What should be created when a new legal entity needs to be set up after an acquisition?

When a new legal entity is established, creating a new company organization is essential. This is because a company organization serves as the fundamental structure within Workday to manage the financial, operational, and reporting aspects specific to that legal entity. It represents the entity's identity in the system, including its unique attributes, tax obligations, and compliance requirements.

Establishing a new company organization allows for organized tracking of financial transactions, budgeting, and activity specific to that entity. It ensures that all transactions related to the new legal entity are recorded and reported accurately, aligning with legal requirements and the company's internal policies.

The other options, while relevant in different contexts, do not provide the foundational framework needed for a new legal entity. A new cost center is focused on cost tracking within existing organizational structures, a new financial transaction type pertains to specific transactions rather than the entity itself, and a new approval workflow addresses procedural aspects rather than establishing the entity's identity within the system.