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, the entity is automatically determined by the employee's Location at the time of submission and cannot be changed afterward. To correct a reimbursement submitted under the wrong entity, delete it and have the employee update their Location first, then resubmit
Related questions
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.
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