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Responsible and Managed Accounts

TRACT billing hierarchy enables accounts to be linked so that a responsible account is invoiced and responsible for all the charges of its associated managed accounts. Managed accounts are not invoiced. A responsible account must have the same currency and bill cycle as its managed accounts.

Note: To link responsible and managed accounts in a billing hierarchy, ensure that the system setting Enable Responsible Account Management is set to True.

How do you Access Responsible Accounts and Managed Accounts?

To see if the billing account you are viewing has a responsible account that is responsible for its charges, navigate to the Summary tab, Account Information section. Click the responsible account to view its Account Workspace.

To see if the billing account you are viewing has managed accounts that it is responsible for, navigate to the Summary tab, Responsible For Accounts details tab. Click a managed account to view its Account Workspace.

What Happens When You Associate a Responsible Account with a Managed Account?

When you associate a managed account with a responsible account, you have successfully set up a billing hierarchy. This enables a responsible account to receive invoices for charges accrued by its managed accounts.

A billing hierarchy also affects discounts applied at the account level. An account-level discount on a responsible account applies to all managed accounts and overrides any discount applied to a managed account. If there is no account-level discount applied to a responsible account, then any managed account level discount applies to the managed account.

Adding a Managed Account

You can add as many managed accounts as needed. When you add a managed account to a billing account, the billing account becomes a responsible account. To add a managed account to a billing account in a billing account hierarchy, do the following:

  1. Search for and open the billing account that you want to be responsible for another account.
  2. From the Accounts Action menu, select Add Managed Account.
  3. In the Browse Accounts window that appears, search for the billing account you want to add as a managed account. Available billing accounts are shown by default.
  4. Select the billing account you want to add as a managed account.
  5. Click Add to Account. The billing hierarchy is now active, and the managed account is visible in the Responsible For Accounts details pane.

Removing a Managed Account

To remove a managed account from its relationship with a responsible account in a billing hierarchy, do the following:

  1. Search for and open the responsible account.
  2. Navigate to the Summary tab, Managed Accounts Details tab.
  3. From the Actions column, choose which managed account you want to remove.
  4. Click the (ellipsis) associated with that account, and select Remove.
  5. In the confirmation window that opens, click Yes. The responsible account is no longer responsible for the managed account in a billing hierarchy.

Configuring Taxation for Billing Hierarchy

When creating invoices for billing accounts within a billing hierarchy, you can choose whether to use the responsible account’s billing address to determine a tax rate or whether to use a service address to determine a tax rate.

  • To use a responsible account's billing address to determine the tax rate, set the system setting Determines whether to use Billing or Service address for tax calculations to BILLING_ADDRESS.
  • To use a service address to determine the tax rate, set the system setting Determines whether to use Billing or Service address for tax calculations to SERVICE_ADDRESS. Taxes are calculated based on the first available address in order of priority:
    • Managed account add-on service address
    • Managed account parent service address
    • Managed account billing account service address
    • Responsible account service address

Note: You can select values for system settings in the previous version of the TRACT user interface. See System Settings for more information.

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