---
title: "Consolidated Debtor Processing"
canonical: "https://kb.myframeworks.com.au/space/FRAM/28395656/Consolidated%20Debtor%20Processing"
format: markdown
---
# Overview

If your customers regularly purchase from different branches within your network, especially when those branches operate under separate legal entities, managing accounts can quickly become complex.

The **Consolidated Debtor Processing** feature in Frameworks helps streamline this by **consolidating debtor accounts** across multiple trading companies. Each customer is assigned a **home company**, allowing all their sales, payments, and statements to be managed centrally, regardless of which company processes the transaction.

This provides your customers with a **seamless and simplified experience**, while ensuring your internal financial processes remain accurate and auditable.

## Key Benefits:

- **Consolidated balances and statements** – Customers receive one statement, not one per company.
- **Centralised Trade Portal access** – Customers log in once to see all invoices, quotes, and orders.
- **Automated inter-company GL transactions** – Debtor postings are automatically routed to the correct home company.
- **No changes to sales workflows** – Your teams continue using the same screens and processes for sales and payments.

> 📝 ## **Use Case Example**
> 📝 
> 📝 **Company Scenario:**
> 📝 
> 📝 Building Supplies Co. has:
> 📝 
> 📝 - **4 companies** setup within Frameworks.
> 📝 - **1 customer** (AAA Construction) who purchases from **branches in 3 different companies**.
> 📝 
> 📝 **Without Consolidated Debtor Processing**:
> 📝 
> 📝 - AAA Construction receives **3 separate statements** (one per company).
> 📝 - Logs into **3 separate Trade Portals**.
> 📝 - Has **3 different account balances**.
> 📝 
> 📝 **With Consolidated Debtor Processing** **feature enabled:**
> 📝 
> 📝 - AAA Construction’s customer account is linked to **Company 2** as their **home company**.
> 📝 - Regardless of whether AAA Construction buys from Company 1, 3, or 4:
> 📝   - All debtor transactions are **consolidated into Company 2**.
> 📝   - They receive **1 statement**.
> 📝   - They log into **1 Trade Portal** to see all invoices, orders, and quotes.
> 📝   - They can pay at any branch and the payment will be **reconciled in Company 2**.

---

# How the Process Works

## 1. Sale Staff Process Sales as usual

Sales staff continue using **Sales Order Processing** or **Point of Sale** in the normal way, using the branch and company where the sale takes place. Payments are taken in the normal workflow.

## 2. Frameworks Checks for the Customer’s Home Company

Frameworks automatically identifies the **home company** assigned to the customer.  
If the sale occurred in a **different company**, the system prepares to transfer the debtor transaction.

## 3. Financial Transactions Are Transferred Between Companies

In the background Frameworks will:

- Post sales, COGS, and inventory transactions to the **selling company** (as normal),
- Then automatically transfers the **accounts receivable (AR)** value to the **home company** using the mapped **Debtor Transfer Accounts**.

![image-20250529-063255.png](media://1b401685-8a6e-42df-b986-aab7c4a9648b)


## 4. Payments Are Processed at Any Branch

If a payment is made in a different company (for example, at a POS terminal or during reconciliation), Frameworks:

- Keeps the cash and banking transactions in the company that received the payment,
- But moves the **customer payment record** back to the **home company** to reduce their AR balance correctly.

## 5. Home Company Holds the Consolidated Debtor Balance

All debtor-related transactions, sales and payments, accumulate in the **home company**, regardless of where the actual sale or payment took place.

This enables:

- Accurate statement generation from a single company,
- A unified balance for each customer,
- Simplified credit control and collections.

> 📝 ### The Trade Portal Reflects the Consolidated Account
> 📝 
> 📝 When customers log in to the Trade Portal for their **home company**, they see:
> 📝 
> 📝 - All invoices, orders, and quotes across all companies,
> 📝 - A single balance,
> 📝 - One consolidated statement.

---

# Viewing Transaction in the Customer Dashboard

In the **Customer Dashboard**, when you open a customer's **Current Transactions**, you will see:

- A **single balance** representing all transactions, regardless of the selling company.
- A transaction list that includes:
  - The **selling company** (Setting Co)(where the transaction originated),
  - The **home company (Co)** (where the debtor record resides),
  - Payment and sales history combined into a single timeline.

New columns have been added:

- **Selling Co: **Transaction Origin Company, which company performed the transaction.
- **Co: **Managing Company, the home company responsible for debtor control.

