Which organization type is recognized as a legal entity in Workday?

The organization type recognized as a legal entity in Workday is a Company. In Workday, a Company is defined as an independent legal entity that can own assets, incur liabilities, and conduct business activities. This concept is central to financial reporting and legal compliance, as it represents the formal, legally-defined unit that operates under its own legal rights and responsibilities.

In contrast, a Company Hierarchy functions as a structured representation of how various companies are organized within an enterprise but does not itself qualify as a legal entity. A Cost Center refers to a specific department or unit within a company that incurs costs but does not have its own legal status. A Custom Worktag is an entity used for tracking and categorization purposes within Workday but lacks the legal entity status of a Company. Thus, the definition and implications of what constitutes a legal entity make the Company the correct choice in this context.