Multiple Entities

One system for every
entity you operate.

You opened a second brand. Then a new entity when you expanded internationally. Then a holding company. Now month-end means exporting from three separate systems, reconciling intercompany balances by hand, and hoping the consolidated P&L actually adds up. There's a better way.

Sound familiar?

Real pain points from finance and operations teams managing multiple legal entities.

"We're running three instances of our ERP, one per entity. Nobody has a complete picture."

Separate systems mean separate data. Consolidated reporting becomes a manual exercise every month.

"Intercompany invoices take our finance team a full day to process and reconcile."

When one entity buys from another, someone has to create matching invoices on both sides by hand.

"We opened a new entity when we expanded internationally. Now one warehouse ships for both. The accounting is a mess."

Cross-entity fulfillment creates intercompany AR and AP entries that can be difficult to handle without the right system.

"Consolidated financials take three days to produce. We're still not confident they're right."

Eliminating intercompany transactions from group-level statements is a spreadsheet exercise every close.

"One entity buys the inventory. A second entity sells it. A third ships it. Our current system can't model that."

Complex multi-entity supply chains require workflows that many industry-agnostic ERPs were never designed for.

"We share a warehouse across two brands. Inventory attribution is manual and always wrong."

When entities share physical infrastructure, you need the system to keep the financials cleanly separated.

Multi-entity accounting

Separate books. One system.

Fulfil's multi-company accounting runs every legal entity in a single instance. Each entity maintains its own chart of accounts, fiscal years, and financial records. Your team works in one system with no logging in and out, no reconciling exports across platforms.

  • Each entity has its own chart of accounts, fiscal years, and accounting periods. Different regulatory requirements are supported.
  • Each entity can operate in its own base currency. Users can be granted access to one entity or all of them.
  • Every order, invoice, and journal entry is assigned to a specific company. Nothing bleeds across entities unless you intend it to.
  • Entities can share a warehouse or product catalog, or maintain entirely separate ones. Your call.
Entity setup
Brand Co. (US)
Base currency: USD · Fiscal year: Jan–Dec
Active
Brand Co. (UK)
Base currency: GBP · Fiscal year: Apr–Mar
Active
Wholesale Division
Base currency: USD · Fiscal year: Jan–Dec
Active
All entities. One login.
Single instance
Intercompany transfer: automatic accounting
Selling entity creates sales order Step 1

Company A ships inventory to Company B at transfer price. Fulfil auto-creates the purchase order in Company B.

Automatic journal entries, both sides Step 2

Company A: Inter-company AR, Revenue, COGS. Company B: Inventory, Inter-company AP. No manual entries.

Company B receives and resells Step 3

Inventory moves to Company B's books at transfer price. Company B can resell at any price to create its own margin.

Intercompany transfers

Inventory moves between entities. Accounting follows automatically.

When one entity buys centrally and distributes inventory to others, or when a manufacturing entity transfers finished goods to a sales entity, Fulfil handles all the accounting on both sides. You create one order. Fulfil creates the other.

  • Create a sales order in the selling entity. Fulfil auto-creates the matching purchase order in the buying entity.
  • All journal entries, including revenue, COGS, inter-company AR and AP, are posted automatically in both companies.
  • Transfer pricing is configured via price lists: cost-plus markup, compliant with arm's-length principles.

Intercompany dropships

One entity sells. Another ships directly to the customer.

Your US entity takes the order. Your Canadian warehouse ships it. The inventory never touches the US entity's books, but the accounting in both companies needs to be right. Fulfil handles the handoff automatically.

  • Both entities record revenue and COGS. The selling entity recognizes customer revenue and records COGS at the transfer price. The supplying entity recognizes intercompany revenue and records COGS from its own inventory cost.
  • The selling entity's margin is the difference between the customer sale price and the transfer price. Both are tracked in Fulfil.
  • Works across Shopify, Amazon, wholesale, and any other channel. Each channel is assigned to the correct legal entity.

Fulfil was designed for the way multi-entity commerce brands actually operate.

Dropship flow: US sells, Canada ships
1
Customer orders from US store
Sales order created in Brand Co. (US)
2
Fulfil routes shipment to Canadian entity
Supplying company ships directly to the customer
3
US entity invoices the customer
Revenue recognized in US books
4
Inter-company invoices created automatically
AR in Canadian entity, AP in US entity, at transfer price
Re-invoicing: shared cost allocation
Parent company receives $12,000 rent invoice
Supplier invoice posted in parent entity
Re-invoice to subsidiaries
$4,000
Brand A
$4,000
Brand B
$4,000
Brand C
Draft supplier invoices created in each subsidiary automatically

Intercompany billing

Charge across entities. Reconcile in seconds.

