Understanding Multiple Organization

1. There are 4 levels in Oracle 11i Multiple Organization Hierarchy.

Business Group
   |
   |-Legal entity--
   |                        |
                            |-Operating Unit---
                            |                               |
                                                            | -Inventory Organization1
                                                            | -Inventory Organization2

2. Set of Book(SOB)
For legal entities sharing same function currency, accounting flexfield struct and calendar, same set of book can be used.

3. Business Group
Oracle Applications secures human resources information, including organization definition, by business group. For a fresh install, a default business group is created and user can modify this business group to meet enterprise's requirements. Of course, new business group can be created.

All business group must be defined  befined before defining any type of organizations.

You can classify an organization as any combination of legal entity, operating unit, and inventory organization.