A Legal Entity is a data unit that allows Buyers to establish relationships between various data elements such as business units, cost centers, sites, and users in the SAP Fieldglass application. They’re combinations of associations used to limit and enforce the manner in which those items can interact with each other.
Play the video to learn how Legal Entities contribute to corporate structures in SAP Fieldglass.
Legal entities are optional, used by organizations to support specific business requirements, workflows, and access to certain data and functions. Legal entities themselves are not chosen during transactions; they instead dictate what choices are available and affect how those choices impact the transactions through the associations they define.
To use a legal entity, it must be activated during company configuration. When activated, business units, cost centers, sites, and users must be associated to legal entities in order for those data elements to be available when performing transactions.