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COA Company VS Legal Entity pros and cons

edited Mar 7, 2025 4:53PM in Projects - EBS (MOSC) Question

Hi Team,

I am beginner, please clarify my doubts,

a) Client recently changed their business model. Client introduced new holding companies and other child companies within same country.

b) Already company was running with one legal entity, one primary ledger, one company example X1. Now Client told me to capture few expenses in the new company Example: S1

c) I added Company value set S1 as part of COA.

Doubts that I have below,

1) What is the impact if I don’t create the Legal Entity for S1. Is it mandatory to create LE?

2) What is the impact if I don’t create or associate the operating unit to the Legal Entity?

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