Hierarchy Preferences

Modified on Mon, 27 Nov 2023 at 09:14 AM


Summary: 


Reviews how to configure hierarchy preferences in the event that your direct customers require their parent entities to pay outstanding invoices.


Receivables Permissions: 

  • Manage AR email and payment settings (Global setting)
  • Manage Customer profiles, preferences, and view history (Customer-level setting)


Article Contains:

Hierarchy Overview

Centime allows your company to bill parent entities of your direct purchasing customer in the event that the direct buyer is not the entity responsible for paying the bills. The hierarchy in Centime is directly based on the hierarchy in your accounting system. The following settings are available:


  • Buyer: The entity that purchased the goods
  • Top-level parent: The highest-level parent in the overall hierarchy
  • Immediate parent: The purchasing entity's immediate parent

In the example above, Acme Inc. is the top-level parent for all of the children. 


  • When the 'Bill to' preference is set to Buyer, then each entity is responsible for its own bills.


  • When the 'Bill to' preference is set to a Top-level parent, then Acme will receive bills for all of the children beneath it in the hierarchy.


  • When the 'Bill to' preference is set to Immediate parent, then each entity's immediate parent is responsible for payment and the top-level parent in the hierarchy is responsible for itself as shown below.


PurchaserResponsible for Payment
Acme IncAcme Inc (no immediate parent)
Clark MaterialsAcme Inc
The Tool FactoryAcme Inc
Widgets & MoreClark Materials
The Gadget StoreClark Materials
Davis MarketThe Tool Factory
Smith's HardwareThe Tool Factory



These preferences can be set on a global level, which will impact all customers. From there, each individual customer profile can deviate from the global setting.


To view the entity responsible for payment, check the "Bill to" column in any of the receivables tables. 




Set Hierarchy Globally

To set a global hierarchy rule, navigate to Settings > Receivables > General Settings. 


Click the pencil to edit the global Hierarchy preferences and choose an option from the dropdown. 


Set Hierarchy Locally

To deviate from the global setting for a customer, navigate to their customer profile from any of the tabs in the Receivables module. 


Once in the customer profile, you can edit Hierarchy preferences on the Summary tab.


Impact on Contacts and Online Payment Preferences

When the entity responsible for payment is set as Immediate parent or Top-level parent, communication contacts and online payment settings for the purchasing customer will be overridden and Centime will defer to the correct parent's settings. 



When payment preferences on the buyer level differ from those on the parent-level, the buyer's Customer Profile will indicate that the settings have been overridden. Always check the Bill to column to find the responsible entity and their communication contacts and payment preferences.


Emails under hierarchy preferences:

When multiple invoices are due on the same date to the communication contact, the users will receive an email with all the due invoice details aggregated to one.




NOTES:


Invoices, invoice details and their status in Manage Receivables is directly synced from General Ledger. Therefore, invoices assigned at Buyer or Parent level are relevant to the information posted to the General Ledger.



For NetSuite users, when an invoice is assigned to a Buyer, the buyer balance and the buyer consolidated balance may not get updated in Centime due to a constraint. To push the update to Centime, an update event must be triggered from NetSuite




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