Management fees, shared software, rent, IT support. These costs need to flow from one entity to another. Fulfil handles both direct billing and re-invoicing, creating matching entries on both sides without manual intervention.

  • Post a customer invoice to a related entity. A draft supplier invoice is automatically created on the other side.
  • Re-invoice shared costs: split a single supplier bill across multiple entities equally or by custom allocation.
  • GL accounts are matched automatically across entities. Adjust before posting if needed.

Consolidated financial reporting

Group-level financials. Intercompany already removed.

Fulfil generates consolidated balance sheets, income statements, and cash flow statements across all entities. Intercompany transactions are identified and eliminated automatically. No spreadsheet reconciliation required.

  • Consolidated P&L, balance sheet, and cash flow, each showing per-entity columns, an elimination column, and a consolidated total.
  • Consolidated Inventory Valuation report shows on-hand quantities and costs for every entity side by side, grouped by product, category, brand, or warehouse.
  • Fulfil eliminates intercompany revenue, expenses, AR, AP, inventory, fixed assets, and equity automatically. Only external activity remains.
  • Inter-company balance report shows AR/AP positions between entities. Spot mismatches before they become close problems.
  • Multiple consolidation groups supported, including regional roll-ups, brand groups, or full group consolidation in parallel.
Consolidated income statement
Account US Co. UK Co. Elim. Total
Revenue $2.4M $1.1M ($0.3M) $3.2M
COGS $1.1M $0.6M ($0.3M) $1.4M
Gross Profit $1.3M $0.5M - $1.8M

Intercompany revenue and COGS eliminated automatically. Group total reflects only external transactions.

FAQ

Common questions.

Do I need separate Fulfil instances for each legal entity?
No. All entities run in a single Fulfil instance. Each entity has its own chart of accounts, fiscal years, and financial records, but your team works in one system. Users can be granted access to one entity or all of them.
Does Fulfil handle intercompany accounting automatically?
Yes. For intercompany transfers and dropships, Fulfil automatically creates all journal entries in both entities: revenue, COGS, accounts receivable, and accounts payable. No manual journal entries required.
How does consolidated reporting work?
Fulfil generates consolidated balance sheets, income statements, and cash flow statements. Each report shows one column per entity, an elimination column for intercompany transactions, and a consolidated total reflecting only external activity. Intercompany transactions are identified and removed automatically.
Can each entity have its own currency?
Yes. Each company can have its own base currency.
What is the difference between an intercompany transfer and a dropship?
An intercompany transfer moves inventory physically from one entity to another. The buying entity receives and owns the stock before reselling. A dropship is when one entity sells but a different entity ships directly to the end customer, so inventory never moves between entities. Fulfil supports both workflows with automatic accounting on both sides.
Can I see inventory values across all entities in one report?
Yes. The Consolidated Inventory Valuation report shows on-hand quantities and costs for every entity in a consolidation side by side. Each entity appears as its own column group, with a Consolidated column showing combined totals. You can group by product, template, category, brand, or warehouse.
Does Fulfil have robust multi-entity accounting for complex ecommerce operations?
Yes. Fulfil's multi-company accounting supports separate chart of accounts, fiscal years, and base currencies per entity, automatic intercompany journal entries for transfers and dropships, intercompany billing and cost re-allocation, and consolidated financial statements with automatic eliminations across revenue, expenses, AR, AP, inventory, fixed assets, and equity. All entities run in a single Fulfil instance. The intercompany dropship workflow, where one entity sells and a different entity ships directly to the end customer with full accounting on both sides, is a native capability designed specifically for how ecommerce brands operate.
What intercompany workflows does Fulfil support natively?
Fulfil includes four native intercompany workflows: Transfers (move inventory between entities with automatic purchase order creation and GL entries on both sides), Dropships (one entity sells while another ships directly to the customer, with automatic intercompany invoices and journal entries in both companies), Billing (direct billing between entities for management fees, shared costs, and services, with automatic offsetting entries in the receiving company), and Re-invoicing (split a single supplier invoice across multiple entities equally or by custom allocation). All journal entries are created automatically for transfers and dropships.

Ready to run every entity
in one system?

See how Fulfil handles intercompany workflows, consolidated reporting, and multi-entity accounting for ecommerce brands.