Consolidation is not required, because data is already shared among operating units.
Decide whether to model internal organizations as legal entities or operating units
You must have at least one legal entity to represent your business in finance and operations apps.
Legal entities can be used for transactional business or for consolidation.
For example, a company that participates in transactions can own subsidiary legal entities. In this example, a legal entity is required for transactions, and a virtual legal entity is required to consolidate the results and balances of the subsidiary legal entities.
Internal organizations in your business, such as regional offices, can be represented as additional legal entities, or as operating units of the main legal entity.
operating unit is not required to be a legally defined organization
used to control economic resources and operational processes in the business.
An operating unit is an organization that is used to divide the control of economic resources and operational processes in a business.
operating unit have a duty to maximize the use of scarce resources, improve processes, and account for their performance.
operating unit in which managers are accountable for budgeted and actual expenditures. It is used for the management and operational control of business processes that span legal entities
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