3Common Applications Configurations

This chapter contains the following:

Users and Security

Overview of Defining Setup Users

One of your first tasks when setting up the application is the creation of users who can perform setup tasks.

Oracle creates an initial user for you when your environment is provisioned. This initial user is configured to perform security tasks, such as creating other users and granting additional privileges. As an initial user you can create users, known as setup users, to help with application setup. The setup user performs the tasks in implementation projects, sets up enterprise structures, creates application users, and administers security.

Use the Manage Users task in the Setup and Maintenance work area to create setup users. You can access this task in the Setup and Maintenance work area by selecting these options:

  • Offering: Customer Data Management

  • Functional Area: Users and Security

  • Task: Manage Users

For information about creating setup users, see the Getting Started with Your Sales Implementation guide.

Overview of Setting Up Users and Security

Since you followed the Getting Started with Your Sales Implementation guide steps to set up your initial set of users, then you already know that Oracle applications use a role-based access control security model to secure access to functionality and data. In a role-based access control security model, users are assigned roles, and roles are assigned access privileges to protected system resources.

Sales users who access the transactional UI, for example sales representatives working in leads and opportunities, are created as resources and are known as sales resources.

Default Preferences

To set up default preferences for users and roles, access the Security Console as a setup user or other user with the IT Security Manager job role. Only setup users, or other users with the IT Security Manager job role, can access the Security Console.

User Identity Store

The Lightweight Directory Access Protocol (LDAP) identity store is a repository of user identity data. Your LDAP directory stores definitions of LDAP user accounts. In general, changes you make to user accounts are automatically synchronized between the sales application and your LDAP directory server. However, you must also run processes on a daily basis to manage the information exchange between your application and the LDAP directory server. For information, see the chapter about setting up application security in the Securing CX Sales and B2B Service guide.

Setup Tasks in the UI and Other Setup Options

As a setup user, you use multiple different tasks in Setup and Maintenance to create and maintain users. You also have additional setup options to consider. The following table describes these tasks and setup options.

Setup Task or Option and Navigation Description

Manage Job Roles Task

Navigation: Setup and Maintenance > Sales Offering > Users and Security functional area

Oracle provides many predefined job roles. The relevant sales roles are listed in the Getting Started with Your Sales Implementation guide.

You perform the Manage Job Roles task to:

  • Review the role hierarchy of a job or abstract role.

  • Create custom job and abstract roles.

  • View the roles assigned to a user and list the users who have a specific role.

This task opens the Roles tab of the Security Console.

Manage Duties Task

Manage Sales and Service Access Management Task

Navigation: Setup and Maintenance > Sales Offering > Users and Security functional area

You perform the Manage Duties task to:

  • Review the duties of a job or abstract role.

  • Manage the duties of a custom job or abstract role.

  • Create custom duty roles.

This task opens the Roles tab of the Security Console.

Manage Data Security Policies Task

Manage Sales and Service Access Task

Navigation: Setup and Maintenance > Sales Offering > Users and Security functional area

You use the Manage Data Security Policies task to manage the data security policies that determine grants of entitlement to a user or role on an object or attribute group. This task opens the Roles tab of the Security Console.

You can also use the Manage Sales and Service Access task to review and configure data security. This task opens the Sales and Service Access Management work area. For information, see the Securing CX Sales and B2B Service guide.

Manage Users Task

Navigation: Navigator > Users and Roles item or Setup and Maintenance > Sales Offering > Users and Security functional area

You create application users in the UI using the Manage Users task. A user with the IT Security Manager job role performs the Manage Users tasks.

Note: You can also create sales users by importing users. For information on the user import options available, see the Understanding Import and Export Management for CX Sales and B2B Service and Getting Started with Your Sales Implementation guides.

Manage HCM Role Provisioning Rules Task

Navigation: Setup and Maintenance Sales Offering > Users and Security functional area

Oracle provides predefined role mapping rules for provisioning many of the standard job roles included with the application. However, using the Manage HCM Role Provisioning Rules task, you can create any additional role mappings you need to, to control the provisioning of roles to application users. For example, you can create a role mapping to provision the Channel Sales Manager role automatically to specific sales managers.

