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Operating Unit

Its the most Important set up or term throughout the EBS, whatever be the module OU has some link to it.
I have put down some definitions of what OU is and were it could be used.


Operating Unit

An organization that uses Oracle subledgers, such as Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables, and related products. It may be a sales office, a division, or a department. Operating units are not associated with legal entities. Operating units are assigned to ledgers and a default legal context. Information is secured by operating unit for these applications using responsibilities.

 Each user can access, process, and report on data only for the operating units assigned to the MO: Operating Unit or MO: Security Profile profile option.
The MO: Operating Unit profile option only provides access to one operating unit.( this is used when MOAC is not used).
The MO: Security Profile provides access to multiple operating units from a single responsibility.

You can define operating units from the Define Organization window in Oracle HRMS or from Accounting Setup Manager in General Ledger.


  • Operating unit segregates and partitions data within Subledger Products such as purchasing,receivables, and Order Management.
  • All data within these applications can be segregated by Operating unit except for certain data like Customer and Supplier Headers.
  • Each OU passes data to one and only one Primary Ledger.
  • Multiple OU can pass data into same ledgers
Security at the Operating Unit is implemented using MO:Security Profile, which is set at the responsibility level.



An Operating Unit in Oracle EBS represents a distinct business entity or division with its own decentralized operations that is secured from data and transactions of other operating units.  Its definition in EBS is driven by the below considerations:
·         Data Security
o    Payables
o    Receivables
o    Purchasing
o    Order Management
o    Material transfers at cost or transfer pricing
o    Transfers within OU happen at cost and transfers across OUs happen at transfer price
·         Document Sequencing
o    Receivables
§  Invoice voucher numbering (includes credit/debit notes, guarantees, deposits)
§  Receipts voucher numbering
o    Order Management
§  Sales order numbering
§  Internal orders
o    Purchasing
§  Requisition
§  RFQ
§  Quotations
§  Purchase orders



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