Organization Hierarchi Structure

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.