(703) 860-6945           Brittenford is now Wipfli! Learn More

Tips to Manage a Multi-Entity Environment in Intacct

Tips to Manage a Multi-Entity Environment in Intacct

When you have multiple locations and entities, no matter how complex your business structure is, automation of business processes is crucial.  Some items to consider when operating within a Multi-Entity environment include checking account setups, inter-entity relationships and checking account restrictions.

A Few Suggestions about Intacct’s Multi-Entity Financial Management

  1. Any checking accounts that will be used for inter-entity transactions must reside at the Top Level.
  2. Private entity checking accounts will only be available to the private entity – use this setup sparingly! Use Restrictions if there is a need to restrict checking accounts to specific entities only.
  3. When running the Select Bills to pay in a private entity, the checking accounts that are available in the drop-down are entities with inter-entity relationships with that entity (not just the Restrictions setup) – make sure to set up the inter-entity relationships to allow another entity to process payments on behalf of another.
  4. When running the Print Checks routine, the checking accounts that are available in the drop-down are entities that are set up in the Restrictions tab of the checking account used in Select Bills to Pay.  This is the setup that drives the visibility of the Checking Accounts in this screen.
  5. New release update: you may now transfer funds from one bank account of one currency to another bank of another currency.  However, the catch is the entities of these banks must have the same base currency; e.g., Company A with base currency USD with a USD bank account can transfer to Company B with base currency USD to a EUR bank account. Company A cannot transfer to Company C with base currency MXN, regardless of the currency of the bank account.  So the workaround for this scenario would be:
    • In the US Entity, set up Mexican entity as a “dummy” vendor and enter a “bill” for the funds transfer, with the appropriate account to debit, and AP will automatically be credited;
    • In the US Entity, Select Bills to Pay to run the payment against the bill as a Cash payment/Record Transfer to debit AP and credit cash, and to affect the funds transfer to Mexico and is available for your bank reconciliation
    • In the Mexican entity, enter Other Receipts under Cash Management and enter the funds transfer information with US Entity as the Payer and select the posting account to credit

A very important item that wasn’t discussed is how to handle and manage multi-entity reporting.  View this On-Demand Intacct Webinar: Stop Reporting Like its 1999 and discover how to dispose of those old inflexible and antique reports and replace them with accurate, clean and timely views of your revenue, expenses and profitability.


Leave a reply

Your email address will not be published. Required fields are marked *