Considerations for Creating Business Units in the Enterprise Structures Configurator

Business units are used within Oracle Fusion applications for management reporting, processing of transactions, and security of transactional data. Using the Enterprise Structures Configurator, you create business units for your enterprise either automatically or manually.

Automatically Creating Business Units

To create business units automatically, you must specify the level at which to create business units. Business units within your enterprise may be represented at one of two levels:

• Business function level, such as Sales, Consulting, Product Development, and so on.

• A more detailed level, where a business unit exists for each combination of countries in which you operate and the functions in those countries.

You can automatically create business units at the following levels:

• Country

• Country and Division

• Country and business function

• Division

• Division and legal entity

• Division and business function

• Business function

• Legal entity

• Business function and legal entity

Select the option that best meets your business requirements, but consider the following:

• If you use Oracle Fusion Financials, the legal entity option is recommended because of the manner in which financial transactions are processed.

• The business unit level that you select determines how the application automatically creates reference data sets.

After you select a business unit level, the application generates a list of business units, and you select the ones you want the application to create. If you select a level that has two components, such as country and division, then the application displays a table listing both components. You select the check boxes at the intersections of the two components.

The business units listed by the application are suggestions only, and are meant to simplify the process to create business units. You aren't required to select all of the business units suggested. When you navigate to the next page in the ESC guided flow, the Manage Business Units page, you can't delete any of the business units created automatically. You must return to the Create Business Units page and deselect any business units that you no longer want.

Example: Selecting Business Unit Levels

InFusion Corporation is using the Enterprise Structures Configurator to set up its enterprise structure. InFusion has identified two divisions, one for Lighting, and one for Security. They operate in four countries: US, UK, Japan, and India, and they have created a legal entity for each of the countries. The sales and marketing functions are based in both India and Japan, while the US and the UK have only the sales function.

This figure illustrates InFusion Corporation's enterprise structure.

The following table lists the options for business unit levels and the resulting business units that the application suggests for InFusion Corporation.

Business Unit Level	Suggested Business Units
Country	US UK Japan India
Country and Division	InFusion Lighting: Japan InFusion Lighting: US Infusion Security: UK Infusion Security: India
Country and business function	Sales: Japan Marketing: Japan Sales: US Sales: UK Marketing: India Sales: India
Division	InFusion Lighting InFusion Security
Division and Legal Entity	InFusion Lighting: Japan InFusion Lighting: US Infusion Security: UK Infusion Security: India
Division and Business Function	InFusion Lighting, Sales InFusion Lighting, Marketing InFusion Security, Sales InFusion Security, Marketing
Business Function	Sales Marketing
Legal Entity	Legal Entity: Japan Legal Entity: US Legal Entity: UK Legal Entity India
Legal Entity and Business Function	Legal Entity: Japan, Sales Legal Entity: Japan, Marketing Legal Entity: US, Sales Legal Entity: UK, Sales Legal Entity India, Marketing Legal Entity India, Sales

Manually Creating Business Units

If none of the levels for creating business units meets your business needs, you can create business units manually, and you create them on the Manage Business Units page. If you create business units manually, then no reference data sets are created automatically. You must create them manually as well.