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Contributors In this article Before you set up organizations and organization hierarchies in Microsoft Dynamics for Finance and Operations, make sure that you plan how your business will be modeled.
The organization model has a significant effect on the implementation of Finance and Operations and on business processes. Organizational hierarchies represent the relationships between the organizations that make up a business.
Therefore, the most important consideration when you model organizations is the structure of your business. We recommend that you define organization structures based on feedback from executives and senior managers from functional areas, such as finance and accounting, human resources, operations, purchasing, and sales and marketing.
When you are planning hierarchies, it is also important to consider the relationship between the organizational hierarchy and financial dimensions. You can set up business plan inhalte aufbau sequence organizational hierarchies to represent different views of your business.
By using financial dimensions, you can create reports based on these views. Work with your Microsoft Dynamics for Finance and Operations partner to create hierarchies that address both organizational and statutory reporting needs.
The interunit accounting functionality in Finance and Operations is designed to address only the accounting entries that are created by each transaction. This documentation is a guide. You can work with your Finance and Operations Partner for additional guidance. Your Finance and Operations Partner has gained experience in various industries and across the customer base.
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.
A legal entity can enter legal contracts and is required to prepare financial statements that report on its performance. In Finance and Operations, legal entities can be used for transactional business or for consolidation. This means that a legal entity in Finance and Operations does not necessarily represent a real entity in your business.
For example, a company that participates in transactions can own subsidiary legal entities. In this scenario, 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. An operating unit is not required to be a legally defined organization.
Operating units are used to control economic resources and operational processes in the business.
For example, departments and cost centers are operating units. Some functionality in Finance and Operations works differently depending on whether the organization is a legal entity or an operating unit. Carefully consider the functionality described below as you make your decision.
Master data If the organization is modeled as a legal entity Some master data, such as customers, payment terms, tax authorities, and site-specific stock ordering, must be set up for each legal entity.
Some master data, such as users, products, and most human resources data, is shared among all legal entities. If the organization is modeled as an operating unit Master data is shared among operating units.
Module parameters If the organization is modeled as a legal entity Parameters for modules, such as Accounts receivable parameters, Accounts payable parameters, and Cash and bank management parameters, must be set per legal entity.
Because the module setup for legal entities is separate, each subsidiary can comply with local statutory requirements and business practices. For example, a professional services legal entity and a manufacturing legal entity can have different module parameters even though they report to the same parent company.
If the organization is modeled as an operating unit Module parameters are shared among operating units. Data security If the organization is modeled as a legal entity Most data is automatically secured by company ID.
A company ID is a unique identifier for the data that is associated with a legal entity. A company can be associated with only one legal entity, and a legal entity can be associated with only one company.
Users can access data only for the companies that they have access to. You do not need to customize Finance and Operations to secure data by company ID. If the organization is modeled as an operating unit Data can be secured per operating unit by creating customized data security policies.
Data security policies are used to limit access to data. For example, assume that a user is allowed to create purchase orders only in a particular operating unit.business plan template which illustrates the key areas to focus on when deciding the best direction for your business. This plan will help you set out the main challenges involved in turning your.
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Plan your organizational hierarchy. 08/28/; 13 minutes to read Contributors. In this article. Before you set up organizations and organization hierarchies in Microsoft Dynamics for Finance and Operations, make sure that you plan how your business will be modeled.