Organization Structure Recommendation
Question
A holding company with three independently managed and operated subsidiaries is implementing Dynamics 365 Finance.
The company needs to ensure the restriction of data for each company from subsidiary counterparts.
You need to determine an organization structure.
Which structure should you recommend?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D. E.B.
When implementing Dynamics 365 Finance for a holding company with three independently managed and operated subsidiaries, the organization structure should be designed in a way that ensures the restriction of data for each company from subsidiary counterparts. Here are the explanations for each answer option:
A. Single legal entity with security policies: This option involves creating a single legal entity and applying security policies to restrict data access based on the user roles and responsibilities. This may not be an ideal option for a holding company with multiple subsidiaries because it does not provide data isolation between the subsidiaries. The security policies may not be able to differentiate data belonging to one subsidiary from that of another.
B. Separate legal entities: This option involves creating separate legal entities for each subsidiary. Each subsidiary will have its own set of financial and operational data, and they will not be able to access each other's data. This is a good option for a holding company with multiple subsidiaries that want to keep their data separate.
C. Single legal entity with custom business unit financial dimension: This option involves creating a single legal entity and setting up custom financial dimensions for each subsidiary. This way, the data for each subsidiary can be isolated using the financial dimension. However, this option may not be as effective as creating separate legal entities because it does not provide complete data isolation.
D. Single entity that consolidates legal entities: This option involves creating a single legal entity that consolidates the financial data of all subsidiaries. While this option provides centralized control over financial reporting, it does not provide data isolation between the subsidiaries.
E. Single legal entity with default business unit financial dimension: This option involves creating a single legal entity with a default business unit financial dimension. This way, each subsidiary can be assigned to a specific business unit, and the data for each subsidiary can be isolated using the business unit financial dimension. This is a good option for a holding company with multiple subsidiaries that want to keep their data separate within a single legal entity.
Therefore, the recommended option for the organization structure would be option B: Separate legal entities. This option provides complete data isolation between the subsidiaries and allows each subsidiary to manage its own financial and operational data.
