Organizations and Organization Hierarchies in Oracle Projects
You can define the following types of organizations for different uses 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.
Expenditure/Event Organizations can own project events, incur expenditures, and hold budgets for projects in the processing operating unit. 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.
Any organization that has the HR Organization classification enabled can have employees assigned to it.
Prior to Release 11, Oracle Projects required the HR organization classification for all project and expenditure organizations. With the additional organization classifications, this restriction is removed. You don't need to enable the HR organization classification for Oracle Projects unless you want to assign employees to the organization.
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 set up in the business group for both the burden cost code multiplier setup and burdening. 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.
For more information on burdening for costing, see Burden Schedules and Burdening.
- Oracle Projects uses the Project Burdening Hierarchy Version associated with the business group and 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.
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.
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.
Oracle Projects uses the default transaction type if it cannot find a rollup project invoice collection organization for the invoice.
- The organization belongs to the Project/Task Owning Organization Hierarchy Branch assigned to the operating unit.
Default Reporting Organization Hierarchy Version
You can specify any Organization Hierarchy Version as the default hierarchy for Oracle Projects to report information associated with a group of organizations. For some reports, the rollup relationships within the Organization Hierarchy Version are used to report the accumulated project activities.
If an organization is missing in the selected Reporting Organization Hierarchy Version, the project activity is not reported.