Multiorg Concept

Multi-Org is a server-side (applications and database) enhancement that enables multiple business units in an enterprise to use a single installation of Oracle Applications products while keeping transaction data separate and secure. The Multi-Org enhancement uses native database views to build a security layer on top of a single installation of Oracle Applications. In Oracle Applications Release 11i, the following products support
Multi-Org capabilities:
• Cash Management
• Order Management, Shipping Execution and Release Management
• Payables
• Property Manager
• Projects
• Purchasing
• Receivables
• Sales Compensation
• Sales and Marketing
• Service
Basic Business Needs
The Multi-Org enhancement to Oracle Applications provides features necessary to satisfy the following basic business needs. You should be able to:
• Use a single installation of any Oracle Applications product to support any number of business units, even if those business units use different sets of books.
• Support any number of business units within a single installation of Oracle Applications.
• Secure access to data so that users can access only information that is relevant to them.
• Procure products from an operating unit that uses one set of book, but receive them from another operating unit using a different set of books.
• Sell products from an operating unit that uses one set of books, but ship them from another operating unit using a different set of books, automatically recording the appropriate intercompany sales by posting intercompany accounts payable and accounts receivable invoices.
• Report at any level of the organizational structure.

By running the following SQL statement we can know
select multi_org_flag from fnd_product_groups;
The result 'Y' means your database is setup for multiorg.
Limitations Of Multi Org
1.With the exception of data that is shared across organizations,all data is secured and striped by operating unit level.
2.Multiple Organizations enabled products do not support viewing secured data across operating units.
For example you can take Supplier defination ,We can see header information only from other operating unit.It's not possible to share site information.Bank defination also.....But in R12 Bank defination has been changed.Now we can maintain one bank account for N number of operating units under one legal entity.
3.There is no additional support for centralization/decentralization of business functions.