How are Accounting Units Used?

An accounting unit represents a location or business center such as a division, department, region, or store. By defining accounting units at different levels, you build a structure that resembles your organizational chart. You can define two types of accounting units:

• Posting accounting units are used to post journal entries. These accounting units are the lowest level of organization in a general ledger company.

• Summary accounting units are used to summarize the activity of lower level accounting units for consolidation and reporting.