diff --git a/tests/test_data_posting_meta.py b/tests/test_data_posting_meta.py
index 1edfc66203e7723438096009b450bc8db4e1a777..0fb50026488064e06996cdcf25bf87296a93ffe2 100644
--- a/tests/test_data_posting_meta.py
+++ b/tests/test_data_posting_meta.py
@@ -21,13 +21,21 @@ from . import testutil
 from conservancy_beancount import data
 
 @pytest.fixture
-def simple_txn(index=None, key=None):
+def simple_txn():
     return testutil.Transaction(note='txn note', postings=[
         ('Assets:Cash', 5),
         ('Income:Donations', -5, {'note': 'donation love', 'extra': 'Extra'}),
     ])
 SIMPLE_TXN_METAKEYS = frozenset(['filename', 'lineno', 'note'])
 
+@pytest.fixture
+def payee_txn():
+    return testutil.Transaction(payee='SampleCo', postings=[
+        ('Assets:Receivable:Accounts', -100),
+        ('Assets:Checking', 95),
+        ('Expenses:BankingFees', 5, {'entity': 'MyBank'}),
+    ])
+
 def test_getitem_transaction(simple_txn):
     assert data.PostingMeta(simple_txn, 0)['note'] == 'txn note'
 
@@ -88,6 +96,22 @@ def test_get_links_from_post_override(simple_txn):
     meta = data.PostingMeta(simple_txn, 1)
     assert list(meta.get_links('note')) == ['donation', 'love']
 
+def test_payee_used_as_entity(payee_txn):
+    actual = [data.PostingMeta(payee_txn, n, p)['entity']
+              for n, p in enumerate(payee_txn.postings)]
+    assert actual == ['SampleCo', 'SampleCo', 'MyBank']
+
+def test_entity_metadata_has_precedence_over_payee(payee_txn):
+    payee_txn.meta['entity'] = 'ExampleCo'
+    actual = [data.PostingMeta(payee_txn, n, p)['entity']
+              for n, p in enumerate(payee_txn.postings)]
+    assert actual == ['ExampleCo', 'ExampleCo', 'MyBank']
+
+def test_keyerror_when_no_entity_or_payee(simple_txn):
+    meta = data.PostingMeta(simple_txn, 1)
+    with pytest.raises(KeyError):
+        meta['entity']
+
 # The .get() tests are arguably testing the stdlib, but they're short and
 # they confirm that we're using the stdlib as we intend.
 def test_get_with_meta_value(simple_txn):