Multi-Division Payments
This document describes how payments from several divisions can be managed centrally in the Automatic Bank Statement module.
On the company level you can accept to process customer payments and supplier payments for invoices belonging to other divisions than the division on the bank statement. This functionality is enabled through activation of the 'Multi-division payments' parameter on 'Bank Account Identifier. Open' (ABS900/E). The payments can also then be automatically allocated against invoices in other divisions.
A bank account identifier that has been defined with this parameter activated on (ABS900/E) can only be used for bank statements that are created and processed on company level, that is, from blank division. The bank statements as such, still belong to the division that has received the customer payments, or from which the supplier invoices have been paid.
When working with the bank statement lines for a bank statement with multi-division payments, the original division of the customer invoices, and supplier invoices, is displayed on 'Bank Statement. Open Line Details' (ABS102/E).
Prerequisites
Central management of payments for customer invoices and supplier invoices in more than one division requires that specific setup is made for the divisions involved:
- In 'Company. Connect Division' (MNS100), all involved divisions must use the same local currency, and the same currency conversion method.
- In 'Bank Account Identifier. Open' (ABS900), the bank account identifier must be defined for the division to which the bank statement belongs.
- In (ABS900), the parameter Multi-division payments must be activated.
- In (ABS900), the FAM function numbers selected for ABS, AR, and AP must exist for all involved divisions.
- In 'FAM Function. Open' (CRS405), all involved divisions must define the same FAM functions for AB10, AR30, and AP20. This means that if the receiving division has selected FAM function 002 for their customer payments through (ABS100), all involved divisions must define the detailed record 002 for FAM function AR30 in 'FAM Function. Open Details' (CRS406).
- In 'Accounting Rule. Set' (CRS395), all involved divisions must
define accounting strings for the following accounting rules:
- AB10-390 (claim) and AB10-395 (debt)
- AR30-301 (gain), AR30-302 (loss), and AR30-310 (cash discount)
- AP20-301 (gain), AP20-302 (loss), and AP20-340 (cash discount).
FAM function AB10 is used for the update of bank statements, and this applies to all involved divisions. This means that the voucher number series, the voucher description, and the currency rate type is retrieved from AB10 for the voucher created during update of bank statements.
Account Entries
These accounting rules are used to create account entries for multi-division payments:
- AB10–370: Bank account (or AB10-374 for bank in transit)
- AB10–390: Claim on other division
- AB10–395: Debt to other division.
Example of customer payment:
- Division of bank statement: AAA
- Invoice 001 belonging to division BBB: USD 1,100
- Invoice 002 belonging to division AAA: USD 1,200.
In division AAA, these account entries are created:
- 2,300 (debit): Accounting rule AB10–370 from the bank statement header
- 1,200 (credit): A/R account (accounting string from the invoice)
- 1,100 (credit): Accounting rule AB10–395.
In division BBB, these account entries are created:
- 1,100 (credit): A/R account (accounting string from the invoice)
- 1,100 (debit): Accounting rule AB10–390.
Electronic bank confirmation of supplier payments
For processing of electronic bank confirmation for multi-division supplier payments, the bank statement must belong to the same division as the payment proposal.
Example of supported multi-division scenario for electronic bank confirmation:
The payment proposal is created in 'Suppl Payment Proposal. Open' (APS130) from blank division for division AAA, including payments of supplier invoices in divisions AAA, BBB, and CCC. After confirming the payment proposal in (APS130), the supplier invoices will remain open until the bank has confirmed the processing of the payments through an electronic bank file. The bank statement is then uploaded to 'Bank Statement. Open' (ABS100) for division AAA, and processed further from blank division. As the bank statement contains electronic bank confirmation for the payments of supplier invoices in divisions AAA, BBB, and CCC, the invoices in all three divisions will be allocated against the bank statement. At that point, the payments in all three divisions, AAA, BBB, and CCC, will be updated to an allocated status in 'Electronic Bank Confirm. Open Details' (APS188) and 'Suppl Payment. Report Electr Bank Conf' (APS187). When the bank statement is updated to status 9='General ledger updated', the supplier invoices in all three divisions, AAA, BBB, and CCC, will be updated as paid, and cross-division transactions will be created for claim and debt between the divisions.
Example of not supported multi-division scenario for electronic bank confirmation:
Three payment proposals are created in divisions AAA, BBB, and CCC, respectively. Then only one bank statement is created from blank division for division AAA, containing electronic bank confirmation of the payment of supplier invoices in divisions AAA, BBB, and CCC. In this situation, the supplier invoices in all three divisions will be allocated to the bank statement, but only the payments in division AAA will be automatically updated in (APS188) and (APS187).