Intercompany customer payments

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Posted on by MarkChristensen

Hi All

I have a customer who is trying to receive money in to a bank account of another legal entity.

E.g. Entity 1 = Customer

Entity 2 = Bank

When we try to validate we get this error.

"legal entity of the bank differs from the legal entity that you are logged in to. Select a different offset legal entity or log into a different legal entity"

We've found when we're logged into the entity with the bank account it works but doesn't work when we're in the entity with the customer.

The issue for us is these journals are created through integration and the source system doesn't know the bank account, otherwise we could just pass the journal to the entity with the bank account.

Any one have any suggestions? Thanks for the help

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MarkChristensen 70 on at

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RE: Intercompany customer payments

Thanks Crispin and Ludwig for the advice. I also spoke to MS in parallel and this is their answer:

This was a design change made to AX to not all allow an intercompany transfer where the offset is a bank account for another legal entity as it potentially causes problems with bank reconciliation. The only way to perform this transaction would be to start in the payment company in which the bank account exists to create the payment journal. Then specify a customer/vendor from the other company to process the payment.

The only other way around this would be to customize the code.

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MarkChristensen 70 on at

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RE: Intercompany customer payments

Thanks for the help Ludwig.

Centralized payments could be an option, it’s something I’ll have to explore with the customer.

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MarkChristensen 70 on at

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RE: Intercompany customer payments

Thanks for your help Crispin.

Unfortunately, this will not work for us the bank account should exist in the entity it belongs, this circumstance only applies to AR customer payments, if we placed the bank account the same entity as the customer we would have issues with AP vendor payments. Additionally, we would need to give entity access to people who should not have access to another entity.

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Ludwig Reinhard Microsoft Employee on at

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RE: Intercompany customer payments

Hello Mark,

Have you thought about the centralized payment functionality?

docs.microsoft.com/.../centralized-payments-accounts-receivable

Wouldn't this be an option for your issue?

Best regards,

Ludwig

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Crispin John Augustine 37,081 on at

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RE: Intercompany customer payments

"...when we're logged into the entity with the bank account it works..." yes, because bank account is accessible now, where the payment is made.

"...doesn't work when we're in the entity with the customer..." again yes, because bank account is not available in this legal entity.

Why can't you setup bank account in the same entity as customer?

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