Difference between Business Unit and Organizational Unit

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Posted on by Joel D

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Hi,

Can you please explain to me what is an Organizational Unit (what does it represent conceptually) and why may I need it?
Which is the difference between Organizational Unit and Business Unit, and which is the relation between the two?

Can you also make some examples about typical scenarios where they are both used?

For instance, I created a new record of type facility/equipment and assigned the root Business Unit to it. I also assigned an Organizational Unit called "Fabrikam F": what does it imply and what are the implications in terms of access rules and privileges? Is it used to assign security rules too?

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Wahaj Rashid 11,321 on at

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RE: Difference between Business Unit and Organizational Unit

Hi,

Both are different relationships.

Business Unit (Business Units): describes parent-child business units. Every business unit has a parent business unit (except Root BU). This relationships holds BU Hierarchy. In other words, a Business Unit can have one or more child Business Units.

Business Unit (Users): describes relation between a user record and Business unit. Each user is assigned to exactly one Business Unit. And one business unit can have one ore more users.

The name in brackets is the name of related entity. The first one Business Unit (Business Units) is a self join.
Joel D 355 on at

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RE: Difference between Business Unit and Organizational Unit

Hi Wahaj,

Thank you for your reply.

I noticed that when I look for Business Unit in the advanced filter I have two different records for the Business Unit:

1) Business Unit (Business Units)

2) Business Unit (Users)

Is that value inside the brackets () the plural, right? If yes, the second one (2) suggests to me that Users are Business Units themselves, how does it come? Can you please explain to me how should I read this correctly (why do I have these two different "types" of Business Unit here)?
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Wahaj Rashid 11,321 on at

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RE: Difference between Business Unit and Organizational Unit

Hi,

Thank you for your query.

I guess you are working on Project Service Automation.

Organizational Unit represents a bill-able unit or division for which your organization offers services. The organization unit is linked with a currency.

You can read about it more here:

Organizational units | Microsoft Docs

Business Units are more related to security architecture of your application. You can control/restrict access to the records based on user's business Unit. For example, North Business Unit user should not see projects of South BU, however root BU should users should able to retrieve both.