Business Units

Business Units help you divide your organization into operational segments such as departments, divisions, or branches.

In CloudHR, every Business Unit must be linked to a Legal Entity. This ensures proper employee structuring, reporting, and payroll mapping.

What is a Business Unit?

A Business Unit represents a functional or operational segment within a Legal Entity.

Examples:

• Sales Division
• Engineering Department
• Marketing Team
• Regional Branch (e.g., Mumbai Office)

Before You Create a Business Unit

Make sure:

• At least one Legal Entity is already created.
• You know which Legal Entity this Business Unit belongs to.

How to Create a Business Unit

1. Log in to CloudHR.
2. Navigate to Organization.
3. Click on Business Units.
4. Click Add Business Unit.
5. Fill in the required details.
6. Click Save.

Required Fields

The following fields are mandatory:

Field	Description
Name	Must be unique within the same Legal Entity (Organization)
Legal Entity (Organization)	The organization this Business Unit belongs to
Email	Official contact email for the Business Unit

Optional Fields

These fields can be configured now or updated later:

Field	Description
Description	Additional details about the Business Unit

Important Rules

• Business Unit names must be unique within the same Legal Entity.
• Each Business Unit must be linked to a valid Legal Entity.
• Email must be in a valid email format.

Best Practices

• Use clear and standardized naming conventions.
• Align Business Units with your reporting structure.
• Avoid creating duplicate or overlapping units.

Related Setup

Before assigning employees to a Business Unit, ensure:

• Legal Entities are properly configured.
• Departments and Designations are defined.