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Set of Books. A General Ledger SOB, linked to the inventory organization,
controls the financial accounting of inventory transactions. A SOB is made up
of a chart of accounts, a financial calendar, and a currency. The general
ledger secures transactions (journal entries, balances) by SOB.
Legal Entity. A legal entity organization defines the tax and fiscal reporting
level. The legal entity represents the legal company.
Operating Unit. An operating unit organization defines the Purchasing, Order
Entry, Accounts Payable and Accounts Receivable level of operation. An operating
unit may span multiple manufacturing facilities, distribution points and sales
offices, or it may be limited to a single site.
Inventory Organization. Two flavors of inventory organizations are found in
Oracle Applications. They are defined the same, and both are assigned a set
of books, a legal entity organization, an operating unit organization, and a
location. An item master organization is used for item number maintenance and
validation. This master organization serves as a data repository storing items
and item attributes, master level categories and category sets, master level
cross references, and numerous data defaults. On-hand balances, inventory
movements, and other on-going inventory activities are not performed in an item
master organization. Generally, the master organization is used as the
validation organization for Purchasing and Order Entry. It is recommended
that a single item master organization be defined, even in multiple organization,
multiple sets of books environments.