What legal entity is assigned to a receipt?

Legal entities are linked to remittance and internal bank accounts. The receipt method determines which remittance bank account, and therefore which legal entity, is assigned to a receipt.

All receipts inherit the legal entity from the bank account, and all refunds inherit the legal entity of the original receipt.

You can perform receipt applications across legal entities, if both the receipt and the transactions the receipt is applied to are in the same business unit. Receipt applications and receipt clearing across legal entities is recorded in the subledger as intercompany accounting.