Understanding multiple entities and orders

When Multiple Entities is enabled on the AR/Cash Set up module window, Orders supports multiple entities at the product level. Entities are individual organizations, and iMIS can separate and process transactions for multiple entities (and multiple sets of books) even if the entities share a common customer database.

When an organization has multiple accounting entities, such as different subsidiaries and foundations, revenue from the sale of specific products often needs to be allocated to specific entities. You can define entity owners for individual products. These product-level entities then are assigned to orders, order transactions, and product-specific transactions processed through the Orders module.

Individual entities are defined in the Org Codes field on the Organization Names window (select File > System Setup, and click Organization Names).

Summary of product-level entities

• A specific hierarchy determines each product's owner entity.
• The Batch cash entity is applicable only as the cash entry owner and is not assigned as the owner entity of order or income transactions.
• The entity associated with an order's first product determines the overall owner entity of the order.
• Product-level entities are assigned to product-related accounting transactions such as income transactions, cost of goods sold transactions, and inventory transfer and adjusting entries.
• The overall order entity is assigned to invoice summary transaction lines, such as entries for Accounts Receivable and miscellaneous charges.
• Due To/Due From entries generate when an order for multiple products with differing entities is invoiced, regardless of whether the order is prepaid.
• Due To/Due From entries generate when invoicing a prepaid order for which the cash entity differs from the overall order's entity.

More:
Determining a product's owner entity
Assigning entities to standard orders
Assigning entities to credit memo orders and debit memo orders
Assigning entities during transaction generation
Due To/Due From scenarios
Examples of Due To/Due From scenarios