Accounting units

An accounting unit represents an organizational element for an accounting entity. For example, a division, department, region, or store.

Accounting units are defined in a parent-child hierarchy within an accounting unit structure. An accounting entity can have multiple accounting unit structures. One accounting unit structure must be designated as an enterprise structure. The enterprise structure is the default accounting unit structure on reporting bases.

Note: On the finance enterprise group, you can rename the default term, Accounting Unit, to a term that reflects the structure that you use. For example, Department. For the purpose of this document, we use the default name. Be aware that if you change the name on the finance enterprise group, the name is changed on all of the related forms.

Each accounting unit hierarchy is contained in an accounting unit structure. Your accounting entity can include an indefinite number of levels of accounting units in a parent-child structure. You can define zone balancing for any level of the accounting unit structure.

See Accounting unit zones.

A level represents a layer in an accounting entity's hierarchy. For example, an accounting entity hierarchy might include three levels: region, division, and department. Region is a parent of division, which is a parent of department. Each level is part of, or reports up into, the level above it. Each accounting unit must have a unique name, which can be up to 25 alphanumeric characters.

You use accounting units to further define your accounting entity hierarchy. By defining accounting units at different levels, you build a structure that resembles your organization. You define two types of accounting units:

  • Posting accounting units are used to post journal entries. Posting accounting units are the lowest child accounting units in any branch of the accounting unit structure. You cannot define additional child accounting units below a posting accounting unit.
  • Summary accounting units are used to summarize the activity of child accounting units for consolidation and reporting.
Note: If you use Accounting Entity Security Groups, changes to the structure require a rebuild of the affected security groups.

See the Financials & Supply Management User and Security Administration Guide.