Import and Export Management

You can import users in bulk using data files. For information on the user import options available, see the Understanding Import and Export Management for CX Sales and B2B Service and Getting Started with Your Sales Implementation guides.

Import Partner Users Task

You can also import partner contact data using the Import Partner Users task. For more information, see the Getting Started with Your Partner Relationship Management Implementation guide.

Single Sign-On Authentication

Single sign-on authentication is optionally available for user authentication. If your enterprise has moved from a traditional on-premises environment to an Oracle Cloud implementation, you might want to use your existing identity management solution for authenticating your employees, and you might also want to provide a single sign-on experience. Implementing federated single sign-on lets you provide users with single sign-on access to applications and systems located across organizational boundaries. For additional information, see Oracle Applications Cloud Service Entitlements (Doc ID 2004494.1) on My Oracle Support at https://support.oracle.com.

Resetting User Passwords

Setup users provisioned with the IT Security Manager job role can use the Users tab in the Security Console work area to reset passwords for all application users. Users who can't access the Security Console can reset only their own passwords using the Set Preferences link in the Settings and Actions menu available by clicking their user name in the application or by using the Forgot Password link on the sign-in page. See the Getting Started with Your Sales Implementation guide for more information.

Updating Email Addresses

Use the Users tab in the Security Console work area to change user email addresses. You can use the procedure described in this topic to update addresses of both setup users and sales users. If you're updating the email addresses of sales users, then you can also use the same import process you use to create them. See the Getting Started with Your Sales Implementation guide for more information.

Note: Other data security tasks listed in the Users and Security functional area task list don't apply to the sales applications. Follow the guidance in the Getting Started with Your Sales Implementation guide and the Securing CX Sales and B2B Service guide.

Users who do day-to-day sales transactional activities like managing opportunities and leads are known as "sales resources". During implementation, you create sales resources and build your resource organization at the same time. After implementation, you maintain sales resources, such as by modifying their organization assignments, adding or removing permissions, creating additional users, and so on.

You can create users directly in the user interface or you can import them from a file.

For more information about creating and maintaining users (both setup users and resources), see the following guides:

  • Getting Started with Your Sales Implementation

  • Securing Sales and Service

Additional Options for Resource Setups

After you get your users established, you also have these options for setup:

Setup Option Where To Find More Information

Proxy Users

Sales resources can designate another resource as a proxy to sign in to the applications and perform tasks on their behalf. This functionality is also called "impersonation".

Topics about proxy users and impersonation

Restricted Users

You may want some users to access information but not be able to modify it. In this case, create restricted sales resources.

Topics about sales restricted users

Records Transfer Between Users

If needed, you can move records, such as opportunities or leads, from one sales resource to another using the Mass Transfer feature.

Topics about transferring records between users

Sales Resources FAQ

How does a contract user get access to a business unit?

A contract user is first created as a resource and mapped to a resource organization. Since each resource organization is mapped to one or more BUs, the user gets access to the BUs that are mapped to the resource organization.

For example, if the user-to-resource organization mapping is as seen in table 1, and the resource organization-to-BU mapping is as seen in table 2, then the users will get BU access as seen in table 3:

Table 1:

User/Resource Resource Organization

Sophie Black

Resource Org 1

Olivia Turner

Resource Org 2

Bala Gupta

Resource Org 3

Mark Quinn

Resource Org 4

Table 2:

Resource Organization Business Units

Resource Org 1

Vision Operations

Resource Org 2

Vision Services

Resource Org 3

Vision Services

Resource Org 4

Vision Operations

Vision Services

Table 3:

User/Resource Business Units

Sophie Black

Vision Operations

Olivia Turner

Vision Services

Bala Gupta

Vision Services

Mark Quinn

Vision Operations

Vision Services

How can existing contract users not created as resources get business unit access?

Existing contract users who weren't created as resources can get business unit (BU) access if you make them resources by using the Identify Resource feature.

