Enterprise Structures - Agenda

Enterprise
> Captures the name of deploying enterprise and the location of the headquarters

> Three Fundamental structures - legal, managerial, and functional

=>Legal structure implemented using LEGAL ENTITY

=>Management / Business structure implemented using DIVISIONS and

BUSINEESS UNITS

=> Functional Structure is implemented using DEPARTMENTS

ENTERPRISE is mandatory and serves as an umbrella for the entire implementation and
all organizations are created within an enterprise.

1-> Enterprise
2-> Division
3-> Business Unit
4-> Legal Entity
5-> Department
6-> Reference Data Sharing
7-> Enterprise Structure Configurator

Business Axis - Division or Business Unit (Dividing according geography or

Functional you are handeling)
Legal Axis - Legal Entity
Functinal Axis - Department
and top of the above that is Enterprise.

Enterprise Structures - Business Axis

Division
* Segregate multiple business by their strategic objectives and measure their
results.
* Companies may choose to represent product lines, brands, or geographies as their
divisions
* Division manageer typically reports to a top corporate executive
* Used in HCM to define the management organization hierarchy, using the generic
organization hierarchy
* The hierarchy can be used to create Organization based security profiles
* Fusion Applications supports a qualified management segment and recommends that
you use this segment to represent your hierarchy of business units and divisions.
* If managers of divisions have return onn investment goals, make the management
segment a balancing segment.
* Divisions are optional and can be represented with a hierarchy of cost centers or
by a second balancinng segment value.

Enterprise Structures - Business Axis

Business Unit

* Unit of an enterprise that performs one or many business functions that can be
rolled up in a management hierarchy.

* Normally, it will have a manager, strategic objectives, a level of autonomy, and

responsibility for its profit and loss.

* Use business units in the following ways:

- Management Reporting
- Processing transactions
- Security of transactional data
 - Reference data definition and sharing

* Perform one or many business functions like Payables invoicing, Payables

payments, Procurement, Sales, Marketing etc.

* Business function logically indicates a presence of a department in the business

unit with people performing tasks associated with these business functions.

Department - where your people are working

Enterprise Sturctures - Functional Axis

Department

* Department is an organizationn with one or more operational objectives or

responsibilities that exists independently of its manager
* Has one or more workers assigned to it
* Departments are mandatory because they track your employees

Enterprise Structures - Legal Axis

Legal Entity

* Define a legal entity for each registered company or other entity recognized in
law for which you want to RECORD ASSETS, LIABILITIES, EXPENSES AND INCOME, PAY
TRANSACTIONN TAXES, OR PERFORM INTERCOMPANY TRADING.

* Required to publish specific and PERIODIC DISCLOSURES of your legal entities

operations based on different jurisdictions requirements.

* Your legal entities can be IDENTIFIED AS LEGAL EMPLOYERS and therefore, are
available for use in Human Capital Management (HCM) applications

=> Legal Employer - A LEGAL ENTITY which employs People is LEGAL EMPLOYER.
=> Payroll Statutory - A LEGAL ENTITY which take care payroll of the employee is
called Payorll Statutory Unit (PSU)
=> Legislative Data Groups are a means of partitioning payroll and related data. At
least one legislative data group is required for each country where the enterprise
operates. Each legislative data group is associated with one ore more payroll
statutory units.
=> Frequently, a business unit is a part of single legal entity.
=> Division is an area of management responsibility that can corresponds to a
collectionn of legal entities.
=> Divsions and legal entities are independent concepts.

Legal & Payroll related Structures

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* Legislative Data Groups - Legislative data groups are a means of partitioning
payroll and related data.
* At least onne legislative data group is required for each country where the
enterprise operates.
* Oracle Fusion Payroll is organized by legislative data groups

**Legislative Data Group is classification which calssify payroll related data per
country.**
IF you have operating in 5 country,you have to create 5 LDG.

TRU - TAX REGULATORY UNIT - Use a tax reporting unit to group workers for the
purpose of tax and social insurance reporting.