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Ledger Rocket

Buyer guide / Multi-entity accounting

How should we record money movements between our own legal entities?

Record each entity’s position explicitly and agree the reciprocal accounting treatment. Keep the settlement evidence alongside those positions. Review each entity’s books before relying on a group total.

Follow both sides of the obligation

A refund can be paid by one entity while another holds the related asset or earns the fee. The account model must explain which entity owes what to the other and how that position will settle. An apparently correct group total can hide an incorrect entity allocation. Use a worked flow to agree the entity, denomination and counterparty for each entry.

The Ledger Rocket approach

Ledger Rocket ledgers are scoped to an owning entity and one currency. Configured templates can produce one atomic posting set across several ledgers, with each debit-credit transfer within its own ledger. Use that structure for the agreed entity positions and verify the intercompany treatment with finance.

Work through these cases

  • Trace the reciprocal positions for a flow involving two entities.
  • Verify each entity’s entries and the group presentation separately.
  • Include a case where the external settlement occurs later than the accounting event.

Discuss your flow

Bring a refund, fee or transfer that crosses two legal entities. Write the expected entries for each entity before configuring the walkthrough.

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