How to Add a New Entity in Sage Intacct

Needing to add a new entity to your Sage Intacct environment can be common, whether you're expanding into a new geographical region, adding a new product line, or acquiring/merging with another company. However, this process often involves several complex steps and considerations that require careful attention. Follow the steps below for how to effectively add a new entity to your Intacct system. 

Before Adding a New Entity

Before you go through the steps of adding a new entity, there are a few things you should check:

• Contact your CSM (Customer Success Manager) to confirm that you have already purchased enough entities or to purchase a new Entity if necessary. Your order schedule or renewal will indicate how many entities you have purchased for Intacct. Do not create more entities than what was purchased without first discussing it with your CSM.
• Schedule an appointment with an RKL Consultant for assistance with the considerations listed below.
• Review the guidelines below as a starting point, but determine other changes your organization may need when adding a new entity. This list may not include all possible changes needed to your Intacct setup.

7 Steps for Adding a New Entity

Now that you've confirmed that you have purchased the correct number of entities needed for your company, you can begin adding the new entity. 

1. First, navigate to Company > Setup > Entities and add a new entity by duplicating an existing entity or clicking "Add."
2. Next, you'll need to navigate to General Ledger > All > General Ledger Accounts to create new Cash GL accounts for the new entity. Each bank account for the new entity will need to have its own cash account. We recommend duplicating a similar account and adding the new name and account number.
3. Then, you'll need to navigate to General Ledger > All > General Ledger Accounts and create Inter-entity accounts for the New Entity. 
4. After you've created the inter-entity accounts, you'll need to navigate to Cash Management > Setup > Checking to create bank accounts and link them to the cash accounts for this entity. If you're paying your vendors via ACH, you'll also need to set that up in Cash Management> Setup.
5. To set up the savings accounts, repeat the same actions you just completed with the checking accounts. This is done in Cash Management > Setup > Saving.
6. Now you'll be able to set up the inter-entity mapping. To do this, navigate to Company > Setup > Inter-Entity Account Mapping and then add the new entity and the GL accounts you created to the inter-entity accounting setup. You can either scroll to the bottom and add new combinations or export a template, add the accounts to the new combinations, and import the template back into Intacct. After that's completed, you'll have to create two accounts, "Due to" accounts and "Due from" accounts.
   
   
   Take a look at this blog to learn how to set up the inter-entity mapping feature, which allows one entity to engage in transactions with another.
   
7. If you need to add additional users to your entity, you'll need to contact your CSM.
8. You can locate and add additional master data and dimensions at these locations:
   • Adding Customers: Accounts Receivable > Customers
   • Adding Vendors: Accounts Payable > Vendors
   • Adding Projects: Accounts receivable > Setup > Projects
   • Adding GL accounts: General Ledger > General Ledger Accounts
   • Adding Statistical accounts: General Ledger > Statistical accounts
   • Adding Dimensions (Dept, Class): Company > Dimensions

Additional Entity Considerations

The information above is essential when setting up a new entity. But once you've completed that, you may want to review additional considerations regarding reporting and dashboards, receiving external documents, and handling any information brought in from a legacy system.

Reporting Considerations:

• Do you need new financial reports?
• Do you need to make changes to existing reports?
• Validate that any new Dimensions and the new Entity is included in reporting groups. Reports > Setup > Dimension Groups > Entity/Location

Considerations for External Documents:

• Does this entity use the same AP check format?
• Does this entity use the same AR Invoice or AR Statement?
• Does this entity use the same Purchase Order form?
• Are there any other external documents that may need to be modified?

Other Considerations:

• Does the new entity have the same fiscal year?
• Are there historical GL balances to be imported?
• Are there Open Accounts Receivable or Accounts Payable that can be imported as historical?
• Are there checks or deposits that have not cleared from a legacy system and need to be included in the bank reconciliation?

Want More Sage Intacct Features & Functions?

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Check out these blogs to help get you started!

How to Use the Allocations Function
Using the 3 Types of AP Bill Approvals
How to Use Budget Templates
How to Create a Prepaid Item