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Parent and child relationships

This article applies to:Exemption Certificate Management Pro

If your accounting software stores your customer's parent and child information under separate customer numbers, add all of the customers to ECM and then link them to create a parent and child relationship. Exemption certificates added to the parent customer flows down to its associated child records.

If you use one customer number for billing and all of the customer's shipping addresses, you don't need to create a parent child customer relationship. However, you may want to add their shipping states to help track which exemption certificates to collect from them.

Example of a parent and child customer relationship

One of your customers is a restaurant chain, and they have exemption certificates on file for NY and TX. You send invoices to the corporate office, but you also ship products to the individual restaurant locations in multiple states. Each restaurant location has a different customer number in your accounting software, but they are covered by the corporate office's exemption certificates. 

  • The corporate office is the parent customer, and they have NY and TX exemption certificates on file.
  • Each restaurant location is set up separately as a child customer of the restaurant corporate office:
    • A NY location of the restaurant is set up as a child customer of the corporate office, and it has its own customer number.
    • A TX location of the restaurant is set up as a child customer of the corporate office, and it has its own customer number.

Here's how the exemptions are applied:

  • The corporate office has a direct link to the NY and TX exemption certificates. If the customer code on the transaction is the code for the corporate office, the customer will be exempt for transactions shipping to either NY or TX.
  • The NY restaurant location is covered by the NY exemption certificate from the parent customer, which is the corporate office. This customer code is not covered by the child customer's TX exemption certificate, since this parent customer is located in NY. 
  • The TX restaurant location is covered by the TX exemption certificate from the child customer. This customer code is not covered by the parent customer's NY exemption certificate, since this child customer is located in TX.