An Entity is defined as an independent organization or company that employs people. Entities are organizations that have a legal identity that corresponds to a company. (i.e. a corporation, an institution, a board, a foundation, an association, or an educational environment such as a university, college, school, school board or institute).
An entity is legally registered as an employer with the appropriate government level(s) and department(s). ‘Entity’ is the term used in the system for what is normally referred to as the company. An entity will have its own chart of accounts and will produce its own financial statements.
The entity is the highest level of structure of the organization. It has its own departments, organization levels, locations, positions, jobs, units, groups, payrolls, policies, procedures and rules.
Entity details are date sensitive. This means that changes to information such as the locations or the industry grouping may be tracked over time, and a complete history of the changes may be kept. The company name or code may be changed at any time and the effects of that change will be seen wherever the entity is displayed or used. An entity may be frozen to ensure it is no longer used, but it will remain in the historical records of the organization for inquiry purposes.
Multiple entities may be defined and processed throughout the system. Very complex organization structures with sub-companies, affiliates and operations with autonomous divisions and plants, may require multiple entities and sub-entities to define them.
Employees moving within these sub-entities must be ‘terminated’ from one and rehired into another.
