Understanding Multi-Entity Accounting

aACE can help you segregate people, products, and financials across different business entities, different locations, or even different brands. For an example of how this feature can help your team, read our feature highlight

Multiple Companies

The Offices module enables you to organize one or more companies operating from one or more locations. You can set up each office record as a distinct business entity, including a separate tax ID, address, logo, etc.


Personnel at each location will have Team Member records assigned to the corresponding office. A user's current office assignment is displayed in the footer of the Main Menu. The User Groups module enables you to control whether team members can view records from other offices or can switch their office for their current session.


Products are associated with offices and the selection lists for orders only show those associated products. You can manage the office-specific settings of line item codes (LICs) so they display for certain offices. This streamlines workflows since users in one office don't have to filter records associated with separate offices. 

Inter-Office Sales 

A new order record is initially associated with the current office of the team member who created it. You can manually change the order's office association by specifying a department (since offices are derived from departments).

Inter-Office Inventory

When your organization has multiple locations, sometimes the goods purchased at one location must be transferred to other locations where the demand is higher. With aACE's data entry preferences for Accounting, you can prevent one office from being expensed for another office's use of inventory by marking the 'Prevent inter-office COGS transactions' flag.

In contrast, you can clear this flag and set up your system for inter-office A/R and A/P accounting (see Inter-Office Inventory below). 


GL Accounts

You can configure your chart of accounts to show balances associated with all offices or only with a user's current office assignment. To modify this which balances are displayed, navigate to Accounting > Preferences > Data Entry > Multi-Office Preferences section, then mark the flag to 'Manage office general ledgers separately'. 

When this flag is marked, it filters the general ledger to show only the transactions for the current office and displays a header above the transactions list to remind users which office is being displayed (as shown below). Note: Users with certain User Group privileges will still be able to switch offices at the main menu and then view the GL Accounts for those offices.

Printing Financials

To generate various financial reports, either for a single office or for all offices, at the GL Accounts module, click the Print () icon. For example, to print a balance sheet for a single office, select Advanced Balance Sheet, specify an office, and click Print. (Note: To print a balance sheet for all offices, leave the Office field blank.)

Inter-office A/P and A/R Accounts

When your offices will be conducting internal transactions, you can set up the accounting preferences to help track these exchanges:

  1. Navigate to Menu > Accounting > GL Accounts and, for each office you have created for your organization,  create an A/P and an A/R account.
  2. Navigate to Menu > Accounting > Preferences > Chart of Accounts > Offices section:
  3. For each office you have created, specify the inter-office A/P and A/R accounts as shown in the screenshot above.

After you have set up these accounts, aACE will track receivable and payable balances between your offices, automatically creating an A/R balance for the office that purchased the inventory and an A/P balance for the office that used the inventory.

For example, if two offices are paying part of a purchase (e.g. rent for a shared space), you can specify each Dept field on the Purchase record. In the General Ledger, the office that originates the purchase gets the Accounts Payable balance for the overall purchase. aACE also automatically creates a receivable balance for the part of the purchase due from the second office, plus a liability on the second office's accounts for what they owe to the originating office.

Similarly, aACE will track receivable transactions. For example, when one office sells a line item code which another office should receive the proceeds for (e.g. the inventory belongs to one entity, even though other entities can add it on orders), aACE will create an A/R balance for the office that should receive the sale and an A/P balance for the office that handled the sale.

Bank Accounts

For each office, you can specify a default bank account for disbursements. Navigate to the Chart of Accounts and, in the Offices section, click the field for 'Disbursement (Bill Pay) Account', then select from the list of options. (Note: After you manually assign an account in this field, it will not be affected by changes to the Default Disbursement account in the Assets section.)

For organizations with separate legal entities, you can help avoid reconciliation problems by constraining bank accounts to a single office (e.g. Bank of America 1107):

  1. Navigate to the GL Accounts module and locate the desired account. 
  2. At the detail view, click Edit.
  3. In the module footer,  click the Limit-To Office field and select the appropriate office.
  4. Click Save.

Another oversight feature is the 'Prevent multi-office cash transactions' option. When you mark this flag, aACE checks to ensure cash separation between multiple legal entities, constraining receipts disbursements to be assigned only to bank accounts that are linked to the office creating the receipt or disbursement. Set this option at Accounting > Preferences > Data Entry > Multi-Office Preferences: