A Banner Org is literally the institution's organizational structure. To be a Banner Org it more than likely will have personnel costs and be an identifiable organization that would be defined as a department or sub department of the institution. As an example, a very rough structure for UNH might look something like this.
The Banner ORG may cross funds, and be associated with many aspects in the chart of account. The Banner ORG can be considered the center of the chart of account.
Banner supports eight (8) levels of hierarchy for the Org code. At USNH we have adopted a coding convention that uses the first four levels systematically for several reporting and routing purposes. Beyond that, each campus is at liberty to use the remaining levels as they see fit.
The Banner Org code is the primary value that is used to route transactions through approvals. The routing, with very few exceptions, is based on the level-3 org code which will route all dependent orgs to the same approval queue Because of this, changes to org codes at or above level-3 become much or cumbersome to manage.