Implementing Cloud Financials: From Empty Pod to Go-Live · Module 5 · Legal Entities and Business Units
The enterprise structure model
Lesson 48 of 153 · 2 min
Four objects, and learners confuse all four. Ledger is an accounting book: chart of accounts, plus calendar, plus currency, plus accounting method. Legal entity is a registered company — a legal fact, not a system design choice. The client's lawyers decide it, not you. Business unit is an operational grouping that transactions belong to, and it is a design choice, and yours to influence. Balancing segment value is the chart of accounts segment value that identifies the entity on every journal. The relationships: one ledger holds many legal entities; each legal entity maps to one or more balancing segment values; business units belong to a legal entity and transact against a ledger. Is a business unit the same as a legal entity? No. A legal entity can have several business units — one registered company running separate procurement and sales operations, for instance. Legal entities are given to you. Business…
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