Setup new Company Code as a Business Unit (BU) instead of a Legal Entity (LE). — Cloud Customer Connect
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Setup new Company Code as a Business Unit (BU) instead of a Legal Entity (LE).

edited Jan 30, 2025 2:18PM in Tax & Global 2 comments

Hi,

We have a new company code, and the client is requesting that we can set it up as a Business Unit (BU) instead of a Legal Entity (LE) to avoid the rollout costs and time.

To provide honest advice, here are the key concerns and questions:

  1. Tax Code Creation: Can tax codes be created for the new BU at the tax regime setup level, rather than associating them with a Legal Entity?
  2. AR Invoice Tax Registration: When generating an AR invoice using this new BU (which is assigned to an existing LE), how will the AR invoice retrieve the tax registration information specific from the BU as the old LE will be there if I am not mistaken?
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