The term Business Unit is used quite often in PeopleSoft. There are various ways we can interpret the meaning of Business Unit.
Basically, it helps organizations to track the day to day transactions and also helps in forecasting on things that require attention.
Now let’s see the various scenarios in which Business Units can be used.
Scenario 1: Think of a college that has different Departments like Computers/Mechanical/Civil and other Departments such as Administration/Cultural/Sports.
If the College Management want to know the details happening in each of these department then each department can be treated as one Business Unit.
Scenario 2: Consider a Restaurant, which had outlets in major cities of the country.
If the Hotel Management want to know the transactions happening in each of these City Unit then each City Unit can be treated as one Business Unit.
Scenario 3: A Company that has Business operations covered in various countries.
In this case, each office operating from each country can be treated as one Business Unit.
Thus Business Unit is nothing but a logical entity that is used by HR/Admin/Management/Finance and various other people to generate the reports that will be helpful in understanding the operations/transactions happening in each of the units.
Hope this post is useful..