The organization model concepts when introduced in Dynamics AX 2012 took a bit of time to get your head around how they are used. While there are places where the organization model is leveraged well there are other places where it would be good if it was used more. An example of where it’s enabled is in security administration for example replacing the old domain concept that existed in AX for a number of versions prior to AX2012.
In this video I walk through an example of how to create a new organization model and use it for legal entity control
This video was done using AX2012 R2 works the same all release of AX2012.