About removing relationships

In this topic, you will read about how to remove parent-child relationships and how this will affect the accounts and documents of the involved customers.

Delete the relationship

You can delete the parent-child relationship between customer accounts at any time. For the child customer account for which you want to sever this relationship, you delete the account selected in the Parent account field in the Customers (AR303000) window (in the Parent info section on the Invoicing settings tab) and save your changes; this removes the relationship.

Note

Before you delete the relationship, make sure that all payment applications of a parent payment to a child document are released or reversed (if needed). You cannot save changes in the parent-child relationship if any applications of this type are not released. However, you can reverse the application of a parent payment to child invoice or memo after the relationship was changed or removed.

Impact on the accounts involved

The deletion of the relationship affects the following aspects of the customer accounts involved:

Balance: The balance of the former child account remains equal to the total of its open documents. The consolidated balance of the parent account is decreased by the amount of the balance of the former child account.
Status: The status of child accounts is not changed. For example: If the parent account was placed on credit hold, all its child accounts that shared a credit policy were on credit hold as well. After the deletion of the relationship, you should make any needed adjustments to the status of each customer account.
Credit policy: If the credit policy was shared, the settings under the Credit verification rules section on the General settings tab of the Customers (AR303000) window become available for the child accounts but retain their values, except for Credit limit, which is set to zero.
Statements: The statements are prepared for each account individually according to the statement cycle set for an account.
Dunning letters: The dunning level of the child documents is set to zero and when preparing dunning letters, the system treats the child accounts as accounts that have never been processed before. The dunning level of the parent documents is not changed. Documents for which the Revoked check box has been selected (both of parent and child accounts) remain marked as revoked.
Sending of documents: The settings under the Print and email settings section on the Invoicing settings tab of the Customers (AR303000) window become available for the child accounts but retain their values.
Invoice information: If you had selected that the child customer’s invoices should be sent to the parent account, the invoice contact, address, payment terms and method will now be retrieved from the child account instead.

Concepts

Windows

Customers (AR303000)