You can use the Identify Resource feature to search for a user and identify the user as a resource through the Add as Resource option. While adding the user as a resource, the user can be associated with a resource organization. Once a user is mapped to a resource organization, the user gets access to the BU mapped to the resource organization.

Multiple Currencies

Overview

The applications support multiple currencies, multiple daily rates, and currency rate conversion. If you're going to use multiple currencies, at a minimum you need to:

  • Specify corporate currency

  • Import or enter daily currency conversion rates

  • Enable the currencies you're going to use, if you previously disabled them

Optionally, you can let salespeople select different currencies in leads and opportunities.

The applications also support different currency conversion rate types, allowing your business to maintain different conversion rates between currencies for the same period. Examples of conversion rate types are supplied: Spot, Corporate, User, and Fixed.

Implementation Tasks

You must complete several steps to enable salespeople to select multiple currencies in the applications.

Note: Perform these steps as a setup user (for example, a user with the Application Implementation Consultant job role).

Here are the high-level steps to enable multiple currencies:

Step Description Where to Find More Information

Set the default currency profile options.

Set the two profile options that specify default corporate currency and rate type.

See the Set Default Currency Profile Options section in this topic.

Check the setting of the default currency profile option.

Check the setting of the default currency profile option. This currency is the default used for salespeople in the transactional pages. The default currency is also used in a salesperson's forecast.

See the Check Default Currency Profile Option Setting in this topic.

Ensure currencies are enabled and verify precision.

Ensure that all of the currencies you plan to use are enabled for use and verify the precision.

See the Ensure Currencies are Enabled and Verify Precision section in this topic.

Set the multicurrency profile option for opportunities.

By default, one currency is set for an opportunity and its product lines. This default currency is a salesperson's preferred currency. If you want to enable multiple currencies for opportunities, set the multicurrency profile option.

See the Enable Multiple Currencies for Opportunity Product Lines topic in this chapter.

Let salespeople select the currency when editing leads and opportunities.

In the opportunity and lead edit pages, the Currency list of values is read-only by default. If you have enabled multiple currencies, you can let users pick a different currency at the header level by making the Currency field editable.

See the Let Salespeople Select the Currency in Leads and Opportunities topic in this chapter.

Enter currency daily rates.

To load daily rates, you can use a spreadsheet, file-based import, or web services.

See the Download the Desktop Integration Installer section in this topic.

Define and maintain daily currency conversion rates and conversion rate types.

The conversion rate is the ratio between two currencies; it shows how much of one money exchanges for another. Conversion rates are also known as foreign exchange rates. You define and maintain different conversion rates between currencies for the same period using conversion rate types.

See the Overview of Defining Daily Currency Conversion Rates section in this topic. Also see the topic, Enter Daily Rates Using the Daily Rates Spreadsheet, in this chapter.

Set up cross rate rules and overrides.

If you want to use combinations of cross rates across many currencies, you must:

  • Enable cross rates and allow cross-rate overrides

  • Maintain cross-rate rules

See the topic, Guidelines for Creating Conversion Rate Types, in this chapter.

After you have enabled multiple currencies, salespeople can set their preferred currency for the transactional pages and for business intelligence. For more information, see the related topic on setting general user currency.

Set Default Currency Profile Options

Your first step in the setup is to specify the default corporate currency and rate type by setting the Corporate Currency Default and Exchange Rate Type Default profile options.

Here's how you set the profile options:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Company Profile

    • Task: Manage Currency Profile Options

  2. On the Manage Currency Profile Options page, click ZCA_COMMON_CORPORATE_CURRENCY and set it to your default corporate currency. The display name for this profile option is Corporate Currency Default. It stores configured corporate currency used across the applications.

  3. Save your changes.

  4. Click ZCA_COMMON_RATE_TYPE and set it to the default currency rate type. The display name for this profile option is Exchange Rate Type Default. It stores the default currency exchange rate type.

Check Default Currency Profile Option Setting

You also need to check the setting of the profile option that specifies default currency for users in the applications. The profile option, Default Currency (FND_CURRENCY), not only specifies the default currency in the transactional pages, it's also used in a salesperson's forecast. By default, the profile option is set to US dollar. You can set this profile option at site level (affecting all users of the environment), at product level, or at user level.

