Before I show you how to configure the Legal Entity in Fusion Financials, let us first understand the concepts, i.e. what exactly the Legal Entity means in Fusion Financials and how it gets used in the Fusion Applications.
The purpose of this article is to give training to you on all the information that you need to understand and configure the Legal Entities in Oracle Fusion Financials.
Firstly, what is a Legal Entity
Legal entity is an Organization Unit that is registered with the legal governmental authorities, also known as jurisdiction. Jurisdiction generally describes any authority over a certain area. Therefore any company doing business in that area should be registered as a Legal Entity in that Jurisdiction. If you are a consultancy implementing Fusion Financials for a client, then you need to Register your client's legal entities as required by local business requirements in their jurisdictions. During the implementation of Fusion Financials you will be defining jurisdictions and related legal authorities, and then be registering the Legal Entities belonging to those jurisdictions.
What is the significance of Jurisdictions and Authorities in Fusion General Ledger
Legal Jurisdictions and Authorities are likely only relevant to Oracle Fusion when you need to perform tax calculations, as you would normally do in Oracle Fusion Payables and Oracle Fusion Receivables.
