The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
Generally, a complex enterprise has several organization structures, such as Internal, Accounting, and Human Resources. You are able to define different structures to customize Oracle Applications according to your business needs.
This Document explains these concepts in a basic manner.