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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 using the Setup Assistant.
Navigation
Navigation Steps - Open an Existing Legal Entity
Open the Admin application.
Click Locations & Legal Entities to expand the folder.
Click Legal Entities.
Click the legal entity name or double click the legal entity row.
Enter all or part of the page name in the R365 global search bar.
Select the page from the results list.
Only enabled pages can be searched for. If the desired page is not enabled, contact your CSM for assistance.
Legal Entity Record
GL accounts that are set as default accounts cannot be deleted.
Field
Description
1
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.
2
Address Info
The shipping address for the legal entity.
Click Separate Billing Address to enter a billing address that differs from the shipping address.
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 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.
For organizations with R365 Workforce: Changes to common payer settings after employees are onboarded can cause payroll and accounting disruptions. Only make changes when absolutely necessary.
Additional fields if Workforce is enabled:
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. Contact R365 Support before adjusting this field.
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.
5
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.
6
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. Learn more about R365 Payments.
7
Upload Logo
Upload an image file of the logo for the legal entity.
