Accounting unit

An accounting unit represents a location or business center in a general ledger company, such as a division, department, region, or store. Your company can include up to five levels of accounting units. A level represents a layer in a company structure's hierarchy.

For example, a company structure might include three levels: region, division, and department. Each level is part of, or reports to, the level above it. Each accounting unit must have a unique name, which can be up to 15 characters long. You cannot change an accounting unit name after you define it.

Using accounting units

Accounting units are used to further define your company structure. By defining accounting units at different levels, you can 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.