With the Oracle eBusiness suite of applications you can enable the automatic creation of HR organizations using the Auto Orgs functionality. If your enterprise has a close relationship between its financial structure and line management hierarchy, then this means you only have to maintain your financial structure in GL and the corresponding organizations that you need to create your line manager hierarchy are automatically generated. The application creates HR organizations corresponding to company cost center combinations that exist in your GL account combinations.
Alternatively, if your financial cost centers are different to your HR organizations, but you still want to represent your cost centers as organizations, you can enable the application to automatically create company cost center organizations. These also correspond to company cost center combinations that exist in your GL account combinations.
This functionality provides a foundation for the management reporting functionality in Daily Business Intelligence (DBI) . It enables you to take financials information, such as costs, revenues, and expenses, and consolidate it by cost center manager.
When defining an HR organization, you can identify one cost center against which the payroll costs of the employees assigned to the organization should be collected. You simply select the cost center from a list in a segment of the Cost Allocation key flexfield.
For example, suppose you are defining in Oracle HRMS the organization Product Assembly, whose employee payroll costs go to the cost center Production. When entering the organization Product Assembly, you select Production from the list of cost centers in the Cost Allocation flexfield:
Cost Allocation Key Flexfield
Segment 1: Cost Center
410-Accounting
425-Production
503-Public Relations
Note: If employees' costs are charged to cost centers other than those of their organizations, or if they work in an organization only part time, you can enter other cost centers, and the percentage of time to be charged to each, on their employee assignments. Costing information entered for employee assignments overrides that entered for organizations.
For more information about the cost allocation key flexfield see: The Cost Allocation Key Flexfield