Legal Entity

Legal Entity 

It is the registered office (Head office) & used for paying the taxes. In R12 it is must to define a Legal Entity & attach it to the Ledger

Following steps are involved in defining a Legal Entity

Navigate to GL Responsibility > Setup > Financials > Accounting Setup Manager > Accounting Setups à Click on Create Accounting Setup à Click on Create Legal Entity & give details as shown below

Click on Create New Address & give details as shown below

Click on Apply. You will be taken to the main page. Click on Create Legal Entity & give details as shown below

Once all the Legal Entities are created, Click on next & give Primary Ledger details as shown below

For the time being, we are not giving Subledger Accounting Method. We’ll add that at later point of time

Click on Next à Finish. You’ll get a message saying

With this, we have completed defining Legal Entities & Primary Ledger