Defining Organizations

Organizations can represent departments, sections, divisions, companies, business groups, or other organizational units within your enterprise. You can also create organizations that represent your external contractors.

Oracle Projects uses organizations for the following business purposes:

Management of projects and tasks
Employee assignments
Expenditure entry
Non-labor resource ownership
Budget management
Resource definition for project status reporting
Burden cost processing
Invoice and collections processing
Reporting

You use the Organization window to define all the organizations within your business group. The organizations you define appear in lists of values in the Organization Name fields throughout Oracle Projects.

Important: When you define organizations, you need to assign Organization Classifications to each organization that you want to use in Oracle Projects. See: Types of Organizations.

Example: Fremont Corporation Organizations

Fremont Corporation consists of four divisions (Administration, Fremont Engineering, Fremont Construction, and Fremont Services), each of which includes several groups. The following table shows the information that Fremont’s implementation team enters to define its organizations. All the organizations are internal.

For all of Fremont Corporation’s organizations, the following organization classifications are enabled:

Project/Expenditure/Event
Project Invoice Collection

Some of Fremont’s organizations are shown in the following table:

Organization Name	Location
Administration	HQ
Data Systems	HQ
East	East
Electrical	HQ
Finance	HQ
Fremont Construction	HQ
Human Resources	HQ
International	International
Midwest	HQ

Types of Organizations

You can define the following types of organizations for different uses in Oracle Projects:

Business Group

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.

For more information, see Business Groups.

Operating Unit

An operating unit is used to partition data for a subledger product (for example, Oracle Projects or Oracle Payables). It is roughly equivalent to an enterprise that uses a single organization.

When an enterprise uses more than one operating unit, it is said to have a multiple organization installation. You can enter and process transactions in two or more operating units without switching responsibilities, with multiple organization access control.

Organization classifications involving financial transactions (such as expenditure/event organizations, billing schedule organizations, and project invoice collection organizations) are always associated with operating units.

For more information, see Operating Units and Multiple Organizations and Security In Oracle Projects.

Project/Task Owning Organizations

Project/Task Owning Organizations 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 Organizations

Project Expenditure/Event Organizations 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 organization must 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.

For more information, see Defining Expenditure/Event Organizations for Resource Expenses.

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.

HR Organization

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

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.

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 during burden processing, the expenditure item is not burdened, and the burdened cost is equal to the raw cost.

For more information on burdening for costing, see Overview of Burdening, Oracle Project Costing User Guide.

Project Invoice Collection Organizations

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. See Defining Transaction Types for Invoice Processing, Oracle Projects Implementation Guide.

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.

Defining a Default Operating Unit for Project Expenditure/Event Organizations

To enable an organization to own project events, incur expenditures, and hold budgets for projects, you must perform the following when you define the organization:

Enable the Project Expenditure/Event organization classification
Define a default operating unit for the organization in the Additional Organization Information section.

In addition, if this organization supports schedulable resources, you must perform the following:

Select Related Organizations in the Additional Organization Information section
Enter the default operating unit for the organization

Note: You can also define a default operating unit for the organization classification HR Organization by selecting Related Organizations in the Additional Organization Information section. However, if you are using the operating unit for Oracle Projects, you must enable the Project Expenditure/Event Organization classification.

For instructions on performing these tasks, refer to the following topics in the Oracle HRMS Enterprise and Workforce Management Guide:

Creating an Organization
Entering Organization Classifications
Entering Additional Information

Defining Project Expenditure/Event Organizations for Resource Expenses

You typically use expenditure organizations to track expenses related to project resources. Project Expenditure/Event organizations can own project events, incur expenditures, and hold budgets for projects. To enable these capabilities in the organization, you must perform the following tasks as you define it:

Enable the Project Expenditure/Event organization classification.
Define a default operating unit for the organization in the Additional Information section. This step causes all resources belonging to this organization to inherit the specified operating unit and calendar as their default operating unit and calendar.
Enable the HR Organization classification. This task is necessary in order to have the ability to assign resources (people) to the organization.
Attach the organization to the Expenditure hierarchy assigned to the operating unit using the Setup Implementation Options form.