Let's understand the multi-org concept with an example.
Suppose your company is operating in multiple countries. Working in different countries indicates multiple organizations across multiple countries. If the company wants to implement multiple organizations such as multiple ledgers (sets of books), or legal entities, which is a legal employer in that country, or business groups within a single Oracle applications, then we can say that the enterprise is going to implement a multi-org setup. Needless to say, there are certain advantages of using multiple organizations:
Secure access to application. Security of data. Operating unit security by responsibility.
Multiple organization reporting.
Let's see this through the following diagram:
The preceding diagram shows the structure of multiple organizations in release 11i. In 11i, there are individual responsibilities within each operating unit. However, in R12, as in the following diagram, you can create a single responsibility, which can access data from all operating units.
As you can see, from the preceding two diagrams, that in R12, you will need to create just a single responsibility to access data across multiple countries, whereas, in older versions, you had to create multiple responsibilities for each operating unit, which resulted in more time and maintenance.
The following diagram depicts an example implementation structure for businesses operating in India only:
Thus, using the multi-org concept, you can access multiple operating units within a single application responsibility. This enables you to:
Perform the tasks of viewing information
Enter transactions
Process application data
Run reports for and across multiple operating units