Understanding Business Unit Setup
After you set up the companies for your organization, you must set up business units for each company. Business units are part of the basic account structure in the JD Edwards EnterpriseOne General Accounting system and denote where transactions affect the organization, such as a warehouse or store. They are the lowest reporting level within your organization at which you need to account for assets, liabilities, equity, revenue, and expenses.
Typically, you set up business units when you first set up the General Accounting system. However, you might also need to set up new business units if your company structure changes.
Balance sheet accounts (assets, liabilities, and equity accounts) are usually associated with a balance sheet business unit. Typically, the number for balance sheet business units is the same as the company number. For example, for company 00100, the balance sheet business unit would be 100 (you do not need leading zeros for the business unit). If the company number and balance sheet business units are not the same, you should be aware of special considerations when you close the fiscal year.
Business units are unique, 12-character, alphanumeric fields. These characteristics apply to business units:
A business unit can be assigned to only one company.
A company can have several business units.
Each company must have at least one business unit for the balance sheet.
Business units are the basis for income statements (the level at which you track revenues and expenses).
If you use a business unit only for adjustment entries, such as journal allocations or reburdening transactions, you can set a flag on the business unit to allow only adjustment entries to be posted. All of the accounts associated with the business unit automatically allow only adjustment entries to be posted. You do not have to set a flag on the individual accounts. To identify the document types that are acceptable for adjusting entries, you set up codes in UDC table 09/AA. Only transactions with those document types can be posted to the business unit and its accounts. This enables you to close a business unit (or job) to all transactions except adjusting entries.
Assume that you set up business unit 5 to allow only adjustment entries and you set up codes for XX (reburdening entry) and JA (journal allocations) in UDC table 09/AA. You create a reburdening entry (document type XX) for account 5.8720. The system posts the entry because business unit 5 and all associated accounts allow only adjustment entries. If you had created a journal entry (document type JE) for account 5.8720 instead, the system would not post the entry because JE is not set up in UDC table 09/AA and is, therefore, not an allowable document type for adjustment entries.
To review a list of business units, print the Business Unit Report (R0006P) by company. This report shows the 50 category codes that can be assigned to a business unit, as well as other business unit setup information.
The system maintains business unit information in the Business Unit Master table (F0006).