Setting Up Two Entities: Materials Seller and Logistics Provider

BulkSource supports multi-entity configurations for businesses that operate a materials sales company and a separate hauling or logistics company. This article explains when and why to set up two entities, how they interact in the system, and what this means for invoicing and payments.

Overview: Two Common Operating Scenarios

When a materials company and a logistics company are related but operate independently, there are two main scenarios you will need to support in BulkSource:

Scenario 1 - Delivered Sale (Most Common)

The materials company sells product to an end customer and arranges delivery. The logistics company is assigned to haul the material and is paid a freight rate by the materials company. The end customer receives a single invoice from the materials company that includes both the product and delivery charges.

In this scenario:

• The order and invoice originate from the materials entity.
• The logistics company is assigned as the hauling company on the ticket.
• The materials company tracks what it owes the logistics company via the Hauler Pay Items report.

Scenario 2 - Logistics Operating Independently

The logistics company takes jobs directly from outside customers, independent of the materials company. These orders need to be managed, tracked, and invoiced under the logistics company's own name, separate from the materials entity.

Entity Setup in BulkSource

Why You Need Two Entities

If your logistics company needs to generate its own quotes and invoices that appear to come from that company (rather than from the materials company), it must be set up as a separate entity in BulkSource. A separate entity gives the logistics company its own:

• Company branding on quotes and invoices
• Customer-facing documents and portal experience
• Payment merchant ID and bank account (so payments from logistics customers deposit separately from materials customers)

Setting Up the Logistics Provider as a Hauling Company

In addition to being set up as its own entity, the logistics company should also be configured as a logistics provider (trucking company) within the materials entity. This allows the materials company to assign the logistics provider to delivered orders, just as it would any third-party hauler.

Once configured, your workflow for a delivered sale looks like this:

• Create the order under the materials entity.
• Assign the logistics provider as the hauling company on the ticket.
• When it is time to process hauler payments, access the Hauler Pay Items report in BulkSource. This report lists every ticket with a freight rate, organized by trucking company, quantity, rate, and total amount owed.
• Your logistics provider will appear on this list alongside any other third-party haulers.

How the Hauler Pay Items Report Works

The Hauler Pay Items report gives you a consolidated view of what you owe every hauling company for a given period, including your own logistics entity. This replaces manual tracking and ensures payables are tied directly to scale tickets.

Invoicing and the Customer Experience

With two entities in BulkSource, invoices will be branded according to which entity generates them:

• Orders and invoices created under the materials entity will display the materials company name.
• Orders and invoices created under the logistics entity will display the logistics company name.

If a shared customer has invoices from both entities, they will see both invoice types in their customer portal. Both will be accessible under one portal login tied to their customer record. This means:

• A customer who both buys material directly from the materials company and separately contracts with the logistics company for hauling may receive independent invoices from each entity.
• A customer who purchases delivered material from the materials company will receive a single invoice from the materials entity covering both product and freight. They will not see a separate logistics invoice in that scenario.

Payments with Two Entities

BulkSource supports multiple merchant IDs within an account. Each entity can be linked to its own merchant ID and bank account, so:

• Payments made toward a materials company invoice deposit into the materials company bank account.
• Payments made toward a logistics company invoice deposit into the logistics company bank account.

This is particularly important if the two entities have separate ownership structures or accounting requirements. Payment setup for each entity is handled during your processing account configuration with your BulkSource implementation team.

For assistance configuring your entities, contact your BulkSource implementation team.