Business Unit

A business unit is a division of the company - the mill, the garments division, the trading arm. It is the first way people are grouped once they are inside a legal entity, and it is what reports break down by when the client asks to see each division on its own line.

Where

Organization & Setup › Enterprise Structure › Business Unit

Who uses it

The implementation consultant, once per division

When

After the Legal Entity, before the first position is created

Needs first

Nothing

What it is for

One registered company often runs more than one business. A textile group may have a spinning mill, a garments unit and a trading desk, all inside the same legal entity, all with their own head and their own numbers.

The business unit is where that split is recorded. It sits above the department: a business unit is a line of business, a Department is a function. Production is a department. Garments is a business unit. The same department name can appear in two business units without clashing.

Business units are short records on purpose. The real work is done by putting them on the Position Structure and on Employee Organization Assignment, which is what gives every employee a business unit, and by Business Area Dimension, which ties a business unit to a business area for reporting.

Every field, in plain words

Field	What it means	What to put in it	Notes
Business Unit	The short code.	02	Required. Must be unique, the screen refuses a repeat and names the code.
Name	What the division is called.	Garments Division	Required. Must also be unique, the screen refuses a repeated name.
Block	Stops the business unit being picked on any new record. What is already using it keeps it.	Leave clear	Tick it when a division is closed, rather than deleting a record that history refers to.

How to configure it

1. Open Business Unit and enter a code, for example 01.
2. Enter the name, for example Spinning Mill.
3. Leave Block clear and save.
4. Repeat for every division - 02 Garments Division, 03 Trading.
5. Then use them on Position Structure and Business Area Dimension.

Scenarios

The client has one business and does not want divisions

Create a single business unit with the company's own name. Every employee gets it. Nothing is lost and the reports that expect a business unit still work.

A division is closed but its old employees must stay in the records

Tick Block. The division stops appearing when somebody creates a new position or assignment, and every historical record keeps pointing at it, so last year's reports are unchanged.

What it is connected to

• Legal Entity comes first. A business unit is a division inside a company.
• Business Area Dimension maps a business unit onto a business area for a legal entity.
• Position Structure and Employee Organization Assignment are where a business unit reaches a person.
• Payroll and headcount reports break down by business unit.

If something looks wrong

• "It will not save, it says the business unit already exists" - the code is in use. Codes must be unique.
• "It will not save, it says the name already exists" - another division has the same name. Names must be unique too.
• "The business unit does not appear when I create a position" - it is blocked. Clear the Block tick.