Customer Balances for Assigned Subsidiaries

You can view the basic customer balances for each subsidiary assigned to that customer. Balance and Unbilled Orders fields are located on the Subsidiaries subtab on the customer record. Subsidiary transactions are recalculated from the subsidiary’s transaction currency into the customer’s primary currency. Recalculation is performed using the Direct method, which retrieves daily foreign exchange rates directly from the rate provider. The currency label of the customer’s primary currency appears near the Balance and Unbilled Orders fields.

For example, you have a customer where the primary subsidiary is in Canada. Two secondary subsidiaries, one in the U.S. and one in Germany are assigned to this customer. The respective subsidiary currencies are CAN as the primary currency, and USD and euro as secondary subsidiary currencies. There is an invoice for the U.S. subsidiary for 1000 euro. Based on the daily foreign exchange rate, it posts as 1200 USD in the U.S. subsidiary. The value in the Balance field on the customer record is 1500 CAN (1000 euro translated into CAN through a 1.5 Direct rate).

Balance – The value in the Balance field represents the total customer balance for the subsidiary. An approved customer invoice in an open status increases the value in the Balance field. A customer payment decreases the value in the Balance field. A customer credit also decreases the value in the Balance field. A cash sale does not alter the value in the Balance field.
Unbilled Orders – The value in the Unbilled Orders field represents the sum of the orders not yet billed for the subsidiary. The tax on a sales order increases the value in the Unbilled Orders field because the tax does not have to be approved. When the sales order becomes a customer invoice, the tax value in the Unbilled Orders field is moved into the Balance field.
Deposit Balance – The value in the Deposit Balance field represents the unapplied deposit amount from a customer deposit transaction.

The customer balance information on the Financials subtab appears in the customer’s primary currency. For information about the Financials subtab, see Entering Financial Information on the Customer Record.

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