Oracle Projects shares organization, job, and employee information with Oracle Human Resources. If your business does not currently use Oracle Human Resources, you define this data using the Oracle Human Resources windows provided with Oracle Projects.
Your implementation of Oracle Human Resources to work with Oracle Projects involves the definition of:
- Organizations and organization hierarchies
- Resource information
Organizations are departments, sections, divisions, companies, or other organizational units in your enterprise. You can gather collections of organizations into organization hierarchies. Organization hierarchies make it easier to manage expenditure and reporting data and coordinate the project-owning organizations within your enterprise.
For optimum control, consistency, and trend analysis, it is simplest to keep the organization definitions stable. However, in a dynamic business environment, changes to organizations and organization structures are inevitable. When your organization
structure changes, it is very important to understand the implications to your Oracle Projects implementation.
You can change the organization hierarchy setup in Oracle Projects to reflect changes to your company’s organization hierarchy. To maintain system control and enforce your business rules, it is important to plan and manage the change carefully. To do this, you must understand how organizations and organization hierarchies are used in Oracle Projects.
Terms Used in This Section
Following are definitions of the terms used in this discussion of organizations:
Organization Classifications A set of system-defined attributes that categorize an organization. You set these attributes when you create the organization in the Define Organization window of Oracle Human Resources. The organization classifications that pertain specifically to Oracle Projects are:
- Project/Task Owning Organization can own projects and/or tasks in the operating unit. To own projects and tasks in an operating unit, an organization must have the following characteristics:
• The Project/Task Owning Organization Classification must be enabled.
• The organization must belong to the Project/Task Owning Organization Hierarchy Branch assigned to the operating unit.
- Project Expenditure/Event Organization can own project events, incur expenditures, and hold budgets for projects in the processing operating unit, unless they are overridden by projects or tasks using organization overrides. To have these
capabilities in the operating unit, an organizationmust have the following characteristics:
• The Project Expenditure/Event Organization classification must be enabled.
• The organization must belong to the Expenditure/Event Organization Hierarchy Branch assigned to the operating unit.
- Project Invoice Collection Organization
- Project Manufacturing Organization
A business group is the largest organizational unit you can define to represent your enterprise. A business group may correspond to a company or corporation, or in large enterprises, to a holding or parent company or corporation.
Important: Employees, organizations, and other entities are partitioned by business group. If you set up more than one business group, your data will be partitioned accordingly. In addition, classifying an organization as a business group is not reversible. Be sure to plan your business group setup carefully.
Organization Hierarchy A structure that defines the rollup relationships of the organizations within an enterprise. The topmost organization in an organization hierarchy can be the business group, although this is not required by the system. The parent-child hierarchy relationships can be different (even reversed) in different organization hierarchies that are used for different business purposes
Organization Hierarchy Version Oracle Human Resources enables you to create multiple versions of an organization hierarchy. When you assign an organization hierarchy in an Oracle Projects implementation, you also assign the version.
Start Organization The branch of your organization hierarchy that you specify in Oracle Projects as the top of your hierarchy. When you choose a start organization as a reporting parameter, the start organization and all organizations below it are included in the report.
Organization Hierarchy Branch The subset of an organization hierarchy that is uniquely identified by the organization hierarchy version and the start organization.
Legal Entity An organization that represents a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other relevant information to this entity.
Operating Unit An operating unit is used to partition data for a subledger product (AP, AR, PA, PO, OE). It is roughly equivalent to an enterprise that uses a single organization.
Organization classifications involving financial transactions (such as expenditure/event organizations, billing schedule organizations, and project invoice collection organizations) are always associated with operating units.
Project Operating Unit The operating unit within which the project is created.
Expenditure Operating Unit The operating unit where the expenditure item was incurred against a project. The expenditure operating unit is the operating unit where the incurring employee submits and gets paid for time and expenses. It is the operating unit into which non-labor resources, commitments, and supplier invoices are entered.
Project Organization The organization that owns a project. The project organization can be any organization that owns a project or task and that is displayed in the list of values when the project is defined.
Any organization that has the HR Organization classification enabled can have employees assigned to it.
You don’t need to enable the HR organization classification for Oracle Projects unless you want to assign employees to the organization.
Resource Organizations are organizations that own resources and/or resource budgets. Any organization in the operating unit’s business group can own non-labor resources.
• Only HR organizations can have employees assigned to them.
• Oracle Projects does not have a classification requirement for an organization to own non-labor resources.
Expenditure Organization For timecards and expense reports, the organization to which the incurring employee is assigned, unless it is overridden by project or task using organization overrides. For usage, supplier invoices, and purchasing commitments, the expenditure organization is the organization entered on the expenditure.
Chargeable Project A project to which expenditures can be charged, transferred, or allocated. A list of values of chargeable projects includes all projects in expenditure operating units and those projects that are eligible for cross charging.
Billing Schedule Organizations
Billing Schedule Organizations are organizations that have their own billing schedules.
Any organization in the operating unit’s business group can have its own billing schedules.
Project Burdening Hierarchy Organizations
Burdening for costing uses the Project Burdening Hierarchy Version for both the burden cost code multiplier setup and burdening. Each business group must designate a single organization hierarchy as its default project burdening organization hierarchy. This default can be changed for each burden schedule or each burden schedule version. The Project Burdening Hierarchy defaults to the burden schedule from the business group organization definition. You set up different burden schedules if your business allows different ways to burden costs.
- Oracle Projects lets you assign burden multipliers to organizations in the Project Burdening Hierarchy Version. You can only assign burden cost code multipliers to organizations that are in the Project Burdening Hierarchy Version.
- Oracle Projects uses the Project Burdening Hierarchy Version associated with the burden schedule to calculate burdened cost. If Oracle Projects does not find the expenditure organizations in the Project Burdening Hierarchy Version duringburden processing, the expenditure item is not burdened, and the burdened cost is equal to the raw cost.
If your business decentralizes its invoice collection within an operating unit, you must enable the Project Invoice Collection Organizations classification for each organization in which you want to process invoices.
Oracle Receivables uses transaction types to determine whether a transaction generates an open receivable balance and whether it posts to Oracle General Ledger. Each operating unit in Oracle Projects has at least two default transaction types to process invoices in Oracle Receivables.
If your business decentralizes invoice collection, you must run the IMP: Create Invoice Organization Transaction Types process before you can successfully run the Interface Invoices to Oracle Receivables process. The IMP: Create Invoice Organization Transaction Types process creates a transaction type for each of the Project Invoice Collection Organizations that has the following characteristics:
- The organization has the Project Invoice Collection Organization classification enabled.
- The organization belongs to the Project/Task Owning Organization Hierarchy Branch assigned to the operating unit. Oracle Projects uses the default transaction type if it cannot find a rollup project invoice collection organization for the invoice.
Access mode, the displayed list of values includes all employees who are included in the global expenditure organization hierarchy.
PA Period Type For each operating unit, the period type associated with the operating unit (the PA Period Type field in the PA implementation options). Oracle Projects uses the periods in the PA Period Type defined in the calendar of the operating unit’s set of books to populate each operating unit’s PA periods. The PA periods correspond to GL periods when
generating accounting transactions. The PA periods also drive the project summary for Project Status Inquiry.
Good information on the
Good information on the project related organizations.