Note: Users can set their own currency preference in the Personalization screens available in the user name menu in the global header. The setting users set for themselves override the settings that you make in the profile options screens at site or product level.

Here's how to check the default currency setting:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Sales Foundation

    • Task: Manage Administrator Profile Values

      Note: If you can't find this profile option, search for it from the main Sales offering page, using the search available in the Tasks widget available on the right side of the page.
  2. On the Manage Applications Core Administrator Profile Values page, search for and select the profile option name, Default Currency, or the code, FND_CURRENCY.

  3. Ensure the profile option value is set to your environment's default currency at site level.

To set the profile option for a specific user, create a new row in the table and enter the values as needed.

Ensure Currencies are Enabled and Verify Precision

By default, all currencies are enabled. But it's a good idea to double-check that all of the currencies you plan to use are enabled and that their precision levels are set correctly. Precision is the number of digits placed after the decimal point. For example, set USD to precision 2 to display one dollar as $1.00 in the UI.

Here's how to check:

  1. In the Setup and Maintenance work area, go to:

    • Offering: Sales

    • Functional Area: Company Profile

    • Task: Manage Currencies

  2. On the Manage Currencies page, click Search to search for all currencies, without entering any search criteria.

  3. Check that the Enabled option is set for each currency you plan to use.

  4. Check that the Precision is set consistently for each currency you plan to use.

    Note: When setting currency precision, be sure to set it correctly for all currencies you plan to use. This best practice ensures that decimal places are shown consistently in the UI for all the currencies you're using.
  5. If you made any changes, save your work.

Overview of Defining Daily Currency Conversion Rates

You have a few options for defining daily currency conversion rates, and you can maintain daily currency conversion rates between any two currencies. You can also enter daily conversion rates for specific combinations of foreign currency, date, and conversion rate type. The ways you can load currency rates are:

  • Load them manually using the Create Daily Rates spreadsheet.

  • Load them manually using the Import and Calculate Daily Rates file-based data import.

  • Load them automatically using web services.

For more information, see the related topics and the topics later in this chapter.

Consider these points about entering the currency code, date range, or symbol for the currency, when you create or edit currencies.

Currency Codes

You can't change a currency code after you enable the currency, even if you later disable that currency.

Date Ranges

You can enter transactions denominated in the currency only for the dates within the specified range. If you don't enter a start date, then the currency is valid immediately. If you don't enter an end date, then the currency is valid indefinitely.

Symbols

Some applications support displaying currency symbols. You may enter the symbol associated with a currency so that it appears along with the amount.

The Revalue Opportunity Currency process manages the effects of revaluation of currency exchange rates on opportunity revenue.

Opportunity revenue is stored in the user-entered currency (also called transaction currency) in the revenue model. The revenue model also stores two exchange rates:

  • The exchange rate between the entered revenue currency and the configured corporate currency, as specified in the global configuration during the implementation. This rate facilitate construction of materialized views that roll up revenue metrics along the territory hierarchy.

  • The exchange rate between entered revenue currency and the entered opportunity-level currency. This rate calculates the opportunity summary revenue amounts as the sum of line revenue amounts. Opportunity line revenue amounts can be entered in currencies that are different from the currency specified at the opportunity level.

The process works in combination with these two profile options that store corporate currency and rate type:

  • Corporate Currency Default: Stores configured corporate currency.

  • Exchange Rate Type Default: Stores configured rate type.

Also keep in mind the following impact of the process:

  • The process can also be triggered when corporate currency, configured rate type, or exchange rate (or any combination of these) is modified, either directly through administrator intervention or when these currency parameters change in the general ledger.

  • Only product lines in Open status are targeted by the batch process.

  • When updating product lines, the process doesn't consider whether the revenue is already included in a forecast.

  • Forecasting activity is paused when this process executes.

Run the Process

Run the Revalue Opportunity Currency process from the job process screen available from the Scheduled Processes option on the Navigator menu. Select the job name Revalue Opportunity Currency.

