Parent-Child matching
The Parent–Child Payments feature centralizes payments at the parent account so they can be applied across invoices for any child or grandchild entity, improving reconciliation, reporting, and control in hierarchical customer structures.
Many organizations work with customers that operate as a group of legal entities, that is, a parent company owning multiple subsidiaries or branch offices. In such cases, a payment received for any entity in the group may need to be applied against invoices belonging to another entity within the same group.
The Parent–Child Payments feature ensures that payments are centralized at the Parent account, allowing you to apply them across any of its Child entities' open invoices.
Importance of this feature
Without this workflow, users manually reassign payments or maintain separate tracking for each subsidiary. This leads to:
Unpredictable reconciliation behavior
Difficulty maintaining centralized AR balances
Higher manual intervention across teams
With this feature enabled:
Payments are automatically associated with the Parent account
You can apply the payment to invoices of any Child or Grandchild entity
Reconciliation, reporting, and aging become cleaner and centralized
The market impact of this feature is its applicability to any customer that is operating with organizational hierarchies, globally.
Understanding Parent–Child behavior
Consider the following group structure for example:
Wayne Enterprises Global - Grandparent / Super Parent
Wayne Canada - Parent
Wayne Montreal - Child / Leaf node
Wayne US - Parent
Wayne Gothem - Child / Leaf node
Wayne Texas - Child / Leaf node
Default (without feature enabled): If a payment description reads "Payment made for Wayne Montreal", the system may match to Montreal directly. That payment then cannot be used to close invoices for Canada or Gothem.
With Parent–Child feature enabled: Any payment identified to any member of the group is automatically reassigned to the Parent (Wayne Enterprises Global). Then can it can be used to close:
Montreal invoices
All the US invoices (including Gothem and Texas)
The way the system works
Payment is identified for any Child or Grandchild: Payment is automatically moved to the Parent
Remittance is attached to the payment: Remittance moves along with the payment
Invoices belong to any entity in the group: All are eligible to be closed with that payment
Important caveat
Case 1 - No hierarchy defined
If no Parent–Child relationship is defined in your system's customer master, our SmartAI will not infer or "guess" the relationship. The system depends entirely on the existing dataset hierarchy.
In short: No defined Parent–Child = No grouping behavior.
This ensures
Predictability
No accidental merging of unrelated accounts
Clean and auditable posting behavior
Case 2 — Behavior when "Always Post to Immediate Parent" is enabled
When "Always post to Immediate Parent" is enabled (as shown in the Settings screenshot):
Payments from child accounts will be rolled up only one level up to the direct/immediate parent.
If a payment references multiple customers, the system will roll it up to the nearest common parent (the lowest shared parent in the hierarchy).
The payment will not continue rolling up to the topmost or ultimate parent.
When this option is disabled: (Recommended)
Payments continue rolling upward through the hierarchy
Until they reach the Group Head / Grandparent / Super Parent
Behavior summary (plain language)
Immediate Parent Enabled →
Payment is stored at the immediate parent, even if there is a higher-level group parent. In the above example, the Payment with description "Payment made for Wayne Montreal" would get matched with Wayne Canada.
Immediate Parent Disabled →
Payment keeps rolling upward until it reaches the highest-level parent in the hierarchy. In the above example, the Payment with description "Payment made for Wayne Montreal" would get matched with Wayne Global.
Enable this feature
Go to
Toggle Enable Parent–Child Payment Mapping.
Ensure your Customer Master Data reflects accurate hierarchy.
Note:This does not affect CRM workflows or customer visibility.
Key considerations
- Remittance will move when the payment is reassigned. Remittance remains tied to the payment and moves along with it.
- If the description contains multiple entities, Default → No match. With Parent–Child enabled → Mapped to the common Parent.
- This works across ERPs.
- If the org says they have a hierarchy but hasn't configured it, the system will not infer. ML requires a defined structure. An alternative of Split Payment can be used in this case.