Ramp supports multi-entity companies by allowing them to add all of their entities within a single Ramp Instance and set different payment setting for each entity.
This enables you to:
- Generate individual statement payments for each entity / subsidiary
- Eliminates the need to perform inter-company transactions every time you close your books
- Track card transactions, pay out reimbursements and bill payments for each entity from different bank accounts
- Sync to multiple entities within one batch sync for both transactions and reimbursements
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Set Up
To set up multi-entity, you'll need to first link to your accounting system (either NetSuite or Sage Intacct). For detailed instructions, please navigate here for NetSuite and here for Sage.
Note: we do not support multi-entity within a single Ramp instance if you are using any other accounting software.
Once you connect to your accounting system, you will need to configure the settings for each entity.
- Select "Configure to Sync" within the Accounting tab or navigate to Settings (bottom left of the screen) -> Entities
- Either select the default entity already there or Create an Entity button
- Note: during set up, the default entity will apply to all existing transactions and reimbursements.
- Note: during set up, the default entity will apply to all existing transactions and reimbursements.
- Select the name you'd like for the entity on Ramp and map it to the corresponding NetSuite or Sage entity
- Select the checking account you'd like to use to pay down the balance for this entity as well as the corresponding Ramp Card from the ERP
- Bank accounts must be verified on Ramp to appear in drop down
- For Sage, you will need to create the credit card within Sage first (we recommend you do so at the entity level)
- For NetSuite, you are able to create the credit card within Ramp in this screen
- Select the locations within Ramp that will map to that entity
- Locations can only be mapped to a single entity
- If you'd like a user's transaction to go to different entities depending on the purchase, please reference the FAQ's at the bottom of the doc
- Lastly, select Bank Account, corresponding GL Account, and AP Account (if applicable) for Reimbursements and Bill Pay
- These are the settings we'll use to pay out reimbursements per entity as well as syncing them to NetSuite or Sage
- These are the settings we'll use to pay out reimbursements per entity as well as syncing them to NetSuite or Sage
How it Works
Users
When inviting a user onto Ramp, you have to select a Department and Location that the user belongs to. Additionally, when setting up Multi-entity on Ramp, you have to map Locations to Entities.
So, when inviting a user, make sure you select the correct location for said user since all of the cards will default to the entity corresponding to that location.
Card Transactions
The entity of a transaction is determined by the card that was used to make said transaction. The default entity for a transaction will be the entity for said user, however, you can override when creating a card or afterwards by:
- Edit card or create card
- Scroll to the bottom "Danger Zone"
- Select the entity you'd like that card to map to
- Entity change will ONLY affect future transactions. In other words, the entity of a transaction is locked once a transaction is made.
- Entity change will ONLY affect future transactions. In other words, the entity of a transaction is locked once a transaction is made.
Reimbursements
The entity of a reimbursement is dependent on what entity the user who submitted the reimbursement is in. There is no way to currently change this.
Statement Payments
Statement payments will now be calculated at the entity level and paid out from the bank account specified in the entity settings. If an entity does not have enough funds to cover their expenses, we will default to the parent / default entity's bank account.
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 transactions across entities?
A: NetSuite does not allow this so you cannot do so within Ramp.
A: Sage: you can split across locations (which may correspond to entities). However the locations available are the locations available where the credit card is created (i.e. if credit card is created at Location 100; then the only locations you can split that transaction across are other locations available within Location 100).