Enterprise Setup - An Overview

Organizational structures serve to efficiently manage a business operation and also provide a basis for measuring and reporting the performance. Organizations use company, strategic business units, departments/organizational units etc. to define legal, physical/geographical, operational and administrative boundaries. The company is a legally recognized organizational entity representing the business operation. This organizational entity forms the primary interface for the business operation with all external agencies including regulatory authorities. Since company forms the legally tenable reporting basis, any activity which directly or indirectly has a monetary impact or carries a contractual liability, needs to be traced to the company involved.  

In addition, organization-wide policy information such as the currency in which the books of accounts need to be maintained and the currencies that the various operations of the company will transact in also needs to be established.

This business component addresses the requirement of defining all the organizational entities relating to an operating business environment.  

Getting familiar with the activities