Here are the steps to run the process in basic mode:

  1. Sign in as a sales administrator or as a setup user.

  2. From the Navigator, select Scheduled Processes (within the Tools category).

    The Scheduled Processes overview page appears.

  3. Click Schedule New Process.

  4. In the search dialog box, search for and select the Revalue Opportunity Currency process.

    The Process Details page appears.

  5. Click Submit.

This table shows the logical parameters expected by the batch process:

Parameter Default Description

CRM Common Currency

Stored in the profile option, Corporate Currency Default (ZCA_COMMON_CORPORATE_CURRENCY)

  • Configured corporate currency.

  • Passed if corporate currency changes.

  • Program doesn't check against profile for a match.

CRM Common Currency Rate Type

Stored in the profile option, Exchange Rate Type Default (ZCA_COMMON_RATE_TYPE)

  • Configured rate type.

  • Passed if there is a requirement to reevaluate the conversion rate against a different rate type.

  • If no value is passed, the program uses the profile option value.

Business Unit Organization ID

No default

Leave blank, and all business units are targeted. Otherwise, provide the specific business unit ID.

Number of Opportunities per Database Update

500

Oracle recommends that you leave this parameter at the default value or blank (and program uses default value).

Last Batch Job Run Time Stamp

See Description column

This parameter can be used for batch program reruns. When a few opportunities have failed, the log reflects all the failed opportunities, as well as provides a time stamp for "Start Batch Job Time Stamp". Enter this time stamp on the second run of the batch program to limit the scope of the batch job to only the failed opportunities.

Effective Date

System date

Date passed to general ledger (using an API) to calculate the conversion rate. The program doesn't validate that the date must be in the future, so, in effect, any date can be passed.

Impact of Process on Revenue Attributes

The Revalue Opportunity Currency process impacts several revenue attributes, as shown in this table.

Revenue Model Attribute Attribute Description/Function Batch Process Update
  • CRM_CURRENCY_CODE

  • CRM_CONVERSION_RATE_TYPE

  • CRM_CONVERSION_RATE

These attributes store the exchange rate between revenue line currency and the corporate currency, and are used to construct the materialized views for Closed, Pipeline and Unforecasted revenue metrics along the territory hierarchy. For lines in status category of Open, these attributes are updated whenever a revenue line is created or updated or whenever an opportunity with revenue is updated or saved.

  • The default for CRM_CURRENCY_CODE is taken from the profile option, Corporate Currency Default (ZCA_COMMON_CORPORATE_CURRENCY).

  • The default for CRM_CONVERSION_RATE_TYPE is taken from the profile option, Exchange Rate Type Default (ZCA_COMMON_RATE_TYPE).

  • CRM_CONVERSION_RATE is calculated using a GL API.

CRM_CURRENCY_CODE and CRM_CONVERSION_RATE_TYPE are updated based on a parameter to the batch program. If these two parameters are passed in, the program uses them to update the revenue tables. If these values aren't passed in, the application retrieves the profile option values and updates the revenue tables with them.

REVN_AMT_CURCY_CODE

Currency of the revenue (summary or line)

Entered currency. Not updated.

  • CONVERSION_RATE_TYPE

  • CONVERSION_RATE

These attributes store the exchange rate between revenue line currency and the summary revenue (opportunity level) currency and are used to convert the revenue line amounts to opportunity level currency. For lines in a status category of Open, these attributes are updated whenever the revenue is created or updated or whenever an opportunity with revenues is updated or saved.

  • CONVERSION_RATE_TYPE is updated based on a parameter to the batch program.

  • CONVERSION_RATE is updated. Changes if corporate rate types change. Rate is obtained using (conversion_rate_type, line_currency_code, summary_currency_code, and system date).

  • REVN_AMT

  • DOWNSIDE_AMT

  • UPSIDE_AMT

For summary revenue amounts, these amounts are calculated as the sum of line revenue amounts. These amounts are converted to the opportunity-level currency before calculating the sum. The exchange rate stored in the CONVERSION_RATE attribute is used to perform the conversion.

