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Business Groups in HRMS

A business group is a basically Human Resources organization to which you assign employees. You assign each operating unit to a business group in the financial options setup. You can assign the same business group to different operating units including to operating units in different financial sets of books. You can setup a separate business group for each operating unit if you want to segregate and maintain each group of employees separately. Oracle provides one setup business group you can use.
In case of not having HRMS (Full mode),what you have to do is ,to create at least one business group to cater requirement for Oracle Financials and Manufacturing, so that only the employees can perform some of application functionality , which are as follows:
• Entry and approvals of purchase orders and requisitions require requisitioners, buyers, and approvers to be setup as employees.
• Purchasing receiving staff must be setup as employees in order to use receiving screens.
• Engineering change order approver lists use the employee database to validate approvers.
• AP expense report features allow you to create suppliers from employee information and to generate expense report coding using employee default account numbers.
• iExpense requires users who enter or approve expense reports to be setup as employees.
• Fixed Assets allows you to optionally assign assets to employees for tracking purposes.
• Standard Workflow approvals of GL journal entries in Release 11 require approvers to be setup as employees.
• Standard Workflow approvals of AR credit memos in Release 11i require approvers to be setup as employees.
• AP may add invoice approval through AME , which will likely require approvers to be setup as employees.
There are few exceptions, where you have to understand when your installation site is having HR and Projects modules installed, as there are significant implications of business group and HR organizations.

In the next blog I will define that Business Group is part of MultiOrg model.


  1. Your article has beneficial for me, because i am also HRMS trainee, wish you all the best,,,

  2. Regards
    Sridevi Koduru (Senior Oracle Apps Trainer
    LinkedIn profile -
    Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, SQL, PL/SQL, D2K at | +91 - 9581017828.


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