Counterparties and entities

A lessor record gives AP a stable name, contact and remittance city for the party sending a lease invoice. A business partner record gives AR the billing contact, payment terms and credit context for the party receiving a billing. Organizations identify the legal entity whose books hold the document. When staff select these records on an invoice or billing, later review can follow the transaction to the correct party and entity.

The lessor and partner masters each have their own status. An inactive lessor or a partner on credit hold needs attention before a new transaction is advanced. Team members also link to an organization, so their finance role and approval limit can be reviewed in the right context. The records keep these distinctions visible when a finance team handles several entities.

• Maintain. Admin updates legal entities, contacts, payment terms and statuses.
• Select. AP and AR choose the correct counterparty and organization when preparing a document.
• Review. Controller checks cross-entity exceptions before a financial decision.

Set a naming convention for organization codes and agree which legal entity owns each lease-related flow. Check base currency and country on the entity master. Decide who may make a lessor active or clear a partner from credit hold. Define how duplicate counterparties are found and merged before they produce separate invoice histories.

Agree which lessor details AP must check before approval, including tax identity and remittance destination. Decide which partner contact receives billing questions and how changes to terms are documented. The team should also decide how to handle a counterparty that changes name while prior invoices and billings must retain a traceable history.

Set up an active organization and a lessor assigned to it. AP records an invoice and confirms that both records point to the intended organization. Review a second invoice for that lessor in a different period; the counterparty history should remain findable. Have the Controller check the remittance information before approval and make a note of any discrepancy.

Then prepare a billing for a partner with a defined payment term. AR confirms the billing contact and entity before sending. Put a rehearsal partner on credit hold and agree how the AR team should resolve the exception. The important check is that an operator can identify the correct party and entity before entering an amount, rather than cleaning up an incorrect association after payment.

• AP Bills Worklist — Lessor and organization context for payables awaiting work.
• AR Invoice Register — Partner and billing context for receivables follow-up.
• Treasury Payment Register — Counterparty links beside cash movements.

Follow invoice review and payment or billing and collection.