The Corporate Accounts hierarchy has one parent account and multiple children and grandchildren.
In reality, corporate accounts could be based on location, department, store, district, region, or any other business unit. Any one of the corporate account levels can be designated as invoice responsible. This means the specified account is responsible for paying the current balances for themselves and all of the remaining non-invoice responsible accounts below them in the hierarchy.
In the example shown below, the parent is the corporate headquarters with children as divisions and grandchildren as branches.
The corporate account represented above has the following corporate entities.
Corporate headquarters (CHQ): the parent
(invoice responsible; pays invoices for CHQ, D1, B1, B2)Division (D1): a child
(non-invoice responsible)Branch (B1): a grandchild
(non-invoice responsible)Branch (B2)
(non-invoice responsible)Branch (B3)
(invoice responsible; pays invoices only for B3)Division (D2)
(invoice responsible; pays invoices only for D2)Division (D3)
(invoice responsible; pays invoices only for D3)Although a corporate account hierarchy may have many levels, the practical limit is three levels since reporting is supported for the first three levels only.