Franchiser/Franchisee structure

In the Franchise Management application, a franchisee is the customer; a franchiser is the company. A business-partner relationship between a franchiser and franchisee is referred to as a franchise.

Typically, a customer contract represents each franchise. In each contract, you define the financial terms and charges of the business relationship. You also associate specific charges with a franchise contract.

After you set up and activate contracts, you can process remittance data for the sales cycle. You must specify this data into the system where charges for the cycle are calculated and variance reports showing differences between the store and system calculations are created. A report indicates customers who have not submitted their data for the cycle. You can create estimated charges for the period using sales from the last actual sales amount. The processing cycle also creates invoice interface records and makes them available to the Billing application for invoicing. The cycle closing involves the creation of accruals (auto reversing entries) for the estimated sales values.

In addition, you can post actual invoiced charges to activity accounts and general ledger accounts in the Billing and General Ledger applications. You can post transaction data to the Strategic Ledger application.