Setting Up Multi-Entity Payment Types

In addition to establishing the individual general ledger (GL) accounts for each organization and product, additional GL accounts must be established to recognize balances from one organization to the other when complex payment processing is encountered. In cases where an order contains products from more than one entity, customers pay for the invoice with one payment that is deposited in one cash or bank account.

In a single-entity organization, payment types are linked to generic GL accounts where organizational linking is not required because there is only one organization involved. Because the inflow GL account associated with a payment type belongs to a single entity, in multi-entity accounting it is necessary to determine which organization will receive the payments. To do this, the following configurations are required:

• On the GL Accounts tab of all of the Payment Types records, change all of the assignments to reflect organization-specific GL accounts created for the Parent organization.
• If the Apply Service Charge option on the Service Charge tab of the Payment Types record is selected, the GL account selected in the Service Charge GL Account and Service Charge GL Liability Account fields must also reflect an organization-specific GL account.
   

For this example, create a cash-based payment type and do not select the Apply Service Charge option. On the GL Accounts tab, add a GL Account of Regular type that is linked to the Cash GL account created for the Associated Parent organization.
 
See Sample Multi-Entity GL Entries Transaction for an example of a multi-entity transaction.

For more information about payment types, see Creating Payment Types.