Multiple masters for a company

We are currently in the process of implementing Oracle EBS in our company and we are also implementing Oracle Projects.
Ours is a Engineering Construction company, and under the Business Unit (which is a profit center) there are many project sites.
Our implementor is suggesting us that we should consider each construction site as an organization so that it can have its site inventory.
Also we have to copy the same material master for each organization. That means at the head office level while making a P.O for some material purchase we shall depend on the material master of the Head office organization and while receiving the material at site we shall depend on the material master of that site organization. I feel this to be a little strange as I knew, that in an ERP there shall be only a single instance of master. But here we are having many instances.
Kindly suggest whether our consultant is guiding us in the correct path.
Regards

Hi
There should be only one master for all items. Then you can allocate all items or part of them to each inventory organization. The item classifications set at master level flow down as default to all inventory organization, and may be overridden on the inventory organization level, if needed. In you case, since the organizations only differ by location, and not by type of activity, it seems like you will stay with the default values for any inventory organization.
You should setup procedures so every new item is assigned to all existing organizations. This way, there will not be a delay when each organization raise a requisition or PO. Also, when creating a new inventory organization, all existing items should be allocated to that organization as well.
This architecture is not the only one. You may consider using only one inventory organization, and setup subinventories or locators to separate between the various sites. In such case your item master is shared by everyone, without the need to allocate items to multiple organizations. However, keeping only one inventory organization may give you less tools for access controls, and it will be more difficult to restrict users from viewing or transact against specific site inventory.
Another point to consider it the ability to control accounting. If you are not enabling project manufacturing, the accounting is setup on the inventory organization level. That means the same accounts accross all sites. If you need to separate accounting of inventory by site, you might need to consider setting accounts by subinventory, or develop more granular accounting rules using account generation client extension of Cost Manager.
Dina

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