Legal entities are companies that own locations. Each location must belong to a legal entity, and when a transaction occurs and is connected to a specific location, it is automatically connected to the legal entity that owns the location. When a report is run by legal entity, the generated report displays results for all locations belonging to the legal entity. 

Article Topics

• Accessing Legal Entities
• Legal Entity Record
• Payroll Specific

Accessing Legal Entities

To edit an existing legal entity, 

1. In the Administration section of the left navigation pane, select Legal Entities.
   The Legal Entities list opens.
2. Select the Legal Entity you want to edit.
3. Make changes as needed.
4. From the Save drop-down menu, select Save.
   Your changes are saved.

To create a new legal entity,

1. In the Administration section of the left navigation pane, select Legal Entities.
   The Legal Entities list opens.
2. Select an existing Legal Entity.
3. From the Save drop-down menu, select Save and New.
   A new Legal Entity form appears where you can enter information and save the new Legal Entity.

Back to Top

Legal Entity Record

	Field	Description
	General	General information about the legal entity. Name - The name of the legal entity. This is a required field. Number - The number used to identify the legal entity. If your organization does not have numbers associated with legal entities, R365 suggests numbering them sequentially (1,2,3,...). This is a required field. Inactive - Select the checkbox to make the legal entity inactive. Any open periods for the legal entity are closed to prevent transaction posting. Tax ID - The tax identification number. This number appears in certain reports, including 1099 reports and ACH exports. State ID - The state identification number. This number appears in certain reports, including 1099 reports and ACH exports. Closed Date - Closes the period. Setting a closed date ensures that no transactions can be approved or edited after the Closed Date. Click here for more information on Closing a Period. Note: If Advanced Close is enabled for your organization, this field is hidden.
	Address Info	The mailing address for the legal entity. Address 1 - Street address. This field is required. Address 2 - Street address, continued. City - City. This field is required. Zip - Zip code or postal code. This field is required. State - State, province, or territory. This field is required. Phone - Contact phone number.
	1099 Processing and Payroll	Information used to process 1099s and payroll. This Legal Entity is a Common Payer - If selected, the legal entity is the single reporting legal entity for your organization. Report 1099s Through - A list of all legal entities with the Common Payer checkbox  selected. Note: This box is only active if the Common Payer checkbox is cleared. Payroll Common Payer - If selected, this Legal Entity is the Common Payer legal entity. Payer - If Payroll Common Payer is not selected, use the Payer drop-down menu to select the Parent Legal Entity/Payroll Common Payer.
	Intercompany	Due From Account and Due To Account - These fields are used as part of automated intercompany. Click here for more information on Intercompany Transactions. Default Checking Account - This is used on the Payment Run form. When a legal entity is selected on the payment run, the default checking account appears in the Checking Account field for the payment run.
	R365 Payments	This section is a feature used in processing payments through R365. This section is view-only and will be handled by your R365 Sales Rep or R365 Payments Specialist. Click here for more information about R365 Payments.
	Upload Logo	Upload an image file of the logo for the legal entity.

Back to Top

Payroll Specific

The following settings are only displayed if R365 Payroll is enabled:

	Field	Description
	Payroll Company ID	Identification number that links the legal entity to Payroll. Important Note: Changing this number will result in Payroll errors. Please contact R365 Support before adjusting this field.
	Group Checks By	Determines how paycheck runs are grouped; either by Location or by Legal Entity. Click here for more information about Paycheck Run Grouping.
	Ship Direct Deposit Paystubs	If selected, paystubs for employees who have chosen to be paid by direct deposit are also created within Paycheck Runs.
	Shipping Preference	Determines the shipping method for paycheck runs submitted through Print & Ship. Note: This option only appears if Print & Ship is enabled.

Back to Top