Legal Entity Management

A legal entity represents a distinct legal business unit within your organization. Each entity has its own chart of accounts, fiscal periods, tax registrations, bank accounts, and transaction history. AI-native ERP supports multi-entity organizations where subsidiaries, branches, and divisions each operate independently while sharing common master data and rolling up into consolidated reports.

Entity Creation#

When you create a new legal entity, the system provisions complete accounting infrastructure automatically. This includes a chart of accounts (from your selected template or cloned from an existing entity), fiscal periods for the current year, standard tax codes, payment terms, GL posting profiles, number series, agent email addresses, and agent definitions. A single creation command sets up everything the entity needs to start processing transactions.

Each entity is defined by its name, code, functional currency, country, entity type (parent, subsidiary, branch, division), and accounting standard (GAAP, IFRS). These properties determine how the entity handles currency translation, period structure, and compliance reporting.

Multi-Entity Architecture#

The system uses a dimension-based architecture rather than separate databases for each entity. All entities share a single schema, with a legal_entity_id column on every transactional table. This means cross-entity queries, consolidated reporting, and intercompany operations work naturally without complex data federation.

Master data (accounts, vendors, customers, items) is defined at the organization level and shared across entities using the MSEO (Master + Scopes + Entity Overrides + Effective Views) pattern. Each entity sees the full master data set by default and can override specific properties when needed. This eliminates data duplication while allowing entity-specific customization.

VAT and Tax Registration#

For entities operating in VAT jurisdictions, you can configure VAT registration directly during entity creation or add it afterward. The system tracks your VAT registration number, registration date, filing frequency, and the tax authority relationship. This information flows through to tax calculations on transactions and into compliance reports.

Day-to-Day Management#

After initial setup, entity management focuses on maintaining configuration as your business evolves. You can update entity properties like display name, contact information, and accounting settings. Adding new entities to an existing organization follows the same creation process, with the option to clone configuration from a sibling entity for consistency.

Why Multi-Entity Matters#

Whether you are expanding into new markets, setting up a holding company structure, or separating business lines into distinct legal entities for liability or tax reasons, the multi-entity architecture gives you clean separation where you need it and seamless consolidation where you want it. Each entity is a self-contained accounting unit, but you can always see the big picture across all entities.