What are the impacts of having a one to one relationship between business unit and legal entity?
From an enterprise structure perspective, it has always been known to follow a ledger-> business unit -> legal entity hierarchy, where there can be multiple LEs under one BU and multiple BUs under one ledger, if required.
For a company implementing financials now, and HCM down the line, are there any impacts that should be known when setting up a hierarchy that consists of a one to one BU-LE relationship, instead of multiple LEs under a country wide BU?
Known issues are when using standard reports in ERP, the highest level to run a report by is usually BU so having LEs configured at the BU level is time consuming when trying to report at the country level. It is also time consuming to configure, especially when defining procurement BUs and SLA rules but that is manageable.