A legal entity is any company or organization that has legal rights and responsibilities, including tax liability. A legal entity can enter into contracts (e.g., as a vendor or a supplier) and assumes legal liability risk in business.
A company may have only one or may have several legal entities. Precoro allows you to manage the legal entity you wish to make an order or any expenditure, and then analyze the recorded data accordingly.
Suppose all of your legal entities utilize one currency and have the same processes and approval flows to manage and track purchases. In this case, can add them to your Precoro account.
TABLE OF CONTENTS
1. How to set and create a Legal Entity?
To create a Legal Entity, follow these steps:
3. Click the "Add Legal Entity" button.
4. Write the entity's name (the field is obligatory) and all the relevant information.
On the right side, there are check-boxes "Show in POs/Invoices." Check the fields that should be displayed on the PO/Invoice PDF file, and uncheck the fields that shouldn't be displayed.
5. Click "Update" once done.
If you need to disable the legal entity, move the switcher from ON to OFF and hit "Update".
You can find the disabled legal entity using the filter "Enable" - the option "No".
2. How to use Legal Entities in Purchase Orders?
When you create the Purchase Order, you can specify for which Legal Entity you need to order the products:
When you open the PDF version of the PO, you can find your Legal Entity's detailed info in the "Bill to" section. This information will be visible to your suppliers when they receive your purchase order and can also be used for invoicing.
You can also filter your POs and Invoices by Legal Entities using the filters on the Purchase Order/Invoice module.
The information on the Legal Entity is exported in the Reports so that you can have the analytics on this field.