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For optimum control, consistency, and trend analysis, it is simplest to keep the organization definitions stable. However, in a dynamic business environment, changes to organizations and organization structures are inevitable. When your organization structure changes, it is very important to understand the implications to your Oracle Projects implementation.

You can change the organization hierarchy setup in Oracle Projects to reflect changes to your company's organization hierarchy. To maintain system control and enforce your business rules, it is important to plan and manage the change carefully. To do this, you must understand how organizations and organization hierarchies are used in Oracle Projects.

Terms Used in This Essay:

Organization Classifications	A set of system-defined attributes that categorize an organization. You set these attributes when you create the organization in the Define Organization window of Oracle Human Resources. The organization classifications that pertain specifically to Oracle Projects are:
	- Project/Task Owning Organization
	- Project Expenditure/Event Organization
	- Project Invoice Collection Organization
	Each organization classification may have additional information that is defined by the system. For example:
	- Oracle Projects uses the project burdening hierarchy as additional information about a business group for the project burdening process.
	- A project/task owning organization allows you to define what project type class (indirect, capital, or contract) the organization can own.
	See Creating an Organization
Organization Hierarchy	A structure that defines the rollup relationships of the organizations within an enterprise. The topmost organization in an organization hierarchy is generally the business group, although this is not required by the system. The parent-child hierarchy relationships can be different (even reversed) in different organization hierarchies that are used for different business purposes.
Organization Hierarchy Version	Oracle Human Resources allows you to create multiple versions of an organization hierarchy. When you assign an organization hierarchy in an Oracle Projects implementation, you also assign the version.
	The following organization hierarchy versions are assigned in Oracle Projects:
	A Project/Task Owning Organization Hierarchy Version is assigned to each operating unit.
	An Expenditure/Event Organization Hierarchy Version is assigned to each operating unit.
	A Default Reporting Organization Hierarchy Version is assigned to each operating unit. This hierarchy version can be overridden at reporting time.
	A Project Burdening Hierarchy Version is assigned to each business group.
Start Organization	The branch of your organization hierarchy that you specify in Oracle Projects as the top of your hierarchy. When you choose a start organization as a reporting parameter, the start organization and all organizations below it are included in the report.
Organization Hierarchy Branch	The subset of an organization hierarchy that is uniquely identified by the organization hierarchy version and the start organization. For example, in the Fremont Corporation Case Study, the Engineering organization hierarchy branch consists of the following organizations: Engineering, Electrical, Mechanical, Structural, and Environmental.
	Corresponding to the Organization Hierarchy Versions defined above, the following Organization Hierarchy Branches are assigned to each operating unit:
	Project/Task Owning Organization Hierarchy Branch
	Expenditure/Event Organization Hierarchy Branch