Legal, managerial and functional structures

Conceptintermediate

The three fundamental structures every enterprise is modelled with. They are implemented with different records — legal entities, divisions and business units, departments and organizations — and their setup tasks live in three different functional areas.

What people get wrong

The confusions are the difficulty. Each one is a belief that sounds right and is not.

That the three structures are one nested hierarchy with the enterprise at the top. They are separate axes, and one business can appear across several legal entities while one legal entity contains many businesses.
That legal entity setup lives where department setup lives. Legal Structures, Organization Structures and Workforce Structures are three different functional areas in Setup and Maintenance.
That a legal entity created in Setup and Maintenance must be revised there. Payroll statutory units, legal employers and tax reporting units are created from Manage Legal Entity but revised with Manage Legal Entity HCM Information in the Workforce Structures work area.

Recall it

Name the three fundamental structures, the records each is implemented with, and the functional area each one’s setup tasks sit in.

Legal, managerial and functional. Legal is implemented with legal entities; managerial with divisions and business units, reflected in the chart of accounts; functional with departments and organizations including sales, marketing, project, cost and inventory organizations. Setup is split to match: legal entities in the Legal Structures functional area, business units in Organization Structures, and departments, divisions, trees, jobs and positions in Workforce Structures. Payroll statutory units, legal employers and tax reporting units are created from Manage Legal Entity and revised with Manage Legal Entity HCM Information in the Workforce Structures work area.

Memory hook: Law, management, work — three axes, never one tree. Legal Structures, Organization Structures, Workforce Structures. Created in Setup, revised in Workforce.

Rests on COREHR-ORDER-001, COREHR-ENT-025, COREHR-ENT-026, COREHR-ENT-027.

Taught in

Three Structures, Three Functional Areas, and Where Each Setting LivesLegal, managerial and functional are three axes rather than one nesting — and their setup tasks are split across three functional areas, with one record that is created in one work area and revised in another.

Terminology glossary — what a term means, and what people get wrong when they use it

What people get wrong

Recall it

Taught in

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