  • Line revenue isn't updated.

  • Summary revenue is recalculated.

LAST_UPDATE_DATE

WHO column

Updated.

USER_LAST_UPDATE_DATE

Functional WHO column

Not updated.

You are required to enter the daily rates for currency conversion from Great Britain pounds sterling (GBP) to United States dollars (USD) for 5 days.

To load rates using the Create Daily Rates Spreadsheet, you must first install Oracle ADF Desktop Integration client software. Oracle ADF Desktop Integration is an Excel add-in that enables desktop integration with Microsoft Excel workbooks. You can download the installation files from the Tools work area by selecting Download Desktop Integration Installer.

Entering Daily Rates
  1. From the General Accounting work area, select the Period Close link.

  2. From the Tasks panel, click the Manage Currency Rates link.

    Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historical rates.

  3. Click the Daily Rates tab.

    Use the Daily Rates tab to review and enter currency rates.

  4. Click the Create in Spreadsheet button.

    Use the Create Daily Rates spreadsheet to enter daily rates in a template that you can save and reuse.

  5. Click in the From Currency field. Select the GBP - Pound Sterling list item.

  6. Click in the To Currency field. Select the USD - US Dollar list item.

  7. Click in the Conversion Rate field. Select the Spot list item.

  8. Click in the From Conversion field. Enter a valid value: 10/2/2017.

  9. Click in the To Conversion Date field. Enter a valid value: 10/6/2017.

  10. Click in the Conversion Rate field. Enter a valid value: 1.6.

  11. Click Submit and click OK twice.

  12. Review the Record Status column to verify that all rows were inserted successfully.

  13. Save the template to use to enter daily rates frequently. You can save the spreadsheet to a local drive or a shared network drive.

  14. Optionally, edit the rates from the Daily Rates user interface or resubmit the spreadsheet.

You're required to change today's daily rates that were already entered. The rates you're changing are for currency conversion from Great Britain pounds sterling (GBP) to United States dollars (USD) for your company InFusion America.

Currency conversion rates were entered by an automatic load to the Daily Rates table. They can also be entered through a spreadsheet.

Updating Currency Rates
  1. Navigate to the Period Close work area.

    Use the Period Close work area to link to close processes and currency process.

  2. Click the Manage Currency Rates link.

    Use the Currency Rates Manager page to create, edit, and review currency rate types, daily rates, and historical rates.

  3. Click the Daily Rates tab.

    Use the Daily Rates tab to review and enter currency rates.

  4. Click the From Currency list. Select the GBP - Pound Sterling list item.

  5. Click the To Currency list. Select the USD - US Dollar list item.

  6. Enter the dates for the daily rates that you are changing. Enter today's date.

  7. Click the Rate Type list. Select the Spot list item.

  8. Click the Search button.

  9. Click in the Rate field. Enter the new rate of 1.7 in the Rate field.

  10. Click in the Inverse Rate field. Enter the new inverse rate of 0.58822 in the Inverse Rate field.

  11. Click the Save button.

Enterprise Structures

A legal entity is a recognized party with rights and responsibilities given by legislation.

Legal entities have the following rights and responsibilities to:

  • Own property

  • Trade

  • Repay debt

  • Account for themselves to regulators, taxation authorities, and owners according to rules specified in the relevant legislation

Their rights and responsibilities may be enforced through the judicial system. 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 transaction taxes, or perform intercompany trading.

A legal entity has responsibility for elements of your enterprise for the following reasons:

  • Facilitating local compliance

  • Minimizing the enterprise's tax liability

  • Preparing for acquisitions or disposals of parts of the enterprise

  • Isolating one area of the business from risks in another area. For example, your enterprise develops property and also leases properties. You could operate the property development business as a separate legal entity to limit risk to your leasing business.

