Designing org structure and COA

Hi
We are in the process of implementing oracle financial modules in India and we are a construction company,so we do all type of construction activity and hence it is project based.we will be implementing projects as well.
We are having operations through out the country but do not have any outside the country .
so while implementing what would be the best idea to have org structure.
should we go for multiple OU cosidering each project as OU or should we go with considering each project as cost centre ?
management would like to have MIS for each project and transaction of each project accounted separately does not want other project accountant to see transaction of other projects.
any idea would be of help.
thanks
Jogendra

Hi Jogendra,
Have you considered of having a Project Segment in your Chart of Acounts?
In that case using your Balancing segment and the Project Sement as a secondary Tracking segment you can track all MIS based upon the Project segment and the Balancing segment.
Whether or not to have multiple OUs also poses questions like how are the Projects Managed?
Are separate Companies floated to own and manage each of the Projects? If separate companies are floated, for India Localization tds needs to be deducted and the Threshold limits will work at Operating Unit level. As such, you must use multiorg and crete multiple OUs to keep the threshold limits of TDS and other taxes in place.
Security rules will need to be used in any case - as there will only be one GL (is you are using single set of Books).
So you can create a group company,
create one Legal entity and under this legal entity create as many OUs each having its own TAN no. Ths will allow the TDS slabs to be effective for each OU.
Hope by now the sturcture is materialising in your mind. Happy Implementation!!
Cheers!
Edited by: SatyaApps on Sep 9, 2008 8:51 PM

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