How Legal Reporting Units are managed on transactions
Summary:
We have the need to define Legal entities and Establishments for each Legal Entity:
For ex. Legal Entity 1 "LE1" has 2 establishments "LE1 - EST1" and "LE2 - EST2". Each establishment has a different address in a different country or location.
In oracle fusion cloud we defined them as Legal Entity and Legal Reporting Units respectively.
How are the Legal Reporting Units managed in general on transaction level?
How do we identify the Legal Reporting unit on transactions in the system (Payables invoices, Receivables invoices, GL Journals, Fixed Assets transactions etc...)?
The idea is when we create an invoice, in addition to defining the Legal entity LE1 we need to be able to specify for which Legal reporting unit so that information related to location and addresses could be managed, like taxes. Since establishments could be in different locations, different taxes may apply.