Set Up Financial Locations

Financial locations represent the geographical locations (or departments) where a company conducts its business. Locations such as a city, state, or country are uniquely associated with one entity. If you have defined multiple entities that share the same physical location, define separate locations for each entity. Each location can have an address, telephone number, and manager name.
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Financial locations represent the geographical locations (or departments) where a company conducts its business. Locations such as a city, state, or country are uniquely associated with one entity. If you have defined multiple entities that share the same physical location, define separate locations for each entity. Each location can have an address, telephone number, and manager name.
Example: Uniquely Named Locations for Multiple Entities
Forward Inc has a wholly owned subsidiary that is named
FI Back Office Systems
. Forward Inc maintains two separate general ledgers for each business. When setting up the financial structure, Forward Inc created two entities-one for itself and another for the wholly owned subsidiary. Both companies have offices in the same geographical location. To create entities and associate the same location uniquely to each entity, Forward Inc created two location OBSs. They are named
frd_locations
for the Forward Inc entity and
fi_locations
for the Fi Back Office Systems entity. Forward Inc also creates city locations for each entity location using unique identifiers and names.
Once set up, Forward Inc associates their business units, departments, and groups to the locations. Similarly, FI Back Office Systems does the same.
You can associate a location with many departments, and also associate a department with many locations. Locations can be parent locations to other locations, such as a country is a parent to a state or a region. This hierarchy automatically creates the OBS structure for the corresponding department OBS and location OBS.
Create Locations and Associate the Locations to an Entity
Follow these steps:
  1. Open Administration, and from Finance, click Setup.
    The financial organizational structure appears.
  2. Click Locations.
  3. Click New and complete the requested information. The following fields require explanation:
    • Entity
      Specifies the entity to which this location belongs. This field cannot be changed after it is saved.
    • Parent
      Specifies the location to which this location belongs.
  4. Save the changes.
After you create a location, you can edit some of its attributes. However, you cannot delete a location if it is used or associated with any of the following items:
  • Department
  • Supplemental customer information
  • Entity
  • System defaults
  • Unposted transactions or transactions under adjustment
  • Resources
  • Chargebacks or GL Allocation
If a location is a parent to other locations, you can view a list of the sub-locations. Open the parent location and from the Properties menu, click Sub-locations.
Associate Departments with Locations
You can associate a location with one or more departments. Before you can do that, verify that you have created departments and associated them to the same entity as the location.
Follow these steps:
  1. Open the location.
  2. Click Properties, Departments. 
  3. Click Add.
  4. Select the check box next to each department you want to associate with the location and click Add. 
The selected departments are associated with the location.
Remove Department Associations From Locations
If all of the following situations are true for the department, you can remove the association between a department and location.
  • Financially enabled investments are not using it.
  • Financial transactions are not associated with it.
  • A financially enabled resource is not using it.