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# 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.

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

| 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                     |

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:

| 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      |