Allocations and central payments
Pay suppliers centrally
A company hands a supplier invoice to head office, which pays it.
What it does
The subsidiary delegates the invoice line; head office's outgoing payment clears the supplier; due-to and due-from postings are automatic.
How it works
- In the subsidiary, open Banking › Outgoing Payments › Outgoing Payments and enter the supplier's code to load its open payment lines.
- Enter the paying company's branch code in "Delegation Company" (and a "Delegation Branch" if it uses branches), select the lines to hand over and choose "Delegate".
- The subsidiary's entry debits the supplier and credits the due-to account for the payer. In the payer, a journal entry follows at once, with the subsidiary's due-from account on the debit side and the supplier on the credit side.
- In the payer, Banking › Outgoing Payments › Incoming Delegation lists what has been handed over: supplier, original invoice number, instalment, due date, amount and sending company.
- The payer opens Outgoing Payments for the same supplier and posts the payment against the delegation line.
- Back in the subsidiary, "Payment Detail" on the outgoing payment shows the payer's payment number, date and amount paid.
Set it up
In Administration › Setup › Intercompany › Branch Accounts Setup, each company keeps an account for what every other company owes it and one for what it owes them; delegation posts to both sides. The supplier must be a global business partner: delegation is limited to A/P invoices from global vendors. Notices are set per company in Administration › Setup › Intercompany › Intercompany Alerts Administration, as system alerts or emails; the "Contact Person" on the payment is the one who receives the email.
Since: Version 54 (April 2025): a choose-from-list button on the "Delegation Company" field.
Good to know
- It works in both directions: head office can also pass supplier invoices to a subsidiary to pay for it.
- Head office can settle one supplier's invoices from several subsidiaries in a single consolidated payment.
- In the Incoming Delegation window, "WT Amount", "Nota Fiscal No.", "Series", "Subseries" and "Model" apply only to the Brazil localisation.
- The journal entries show the delegation under "Intercompany Details": "Incoming Delegation", "Delegation Reference" and "Delegation From".