Example: Multi-Site Payment Posting

Three sites exist for Entity XYZ. Site A is designated as the centralized collection site where all customer payments are collected. If Site A receives a $300 payment from a customer to pay 3 invoices, each from a different site, these journal entries must occur:

• Invoice customer - $100 from each entity, as shown in this table:

  		Debit	Credit
  Site A transactions:	A/R	$100
  	Sales		$100
  Site B transactions:	A/R	$100
  	Sales		$100
  Site C transactions:	A/R	$100
  	Sales		$100

• Post payment of $300 - distribute $100 to each entity, as shown in this table:

  		Debit	Credit
  Site A Transactions:	Cash	$300
  	A/R		$100
  	Inter-Site Liab (Entity B)		$100
  	InterEntity Liab (Entity C)		$100
  Site B transactions:	InterEntity Asset	$100
  	A/R		$100
  Site C transactions:	InterEntity Asset	$100
  	A/R		$100