Operating Unit:

Operating Unit: An organization that uses Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit. To run any of these applications, we choose a responsibility associated with an Organization classified as an operating unit.

Balancing Entity:

Balancing Entity: Represents an accounting entity for which we prepare financial statements. This is a segment in the Accounting Flexfield structure (usually the Company segment) at which all accounting entries must balance. There may be multiple companies within the same structure, and each of these must balance within it. Each legal entity can have one or more balancing entities. We can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit.