Plan your organizational hierarchy
Before you set up organizations and organization hierarchies, 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 apps, 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, sales, and marketing.
Work with your finance and operations apps partner to create hierarchies that address both organizational and statutory reporting needs.
Although you can use financial dimensions to represent legal entities without creating the legal entities in finance and operations apps, financial dimensions aren't designed to address the operational or business needs of legal entities. The interunit accounting functionality is designed to address only the accounting entries that are created by each transaction
Watch this video to learn how to create a new organization hierarchy.