Hi,
In AX 2012, what is the difference between Company and Legal Entity.
Thanks
Anand
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as per my understanding both are some thing,
Please refer following link
technet.microsoft.com/.../dd309587.aspx
Please verify and update if this information helps you.
The word Legal entities is new in AX 2012. The company was more familiar. In fact it is the same. A legal entity is stored with a record-id for foreign key relations. When a field Company or DataArea is used, it is stored as string with the Company code (max 4 characters).
Hi Andre,
Thanks for your response? 2 questions.
1) If I want to create a new company in AX, should I choose Legal Entity or Company? Please justify.
2) In future, if I want to delete the company or Legal Entity as a whole and delete all the records, will it allow me to do so if I select any one of them during creation. since Legal Entity is new in AX 2012, it should have some advantage somewhere and I am just trying to understand that.
Regards
Hi Anand,
1) The form is called "Legal entities" in AX2012. So you are creating your companies as Legal entities. ;-) A field called "Company" is used for the Identification.
2) You can delete a Legal entity to delete the complete administration. This is possible, but you have to be sure it really should be deleted. Before that AX will ask a confirmation to really delete the Legal entity.
If you look at AX 2009 there used to be a form for creating Companies and another one for entering the Company info. In AX 2012 it is combined in one form and now called "Legal entities"
A legal entity is an organization that has a registered or legislated legal structure. Legal entities can enter into legal contracts and are required to prepare statements that report on their performance.A company is a type of legal entity. In this release of Microsoft Dynamics AX, companies are the only kind of legal entity that you can create, and every legal entity is associated with a company ID. This association exists because some functional areas in the program use a company ID, or DataAreaId, in their data models. In these functional areas, companies are used as a boundary for data security. Users can access data only for the company that they are currently logged on to.http://technet.microsoft.com/en-us/library/hh242144.aspx retrieved 05/01/2013
"In this release of Microsoft Dynamics AX, companies are the only kind of legal entity that you can create, and every legal entity is associated with a company ID"
Which means in a future release you will have the ability to link multiple companies to a single legal entity and report as one.
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