Step 1. Legal Entity Creation in Dynamics 365 Commerce

Introduction

Before any Commerce channels can be configured in Dynamics 365 Commerce, a Legal Entity must be created. The legal entity represents an organization with a formally registered legal structure and serves as the foundational unit for all financial, operational, and retail configurations.

Overview of a Legal Entity

A legal entity defines the organizational boundary within which business transactions are recorded. It includes critical information such as country/region, language, time zone, addresses, bank details, and number sequences. All Commerce channels—such as stores, call centers, and e-commerce—are associated with a legal entity.

Steps to Create a New Legal Entity

Follow the steps below to create a new legal entity in Dynamics 365 Commerce:

1. In the navigation pane, go to Modules > Headquarters setup > Legal entities.
2. On the Action Pane, select New. The New legal entity pane will open on the right side.
3. In the Name field, enter the legal name of the entity (Contoso Retail, USA).
4. In the Company field, enter a unique company identifier (USRT).
5. In the Country/region field, select the appropriate country or region (US).
6. Select OK to create the legal entity shell.
7. Set the Default language for the legal entity (en-us).
8. Select Time zone. (GMT-08:00) Pacific Time (US & Canada)
9. In the Addresses section, select Edit and enter the required address details, such as:
   • Street name and Description (Contoso Retail USA)
   • Address (989 Brodaway, San Francisco, CA 94115, USA)
   • Purpose (Business)
   • Primary (Yes)
10. In the Bank account information section, Choose default Bank from drop down.
11. In the Number sequences section, Note: This section will be empty initially and can be configured later. Creating number sequance automatically for entity
12. In the Dashboard image section, Upload Dashboard images
13. In the Report Company logo image, Upload Company Logo Image
14. Select Save to finalize the creation of the legal entity.

We will setup different Organization Hierarchies, In which we will include this legal Entity