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. Users with the appropriate permissions can manually create a new legal entity using the Legal Entity Record or add multiple legal entities quickly using the Setup Assistant.
Navigation
To edit an existing legal entity,
In the Administration section of the left navigation pane, select Legal Entities. The Legal Entities list opens.
Select the Legal Entity you want to edit.
Make changes as needed.
From the Save drop-down menu, select Save. Your changes are saved.
To create a new legal entity,
In the Administration section of the left navigation pane, select Legal Entities. The Legal Entities list opens.
Select an existing Legal Entity.
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.
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. 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
Information used to process 1099s. 1099 Processing fields include:
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. This field is only available if the Common Payer checkbox is cleared.
Payroll
Information used to process payroll.
Standard payroll fields include:
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. This field is only available if the Payroll Common Payer checkbox is cleared.
Payroll Company ID - Identification number for the Payroll Company. This field is only available if the Payroll Common Payer checkbox is cleared and the Payer field is empty.
If R365 Payroll is enabled, changing this number will result in Payroll errors. Please contact R365 Support before adjusting this field.
Additional fields if Workforce is enabled:
Include Tips in Payroll Export - If selected, the tips are included when earnings are sent to Workforce from Smart Ops.
Ship Direct Deposit Paystubs - If selected, paystubs for employees who have chosen to be paid by direct deposit are also created within Paycheck Runs. This option only appears if Print & Ship is enabled.
Shipping Preference - Determines the shipping method for paycheck runs submitted through Print & Ship. This option only appears if Print & Ship is enabled.
Intercompany
Information used to process 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.
Default Payroll Check Account - The default checking account to use for payroll. This field is only available if Payroll is enabled.
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.
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