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Define the Legal Entity Types
Define any legal entity types required to distinguish the business partners being defined.
Define Business Classifications
Business classifications are used to monitor government classifications, such as minority owned.
Pgm: BPLEGFM – Legal Entity Types
Legal entity types define the different types of business partners with whom business is conducted. In this screen, set up the legal entity types you will use to group business partners for reporting purposes. When creating a business partner, you will have the option of specifying a legal entity type.
Examples of legal entity types that you might define to group business partners are government entities, charities and even sister-companies.
Code (Legal Entity Code), Name
Enter the code that represents the legal entity that you are defining. Enter the descriptive name for the legal entity being defined.
Type (Legal Entity Type)
There are three types of legal entities:
| Type | Meaning |
|---|---|
|
External |
Indicates there is no relationship between your company and any business partner assigned a legal entity code with this type associated to it. |
|
Affiliate |
Indicates there is some relationship between any business partner assigned a legal entity code with this type associated to it. |
|
Internal |
Indicates the business partner with this legal entity assigned is actually part of your company. |
The legal entity type is used to determine what revenue accounts are to be used when selling inventory to a customer. (For more information refer to the Inventory guide.)
Reg Required – Checkbox
If business partners who are assigned this legal entity type are required to have a registration code entered before they can become vendors, check this field. Registration codes are used for 1099 reporting in the US and for storing GST numbers in Canada. The default value for this field is set on the Systems Option screen in the System Data module.
Entering Business Partner Classifications
Pgm: PMCLSFCT – Business Partner Classifications
Business partner classifications are used to apply one or more classifiers to a business partner. The functionality of these classifiers is used in CMiC Field. The most common use for these classifiers is for ownership classifications that may require government reporting, such as minority owned. These classifications can also be applied to 2nd tier subcontractors.