TOC:
- What did it used to look like
- What does it look like now
- New functionality
- FAQ’s
1. What did it used to look like
Currently, the default accounts screen shows the Credit Card Accounts, AP Accounts and Cash Accounts. The Default Credit Card accounts screen is where you’d be able to add additional subsidiaries and credit cards for those respective subsidiaries.
Then, on the accounting screen (image below), the NetSuite Subsidiary column defaults to the first subsidiary on the screen with the option to change it on a per transaction basis, require employees to code it, or set up an accounting rule on a card to set the NetSuite subsidiary.
2. New functionality
Statement payments per entity:
- At the end of your statement period, Ramp will calculate the amount owed per entity and take separate debits for each entity (even if the bank account selected is the same more than one entity)
- This eliminates the need to perform inter-company transactions every time you close your books
- This will also make reconciliation easier as you can see how much each Ramp Card Liability Account should add up to based on the total amount that was charged for that entity
Different default accounts per entity:
- Pay out transactions, reimbursements, and bill payments from different bank accounts, if you’d like
- Sync to the respective NetSuite accounts for each of these separate entities
Ability to sync reimbursements to multiple entities in a single sync
3. What does it look like now
Each of those credit cards shown in the above images will correspond to an individual entity on Ramp. Next, you’ll select the “edit” screen and either set up or edit an entity.
At the top left (below image), you’ll name how you’d like this Entity on Ramp to show up. On the right hand side, you’ll choose the NetSuite Subsidiary that you would like this entity to map to.
Then you’ll select the accounts for each of these entities:
- Bank Account + corresponding Cash Account: Used for statement payments
- Main change is ability to set this at an entity level
- Credit Card Liability Account: Used to track expenses incurred on Ramp Cards (exactly the same as before)
- AP Accounts + Corresponding Bank Accounts for reimbursements and bill pay: Similar functionality as before although can designate separate accounts for each entity
- Ramp Locations: You will also assign ramp locations to each entity to help automate how cards are issued. More details below
Each card will be tied to a single entity moving forward.
- Whenever a card is created, an entity will be tied to that card. The default entity on that card will depend on the user that the card is for.
- For example, if User A has a Ramp Location of Miami, then when a card is created for User A, it will have the entity “Honeycomb Holdings Inc”. I can change the entity of that card though by setting the Entity on it to Honeycomb Mexico. To do this, you’d want to edit the card, scroll to the bottom and navigate to the “Danger Zone”.
- Suggestion: To make this process easier, we suggest setting up locations that are closely tied with entities
- Transactions and reimbursements can be moved across entities, however, once payment is finalized (i.e. reimbursement approved for payment and transaction included in a statement), the entity on the expense is finalized
- Changing the entity of a card will only affect future transactions
4. Frequently Asked Questions
Q: What should I do if an employee or user spends across multiple entities?
A: Each virtual card is tied to an entity, and a user may have virtual cards that tie to different entities. Thus, if a user spends across multiple entities, the suggested set up is to have multiple virtual cards, one for each entity. This will make the statement payment and reconciliation process more seamless since if you had the option to move around the subsidiary, there is the possibility it doesn't match up with how it was paid out.
Q: What happens if I change the mapping of a location (i.e. Location A now maps to Entity A instead of Entity B)?
A: Future cards will now default to the updated entities, however existing cards will remain untouched. To edit the entity of a card, click into the card -> select "Edit" -> Scroll to the bottom and change the entity of said card.
Note: this will only affect future transactions
Q: Can I get multiple physical cards, one for each entity?
A: You can only have 1 physical card by employee and the business name and logo must be the same across entities
Q: Can I split expenses across entities?
A: You cannot split expenses across entities. We support what NetSuite supports and it is not possible to split a credit card transaction across entities. Our suggestion would be to create multiple transactions in NetSuite (one for each entity) or create journals to account for this.
Q: Can I have users categorize the subsidiary / entity of each transaction?
A: Since cards are tied to an entity, users will not have the option to change the entity of a transaction. This will have to be done by the admin or bookkeeper if an override has to take place. Note that the entity of an expense is locked once it has been paid for.
Q: How do I switch the entity of a transaction or reimbursement?
A: Follow these steps.
- Click into a transaction or reimbursement
- Scroll-down in the drawer to the "Accounting" section and click on "Entity." Select which new entity you would like to be mapped to the transaction or reimbursement.
- Lastly, scroll-down and click "mark-ready." The "mark-ready" button will change to "ready" and he transaction will be updated with the correct entity.