Can a single employee incur expenses on behalf of multiple entities?

Short answer

Yes. A single employee can incur expenses on behalf of multiple legal entities, as long as each expense is clearly assigned to the correct entity for accounting, statement payment, and reporting.

On Ramp, this is handled by issuing separate cards or funds tied to different entities. Each transaction is automatically assigned to the entity associated with the card, fund, or reimbursement used, with limited ability for admins to override the entity before the statement closes.

Setup approach:

Employees who spend across multiple entities should have multiple virtual cards or funds, one for each entity
Each card or fund is tied to a specific entity, making statement payment and reconciliation more seamless

Transaction assignment:

The entity is automatically inferred from the employee’s card or location, but can be overridden at the transaction level
Admins can change the entity of any transaction on behalf of users
For reimbursements, employees can also select or change the entity when submitting, subject to certain restrictions

Related questions

Can different entities use different charts of accounts?

Yes. Different entities can use different charts of accounts, but this adds complexity during consolidation. Each entity’s accounts must be mapped to a common reporting structure, which increases close time and introduces risk during consolidated reporting.

How are intercompany expenses tracked and reconciled?

Intercompany expenses are costs and transfers between related entities within your corporate group. On Ramp, multi-entity organizations largely eliminate the need for intercompany transactions by assigning spend to the correct entity from the start, paying each entity's expenses from separate bank accounts, and syncing directly to entity-specific books in your ERP.

How can transactions be assigned to different legal entities?

Transactions are assigned to legal entities using entity codes, company codes, or subsidiary identifiers in your accounting system. Each transaction is tagged with the appropriate entity identifier to ensure accurate ledger assignment and consolidated reporting.

How should shared vendors be handled across multiple entities?

Create a single vendor record in your system that all entities can use. Configure entity-specific approval workflows and accounting codes while maintaining centralized vendor data (payment details, tax information, compliance documents).

On this page

Setup approach:
Transaction assignment: