You must set up a virtual company for centralized payments. The same virtual company is used to process centralized vendor payments and centralized customer payments.

Only the administrator who is creating the virtual company account can be connected to Microsoft Dynamics AX; only one active client connection is allowed. For more information, see Create virtual company accounts.

1. Click Administration> Setup> Virtual company accounts .

2. Create a new virtual company account, such as CPY, and save it.

3. Click the Table collectionstab.

4. In the Remaining table collectionslist, select CentralizedPaymentsand move it to the Selected table collectionslist.

5. Click the Company accountstab.

6. Select the companies that you want to include in centralized payment processing and move them to the Selected company accountslist.

   Note

   The companies that you select here will determine the transactions that are included in the Open transaction editingform for the companies that use centralized payments. The form includes open transactions for the companies that are included in a virtual company for centralized payments, and that are associated with the selected vendor (the selected vendor, a vendor in another company that is mapped to the same address book ID within the virtual company for global address books, or a vendor in a virtual company).

7. Restart the Microsoft Dynamics AX client.

When payment transactions in the current company are settled with invoices in other companies, the appropriate due-to and due-from transactions are created for each company. You must specify the company where any applicable cash discount amounts and any realized gain or loss amounts are posted. For more information, see About cross-company payment settlements. Before you begin, decide which company you will use to process vendor payments and switch to that company.

1. Click General ledger> Setup> Posting> Intercompany accounting .

2. Select an intercompany relationship record for a company that you will process payments on behalf of.

3. Click the Centralized paymentstab.

4. In the Centralized vendor paymentsfield group, select whether to post cash discounts to the company of the payment (or other transaction that decreases the balance of the vendor account), or to the company of the invoice (or other transaction that increases the balance of the vendor account).

   This selection works in conjunction with the Cash-discount administrationfield in the Accounts payable parametersform. For overpayments and penny difference tolerances, the setting in the payment company is used. For underpayments and penny difference tolerances, the setting in the invoice company is used. For more information, see About cross-company payment settlements.

5. Select whether to post currency exchange gain or loss amounts to the company of the payment or to the company of the invoice.

6. Repeat steps 2 through 5 for the remaining intercompany relationships. You must set up intercompany posting information for each combination of intercompany relationships that you will use.

If you pay a vendor from one company and you want to select invoices for that vendor in other companies, you must ensure that the corresponding vendor accounts in each company are recognized as the same vendor. You can do this in either of the following ways:

• Place the vendor accounts in a virtual company. For more information, see Create virtual company accounts.

• Use the same address book ID for the vendor account in each company. For more information, see Using the Global address bookand Merge address book IDs for vendor accounts across multiple companies.

Note
If you use the address book ID to map vendor accounts across companies, only companies that are included in both the virtual company for centralized payments and the virtual company for global address books can be involved in cross-company settlement transactions.

When you create a payment in one company that settles invoices in other companies, the currency codes for the transactions are compared. If the currency codes in both companies are the same, they are recognized as the same currency. If they are different, currency exchange rate calculations are performed. To ensure that payments are created properly, set up a currency code in each of the invoice companies that corresponds to the company currency of the payment company. For example, if the company currency of the payment company is USD, you must set up a USD currency code in each of the invoice companies. You can see the company currency for the payment company in the Company information form.

Before you begin, make a list of all the invoice companies that you will use with the selected payment company. Switch to the first invoice company and then complete the following steps.

1. Click General ledger> Setup> Exchange rates .

2. If a currency code that corresponds to the company currency code of the payment company already exists, skip to step 4. Otherwise, press CTRL+N and create a new currency code.

3. Set up exchange rate information for the currency code. This information is used for exchange rate calculations when cross-company payments are settled, if the payment currency and the invoice currency are different.

4. Switch to the next invoice company and repeat steps 1 through 3.

If you selected to post cash discount amounts to the payment company in the Intercompany accounting form, you also must set up currency codes in the payment company that correspond to all the company currency codes in each of the invoice companies. Switch to the payment company, and then complete the following steps.

1. Click General ledger> Setup> Exchange rates .

2. Click the Printbutton on the toolbar to print a list of currency codes that have been defined for the payment company.

3. Switch to each invoice company and print a list of currency codes for each.

4. If any currency codes are missing from the payment company, switch back to the payment company and add them.

When you create a payment in one company that settles invoices in other companies, the posting profile IDs must be the same in both companies. To ensure that payments are created properly, set up a posting profile in each of the invoice companies that corresponds to the posting profiles that are used in the payment company. Switch to the first invoice company and then complete the following steps.

1. Click Accounts payable> Setup> Posting profiles .

2. If a posting profile that corresponds to one of the posting profiles used in the payment company already exists, skip to step 4. Otherwise, press CTRL+N and create a new posting profile.

3. Set up the posting profile. The selections you make for the posting profile in the invoice company do not have to match the way that the posting profile is set up in the payment company.

4. Repeat steps 1 through 3 for the remaining posting profiles.

5. Switch to the next invoice company and repeat steps 1 through 4.

When you create a payment in one company that settles invoices in other companies, the method of payment IDs must be the same in both companies. To ensure that payments are created properly, set up a method of payment in each of the invoice companies that corresponds to the methods of payment that are used in the payment company. Switch to the first invoice company and then complete the following steps.

1. Click Accounts payable> Setup> Payment> Methods of payment .

2. If a payment method that corresponds to one of the payment methods used in the payment company already exists, skip to step 4. Otherwise, press CTRL+N and create a new method of payment.

3. Set up the method of payment. The selections you make for the method of payment in the invoice company do not have to match the way that the method of payment is set up in the payment company.

4. Repeat steps 1 through 3 for the remaining methods of payment.

5. Switch to the next invoice company and repeat steps 1 through 4.

You can define transaction text for intercompany settlement vouchers. The transaction text is included on the due-to and due-from transactions during the cross-company settlement process.

1. Click Basic> Setup> Transaction text .

2. Press CTRL+N to create a new row.

3. In the Transaction textcolumn, select Intercompany customer settlementand enter text.

4. Press CTRL+N.

5. Select Intercompany vendor settlementand enter text.