The short answer is sort of. Which is not much help to anyone, hopefully you will have a few moments to read on and I can explain myself. This post assumes that you understand the relationship between Legal Entities and Ledgers which I discussed in an earlier post.
In R12, a new Legal Entity Configurator was introduced in financials and Legal Entities defined here are assigned to Ledgers and/or Balancing Segments (Company Codes). However, it is not possible to assign a Financials Legal Entity to an Operating Unit, you can only define a Default Legal Context (DLC) to an Operating Unit. This assignment can cause confusion as it is only possible to assign one DLC, but I can use more than one LE in that Operating Unit. The key word in DLC is default.
Legal Entity Configurator can be accessed via 'Legal Entity Manager' responsibility.
When I am in Payables or Receivables the LE is stamped on
the transactions and used to identify the Legal Owner for Legal reporting as
well as Tax calculation. The invoice exists within an OU and that OU has a
ledger which will account the transactions, if that has more than one LE
associated with it then a hierarchy of LE derivation is used to default an LE,
the last resort being the DLC.
For example, in AR the Legal Entity derivation hierarchy for
transactions is
1.
Transaction Type
2.
Batch Source
Assigning a LE to a transaction type or batch source is
optional and only the LE’s mapped to the Ledger associated with the OU are
available to assign.
So, in R12 we have much better support for many LE accounted
in a single OU as we clearly mark the LE on the transactions.
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