This gives internal users complete visibility into all customer activity while maintaining consolidated account management.

> ⚠️ These field my be hidden to view, right click on a column heading and select from the **Columns **list. Remember to **Save My Configuration**

![image-20250529-062739.png](media://757e9a92-4df2-4a1c-a29a-a1c7bc6fa264)

![image-20250529-062752.png](media://2be1144a-06f8-4fad-95b2-a719a076b836)

---

# Setup & Configuration

## 1. Enable the Feature

To enable the **Consolidated Debtor Processing** feature:

1. Enable the following Frameworks feature code.
  1. From the **Frameworks Menu, **navigate to **Frameworks License Maintenance.**
  2. In the **Type** drop-down menu select **Feature**
  3. Ensure the **HMD** (Debtor processing at home company of customer) feature is **Active**
2. Enable the following Prostix feature code, within Frameworks.
  1. From the **Frameworks Menu, **navigate to **System Settings - General**
  2. Filter the **Code** column by **FeatureHMD**
  3. Ensure a **ProStix licence** code is entered into the **Value** field

> ✅ Log a [Licenses and Subscriptions Enquiry](https://sterlandsupport.atlassian.net/servicedesk/customer/portal/17/group/17/create/133) via the support portal to request these codes to be activated as required.

---

## 2. Create the Required GL Accounts

When creating your GL Accounts to be used as the **Debtor Transfer Accounts **and** Selling Transfer Accounts** we recommend to use a clear naming convention to help make reconciliation and reporting easier later.

> **Example GL codes:**
> 
> In **Company 1** create:
> 
> - 11861200 - Debtor Transfers from Company 2
> - 11862200 - Debtor Transfers to Company 2
> 
> In **Company 2** create:
> 
> - 11861100 - Debtor Transfers from Company 1
> - 11862100 - Debtor Transfers to Company 1

> ✅ Refer to [Creating a New Chart Of Accounts](https://sterlandsupport.atlassian.net/wiki/spaces/fwksproau/pages/30510074) for more information

## 3. Set Up Debtor Transfer Accounts

Set up **Debtor Transfer Accounts** to ensure the system records all customer transactions in their **home company**, even when the sale is made by a different company. These accounts automatically move the financial value between companies, keeping your books accurate while presenting the customer with a single, consolidated account balance.

The Debtor Transfer Accounts define:

- **Where the money comes from** (the **Selling Company**).
- **Where the money goes to** (the **Debtor Company** or the **customer’s home company**).
- **Which GL accounts** are used to record the transfer between these companies.

Each relationship between two companies must have a **pair of mapped GL accounts**, one for each side of the transfer.

### How to Set Them Up

1. From the **Frameworks Menu, **navigate to **Debtor Transfer Accounts**
2. Click **New **to create a new mapping. This needs to be done for each company pair,
  1. From the **Debtor Company **drop-down menu**, **select a **Home Company** allocated to your customers
  2. In the **Debtor Transfer Acct **field, enter a GL Account in the **Home Company** for incoming transactions from of of the selling companies
3. If you have multiple home companies (e.g., Company 1 and Company 2 act as home companies), repeat the above for each relevant relationship.

![image-20250529-055034.png](media://3c427ddb-c8c5-4ec5-90dd-6721a1f83224)

**Example**:

| Debtor Company | Selling Company | Debtor Transfer Acct | Selling Transfer Acct |
| --- | --- | --- | --- |
| Company 1 | Company 2 | Debtor Transfers from Company 2 | Debtor Transfers to Company 1 |
| Company 1 | Company 3 | Debtor Transfers from Company 3 | Debtor Transfers to Company 1 |
| Company 1 | Company 4 | Debtor Transfers from Company 4 | Debtor Transfers to Company 1 |
| Company 2 | Company 1 | Debtor Transfers from Company 1 | Debtor Transfers to Company 2 |
| Company 2 | Company 3 | Debtor Transfers from Company 3 | Debtor Transfers to Company 2 |
| Company 2 | Company 4 | Debtor Transfers from Company 4 | Debtor Transfers to Company 2 |

## 3. Assign a Home Company to the Customer

When creating a customer, the **Home Company**,** **on the** More Date** tab, defaults to the company in which the customer was created. This can be manually changed if needed.

![image-20250529-054750.png](media://fafdcbed-4689-416a-ab5a-75c1ec2cbd3d)


> ✅ Refer to [How to create a new Customer](https://sterlandsupport.atlassian.net/wiki/spaces/fwksproau/pages/30509474)  for more information.