Set up Parent/Child Customers

Once enabled, the Parent/Child functionality links individual customer accounts to a parent entity for consolidated management and reporting. This relationship is established on the Billing tab of the Customer profile.

Key Fields

1. Parent Account – Defines the parent customer account of the currently selected (child) customer account.
   
   
2. Consolidate Balance – When enabled, the child’s AR balance is rolled into the parent’s AR balance.
   • Allows the child invoices to be visible at either the child level or the parent level. 
   • Allows payment applications at the child level or the parent level.
     
     
3. Consolidate Statement – When enabled on a child account, invoices and documents from the child account will be included on statements generated for the parent account.  

⚠️ Important: If Consolidate Statement is not selected, the child account balance and associated documents will NOT appear on the parent statement, even if consolidate balance is selected. 

⚠️ Important: If Consolidate Statement IS selected, there will be no option to run a statement at the child account level.

4. Share Credit Policy – If selected for a child account, the parent’s credit verification rules and limits will be applied to new sales orders and invoices of the child account.

Setup Steps

1. Prepare the Parent Customer Record.
   • Confirm the parent customer account exists.
   • If statements or credit sharing will be used, configure the parent’s statement cycle, statement delivery, credit limit and credit verification settings.
   • Once child accounts are assigned, an additional tab listing child accounts will appear on parent customer record. 

2. Create/Identify the Child Customer.
   • Navigate to the billing tab on the child customer record.  In the Parent Account field, select the parent customer prepared in step 1.

⚠️ Important: The Bill-To setup determines where invoices are delivered and works independently of the Parent/Child consolidation options.

2. • Billing behavior:
     1. If invoices should be sent to the Child leave the Bill-To section as-is.
     2. If invoices should be sent to the parent, select the Override check box and add the parent’s billing information.
        
        
3. Choose Consolidation and Credit Options on the Child.
   • Consolidate Balance - Rolls the child’s AR balance into the parent’s AR balance.
   • Consolidate Statement – Includes the child’s transactions on the parent’s statements.
   • Share Credit Policy – (only available if Consolidate Balance is selected) Applies the parent’s credit rules to the child’s sales orders and invoices.
     
     
4. Save the Customer Record.
   
   
5. The child is now linked to the parent, and selected consolidation options will take effect.

Reports and Inquiries

When working with AR reports and customer-related inquiries in Acumatica, additional options become available when Parent/Child relationships are configured:

• Group by Parent Account – Displays summarized balances and activity at the parent level, consolidating information from linked child accounts.
• Include Child Accounts – Expands the parent view to show activity and balances of individual child accounts alongside the parent.

⚠️ Important: These options allow users to switch between rolled-up reporting (parent totals) and detailed reporting (parent with child breakdowns), depending on business needs.

AR Reports by Parent Customer:

With the Parent-Child Relationship feature enabled, users can generate reports that group child accounts (and their documents) under the parent account and show individual account balances along with the consolidated balance of the group.