This guide describes the Business Unit Hierarchy enhancements included in Kimble Release Winter 19. We have also attached a .pdf version for your convenience.
In Kimble’s Winter 19 Release, Kimble has introduced the ability to create a hierarchy of Business Units across an organization. This is made possible by a new Parent Business Unit dropdown field on the Edit Business Unit screen.
Selecting a Parent Business Unit for a Business Unit and creating a parent-child relationship between the two creates a relationship between the two Business Units that can be used in reporting. It does not have any functional impact on either Business Unit.
Business Units are set up to align to the financial structure of your organization to support reporting of revenue and costs and resource allocation.
Business Units can be:
- Operating Units – a subdivision of the business that can accumulate cost and revenue.
- Trading Units – a business unit which contracts with clients and issues invoices.
- Neither – Resources can be further grouped for reporting purposes (utilization and cost) in Secondary Organisational Entities, enabling the distinction of departments/practices etc. The use of this functionality will depend on configuration.
An Operational Unit is usually a subdivision that can accumulate cost and revenue and is used for internal performance reporting (at the Profit & Loss level).
These Business Units are designated as Primary Organisational Entities. Resources must belong to a Primary Organisational Entity to control where their revenues and costs flow (depending on configuration) and to define which Business Unit Group they belong to for Period Management.
A Trading Unit is usually a subdivision which contracts with clients and issues invoices and is normally a legal entity within the organization.
A Trading Unit in Kimble:
· Defines the trading name and address details.
· Specifies invoicing details and layouts.
· Defines default invoicing currency for accounts.
· Defines default purchase order rules for accounts.
Secondary business units are usually departments or practices that are not primary Profit & Loss (P&L) owners. In Kimble, Secondary Units are used purely as a reporting dimension, allowing Resources to be allocated to a Primary Operational Business Unit, as well as a Secondary Business Unit. This is typical where matrix style reporting is required (e.g. a combination of practice and geography).
There are rules dictating which Business Units can share a parent-child relationship.
- If a Business Unit has been designated a Primary Organisational Entity, only Business Units that are also Primary Organisational Entities but that are not Operating Entities will be available as a Parent Business Unit option.
- If a Business Unit has been designated a Secondary Organisational Entity, only Business Units that are also Secondary Organisational Entities but that are not Operating Entities will be available as a Parent Business Unit option.
To define a Parent Business Unit for a Business Unit:
- Navigate to Business Units.
- Open the Business Unit which should be the child in the parent-child relationship.
- Click .
- Select an available Business Unit from the Parent Business Unit
- Click .