How to create a Legal Entity in Oracle Fusion Cloud?

Legal Entity is an entity identified and given rights and responsibilities under commercial law through the registration with the country's appropriate authority. For example, Orange Corporation Limited.

You define a legal entity for each registered company or other entity recognized in law for which you want to record assets, liabilities, and income, pay transaction taxes, or perform intercompany trading.

Create a legal entity by following these steps:

1. In the Setup and Maintenance work area, go to the Manage Legal Entity task.
2. Accept the default Country, United States, or simply change it to a country for which you want to create the legal entity. In this example, let's change it to New Zealand.
3. Enter Name, Orange Corporation New Zealand.
4. Enter Legal Entity Identifier, NZ1234567.
5. Optionally enter Start Date. When the start date is blank the legal entity is effective from the creation date.
6. Optionally enter an End Date.
7. Optionally, if your legal entity should be registered to report payroll tax and social insurance, select the Payroll statutory unit check box.
8. Optionally, if your legal entity has employees, select the Legal employer check box.
9. Optionally, if this legal entity isn't a payroll statutory unit, select an existing payroll statutory unit to report payroll tax and social instance on behalf of this legal entity.
10. Enter the Registration Information
11. Accept the default Identifying Jurisdiction, United States Income Tax.
12. Search for and select a Legal Address. In this example we will choose a New Zealand based Legal Address.
13. The legal address must have been entered previously using the Manage Legal Address task.
14. OK.
15. Optionally enter a Place of Registration.
16. Enter the EIN or TIN.
17. Enter the Legal Reporting Unit Registration Number.
18. Save and Close.
19. In the Setup and Maintenance work area, go to the Manage Legal Entity page and Select to set scope.
20. Select the Manage Legal Entity.
21. In the *Legal Entity list, select Select and Add.
22. Click Apply and Go to Task.
23. Select your legal entity.
24. Save and Close.
25. This sets the scope for your task list to the selected legal entity.
26. Save and Close.

Below given is a video that demonstrates step-by-step procedure to create a Legal Entity (as explained above) in Oracle Fusion Cloud.