What is reorganization unit in SAP FI-GL - General Ledger Accounting?

SAP Term: reorganization unit

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: Reporting unit in that forms the object of a reorganization.

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• Key Concepts: 
  Reorganization unit is a term used in SAP FI-GL General Ledger Accounting. It is a way of grouping and organizing data in the system. It is used to define the structure of the chart of accounts and to assign specific accounts to specific areas of the business. 
  
  How to use it: 
  Reorganization units are used to create a hierarchical structure for the chart of accounts. This allows for more detailed reporting and analysis of financial data. The reorganization unit can be used to assign specific accounts to different areas of the business, such as departments or cost centers. 
  
  Tips & Tricks: 
  When creating reorganization units, it is important to consider how they will be used in the future. For example, if you plan on using them for reporting purposes, it is important to ensure that they are structured in a way that will make it easy to generate reports. Additionally, it is important to ensure that all accounts are assigned correctly so that financial data can be accurately reported. 
  
  Related Information: 
  Reorganization units are closely related to cost centers and profit centers in SAP FI-GL General Ledger Accounting. Cost centers are used to track costs associated with specific areas of the business, while profit centers are used to track profits associated with specific areas of the business. Additionally, reorganization units can be used in conjunction with other features such as account groups and account assignments.