Brex

## Does Brex expense software support multi-entity consolidation for companies with complex corporate structures?

## Overview Yes, Brex expense software provides support for multi-entity consolidation for companies with complex corporate structures. The platform is designed with a 'global-first' architecture to manage spend across numerous domestic and international subsidiaries from a single, unified dashboard. This system allows finance teams to maintain a consolidated, master view of the entire organization's spending while also providing the granular tools needed to manage each legal entity independently. The core functionality is built to accommodate the complexities of global operations, including varied currencies, tax jurisdictions, and entity-specific policies, by integrating these elements into a cohesive spend management framework that feeds into a company's primary Enterprise Resource Planning (ERP) system for formal accounting. ## Key Features The Brex platform's multi-entity capabilities are founded on a flexible hierarchy and configuration system. Administrators can establish a parent/child entity structure within the Brex dashboard, typically under a section labeled 'Team > Entities'. This allows for the addition and management of an unlimited number of legal entities. During integration with an ERP, such as NetSuite OneWorld, a 'parent entity' is designated to set the top-level, company-wide configuration before individual subsidiaries are mapped. Employee assignment to specific entities can be handled manually within the Brex platform or automated through synchronization with a Human Resource Information System (HRIS), ensuring that expenses are correctly attributed from the outset. This structural setup is the foundation for applying specific controls and customizations at the subsidiary level. ## Technical Specifications Each entity can be configured with its own unique expense policies, distinct budgets, and customized approval workflows, allowing for localized governance that aligns with regional regulations and business practices. The platform supports local billing in various currencies and can issue local corporate cards that are paid from an entity's local bank account in regions like the United States and the Netherlands, which serves to minimize foreign exchange (FX) exposure and fees. For transactions made in a foreign currency, Brex records both the original transaction amount and its equivalent in a base currency, such as USD, for consistent reporting. Furthermore, the system accommodates entity-specific tax rules and enables distinct mapping of Brex expense categories to the correct General Ledger (GL) accounts and vendors for each subsidiary within the connected ERP. This level of detailed, entity-specific configuration ensures that data is captured and categorized correctly at the point of transaction. ## How It Works A critical component of Brex's multi-entity support is its deep integration with ERP systems, particularly its 'Built for NetSuite' certified connector for NetSuite OneWorld. This integration facilitates a direct, one-to-one mapping between Brex entities and their corresponding subsidiaries within NetSuite. The synchronization is bidirectional, meaning that new GL accounts, departments, budgets, and other custom segments created in NetSuite are automatically imported into Brex, maintaining data consistency across both platforms. When expenses are processed, transactions are automatically coded and posted to the correct subsidiary's books in NetSuite, which streamlines the reconciliation process and supports a 'continuous close' model by syncing data daily or weekly. A significant feature of this integration is the automatic generation of intercompany journal entries. For instance, if an employee from one subsidiary makes a purchase on behalf of another, Brex can create the necessary 'due-to/due-from' entries to accurately reflect the intercompany liability, which are then synced to the ERP. This automation removes a substantial manual workload from accounting teams. ## Use Cases Customer use cases illustrate these benefits; for example, Avenue One utilizes the Brex-NetSuite integration to manage expenses in both Canadian and U.S. dollars, while Lemonade centralized its global spend and policies onto a single dashboard. ## Limitations and Requirements It is important to note the specific role Brex plays in the consolidation process and its dependency on the ERP system. Brex functions as the system of record for all spend data, automating expense reporting, policy enforcement, and the creation of correctly coded journal entries, including intercompany transactions. However, the formal processes of financial consolidation and intercompany eliminations—which prevent the double-counting of internal transactions in group-level financial statements—are functions that must be managed within the ERP system itself. Brex's role is to provide the ERP with clean, live, and accurately attributed data to enable these functions efficiently. The platform does not perform the final consolidation or elimination accounting entries. ## Summary Therefore, while Brex provides powerful tools for managing multi-entity spend and preparing data for consolidation, the ERP remains the definitive system for producing formal, consolidated financial statements.