The Role of Your Legal Entities

In configuring your enterprise structure in Oracle Fusion Applications, the contracting party on any transaction is always the legal entity. Individual legal entities:

  • Own the assets of the enterprise

  • Record sales and pay taxes on those sales

  • Make purchases and incur expenses

  • Perform other transactions

Legal entities must comply with the regulations of jurisdictions, in which they register. Europe now allows for companies to register in one member country and do business in all member countries, and the US allows for companies to register in one state and do business in all states. To support local reporting requirements, legal reporting units are created and registered.

You are required to publish specific and periodic disclosures of your legal entities' operations based on different jurisdictions' requirements. Certain annual or more frequent accounting reports are referred to as statutory or external reporting. These reports must be filed with specified national and regulatory authorities. For example, in the United States (US), your publicly owned entities (corporations) are required to file quarterly and annual reports, as well as other periodic reports, with the Securities and Exchange Commission (SEC), which enforces statutory reporting requirements for public corporations.

Individual entities privately held or held by public companies don't have to file separately. In other countries, your individual entities do have to file in their own name, as well as at the public group level. Disclosure requirements are diverse. For example, your local entities may have to file locally to comply with local regulations in a local currency, as well as being included in your enterprise's reporting requirements in different currency.

A legal entity can represent all or part of your enterprise's management framework. For example, if you operate in a large country such as the United Kingdom or Germany, you might incorporate each division in the country as a separate legal entity. In a smaller country, for example Austria, you might use a single legal entity to host all of your business operations across divisions.

A business unit is a unit of an enterprise that performs one or many business functions that can be rolled up in a management hierarchy. A business unit can process transactions on behalf of many legal entities. Normally, it has a manager, strategic objectives, a level of autonomy, and responsibility for its profit and loss. Roll business units up into divisions if you structure your chart of accounts with this type of hierarchy.

In Oracle Fusion Applications you do the following:

  • Assign your business units to one primary ledger. For example, if a business unit is processing payables invoices, then it must post to a particular ledger. This assignment is required for your business units with business functions that produce financial transactions.

  • Use a business unit as a securing mechanism for transactions. For example, if you run your export business separately from your domestic sales business, then secure the export business data to prevent access by the domestic sales employees. To accomplish this security, set up the export business and domestic sales business as two separate business units.

The Oracle Fusion Applications business unit model provides the following advantages:

  • Enables flexible implementation

  • Provides consistent entity that controls and reports on transactions

  • Shares sets of reference data across applications

Business units process transactions using reference data sets that reflect your business rules and policies and can differ from country to country. With Oracle Fusion Application functionality, you can share reference data, such as payment terms and transaction types, across business units, or you can have each business unit manage its own set depending on the level at which you want to enforce common policies.

In summary, use business units for:

  • Management reporting

  • Transaction processing

  • Transactional data security

  • Reference data sharing and definition

Brief Overview of Business Unit Security

A number of Oracle Fusion Applications use business units to implement data security. You assign roles like Accounts Payable Manager to users to permit them to perform specific functions, and you assign business units for each role to users to give them access to data in those business units. For example, users who have been assigned a Payables role for a particular business unit, can perform the function of payables invoicing on the data in that business unit. Roles can be assigned to users manually using the Security Console, or automatically using provisioning rules. Business Units can be assigned to users using the Manage Data Access for Users task found in Setup and Maintenance.

Multiple Business Units

You can associate contracts with a business unit, allowing them to be restricted by a business unit . You can also specify some Contract Terms Library components at the business unit level. For example, you can enable clause and template adoption at the business unit level. For more information, see the topics on setting up business units for the contract terms library.

Here are the high-level steps to set up multiple business unit functionality in Contracts, along with where to find more information about each step.

Step Where to Find More Information

Manage common profile options

See the Set Up Common CRM Business Unit Profile Option topic

Set business unit functions

See the Define Business Units, Assign Business Function, and Assign Ledger and Legal Entity topic.

Create a contract Organization

See the Create Contract Organization section in the Manage Contract Visibility in Multiple Business Units Setup topic.

Associate contract organization to business units

See the Associate Contract Organization to Business Units section in the Manage Contract Visibility in Multiple Business Units Setup topic.

Associate the organization to the user

See the Add organization to the user section in the Manage Contract Visibility in Multiple Business Units Setup topic.