---
title: Create business units
description: Create a business unit to define your organizational functions. A business unit is also necessary to set up the top-most segment in the hierarchy to create roll up rules and have expenses roll up to these business units.
locale: en-US
canonical_url: https://www.servicenow.com/docs/r/australia/it-business-management/t\_CreateBusinessUnits.html
release: australia
topic_type: task
last_updated: "2026-03-12"
reading_time_minutes: 1
breadcrumb: [Business units, Business Planning Portal, Strategic Portfolio Management]
---

# Create business units

Create a business unit to define your organizational functions. A business unit is also necessary to set up the top-most segment in the hierarchy to create roll up rules and have expenses roll up to these business units.

## Before you begin

Role required: business\_planner

## Procedure

1.  Navigate to **All** > **Organization** > **Business Units**.

2.  Click **New**.

3.  Fill out the fields on the form \(see table\).

4.  Click **Save**.

    |Field|Description|
    |-----|-----------|
    |Name|Name of the business unit.|
    |Company|The company, if any, related with this business unit. You can choose any company, including the ones that don’t have the **Vendor** field selected.|
    |Business Unit Head|Person who heads the business unit.|
    |Description|A description of the business unit.|
    |Parent|Refers to another business unit. The **Parent** field makes the business unit as a hierarchy element.|
    |Hierarchy level|Number or text to indicate the level of the business unit.|

    |Field|Description|
    |-----|-----------|
    |Departments|Departments that comprise this business unit. Add as many departments as necessary.|

    The Departments related list isn’t visible by default. If necessary, you can add the Departments related list on the business unit record you created. To add the Departments related list:

    1.  Right-click in the form header, and select **Configure** > **Related Lists**.
    2.  Locate the **Departments** item in the **Available** box and move it to the **Selected** box.
    3.  Select **Save**.