Pick your sector from the 18 sectors in Annexes I and II, enter employees, turnover, balance sheet total and group turnover, and the check determines your classification — essential entity, important entity or likely out of scope — with the statutory penalty maximum for that category and an indicative ceiling based on the turnover you enter.
Two variables drive your classification: the annex your sector sits in and the size of your organisation. A large undertaking in an Annex I sector is an essential entity; in an Annex II sector, an important entity. Medium-sized organisations are always an important entity, whichever annex applies (Art. 3(2)). Micro and small organisations fall outside scope, unless they are size-independent — in which case the annex applies in full again.
The thresholds are applied exactly as the source test states them, sharp edges included: on the financial leg, “large” requires both turnover and balance sheet total to be exceeded, and the medium test does not look at the balance sheet at all. An organisation with €51M turnover and a €43M balance sheet therefore lands on medium, not large. The report states which rule fired, with tool version and dataset vintage, so that outcome is traceable rather than surprising.