Creating account structures for new legal entites

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Posted on by Hossam EL Hassan

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Hi,

I would like to check with you on the best practices for creating account structures for new legal entity.

If the new legal entity is using the same shared chart of accounts, do we need to create new accounts structure for it, or is it better to use the same accounts structure.

The only benefit I see in creating new accounts structure is to limit the business units or having less advanced rules. Whereas utilizing the same accounts structure will lead to easier maintenance.

I would like to know your opinion.

Thanks

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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The question you're asking, to me, is really more related to the business requirements than one of which option is better. There are valid cases to both options. Account structure design should be based on reporting and analysis needs.

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saurabh bharti 15,039 Moderator on at

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Agree with point of maintenance.

If you want limit or restrict business unit or any dimension, you can use legal entity override for those values.

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Gaurangkumar Jani 4,534 User Group Leader on at

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Hi Hossam,

It depends on the requirements of the client. If your client is following Group Accounting policy and everything is the same in all legal entity we should use the same Accounting structure.

But if there is a chance of a single modification, we should create a different accounting structure.

Thanks,

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Sheela Ningappa on at

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Hi,

Please find the below link as well:

docs.microsoft.com/.../configure-account-structures

Thanks,

Sheela

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Prem Kumar Bachu 3,418 on at

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Hi Hassan,

It is completely depends on customer/business requirement. Example if you activated 3 dimensions (BU,Dept and CC) in Company A accounts structure. In new company B if you need above 3 dimensions you can use same accounts structure but if you need only BU and CC, then you have to create new accounts structure.

Note dimension values are global that means you can see and use dimension values in all the legal entities in environment unless you restrict in legal entity override.

Regards,

Prem

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Hossam EL Hassan 469 on at

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Thanks everybody for the feedback.

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