Create Legal Entities and Business Units

You must define the following to create legal entities and business units:

• Legal entities for Subscriptions.
• Business units.

You must also assign business function, ledger, and legal entity for Subscriptions.

Define Legal Entities for Subscriptions

You must define legal entities for use with subscriptions. Here are the steps to define legal entities for use with subscriptions:

1. In your implementation project, go to the Manage Legal Addresses task.
2. Select a country from the Country drop-down list, and a new location.
3. On the Location Create page, enter the new location information.
4. Click Save and Close.
5. In your implementation project, search for the Define Legal Entities for Sales task list and open the Manage Legal Entity task.
6. On the Select Scope page, select Manage Legal Entity.
7. Select the Create New option from the Legal Entity drop-down list.
8. Click Apply and Go to Task.
9. Click Create.
10. On the Create Legal Entity page, select your country.
11. Enter the name of the legal entity and the identifier.
12. In the Registration Information section, select a legal address and enter Legal Reporting Unit Registration Number.
13. Enter the EIN or TIN.
14. Click Save and Close.
15. In your implementation project, select Define Legal Entities for Sales from the task list.
16. Click Select and Add. Search for and add these tasks to the Define Legal Entities for Sales folder: Manage Legislative Data Groups and Manage Legal Entity HCM Information.
17. Use the Manage Legislative Data Groups task to define at least one legislative data group for each country or territory where your enterprise operates. Select your legal entity and proceed.
18. On the Manage Legislative Data Groups page, click Create.
19. Enter the name of the legislative data group.
20. Select the country and currency.
    Note: You must enable the subscription currency conversion in the Subscription Details Layout section in Application Composer to use a currency different from the ledger currency.
21. Click Submit and then Done.
22. Use the Manage Legal Entity HCM Information task to verify information related to the payroll statutory units and the legal employer.
23. Click Done.

Define Business Units and Assign Business Function, and Legal Entity for Subscriptions

A business unit can perform many business functions. A business function represents a business process or an activity that can be performed by people working within a business unit and describes how to use a business unit.

A business unit can process transactions on behalf of many legal entities. For example, a payable invoice has an explicit legal entity field. Your accounts payable department can process supplier invoices on behalf of one or many business units. Sometimes, your legal entity is inferred from your business unit that's processing the transaction.

1. In your implementation project, navigate to Define Company Profile for Sales and Define Business Units for Sales, and open the Manage Business Unit task
   1. Click the create icon.
   2. On the Create Business Unit page, enter the required information. In the Default Set field, select Create.
   3. Create a reference data set and click OK.
   4. Select the reference data set created from the Default Set field and click Save and Close.
2. Navigate to Define Company Profile for Sales and Define Business Units for Sales. Click Select for the Assign Business Unit Business Function task to select the business unit you created as the task list scope.
   1. Click Select and Add to set the business unit you created as the task list scope.
   2. Click the Assign Business Unit Business Function task.
   3. Enter the required information and click Save and Close. Click the up arrow and select Subscriptions to go to the main folder structure.
3. Navigate to Define Company Profile for Sales > Define Business Units for Sales, and open the Manage Business Unit Set Assignment task. You can update or override the reference data set code for a particular reference data object.