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How to manage Vendor Subsidiary

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Posted on by saurabh bharti

15,039 Moderator

Hi Folks,

Need your Expert Advice:

Business Scenario: We have vendor who operates from different location and those locations are individual entities and operates individually. Whenever we need to create purchase order we need to create purchase order with subsidiary and receive invoice from subsidiary but payment will be released to "Parent Entity" by selecting all invoices raised by different subsidiary.

So, what is the best way to manage this kind of vendors? So, that user can see all the transactions in Parent vendor and individual transactions in respective subsidiary?

Issue which i see:

1. We can maintain Multiple addresses but in PO we do not have option to select Vendor address, it can be done at line level but that going to be very difficult task

2. Specifying Parent Vendor account as Invoice account but that will be for invoicing as well but here invoice will come individually

3. We can also try establishing Parent child relation but i doubt it allows transaction settlement

Please advise on the same.

Thanks!!!

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SREEPRIYA KOLAGANI on at

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RE: How to manage Vendor Subsidiary

Ok. Got it. Though it's not a supported scenario for now, you can log an idea with MS so that if any other customers are looking for the similar functionality can vote and product group may consider it in future releases.

Thanks,

Sreepriya.

Note: This post is my own opinion and does not necessarily reflect the opinion or view of my company.

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saurabh bharti 15,039 Moderator on at

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RE: How to manage Vendor Subsidiary

Hi Shreepriya,

Thanks for the response but all the vendors belong to same legal entity. What you are suggesting if we have invoices in different legal entity.

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saurabh bharti 15,039 Moderator on at

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RE: How to manage Vendor Subsidiary

Hi Andre,

This is going to be very big exercise which is not possible on daily basis. Any way thanks for the suggestion.

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SREEPRIYA KOLAGANI on at

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RE: How to manage Vendor Subsidiary

Hi Saurabh,

If I understood the issue correctly, I think Centralized payment functionality should work here which will help you to find the invoices belongs to other legal entities and you can process the settlement as well.

For this you need to have the centralized payment setup done in 'organization hierarchy' (Organization administration > Organizations > Organization hierarchies > Centralized payments > View) where you need to have the hierarchy setup done for the required legal entities. This setup helps to find the invoices belongs to other legal entities as well.

From vendor payment, run the payment proposal. In Vendor payment proposal form > Advanced parameters fast tab, you can find the centralized payments group head. Enable 'Include vendor invoices from other legal entities' option to see the invoices belongs from other legal entities and proceed with payment.

Hope this helps you. If this solves your concern, please acknowledge the same.

Note: This post is my own opinion and does not necessarily reflect the opinion or view of my company.

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André Arnaud de Cal... 298,609 Super User 2025 Season 2 on at

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RE: How to manage Vendor Subsidiary

Hi Saurabh,

This scenario is not supported. There are two workarounds:

1) Create the same bank account on all subsidiaries and pay per vendor.

2) Move all open balances with a general journal to the parent vendor and then process the payments. (will be a manual task)

You can also consider a customization.

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