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.

• Invoice Settlement (IS) transactions such as Invoices and payments are labeled with a specific organization (Org) identifier.
• 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

If you use Payment Runs in a Multi-Org tenant, selecting an organization does not currently restrict invoice or debit memo selection by organization during preview or execution.

As a result, the Preview Selected Invoices step can include invoices from other organizations, even when you selected a specific organization for the Payment Run.

If you need organization-specific processing, review the selected documents carefully before you proceed with the Payment Run.

Allocation to accounting periods

• INV-1 (Invoice) is assigned to the customer accounting period with the US Org label.
• IIA-1 (Invoice Item Adjustment) is assigned to the customer accounting period without an Org label.
• IIA-1 revenue schedule is allocated to an accounting period without an Org label.
• IA-1 (Invoice Adjustment) is assigned to the customer accounting period without an Org label.
• CBA-1 (Credit Balance Adjustment) is assigned to the customer accounting period without an Org label.

Current scope

1. Org labeling constraints:

   • IS transactions such as invoices and payments are Org-labeled.
   • Legacy transactions such as IIA, IA, and CBA remain unlabeled, and might require reconciliation.

2. 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: