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In Oracle Fusion HCM, an organization is a generic structure that can represent various business entities. To define the function of an organization, you assign it one or more classifications. Common classifications include:
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Legal Employer – used for employment-related data and payroll.
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Business Unit – defines transactional control and processing.
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Department – identifies internal structures for staffing and cost allocation.
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Division – used for logical grouping or reporting purposes.
Each classification adds unique attributes and behavior to the organization. For example, an entity classified as both a Business Unit and Legal Employer can handle HR transactions while also being used in financial processes.
Therefore, an organization is not limited to one classification—it can have multiple, depending on the organization's structure and business needs. This multi-classification capability provides flexibility in managing and reporting across different modules like Core HR, Financials, and Procurement.
I hope this blog post was helpful for you. If you have any questions or feedback, please leave a comment below.