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Advantage of multiple legal entities through dimension

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hi friends

what is a Advantage of multiple legal entities through dimension

Thanks&Regards

Ashwini.E

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André Arnaud de Cal... 306,335 Super User 2026 Season 1 on at

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Hi Ashwini,

I assume you want to have multiple legal entities in one company and have reporting based on dimensions, right?

A better question would be: "What are the downsides of having multiple legal entities in one company?" Have a look at an older question with some remarks: community.dynamics.com/.../267774

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Community Member on at

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Hi Andre

Thank you for your replay i want advantages of multiple legal entity please give any suggestion.

Thanks&Regards

Ashwini.E

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André Arnaud de Cal... 306,335 Super User 2026 Season 1 on at

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Hi Ashwini,

The only advantage would be setting up one company instead of doing setup for other companies. One source for master data would not be an advantage in all scenarios, but could also be a consideration.

But again: There are too many disadvantages. The link provided above has some of them, but far not all disadvantages. It is just a bad idea to have multiple legal entities running in one.

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Sten Baumgarten 12 on at

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Hi Ashwini

I very much agree with André that the only disadvantage by using multiple legal entities are the additional configuration, but that part is being improved by Microsoft latest in the PU11 where additional copy company functionality were added.

If a legal entity have several vat registrations in different countries, I recommend that that legal entity is divided in different "legal entities" who each have separate country functionality available for reporting. A consolidated trial balance can be for the whole legal entity can be created in Financial reports and a consolidated aged customer balance can be made in the collection module. There might be additional work by splitting the legal entity but handling the vat including intercompany trade between the different vat registrations in different countries becomes easier since standard functionality can be used.

Kind regards

Sten

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