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Legal Entities are companies that own locations.  Each location must belong to a legal entity.  Many reports can be run by legal entity which will show results for all locations that belong to that entity.  A legal entity usually has a corporate tax id.  Legal entities aren’t selected on transactions because the location is selected and whichever legal entity that location belongs to is associated with that transaction automatically.

To edit an existing legal entity, go to the Legal Entities list (Accounting – Administration – Legal Entities in the left hand navigation), click a the row of the legal entity you want to open, make changes and then save.  To create a new legal entity, open an existing legal entity and then press “Save and New”.

Legal entity fields are described below:

  • Name – required field that is the name of the legal entity
  • Number – required field that is the number you use to identify this legal entity.  If you don’t currently use legal entity numbers, its suggested to just number them sequentially for ease (1,2,3…)
  • Inactive – this will inactivate the legal entity which will prevent it from showing in dropdowns on various screens
  • Tax ID – tax id of the legal entity that will be used on some reports including 1099 reports and ACH exports
  • Closed Date – setting this means no transactions can be approved or edited prior to this date (basically it closes the books that time period).  Click here for more information on closing a period
  • Address Info – this section contains address fields for the legal entity
  • Due From Account and Due To Account – required fields that are used as part of automated intercompany.  Click here for more information on intercompany transactions
  • Default Checking Account – this is used on the check run form.  When a legal entity is selected on the check run, the default checking account will default in to the Checking Account field for that check run

 

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