Organizations that include multiple companies can create and manage payments by using a central company. This eliminates the need to enter the same transaction in multiple companies and saves time by streamlining the payment proposal process, the settlement process, open transaction editing, and closed transaction editing for cross-company payments.
In a centralized payment organization, each operating company manages its own invoices receivable information and payments are received by a central company, called the payment company. During the settlement process, the applicable due-to and due-from transactions are generated. You can specify which company within the organization will receive the realized gain or realized loss transactions, and how cash discount transactions that are related to a cross-company payment are handled.
The following examples illustrate how posting is handled in various scenarios. The following configuration is assumed for all of these examples:
-
The company accounts are Fabrikam, Fabrikam East, and Fabrikam West. Fabrikamis the payment company.
-
Fabrikam maintains a single global address book record, address book ID 4050, for Northwind Traders. This global address book record is mapped to a separate customer account in each company.
|
Address book ID |
Customer account |
Name |
Company |
|---|---|---|---|
|
4050 |
4000 |
Northwind Traders |
Fabrikam |
|
4050 |
4000 |
Northwind Traders |
Fabrikam East |
|
4050 |
10000 |
Northwind Traders |
Fabrikam West |
Example 1:
Customer payment of invoice from another company
Fabrikam receives a payment of 600.00 for Fabrikam customer account 4000, Northwind Traders. The payment is settled with an open invoice for customer account 4000 in Fabrikam East.
Invoice is posted in Fabrikam East for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
600.00 |
|
|
Sales (Fabrikam East) |
600.00 |
Payment is received and posted in Fabrikam for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
600.00 |
|
|
Accounts receivable (Fabrikam) |
600.00 |
Fabrikam payment is settled with Fabrikam East invoice
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam) |
600.00 |
|
|
Due to Fabrikam East (Fabrikam) |
600.00 |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam East) |
600.00 |
|
|
Accounts receivable (Fabrikam East) |
600.00 |
Example 2:
Customer payment of invoice from another company with cash
discount
Fabrikam receives a payment of 580.00 for Fabrikam customer 4000, Northwind Traders. Fabrikam East has an open invoice for customer 4000, Northwind Traders. The invoice has a 20.00 cash discount available. The payment is settled with the open Fabrikam East invoices. The cash discount is posted to the invoice company, Fabrikam East.
Invoice is posted in Fabrikam East for Fabrikam East customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
600.00 |
|
|
Sales (Fabrikam East) |
600.00 |
Payment is received and posted in Fabrikam for Fabrikam customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
600.00 |
|
|
Accounts receivable (Fabrikam) |
600.00 |
Fabrikam payment is settled with Fabrikam East invoice
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam) |
580.00 |
|
|
Due to Fabrikam East (Fabrikam) |
580.00 |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam East) |
580.00 |
|
|
Accounts receivable (Fabrikam East) |
580.00 |
|
|
Cash discount (Fabrikam East) |
20.00 |
|
|
Accounts receivable (Fabrikam East) |
20.00 |
Example 3:
Customer payment of invoice from another company with realized
exchange rate gain
Fabrikam receives a payment of 600.00 EUR for Fabrikam customer 4000. The payment is settled with an open invoice for customer 4000 in Fabrikam East. A currency exchange gain transaction is generated during the settlement process.
Exchange rate for EUR to USD as of the invoice date: 1.2062
Exchange rate for EUR to USD as of the payment date: 1.2277
Invoice is posted in Fabrikam East for Fabrikam East customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
600.00 EUR / 723.72 USD |
|
|
Sales (Fabrikam East) |
600.00 EUR / 723.72 USD |
Payment is received and posted in Fabrikam for Fabrikam customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
600.00 EUR / 736.62 USD |
|
|
Accounts receivable (Fabrikam) |
600.00 EUR / 736.62 USD |
Fabrikam payment is settled with Fabrikam East invoice
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam) |
600.00 EUR / 736.62 USD |
|
|
Due to Fabrikam East (Fabrikam) |
600.00 EUR / 736.62 USD |
|
|
Due to Fabrikam East (Fabrikam) |
0.00 EUR / 12.90 USD |
|
|
Realized gain (Fabrikam) |
0.00 EUR / 12.90 USD |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam East) |
600.00 EUR / 736.62 USD |
|
|
Accounts receivable (Fabrikam East) |
600.00 EUR / 736.62 USD |
|
|
Accounts receivable (Fabrikam East) |
0.00 EUR / 12.90 USD |
|
|
Due from Fabrikam (Fabrikam East) |
0.00 EUR / 12.90 USD |
Example 4:
Customer payment of invoice from another company with cash discount
and realized exchange rate gain
Fabrikam posts a payment for Fabrikam customer 4000, Northwind Traders, for an open invoice in Fabrikam East. The invoice has a cash discount available and a sales tax transaction is generated. The payment is settled with the open Fabrikam East invoice. A currency exchange gain transaction is generated during the settlement process. The cash discount is posted to the invoice company (Fabrikam East) and the currency exchange gain is posted to the payment company (Fabrikam).
