Allocations and central payments
A treasury company for the group
Load the supplier invoices of all subsidiaries and pay them from one company.
What it does
The treasury company loads the open invoices of a global supplier from every subsidiary and pays them in one place.
When you need it: A shared-service centre pays for all the group's companies.
How it works
- In the treasury company, open Banking › Outgoing Payments › Intercompany Vendor Payment.
- Enter the supplier in "Vendor code" and choose "Load Invoice". The supplier's open A/P invoices come in from the subsidiaries, each with its instalment, due date, currency, total, balance due and the subsidiary's "IC Branch Code".
- Tick the invoices to pay, set project, distribution rule and dimensions per row if needed, and choose "Pay to Vendor".
- The treasury company posts a journal entry with the remark "TreasuryJournalEntry", debiting the due-from account for each subsidiary and crediting the supplier.
- Each subsidiary gets an automatic journal entry that moves the debt from the supplier to the due-to account for the treasury company, and the A/P invoice is reconciled against it.
- The "Outgoing Payment" window then opens in the treasury company: post the payment to the supplier against the treasury journal entry.
Set it up
Tick "Treasury Company" in Administration › Setup › Intercompany › General Settings of the company that will pay; the Intercompany Vendor Payment window then appears in its Banking menu. The receivable and payable accounts between the treasury company and each subsidiary come from Administration › Setup › Intercompany › Branch Accounts Setup in each company. Suppliers paid this way must be global business partners.
Good to know
- Invoices are pulled only where the supplier is a global vendor.
- The treasury company fetches the invoices itself; unlike central payments, no subsidiary has to delegate each payment line first.
- Where a subsidiary uses branches, the invoice's branch shows in "Receiver Branch Id/Name".
Sources
Video
The treasury companyVideo · YouTube