allows one to specify a default operating unit that will be the default when you open different subledger application forms.

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What’s New in R12 Financials?


What’s New in R12 Financials?

1] Ledgers and Ledger Sets:

The ledger is a new fundamental concept in Release 12.  The ledger replaces the 11i concept of a set of books.  It represents an accounting representation for one or more legal entities or for a business need such as consolidation or management reporting. 

11i & Prior = Sets of Books (3 C’s)

  • Chart of Accounts
  • Accounting Calendar
  • Currency

R12 = Ledgers (4 C’s)

  • Chart of accounts
  • Ledger currency
  • Accounting calendar
  • Accounting method – new 4th

While a set of books is defined by 3 C’s, chart of accounts, functional currency, and accounting calendar, the ledger is defined by a 4th C: the accounting method.  This 4th C allows you to assign and manage a specific accounting method for each ledger.  Therefore, when a legal entity is subject to multiple reporting requirements, separate ledgers can be used to record the accounting information.

Primary Ledger:

  • The main “Activity” Ledger
  • Usually in the local currency
  • For Operational reporting

Secondary Ledger:

  • Differs from Primary Ledger by Chart of Account, Calendar, and/or Accounting Method
  • For Statutory, Tax or Consolidated reporting

Reporting Currency Ledger:

  • Differs from Primary Ledger by Currency ONLY
  • Just a translation of the Primary Ledger – no rules required
  • For Consolidated reporting

LEDGER SETS:

  • Grouping of ledgers with the same chart of accounts and calendar/period type combination
  • Essentially treats multiple ledgers as one

2] Subledger Accounting:

You can consider SLA as a bridge or an Intermediate platform that talks to Subledger products (these are other applications or modules) and the General ledger. All Accounting entries for your modules (like AP, AR, Projects, Inventory, etc) are treated as Sub-Ledgers and they first sent to the SLA engine. The SLA applies its rules (some or these rules are pre-configured and also you can configure as many rules as you want) and then sends the necessary journal entries to the General ledger.

In a nutshell, the following services are provided by Oracle SLA

  • Rule based Generation and  storing of accounting entries
  • Storing subledger balances
  • Subledger or SLA accounting entries
  • Subledger reporting (some examples could be Open Account Balances Listing and Subledger Journal Reports, etc )

3] Multi-Org Access Control (MOAC):

‘Multi-Org Access Control’ popularly known as ‘MOAC’ in short form is an enhanced feature in Release 12. MOAC will enable users to access secured data in one or more Operating Units from a single responsibility.

End-Users can access/transact data within several operating units based on Security Profile attached to a responsibility. i.e. End-Users can access/transact data on multiple Operating units by accessing one operating unit at a time without changing a responsibility. This Provides flexibility for end-users to work conveniently with multiple Operating Units in shared service Environments with single responsibility.

4] Advanced Global Intercompany System (AGIS):

Advanced Global Intercompany System (AGIS) enables you to create, settle and reconcile intercompany transactions. Intercompany transactions are transactions that occur between two related legal entities in an enterprise or between groups in the same legal entity. The balances of the intercompany transactions must be eliminated or adjusted when preparing the consolidated financial statement, or it might result in overstated financial results, which in turn might lead to legal repercussions against the enterprise. Intercompany transactions can be identified and eliminated by the use of specific accounts to book these transactions.

5] Tax Engine:

It Centrally manage tax transactions across entire E-Business Suite.

  • Single Repository of transactions for global business insight
  • Centralized rules applied to transactions to manage globally and reduce risk
  • Automation of tax processes on transactions to improve operational efficiency
  • Improved Reporting
  • Effective Date Setup
  • Extensible architecture that supports additions, e.g. Self-assessed Use Tax

6] Bank Model:

Because of changing business need and high demand of global partners, the R12 release witness great changes ever into the bank model. Bank account is now associated with Legal entity rather than Operating Unit and hence single bank account serves multiple Operating Units. This makes bank with strong capability to pay across operating units. More over banks accounts can be shared by applications and can be designed for use by Payables, Receivables and Payroll.

The new bank account model allow you to define and keep track of all bank accounts in the e-Business Suite in one place and explicitly grant account access to multiple operating units/functions and users. The new model reduces the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up.