AX 2012 Legal entities Vs Business units

Hi All ,

In AX 2012 , GL - Setup - Organization - Legal entities and Business units .

What is the difference between these two in AX 2012 ?

The operating unit hierarchy might consist of business units under a root corporate legal entity, with departments rolling up to a business unit, and cost centers rolling up to a department.

Look at the white paper here:

http://download.microsoft.com/download/4/E/3/4E36B655-568E-4D4A-B161-152B28BAAF30/Implementing_and_extending_the_organization_model_in_Microsoft_Dynamics_AX_2012.pdf