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party in the same state as if they had not entered into the contract,
and what is called loss of bargain, or the profit that would have
made on a transaction.
In another example, if you revalued your inventory in a warehouse
to account for raw material price increases, the revaluation and
revaluation reserves must be reflected in your legal entity's
accounts. In Oracle Fusion Applications, your inventory within an
inventory organization is managed by a single business unit and
belongs to one legal entity.
Legal Entity and Its Relationship to Business Units
A business unit can process transactions on behalf of many legal
entities. Frequently, a business unit is part of a single legal entity. In
most cases the legal entity is explicit on your transactions. For
example, a payables invoice has an explicit legal entity field. Your
accounts payables department can process supplier invoices on
behalf of one or many business units.
In some cases, your legal entity is inferred from your business unit
that is processing the transaction. For example, your business unit A
agrees on terms for the transfer of inventory to your business unit B.
This transaction is binding on your default legal entities assigned to
each business unit. Oracle Fusion Procurement, Oracle Fusion
Projects, and Oracle Fusion Supply Chain applications rely on
deriving the legal entity information from the business unit.
2.
3.