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Revenue accounting

Multi-entity billing

Billing from more than one legal entity, each with its own books, tax registration and invoice numbering, consolidated into one group view.

Multi-entity billing means invoices are issued by different legal entities depending on where the customer is and which entity contracts with them.

Each entity needs its own invoice number sequence, tax registration, statutory formats and functional currency, and its books have to stand alone for local filing. The group then needs a consolidated position that is the sum of them, in a single reporting currency, which cannot disagree with the local views.

Businesses usually discover this requirement about a year after opening their second entity, at which point the billing system that assumed one company has to be replaced rather than configured.

Related terms

  • Multi-currency billing Pricing, invoicing and settling in a customer local currency while reporting in one currency at the group level.
  • Consolidated invoicing Combining charges from several subscriptions, entities or products onto a single invoice per customer.
  • Reconciliation Matching what you invoiced to what you were paid to what landed in the bank, and explaining every difference.