6. Legal entity Registered or legislated legal structure Granted the authority to enter into legal contracts Required to prepare statements that report on its performance Own assets and responsible for its liabilities Operating unit Divides the control of economic resources and operational processes among people Responsible internally for its performance A node in an organizational model hierarchy, mapped to the dimensions – cost center, department, or business unit

7. * * * * Cost center Retail channel Value stream Department Business unit

9. Reorganizing departments

13. Dynamically align reporting trees with Microsoft Dynamics AX organizational hierarchies Create financial reports using organization hierarchies created in Microsoft Dynamics AX 2012 Dynamically update a Management Reporter reporting tree when Microsoft Dynamics AX organization hierarchy changes Uses report date to select corresponding organization hierarchy

17. Base item assortment Winter sports Motor sports All stores NE region stores Large stores

21. Contoso Consulting Sales and marketing Project operations PositionDepartment Finance Manager Finance Treasurer Finance Purchasing Agent Sales and Marketing Store Manager Retail Operations Consultant Service Operations Project Manager Project Operations Operations Retail operations Finance Service operations

29. Charlie – President - CEO Wants to structure organizations to align with business strategy Needs to implement policies by organization structure Sara – CFO Ken - Controller Wants to separate statutory or legal structure from operating structure Implements financial controls on legal entities and Legal entities data access Karen – Procurement Agent Has limited visibility into the company’s operating and statutory structure Needs to enter transactions in an intuitive way with minimal training Claire – HR Manager Needs to ensure position reporting hierarchy are in place for approvals Minimum maintenance to accommodate changes Simon – System Implementer / Consultant Requires configuring application to represent organizational concepts Needs to extend for industry specific organization concepts

30. * 1 Buying legal entity Receiving operating unit * 1 * 1

31. Configuration taskNavigation Create legal entitiesOrganization administration > Setup > Organization > Legal entities Create operating unitsOrganization administration > Setup > Organization > Operating units Create hierarchiesOrganization administration > Setup > Organization > Organization hierarchies Assign purposes to hierarchies Organization administration > Setup > Organization > Organization hierarchy purposes Assign users to organizations System administration > Setup > Security >Assign users to roles > Add organizations Create dimensions using organizations General ledger > Setup > Financial dimensions > Financial dimensions

32. Development taskType Create new custom operating unit typeModel Define data model to include types of organizations as foreign keys and update queries Model and code Create organizations as backing entities for financial dimensionsModel Create extensible data security policiesModel Create business policy type using business policy frameworkModel and code (optional) Build user experienceModel and code

33. Contoso Group Contoso Entertainment Systems Contoso Entertainment Systems Europe Contoso Entertainment Systems USA Home Theaters and TVs Car Audio and Video Contoso Retail Contoso Retail Europe Contoso Retail USA Legal entity Business unit

34. Contoso Consulting Services IT Consulting Application Development Systems Integration Network Services AdministrationFinance Business Unit Department Legal Entity