0 – New Organization : Case Study

    I want to present a small case study which will demonstrate the steps required to enable a new organization in a company which is already using oracle applications. Intent of the case study is to quickly know the steps involved for setting up a new organization. So the assumption is that all the operational responsibilities like Order Management (OM), Purchasing (PO) etc are in place. Also organizations like Master Organization, Order Management Organization, Purchasing Organization, Pricing organization are defined. Major entities involved in the setup will be covered. In future case studies I will cover in detail the various features for each entity like pricing, TCA architecture etc.

Case Study description

    ‘PARR LIBRARY’ is setup as a customer which is trying to buy KINDLE. Our Company has the distribution center setup in Houston and sells KINDLE tablet.

Product Name

Selling Price

Kindle tablet

119.00 USD

They buy these products from following suppliers at the mentioned price

Product Name


Cost Price

Kindle tablet


100.00 USD

Detailed analysis of requirement

Since Houston operations should be reported to US, it will be part of US Legal Entity. US Legal Entity and Set of books already exists and are currently used by other distribution centers. Existing responsibilities for Order Management, Purchasing, Inventory, Costing which are associated to the US Legal Entity can be used by Houston business users to perform operations.


  • Create a location and working calendar for the Houston site. This site should be able to receive and ship goods
  • Create GL accounts such as Material, Material Overhead etc. which holds the costs associated to this organization. Ensure that the inventory period is open for the month when operations will start so that all the operational costs can be posted in Inventory subledger.
  • Define Houston Organization. This will utilize the setups mentioned above.
  • Give access to this organization for the existing operational responsibilities (like OM , PO, Costing etc)
  • Define items, item costs and selling price
  • Create Customer with the ship to and bill to address.
  • Create and assign sourcing rules for the item.
  • Define Suppliers. Associate items to the suppliers via Approved Supplier List.


  • Create a sample sales order for ‘PARR LIBRARY’ customer and ship the Kindle tablet
  • Create a Requisition against ‘DAVIS LIBRARY’ supplier and convert it into a Purchase order. Approve the purchase order
  • Receive the goods from ‘DAVIS LIBRARY’
  • Look at the material transactions that resulted from the above transactions.
  1. Define Location
  2. Define Calendar
  3. Define GL Accounts
  4. Define Organization
  5. Define Subinventories
  6. Pick Release Document Set
  7. Ship Confirm Document Set
  8. Ship Confirm Rules
  9. Pick Release Rules
  10. Shipping Parameters
  11. Shipping Methods
  12. Cost Subelements
  13. Define Item
  14. Item Costs
  15. Item Price
  16. Open Inventory Period
  17. Miscellaneous Transaction
  18. Customer Setup
  19. Sales Order
  20. Receiving Parameters
  21. Create Supplier
  22. Sourcing Rules
  23. Approved Supplier List
  24. Requisition and Purchase Order
  25. Receiving
  26. Material Transactions Summary

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