What are best practices in processing split entity bills in separate databases?

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Pam Miller offers a few approaches to consider:  “When we had an invoice that had charges across the companies, we simply made a copy of the invoice (virtually) and entered the appropriate portion in each separate company [database].  One problem that arises is that there are two invoices from the same vendor with the same number.  Oracle didn't care because the databases were separate.” She advises, “You could avoid this by coming up with a numbering protocol that included a DB identifier that you tacked onto each of the invoice numbers.”

As a consequence, however, then the vendor receives two separate partial payments rather than one whole payment.  “Often this is confusing (isn't everything?) to the vendor's AR staff.  We just let it go out since we ran statements monthly and knew we could catch it if they had an issue.  You might want to include some sort of note with the payments to clarify.”

Alternatively you could request the vendor send you two separate invoices broken down by the appropriate database division.  This is more work for them up front, though not a whole lot, and in this case there would be two separate invoice numbers.

A third method would be to pay it out of one database and then journal the charges.  But Pam says, “This doesn't leave a good audit trail, so we tried to avoid it.”

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