Business unit granularity

One business unit or twelve? There is no default answer and the documentation will not give you one, so this lesson gives you a way to decide. Start with what a business unit boundary costs. Each one is a separate configuration surface: its own Payables options, its own Receivables setup, its own approval rules, its own data access assignments. Twelve business units means twelve of everything to maintain. Then what it buys: data segregation, so users of one business unit cannot see another's transactions; independent processing, meaning separate payment runs and separate close; and genuinely different operating rules where they differ. Five decision questions. Do different groups need to be prevented from seeing each other's transactions? Do they pay suppliers on different terms, or from different banks? Do they close on different schedules? Is there a legal or regulatory requirement to separate? Will the same people process for all of…

In this module: Module 5 · Legal Entities and Business Units

1. 1The enterprise structure model
2. 2Business unit granularityFree preview
3. 3Legal jurisdictions and authorities
4. 4Creating legal entities and reporting units
5. 5Creating business units and assigning functions
6. 6Tying it together
7. 7Intercompany foundations
8. 8What breaks
9. 9Lab briefing: Meridian structure