Multiple Organizations Compliance in Oracle Labor Distribution

Definition

Multiple Organizations enables users to define multiple organizations and the relationships among them in a single installation of Labor Distribution.

Overview

Multiple Organizations provides secure access to Oracle Human Resources data. Without Multiple Organizations, any user who logs into Labor Distribution can access scheduling and distribution data for all employees in the entire site because Labor Distribution does not specify the data that can be accessed by different users even if multiple business groups are defined in the implementation.

If you use Oracle Applications Release 12 and implement Multiple Organizations, then you can link more than one Labor Distribution responsibility to a business group, ledger, set of operating units, and generic suspense account.

For information on Multiple Organizations, see Multiple Organizations in Oracle Applications.

Features

Multiple Organizations includes the following features:

Business Group

In Multiple Organizations, a Labor Distribution responsibility is linked to a business group set up in Human Resources. Data relating to employee assignments and organizations in a business group is accessible only to users using the related responsibility.

For information on defining business groups, see Adapting and Creating a New Business Group, Oracle HRMS Enterprise and Workforce Management Guide.

Ledger

If you use Oracle Applications Release 12 and implement Multiple Organizations, then you can link a Labor Distribution responsibility to a ledger that you define in Oracle General Ledger. Payrolls in Human Resources point to specific ledgers. The application partitions the payroll information based on the ledger that you link to each Labor Distribution responsibility.

For information on defining a ledger, see Defining Ledger, Oracle General Ledger User Guide.

Operating Unit

The MO: Security Profile option enables you to use a single Labor Distribution responsibility to access projects, tasks, awards, and expenditure organizations across operating units. This profile option is available if you use Oracle Applications Release 12.

For information on operating units in Projects, see Support for Multiple Organizations in Oracle Projects, Oracle General Ledger User Guide.

User Procedures

This section describes how Labor Distribution uses Multiple Organizations for the following:

Labor Distribution Responsibility

If you use Oracle Applications Release 12 and implement Multiple Organizations, you can link a Labor Distribution responsibility to a unique combination of one business group, one ledger, and a set of operating units. If there are multiple business groups and ledgers, then you need to create multiple Labor Distribution responsibilities for each BG-Ledger combination.

If you do not implement Multiple Organizations, then the Labor Distribution responsibility uses the Human Resources business group and the General Ledger default ledger.

If you use Oracle Applications Release 12 and implement Multiple Organizations, then you must set up Labor Distribution responsibilities and link the responsibilities to specific BG-Ledger combinations by using the following profile options:

For information on defining system profiles, see System Administration Setup.

If you use one business group (BG1), one Ledger (Ledger1), and a set of operating units, then you must configure the MO: Security Profile option with a set of operating units and link it to a responsibility called LD1. You can access projects, tasks, awards, and expenditure organizations of the operating units (OU1 and OU2) using the LD1 responsibility.

Multiple Organizations Combination Example

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Note: The above information applies only if you use Oracle Applications Release 12.

Labor Distribution Setup

If you use Oracle Applications Release 12 and implement Multiple Organizations, then ensure that you complete all the setups in Labor Distribution for each combination of business group and ledger. If there are two different BG-Ledger combinations, then you need to complete the entire Labor Distribution setup twice to use the application with the combinations. You need to set up Labor Distribution for every unique BG-Ledger combination.

The business group and ledger partitions Labor Distribution data. The application uses the MO: Security Profile option to determine the Projects information when you schedule and distribute employees' salaries.

You must specify a different generic suspense account for each unique BG-Ledger combination. The application links the generic suspense account to the organization you select in the PSP: Generic Suspense Account Organization profile for your responsibility.

You must set up a clearing account in the Clearing Account window for each unique BG-Ledger combination. You must also set up a natural account auto-population segment in the Autopop Segment Setup (Autopop Segment Definition) window.

For information on setting up a clearing account, see Labor Scheduling Setup.

For information on setting up a natural account auto-population segment, see Expenditure Type and Natural Account Auto-Population Setup.

If you use a single business group and two ledgers, then you may encounter a situation where an organization may contain two records. For example, the Chemistry department can have a single organization suspense account that points to an accounting flexfield in Ledger1 that you set up using the LD1 responsibility. The department may also contain another record for the organization suspense account that points to Ledger2 that you set up using a different Labor Distribution responsibility (LD2.) Even though you can view the record using both the responsibilities (LD1 and LD2), the application stores the data using the correct context (business group identifier and Ledger identifier) and prevents conflicts when you run any of the Labor Distribution processes. This partition occurs even if you use a Projects charging instruction instead of a General Ledger charging instruction. Similarly, the application applies this methodology to the Organization Default Labor Schedule, Organization Default Accounts, Generic Suspense Account, and Global Earnings Element Override.

Multiple Organizations In Labor Distribution Setup Example

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Note: The above diagram applies only if you use Oracle Applications Release 12.

Labor Scheduling

When you log on to Labor Distribution using a particular responsibility, then you can access and schedule assignments that belong to the BG-Ledger combination you linked to that responsibility. Therefore, the employee assignments that belong to an organization in a business group, and their respective payrolls, point to the ledger. If you use a single business group, and two ledgers, as shown in the figure, then you cannot secure the Human Resources data relating to employees and organizations since both LD1 and LD2 point to the same business group.

