How to Set Up Financial Management › Entities

Entities

Creating a financial entity is the first step in setting up financial management. You can define as many entities as you need.

Each entity owns a unique set of locations and departments for which the entities are financially aware. To establish this financial boundary, associate the entities with a geographical OBS for locations and an organizational OBS for departments.

Once an entity is defined, you can create financial plans and establish costs for investments.

Financial controllers can set up defaults at the entity level to suggest the recommended cost plan structure for the organization. For example, they can predefine the fiscal time period type and the grouping attributes for all cost plans. The default values are automatically populated for individual investment cost plans at the time you create them. The project managers can change these defaults for their specific investments.