Multi-Org and invoice settlement harmonization
Use this reference to understand how transactions behave when Invoice Settlement Harmonization (ISH) is enabled in a Multi-Org environment.
When Invoice Settlement Harmonization (ISH) is enabled within a Multi-Org environment, transaction types behave differently based on whether they belong to Invoice Settlement framework or legacy settlement transactions.
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Invoice Settlement (IS) transactions such as Invoices and payments are labeled with a specific organization (Org) identifier.
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Legacy settlement transactions such as Invoice Item Adjustments (IIA) and Invoice Adjustments (IA), and Credit Balance Adjustments (CBA) are not Org-labeled and are not associated with a specific Org.
This distinction might require additional handling and reconciliation when you work with org-specific and unlabeled accounting periods.
Transaction labeling behavior
| Transaction Identifier | Transaction Term | Associated Organization |
|---|---|---|
| U-2 | INV-1 for -$100 | US |
| U-2 | IIA-1 for -$20 | N/A |
| U-2 | IA-1 for -$30 | N/A |
| U-2 | CBA-1 for -$40 | N/A |
Allocation to accounting periods
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INV-1 (Invoice) is assigned to the customer accounting period with the US Org label.
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IIA-1 (Invoice Item Adjustment) is assigned to the customer accounting period without an Org label.
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IIA-1 revenue schedule is allocated to an accounting period without an Org label.
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IA-1 (Invoice Adjustment) is assigned to the customer accounting period without an Org label.
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CBA-1 (Credit Balance Adjustment) is assigned to the customer accounting period without an Org label.
Current scope
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Org labeling constraints:
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IS transactions such as invoices and payments are Org-labeled.
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Legacy transactions such as IIA, IA, and CBA remain unlabeled, and might require reconciliation.
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Accounting period reconciliation:
- Since legacy settlement transactions do not carry an Org identifier, you must align unlabeled adjustments with Org-specific accounting periods.
The organization labeling is applied as follows:
| Transaction Item | Allocation | Organization Label |
|---|---|---|
| INV-1 | with customer accounting period | US |
| IIA-1 | with customer accounting period | Unlabeled org |
| IIA-1 revenue schedule | with customer accounting period | Unlabeled org |
| IA-1 | with customer accounting period | Unlabeled org |
| CBA-1 | with customer accounting period | Unlabeled org |