Credit Policy Application

You can decide whether to apply the credit policy of the parent account to the new sales orders and invoices of the child accounts. The credit policy is a combination of the credit management tools configured for a customer account in MYOB Acumatica; for details, see Managing Credit Policy.

In this topic, you will read about managing credit policy for the parent and child customer accounts.

Credit Policy Application

For a child customer account, if you have selected the Consolidate Balance check box on the Customers (AR303000) form (in the Parent Info section of the Billing Settings tab), the Share Credit Policy check box becomes available for selection on this form. If you select the Share Credit Policy check box for the child account, the credit policy configured for its parent account will be applied to the new sales orders and invoices of the child accounts.

With the Share Credit Policy check box selected for a child account, the settings under the Credit Verification Rules section on the General Info tab of the Customers form are unavailable and are filled with the corresponding values configured for the parent account. If you change the credit policy configuration for the parent account, the system will reflect these changed settings in its child accounts that share the credit policy.

Note: If you clear the Share Credit Policy check box for a child account, the settings under the Credit Verification Rules section of this form become available but retain their values, except for Credit Limit, which is set to zero.

Credit Hold Application

With the Share Credit Policy check box selected for a child account, you cannot put the child account on credit hold individually. If you change the status of the parent account to Credit Hold, the system will put on credit hold all child accounts that share a credit policy with the parent account.

Note: If a child account has had the Hold or Inactive status, its status remains unchanged when you put on credit hold its parent account.

Releasing related accounts from credit hold works similarly to putting these accounts on credit hold. If you release a parent account from credit hold, its child accounts that have the Share Credit Policy check box selected are released from the credit hold as well.

Note: If you use the Manage Credit Holds (AR523000) form to put an account on credit hold, the list of accounts on this form will not include child accounts with the Share Credit Policy check box selected.

Generation of Consolidated Statements

Customers that have a multibranch hierarchy may want to receive consolidated statements. To arrange that, for child accounts, you select the Consolidate Statements check box on the Customers form (in the Parent Info section on the Billing Settings tab).

For the child accounts, the settings related to sending the statements (under the Print and Email Settings section on the Billing Settings tab of the Customers form) are unavailable and are filled with the corresponding values configured for the parent account.

Note: If you clear the Consolidate Statements check box for a child account, the settings related to sending the statements become available but retain their values.

With this configuration, only the parent account is available for statement generation on the Prepare Statements (AR503000) form. The system uses the statement cycle assigned to the parent account.

When you are preparing statements for the parent account, the system includes all documents of child accounts in the statement. The documents in the statement are grouped by customer account. If the type of the statement is Open Items, the system will also print the corresponding subtotal balances for each account involved.

When you generate a consolidated statement for the parent customer account and any number of child customer accounts, if the child customer accounts are assigned to a different statement cycle than the parent account is, the system prepares the statement as follows:

  • The child accounts that have statements generated on the statement date or later are excluded from the processing, and the consolidated statement generated for the parent account does not contain the documents of these child accounts.
  • If a customer account is excluded from the processing, appropriate information is recorded to the trace log. (You can view the trace log by clicking Tools > Trace on the form title bar.) A warning message is displayed on the Prepare Statements form informing you that some customers were not processed.

Generation of Consolidated Dunning Letters

If the Dunning Letter Management feature is enabled on the Enable/Disable Features (CS100000) form, the system consolidates the overdue documents of a parent account and its child accounts that have the Share Credit Policy check box selected. The system sends the dunning letters to the parent account contact.

For the child accounts, the settings related to sending the dunning letters (under the Print and Email Settings section on the Billing Settings tab of the Customers form) are unavailable and are filled with the corresponding values configured for the parent account.

Note: If you clear the Share Credit Policy check box for a child account, the settings related to sending the dunning letters become available but retain their values.

With this configuration, only the parent account is available for dunning letter generation on the Prepare Dunning Letters (AR521000) form. The system uses the parent-child group data to generate dunning letters. The documents in the dunning letter are grouped by customer account.

Note: The calculation of overdue charges (if configured) is performed for each customer account individually, regardless of the configuration of parent and child accounts. Separate overdue charge documents are issued to customer accounts.