Multiple Legal Entities Management in Allfred enhances agency financial management capabilities across different legal entities. Agencies with multiple legal entities can set specific billing and banking details for each, streamlining the invoicing and expense tracking process.
This feature is particularly beneficial for agencies with diverse business units, such as one being a VAT payer and the other not. It allows for more effective financial optimization while maintaining overall control within a single platform.
Note that only users with an Admin role can manage legal entities and their respective bank accounts.
How to manage multiple legal entities?
How to create or edit agency legal entity
Access Workspace Settings
Click on the profile icon in the top corner of the Allfred interface
Go to 'Settings' and select 'Companies' from the menu on the left
Managing Legal Entities
Within the 'Companies' tab, you'll see a list of your agency's legal entities
Use the '+ Add new company' button to create a new legal entity
Fill in the required information, such as 'Company Name', 'Company Street', 'Company Zip', and other essential details.
Save the company details by clicking on 'Upade' button
Bank Accounts Management:
When scrolling down in the same 'Companies' tab, you can manage the bank accounts associated with each legal entity
How to delete an agency legal entity
When a legal entity is no longer needed in Allfred, you have the option to hide it from all relevant forms. To do this:
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Companies' tab where your legal entities are listed.
Select the company you wish to hide, and check the 'Hidden' checkbox.
Once marked as 'Hidden', the entity will no longer appear in any forms where you would usually select a company. This action can be managed only by those with Admin role.
Customizing Sequences (Invoice Numbers) for each Legal Entity
You can set custom sequences (invoice numbers) for each legal entity.
Navigate to 'Workspace Settings' by clicking on your profile icon and selecting 'Settings'.
Go to the 'Companies' tab
Scroll down to "Sequences"
Insert the required format, starting number, and type of financial document
FORMAT:
Enter the required invoice number format. Letters are allowed. Use placeholders to represent dynamic elements. For example:
YYYY: Current year
YY: Ending of the current year
#: Symbolizes the number Example: OI-YY-#### = OI-24-0001
NEXT NUMBER:
This number will be the first sequence number used for the selected financial document type. It represents the starting point for generating sequential numbers according to the specified format.
TYPE:
The type of financial document
When you don't use separate numbers for different types of Expenses, choose "Expenses (fallback)" as the document type. If you are using different sequences just for a couple of expense types, "Expenses (fallback)" will be used as the default format for all the expense types that haven't specified invoice numbers.
Practical Use of Multiple Legal Entities in Allfred
Setting a Default Legal Entity for a Client
Navigate to the client's details page
Use the action menu in the upper right corner and click on the 'Edit'
In Legal entity field, select the default one you wish to assign to this client
Click 'Save' to confirm the changes.
This will ensure that all future invoices for this client will automatically be associated with the selected legal entity.
Selecting a Legal Entity During Invoicing
When creating a new invoice, the option to select a legal entity is displayed in the first step of invoicing in the Project Details
Note:
If a legal entity has only one bank account, it will be prefilled automatically.
If there are multiple bank accounts associated with the legal entity, you must manually select the appropriate one.
2. After setting the legal entity and bank account, proceed to the next steps of invoicing:
In the second step, select the required budget items.
In the third step, set the dates, VAT rate and other necessary details. Make sure to click on the "Generate from budget items" button to finalize the invoice details.
Setting a Legal Entity for a Received Expense
While assigning a new expense, fill in all necessary details of the expense.
At the bottom of the form, you will find fields to select a 'Legal entity'.
Choose the relevant legal entity to which the expense should be allocated.
Results Evaluation based on Legal Entity
Filtering Financial Documents by Legal Entity
You can filter outgoing invoices, credit notes, proforma invoices, and expenses received by the corresponding legal entity of the agency.
Simply navigate to Finance section, click on Filter -> Legal Entity and select required agency legal entity
This ensures that you can view and manage financials specific to each part of your agency.
In case of generating Payment orders, we recommend first use the filter for required legal entity and IBAN (if multiple are available) and then generate the payment order
