Centralize/Decentralize: Processing

The setup for centralized and decentralized processing is on the following FastTabs of the Multi-Entity Management Setup page:

• Purchase & Payables
• Sales & Receivables

Decentralized Processing

When posting journal entries using centralized processing, no entity restrictions exist. However, when posting journal entries using decentralized processing, the following restrictions apply: 

• Restriction 1 (R1): The entity in the header must be the same as the entity of the line, which is the same entity as the applicable invoice.
• Restriction 2 (R2): The entity of the Bank owner must be the same as the entity of the line, which is the same entity as the applicable invoice.

Decentralized Restrictions Table

	Decentralized Restrictions
		Balancing Account
		Customer	Vendor	G/L account	Bank Account Posting Group (cash account)	Bank
A c c o u n t T y p e	Customer	N/A	N/A	No Restriction	R1	R2
	Vendor	N/A	N/A	No Restriction	R1	R2
	G/L account	No Restriction	No Restriction	No Restriction	No Restriction	No Restriction
	Bank Account Posting Group (cash account)	R1	R1	No Restriction	No Restriction	No Restriction
	Bank	R2	R2	No Restriction	No Restriction	No Restriction

Using Centralized/Decentralized Processing on the Fly

Use this section to learn how to use the Centralized/Decentralized AP on the Fly and Centralized/Decentralized AR on the Fly options. With these options turned on in your Multi-Entity Management Setup, you can select which payment processing method, centralized or decentralized, you want to use based on the type of journal or batch you use when you process transactions. When you turn on the On the Fly options you are able to select the type of processing method for certain transactions even if you have set up Decentralized or Centralized as the default processing method.

For example, if you want your Cash Receipt journals to use the Centralized processing method you can create a Cash Receipt journal template with Centralized selected as the payment processing method.

When you are processing transactions from the following journals, there is a Decentralized switch in the Apply Vendor Entries and Apply Customer Entries which displays the type of payment processing method used by that journal batch. To change the payment processing method, you must change the processing method set in the journal template or batch.

Journals with Decentralized switch in the Apply Vendor Entries and Apply Customer Entries pages:

• General Journals
• Purchase Journals
• Sales Journals
• Fixed Asset G/L Journals

To use the On the Fly options, do the following:

1. Go to your Multi-Entity Management Setup.
2. Under the Purchases & Payables FastTab turn on Centralized/Decentralized AP on the Fly and under the Sales & Receivables FastTab turn on Centralized/Decentralized AR on the Fly. You can turn on one or both of the options, depending on how you want to use them.
3. Search for and open the General Journal Templates page. In this example you will work with your Payment Journal template.
4. Select your Payment Journal template.
5. Select the Payment Processing Method you want to apply for your payment journal. The default method, From MEM Setup, is based the processing method selected in your MEM Setup.
   1. For this example, select Centralized as the payment processing method. When you use this Payment Journal template, the processing method will be centralized.
6. When you change the Payment Processing Method, you are asked if you want to update the settings for the batches of the template as well.
   1. Selecting Yes will update the payment processing method for any empty batches which use that template. If there are existing lines within a batch, the payment processing method for those lines will not change.
7. Then, in the General Journal Templates page, with your Payment Journal template selected, open Batches on the Action tab.
8. Select the Payment Processing Method for the batches.
9. Make sure your settings are saved and close the page.

After you have selected the types of processing methods for your templates and batches and when you use any of those templates or batches, the processing method that you set up will be used.

For information about the General Journal Templates page, and how to create new templates and batches, see Set up general journal templates.