Magnifi Organisation Structure: Entities, Divisions and Groups

Organisation Structure

Purpose

An organisation equals a separate entity and file. A division is a sub‑layer inside that file used for internal reporting (locations, teams, departments). This article explains the different ways to structure your Magnifi file and helps you choose the right option before commencing the projections.

When to Use

  • When setting up a new Magnifi file and deciding how to represent your organisations.

  • When you need to compare results across multiple divisions or organisations.

  • When preparing for consolidated reporting across organisations.

Options at a Glance (with next steps)

Sole organisation, no divisions

Best for: simple reporting.
Key points: default when you add an organisation.
How to: Add an Organisation. Link to come

Sole organisation with divisions

Best for: locations, teams, or departments within one organisation. 
Key points: assign accounts to divisions; you can exclude inter‑entity transactions; report by division or All Divisions (represents the organisation).
How to: Add Divisions

Multiple organisations, no divisions (Simple group option: use divisions as entities)

Best for: a quick consolidated view of multiple entities with minimal setup.
Key points: represent each entity as a division in one file; import at divisional level; All Divisions = consolidated view; you can exclude inter‑entity transactions. Limitation: you cannot have another sub‑layer under each entity (no “divisions within divisions”).
How to: Add Divisions for each entity.

Multiple organisations with divisions (Full group option: three reporting layers)

Best for: complex groups needing depth and flexibility.
Key points: create one file per entity (each file is an organisation), then Group Files under a group name. Unlocks three layers of reporting: Group → Organisation (file) → Division (sub‑layer). Exclude inter‑entity transactions; consolidated reporting.
How to: Add a Group.

Segments (combine divisions)

Best for: cross‑division reporting after setup. This can happen later.
Key points: combine selected divisions into segments for targeted views, without changing your structure.
Next step: Add Segment and select which divisions to include.

Here's an example of an organisation structure that reflects the "full group option" scenario. It includes 3 layers of reporting; layer 1 = group, layer 2 = entity, layer 3 = divisions.






Tips/FAQs

  • Tip: If you have multiple entities and you're unsure if you will ever require divisions within an entity, best to setup multiple files and use the group option to give you the flexibility down the track.

  • Tip: Consider how your accounts are structured for divisional reporting. For example, you can't setup divisions for a location if you don't have accounts by location because you need to assign the accounts to the division. 

  • FAQ: Do I always need divisions? No. If you don’t require a divisional breakdown, keep a simple structure.

  • FAQ: Can I use divisions for tracking categories? Yes. If you are a Xero user you can basically map your division to a tracking category. However this only works when ALL accounts within your Xero file have been assigned to a tracking category. 

  • Pitfall: Too many divisions can slow performance without adding reporting value. We would recommend keeping < 10 divisions per organisation