01 - Overview (multi-ledger or multi-company setups)

In accounting systems that support multi-ledger or multi-company setups, the Entity module helps manage financial data for multiple legal or business units within the same organization. Each entity can have its own:

• Chart of Accounts
• Bank Accounts
• Customers and Vendors
• Transactions (Invoices, Bills, Journals)
• Tax setups
• Reports

Entities are critical in ensuring compliance, separation of financials, and accurate reporting across branches, subsidiaries, or divisions.

When to Use Entities

You should create separate entities if your organization:

• Operates in different countries or regions with separate tax rules
• Has distinct legal entities that maintain separate books
• Needs to generate entity-specific Profit & Loss or Balance Sheet reports
• Wants to control access so users can work only within certain companies