Legal Entities are companies that own locations. Each Location must belong to a Legal Entity, and whenever a transaction occurs and is connected to a specific Location, it automatically is connected to the Legal Entity as well. Many reports can be run by Legal Entity, which will show results for all Locations that belong to that entity. 


To edit an existing Legal Entity, go to the 'Legal Entities' list under 'Administration' in the 'Accounting' Module located in the left navigation. Click the row of the Legal Entity you want to open, make changes, and then save the record.  To create a new Legal Entity, open an existing Legal Entity, and then press 'Save and New'.



Legal Entity Header



1) Name - The name of the Legal Entity

2) Number - The number you use to identify this Legal Entity.  If you don't currently use Legal Entity numbers, it's suggested to just number them sequentially for ease (1,2,3...)

3) Inactive - This checkbox will inactivate the Legal Entity, which will prevent it from showing in drop-downs on various screens

4) Tax ID - The Tax ID of the Legal Entity that will be used on some reports, including 1099 reports and ACH exports

5) State ID - The State ID of the Legal Entity that will be used on some reports, including 1099 reports and ACH exports

6) Closed Date - Setting this means that no transactions can be Approved or edited prior to this date because it basically closes the books that time period. Click here for more information on Closing a Period

7) Address Info - This section contains address fields for the Legal Entity

8) This Legal Entity is a Common Payer - When checked, this marks the Legal Entity as the single reporting Legal Entity for your Organization. All other Legal Entities will then be processed through the selected Common Payer

9) Report 1099s Through - A listing of all Legal Entities that have the Common Payer box (#8) checked

  • Note: This box will only be active if the Common Payer checkbox is left unchecked

10-11) Due From Account and Due To Account - These fields are used as part of automated intercompany.  Click here for more information on Intercompany Transactions

12) 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

13) 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 on R365 Payments