Just like a company in real life can have multiple divisions so can you set up GL/Receivables/Payables/Payroll etc. to have different divisions/locations.

If you set up the divisions then you can separate expenses,  balance sheet accounts to be unique to each division.  You could print A/R reports by divisions,  etc.

Only real con I see is that it adds extra digits to your customer/vendor/employee number.

Most common use I see among my clients is those with multiple locations.

Medical clinics commonly have divisions by specialties.

All in how you wish to report.

Other than Fund Accounting or Government Accounting, which have a different set of rules and will use IntraCompany Processing in conjunction with the separate Balance Sheet Accounts with various Division Codes, it would seem to me to be unnecessary. 

If I post an invoice to AP, there will be a debit to a fully composed account number which could include a division. The credit side of the transaction would be to Accounts Payable Liability, which would not have a divisional breakdown. I would not want to process a check run for each division, which would seem necessary to make sure the correct Cash Account / Division and Accounts Payable  / Division were updated when the check run was posted. 

If I were using Fund Accounting rules, I would still have a single set of Balance Sheet accounts complemented by Due  to / Due From accounts to balance the entries between the divisions (Funds) and in total. 

I cannot think of any circumstances where I would gain a benefit from Divisional breakdowns of Balance Sheet accounts.

Anyone aware of such circumstances that I am missing?