Before you can use Inter-Entity Worksheets in your workpapers, you need to set up the reconciliations at the entity level.
The system is designed this way so you only need to create the reconciliation once, and then it can be applied across all relevant workpapers and reused in future periods.
➡️ To learn how inter-entity reconciliations work in general, see Inter-Entity Reconciliations Explained.
➡️ Once reconciliations are created, see Using Inter-Entity Reconciliation Worksheets to apply them in workpapers.
Step 1: Create a new reconciliation
Open the relevant Group or Entity.
Select the Reconciliations tab.
Click + New Reconciliation.
Step 2: Enter key details
Enter a clear name (for example, Loan Account Reconciliation).
Optionally, add a description for extra context.
Step 3: Define the mapping
You’ll see two columns of tiles, one for each side of the reconciliation. Each side represents the accounts that should balance against the other.
For each side, choose the Entity → Chart (Manual or Xero) → Account.
Use + Add Account under a tile to include multiple accounts if required.
These titles tell the system that the total of the accounts in the left column must equal the total of the accounts in the right column in your workpapers.
💡 Tip: You can set up one-to-one, one-to-many, or many-to-one reconciliations. For example, a single Dividend Paid account in a company can reconcile to multiple Dividend Received accounts in shareholder entities.
Step 4: Save the reconciliation
Select Save to finalise the reconciliation.
It will now appear in the Reconciliations tab for both entities involved.
This setup process is essential - without it, you won’t be able to convert standard worksheets into Inter-Entity Worksheets and check balances side by side.
Once you've defined your reconciliation, read the next article - Using Inter-Entity Reconciliation Worksheets.