Fusion Enterprise Structure & ESC

Enterprise Structure
Enterprise Structure in fusion is a hypothetical structure maintained in the system to depict the actual working/organization structure of the company. It has different levels starting from Enterprise to Inventory organization/Facilities.

Oracle Fusion Applications have been designed to ensure your enterprise can be modelled to meet legal and management objectives. The decisions about your implementation of Oracle Fusion Applications are affected by

• Industry
• Business unit requirements for autonomy
• Business and accounting policies
• Business functions performed by business units and optionally, Centralized in shared service centres
• Locations of facilities

Every enterprise has three fundamental structures, legal, managerial, and functional, that are used to describe its operations and provide a basis for reporting. In Oracle Fusion, these structures are implemented using the chartof accounts and organizations. Although many alternative hierarchies can be implemented and used for reporting, you are likely to have one primary structure that organizes your business into divisions, business units, and departments aligned by your strategic objectives.

Important Points for consideration

• Enterprise Structure is what we call MULTI ORG in EBS
• No Profile Options usage in Fusion like HR: Business Group or HR: Security Profile
• Enterprise Structure is the basis of Fusion Implementation and decides the working,   reporting, compliance, legal, business, accounting concepts and models of an organization.

A Typical Enterprise Structure will look like below –

Let’s discuss Enterprise Structure in details

Enterprise

We have a single Enterprise OraFUSIONcloud. In generally, we have single Enterprise for one Instance.

Legislative Data Group (LDG) — Enterprise is not equal to Business Group like we have in EBS, but we have LDG in fusions to segregate the employee information on the country basis serving as business group in directly.

In Fusion default Enterprise is SET UP ENTERPRISE like SET UP BUSINESS GROUP IN EBS.

ESC – Enterprise Structure configurator
The Enterprise Structures Configurator is an interview-based tool that guides you through the process of setting up a basic enterprise structure. By answering questions about your enterprise, the tool creates a structure of divisions, legal entities, business units, and reference data sets that reflects your enterprise structure.

After you create your enterprise structure, you also follow a guided process to determine whether or not to use positions, and whether to set up additional attributes for jobs and positions. After you define your enterprise structure and your job and position structures, you can review them, make any necessary changes, and then load the final configuration

At the end of the process a report is generated – the inappropriately named “Technical Summary Report”.  We use this report to validate the design with the customer.  Once agreed, there is a final ‘load’ process in which ESC loads the prototype design into the mainline database tables.

The process really streamlines the setup and saves a lot of manual, repetitive work. However, there are some constraints as well.  First, if the load process fails (for whatever reason), there is no rollback.  This means that you now have incomplete setup and that you may have to complete the load manually.

Secondly, if you can restart the load process, it will most likely continue to fail.  So, you are back to square one.

Please note that Enterprise Structures Configurator (ESC) is designed for new enterprise setup only. It does not support upgrade or modification to an existing setup (although we are looking at supporting this for future releases). That being said, ESC can be used as tool to analyze what a setup scenario may look like before implementing it as it is possible to create and review a configuration before it is loaded (and actually updates the enterprise structure objects).

CASE STUDY – Enterprise Structure Configurator

First Step is Enterprise Information (Name, Legal Information Configuration Information)

Navigation: Define common Applications configuration for Financials > Define Enterprise Structure for Financials > Define Initial configuration > Establish Enterprise Structure

Provide the necessary information and NEXT

Provide Division Information – configurator will guide you

Next Step is to Create Legal Entities – Manage Legal Entities

Create Business Unit – configurator will automatically create depending on the criteria, or you can manually create as well

Now we have LE and BU (prefix BU) on country (Legal Entity) basis.

System will automatically create Reference data Sets for respective Business Units

Assign Reference Data Sets to Business Units

Assign Reference data sets to Location reference sets

Now System will show you the Management Reporting Structure

Now you can load the configuration and system will create it in the system. It can be seen in the report as well

Enterprise Structure – Mandatory/Optional

The enterprise is mandatory because it serves as an umbrella for the entire implementation. All organizations are created within an enterprise.

• Legal entities are also mandatory. They can be optionally mapped to balancing segment values or represented by ledgers. Mapping balancing segment values to legal entities is mandatory if you plan to use the intercompany functionality.

• At least one ledger is mandatory in an implementation in which you record your accounting transactions.

• Business units are also mandatory because financial transactions are processed in business units.

• A shared service center is optional, but if used, must be a business unit.

• Divisions are optional and can be represented with a hierarchy of cost centers or by a second balancing segment value.

• Departments are mandatory because they track your employees.

• Optionally, add an item master organization and inventory organizations if you are tracking your inventory transactions in Oracle Fusion Applications.