Legal entity
Operating unit
Registered or legislated legal structure
Divides the control of economic resources
and operational processes among people
Granted the authority to enter into legal
contracts
Responsible internally for its performance
Required to prepare statements that
report on its performance
Own assets and responsible for its
liabilities
A node in an organizational model
hierarchy, mapped to the dimensions –
cost center, department, or business unit
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Retail channel
Business unit
Cost center
Department
*
Value stream
Reorganizing
departments
Contoso
Group
Contoso
Consulting
FR
Contoso
Group
Contoso
Consulting
Contoso
Retail
Contoso
Consulting
GB
Contoso
Consulting
USA
Contoso
Consulting
Contoso
Consulting
Europe
Contoso
Consulting FR
Contoso
Consulting
USA
Contoso
Consulting
GB
Contoso
Retail
Dynamically align reporting
trees with Microsoft
Dynamics AX organizational
hierarchies
• Create financial reports using
organization hierarchies created in
Microsoft Dynamics AX 2012
• Dynamically update a Management
Reporter reporting tree when
Microsoft Dynamics AX organization
hierarchy changes
• Uses report date to select
corresponding organization hierarchy
All stores
Base item
assortment
NE region
stores
Winter sports
Large
stores
Motor sports
Contoso
Consulting
Sales and
marketing
Operations
Project
operations
Retail
operations
Service
operations
Finance
Position
Department
Finance Manager
Finance
Treasurer
Finance
Purchasing Agent
Sales and Marketing
Store Manager
Retail Operations
Consultant
Service Operations
Project Manager
Project Operations
http://technet.microsoft.com/en-us/library/hh292602.aspx
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Charlie – President - CEO
• Wants to structure organizations to align with business strategy
• Needs to implement policies by organization structure
Sara – CFO Ken - Controller
• Wants to separate statutory or legal structure from operating structure
• Implements financial controls on legal entities and Legal entities data access
Karen – Procurement Agent
• Has limited visibility into the company’s operating and statutory structure
• Needs to enter transactions in an intuitive way with minimal training
Claire – HR Manager
• Needs to ensure position reporting hierarchy are in place for approvals
• Minimum maintenance to accommodate changes
Simon – System Implementer / Consultant
• Requires configuring application to represent organizational concepts
• Needs to extend for industry specific organization concepts
Buying legal entity
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1
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Receiving operating unit
Configuration task
Navigation
Create legal entities
Organization administration > Setup > Organization >
Legal entities
Create operating units
Organization administration > Setup > Organization >
Operating units
Create hierarchies
Organization administration > Setup > Organization >
Organization hierarchies
Assign purposes to
hierarchies
Organization administration > Setup > Organization >
Organization hierarchy purposes
Assign users to
organizations
System administration > Setup > Security >Assign users to
roles > Add organizations
Create dimensions using
organizations
General ledger > Setup > Financial dimensions >
Financial dimensions
Development task
Type
Create new custom operating unit type
Model
Define data model to include types of organizations as foreign keys and
update queries
Model and code
Create organizations as backing entities for financial dimensions
Model
Create extensible data security policies
Model
Create business policy type using business policy framework
Model and code
(optional)
Build user experience
Model and code
Contoso Group
Legal entity
Legal entity
Legal entity
Business unit
Contoso
Entertainment
Systems
Contoso
Entertainment
Systems Europe
Contoso Retail
Contoso
Entertainment
Systems USA
Home Theaters
and TVs
Contoso Retail
Europe
Car Audio and
Video
Contoso Retail
USA
Contoso
Consulting
Legal Entity
Department
Services
Business Unit
Business Unit
Administration
IT Consulting
Application
Development
Systems
Integration
Network
Services
Finance