Multi Entity Setup
This article describes how to set up a multi entity group in Model Reef so that you can see both entity level and consolidated views.
You will learn:
How to represent entities as branches.
How to use imports for each entity.
How to organise intercompany items.
How to produce group level reports and valuations.
Decide on the entity structure
For a multi entity group, a common pattern is:
Root branch:
Group(or parent company).Child branches: one branch per legal entity, for example:
Entity AEntity BEntity C
Optional sub branches under each entity for divisions, locations or projects.
This mirrors the legal structure and makes it easy to:
Import from separate ledgers for each entity.
See stand alone statements per entity.
Roll up into a consolidated group view.
Linking each entity to its own data source
If you use Xero or QuickBooks:
Create one Model Reef model per data source connection if you want them completely separate, or
Map multiple accounting sources into one model by assigning each to its corresponding entity branch.
Patterns:
Xero company A -> branch
Entity A.Xero company B -> branch
Entity B.QuickBooks company C -> branch
Entity C.
When you import COA and actuals, ensure that:
Each account is mapped to the correct entity branch.
Categories and subcategories are consistent across entities where you want comparable reporting.
You can also import PDF or Excel statements separately for each entity and map them to the right branches.
Handling intercompany balances and flows
Intercompany items should be explicitly modelled, not hidden. Examples:
Intercompany loans.
Management fees.
Intercompany sales and cost of sales.
Shared service charges.
Recommended pattern:
Inside each entity branch, create variables for the intercompany items from that entity's perspective.
Create an Eliminations branch under the group parent that contains variables equal and opposite to the intercompany items you want to net out at group level.
This ensures:
Entity branches show full stand alone performance including intercompany flows.
Group level statements are clean and free of double counting.
Tax and entity level results
With entities as branches you can:
Configure tax settings either per entity or for the group as a whole, depending on jurisdiction and consolidation rules.
View NPAT and retained earnings per entity.
View group level NPAT and retained earnings at the root branch.
If entity specific tax rules differ, capture those as variable and timing settings in the relevant entity branches.
Group level valuation
Once multi entity structure is in place, you can run valuations at different levels:
Entity level valuation by selecting the entity branch.
Group level valuation by selecting the root group branch.
Segment or region valuations by using intermediate parent branches if you have them.
The valuation engine uses the same cashflow and statement logic, so no extra modelling is needed beyond configuring discount rates and terminal value assumptions for each level.
When to split into multiple models
You may decide to use multiple models rather than a single multi entity model when:
Entities are very large or complex in their own right.
Different entities are run by different teams with limited overlap.
You want independent scenario sets and version histories per entity.
You have strict access controls that are easier to enforce at model level.
In that case, a separate consolidation model can consume exports from each entity level model.
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