The application filters data of employee assignments based on the assignment's payroll. This payroll determines the ledger that is relevant to that employee assignment.

You set up Labor Distribution with two responsibilities, LD1 and LD2 as you are working with a single business group but two ledgers. If Sarah Brown is on payroll Payroll1 and this payroll points to Ledger1, then you can schedule that employee assignment only with the LD1 responsibility.

Multiple Organizations in Labor Scheduling Example

the picture is described in the document text

Note: The above diagram applies only if you use Oracle Applications Release 12.

Labor Distribution Processes

This section describes the following processes:

Import Payroll Transactions from Human Resources

In the Import Payroll Transactions from Human Resources process, you select the name of the payroll and the time period for the payroll you want to import. Based on your responsibility, you can view a list of valid payrolls. These payrolls are based on the business group and the ledger attached to the responsibility. This ensures that the application imports payroll lines only for the relevant employee assignments.

Import Non-Oracle Sublines

The application stores payroll lines from a non-Oracle payroll source in an interface table as batches based on a set of rules. These rules ensure that the batch contains payroll lines which pertain to employee assignments belonging to the same payroll. Since each payroll you create in Oracle Human Resources can link to a unique BG-Ledger combination, the rule ensures that the application groups the data it imports in a single batch into Labor Distribution so that you can link the data to a responsibility.

Create Distribution Lines

In the Create Distribution Lines process, if you use an Oracle payroll, then you select a payroll name and a payroll period. If you use a non-Oracle payroll, then you select a batch. You need to ensure that you specify parameters that are relevant to the specific BG-Ledger combination that your responsibility is linked to.

The Create Distribution Lines process applies the appropriate schedules to the payroll lines when it generates the distribution lines. If an assignment has a valid labor schedule, then the process uses this schedule. Because you set the business group and the ledger at the responsibility level, the application maintains the integrity of data, such as assignments, payroll lines, and schedule lines.

If you use the organization defaults, then the BG-Ledger identifier ensures that the process detects the correct organization defaults for creating the distribution lines. Even though an organization can have multiple records for each default, as described in the Labor Distribution setup example, only a single record for any BG-Ledger combination can exist to maintain integrity.

Import Pre-generated Distribution Lines

The process loads pre-generated distribution lines into an interface table based on a ledger. One of these rules stipulates that a batch can only contain distribution information pertaining to employee assignments. These assignments must belong to the same business group and the payrolls of those assignments must point to the same ledger. This ensures that the application processes each batch using least one responsibility that links a specific BG-Ledger combination.

Summarize and Transfer Payroll Distributions

In the Summarize and Transfer Payroll Distributions process, if you use an Oracle payroll, then you specify a payroll name and a payroll period. If you use a non-Oracle payroll or pre-generated lines, then you specify the name of the batch. The BG-SOB combination that links to your responsibility determines the parameter values you can specify for this process.

In the Summarize and Transfer Payroll Distributions process, if you use an Oracle payroll, then you specify a payroll name and a payroll period. If you use a non-Oracle payroll or pre-generated lines, then you specify the name of the batch. The BG-Ledger combination that links to your responsibility determines the parameter values you can specify for this process.

Distribution Adjustments and Summarize and Transfer Adjustments

You can complete distribution adjustments for all employee assignments in the specific BG-Ledger context. The application maintains the integrity of the assignment data and the charging instructions.

If you select a date range for the distribution adjustment that encompasses a time period during which the charging instructions point to two different ledgers, then the distribution adjustments process limits the user to a modified date range. The date range includes the begin date on the original date ranges you specified and the last distribution date for the period when the assignment pointed to the first ledger.

If you want to make a distribution adjustment for the second set of charging instructions, then you define a separate distribution adjustment. To do this, you access the application with a different responsibility. This ensures that the Summarize and Transfer Adjustments process always processes individual distribution adjustment batches that point to the same ledger.

Projects Charging Instructions

The rules in the Distribution Adjustments and Summarize and Transfer Adjustments section do not apply for Projects charging instructions. Because Labor Distribution does not maintain any information relating to operating units at the distribution history level, you can access distribution lines that you originally charged to projects in OU1 and attempt to transfer it to a project in OU2. The application enables you to transfer the distribution lines only if its charging instruction is valid.

If you perform a distribution adjustment from projects in OU1 to projects in OU2, then the process completes successfully. If there is an anomaly in terms of cross charging, the application deals with it independent of Labor Distribution.

Effort Report

When you create an effort report template from the Effort Reporting page, the application displays selection criteria from Human Resources, General Ledger, Grants Accounting, and Projects. When you select information from the selection criteria, the application maintains the BG-Ledger integrity. This filter ensures that the employee assignment belongs to the relevant business group and the payroll of the assignment points to the relevant ledger.

Labor Encumbrance

If you use Oracle Application Release 12 and implement Multiple Organizations, then you must set up the HR: Business Group profile option. The BG-Ledger combination that links to your responsibility determines the values you can specify to run the process.

For information on setting up profile options, see System Administration Setup.