Exchange rate for EUR to USD as of the invoice date: 1.2062
Exchange rate for EUR to USD as of the payment date: 1.2277
Free text invoice is posted and a tax transaction is generated in Fabrikam East for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
638.22 EUR / 769.82 USD |
|
|
Sales (Fabrikam East) |
600.00 EUR / 723.72 USD |
|
|
Sales tax (Fabrikam East) |
38.22 EUR / 46.10 USD |
Payment is received and posted in Fabrikam for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
626.22 EUR / 768.81 USD |
|
|
Accounts receivable (Fabrikam) |
626.22 EUR / 768.81 USD |
Fabrikam payment is settled with Fabrikam East invoice
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam) |
626.22 EUR / 768.81 USD |
|
|
Due to Fabrikam East (Fabrikam) |
626.22 EUR / 768.81 USD |
|
|
Due to Fabrikam East (Fabrikam) |
0.00 EUR / 13.46 USD |
|
|
Realized gain (Fabrikam) |
0.00 EUR / 13.46 USD |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam East) |
626.22 EUR / 768.81 USD |
|
|
Accounts receivable (Fabrikam East) |
626.22 EUR / 768.81 USD |
|
|
Accounts receivable (Fabrikam East |
0.00 EUR / 13.46 USD |
|
|
Due from Fabrikam (Fabrikam East) |
0.00 EUR / 13.46 USD |
|
|
Cash discount (Fabrikam East) |
12.00 EUR / 14.47 USD |
|
|
Accounts receivable (Fabrikam East) |
12.00 EUR / 14.47 USD |
Example 5:
Customer credit note with primary payment
Fabrikam receives a payment of 75.00 from customer 4000, Northwind Traders. The payment is settled with an open invoice for Fabrikam West customer 10000 and an open credit note for Fabrikam East customer 4000. The payment is selected as the primary payment in the open transaction editing form.
Invoice is posted to Fabrikam West for customer 10000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam West) |
100.00 |
|
|
Sales (Fabrikam West) |
100.00 |
Credit note is posted to Fabrikam East for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Sales returns (Fabrikam East) |
25.00 |
|
|
Accounts receivable (Fabrikam East) |
25.00 |
Payment is posted to Fabrikam for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
75.00 |
|
|
Accounts receivable (Fabrikam) |
75.00 |
Fabrikam payment is settled with Fabrikam West invoice and Fabrikam East credit note
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam East (Fabrikam) |
25.00 |
|
|
Accounts receivable (Fabrikam) |
25.00 |
|
|
Accounts receivable (Fabrikam) |
100.00 |
|
|
Due to Fabrikam West (Fabrikam) |
100.00 |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
25.00 |
|
|
Due to Fabrikam (Fabrikam East) |
25.00 |
Fabrikam West posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam West) |
100.00 |
|
|
Accounts receivable (Fabrikam West) |
100.00 |
Example 6:
Customer credit note without primary payment
Fabrikam receives a payment of 75.00 from customer 4000, Northwind Traders. The payment is settled with an open invoice for Fabrikam West customer 10000 and an open credit note for Fabrikam East customer 4000. The payment is not selected as the primary payment in the open transaction editing form.
Invoice is posted to Fabrikam West for customer 10000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam West) |
100.00 |
|
|
Sales (Fabrikam West) |
100.00 |
Credit note is posted to Fabrikam East for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Sales returns (Fabrikam East) |
25.00 |
|
|
Accounts receivable (Fabrikam East) |
25.00 |
Payment is posted to Fabrikam for customer 4000
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Cash (Fabrikam) |
75.00 |
|
|
Accounts receivable (Fabrikam) |
75.00 |
Fabrikam payment is settled with Fabrikam West invoice and Fabrikam East credit note
Fabrikam posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam) |
75.00 |
|
|
Due to Fabrikam West (Fabrikam) |
75.00 |
Fabrikam East posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Accounts receivable (Fabrikam East) |
25.00 |
|
|
Due to Fabrikam West (Fabrikam East) |
25.00 |
Fabrikam West posting
|
Account |
Debit amount |
Credit amount |
|---|---|---|
|
Due from Fabrikam (Fabrikam West) |
75.00 |
|
|
Accounts receivable (Fabrikam West) |
75.00 |
|
|
Due from Fabrikam East (Fabrikam West) |
25.00 |
|
|
Accounts receivable (Fabrikam West) |
25.00 |
