Operating Units and Multiple Organizations

Operating units are another type of organization classification. You use operating units to partition data for a subledger application such as Oracle Payables, Oracle Receivables, or Oracle General Ledger. When an enterprise utilizes more than one operating unit, it is said to have a "multiple organization installation."
The implementation of multiple organizations in Oracle Projects supports multinational enterprises and enterprises with complex organizational structures.

A multiple organization installation enables you to:

  • Ensure secure data access for each operating unit.
  • Integrate with other Oracle Applications that support multi-organization processing .

About Multiple Organization Installations A multiple organization installation in Oracle Projects works like this:
  •  A single operating unit (the project operating unit) owns each project and project template.
  •  Project numbers and project template numbers are unique across all operating units in a single installation.
  •  Customers are shared across operating units, while customer sites are associated with a specific operating unit.
  •  Individual operating units own customer agreements.

  • You can charge, transfer, or allocate expenditures to any project as long as the expenditure operating unit and project operating unit is eligible for cross-charging.
  • Costs are entered and processed in the same expenditure operating unit.
  • You enter expenditures in the expenditure operating unit in Oracle Projects (timecards, expense reports and non-labor resource usage), AP (supplier invoices) or PO (requisitions and purchase orders).
  • The system calculates costs in the expenditure operating unit using cost rates that have been set up for that operating unit. The system burdens costs based on the project burden schedule.
  • The system generates accounting transactions in the expenditure operating unit using the operating unit’s AutoAccounting or Account Generator process.
  • The system transfers supplier invoices for a project from the expenditure operating unit in Oracle Payables to the same operating unit in Oracle Projects.
  • The system transfers labor cost from the expenditure operating unit in Oracle Projects to the Oracle General Ledger set of books associated with the operating unit.
  • The system transfers Oracle Projects expense reports from the expenditure operating unit in Oracle Projects to the same operating unit in Oracle Payables. If the expense report is entered as an invoice in Oracle Payables, it is interfaced from the expenditure operating unit in Oracle Payables to the same operating unit in Oracle Projects.

  • You can view the Expenditure Items window in either project or cross-project mode:
  • In project mode, the window displays expenditures for a project in the project operating unit.
  • In cross-project mode, the window displays expenditures incurred in the expenditure operating unit.

  • The project operating unit processes revenue and invoices against transactions from any expenditure operating units.
  • The project operating unit calculates draft revenue and draft invoices using its bill rates, the project billing rate overrides, or the project labor multipliers.
  • The expenditure operating unit must process project costs charged across operating units before the project operating unit can process them as project
  • revenue and invoices.
  • Note: The Project Streamline Process calculates costs for expenditure items incurred in the project operating unit only.
  • The project operating unit uses its AutoAccounting process to generate accounting transactions for project billing.
  • The project operating unit also uses its AutoAccounting process to transfer revenue to Oracle General Ledger and transfer invoices to Oracle Receivables.

  • Transfers and splits generate transactions in the same operating unit as the original transaction, although the transfer may be to any chargeable project.
  • The project operating unit submits reports that can be printed for a single project or a range of projects on project-related transactions across expenditure operating units.
  • The project operating unit submits and stores project summary amounts. Project Status Inquiry performs queries on projects within the project operating unit.
  • Reports for employees or organizations list all transactions entered within the operating unit from which the report is submitted.
  • Each asset is capitalized from a single capital project to an Oracle Assets corporate book that is associated with the project operating unit’s set of books.

Understanding the Resource Operating Unit
For security and forecasting reasons, each resource in Oracle Projects is associated with an operating unit. This operating unit is initially defaulted from the organization operating unit. The operating unit of the resource is active for the duration of an assignment. It drives forecasting based on the transfer price defined for the operating unit if the resource is assigned on a project under a different operating unit, in other words, a borrowed resource.

Oracle Project Resource Management updates the resource operating unit whenever there are changes to the employee assignment or the default operating unit originally set up for the employee. Oracle Projects tracks these changes for record-keeping purposes and allows date-specific operating unit defaults for the resource.


how to create a new operating unit in Oracle Receivables. I already have two operating units. But if i want to add a new one ,please what are the steps? thank you

OU in AR

Carol , 1. You do not create operating units in AR 2. You create operating units in Inventory and then create a AR responsibility. 3. The new AR responsibility Can point to the new OU regards Mihir

Hi, Can we make payment for

Hi, Can we make payment for other operating unit invoice? if yes what are the step?