Pay groups
Pay groups are used to group companies for payment processing. A pay group contains one general ledger posting company and any number of invoice companies and process levels. Pay groups are used for two key purposes:
- To join two or more companies for combined payment processing . A pay group is used to process payments at a higher level than the company level. That is, one payment can be created for a vendor to pay invoices for multiple companies and process levels.
- To split a single company for autonomous payment processing. Pay groups also can be used to process payments by process level, giving autonomy to each process level for payment processing. That is, processing can be done on different schedules, and payments can be produced in smaller batches and in different locations.
Posting considerations
The Global Ledger posting or invoice company to which transactions are posted depends on the type of transaction. This table shows how general ledger transactions are posted:
| Transaction type | Company that is used for posting |
|---|---|
| Cash | Posting company |
| Invoice Accrual | Invoice company |
| Invoice Distributions | Invoice company |
| Gain or Loss | Invoice company |
| Discount Accrual | Invoice company |
| Discount | Company, either posting or invoice, that is assigned to the discount code |
| Income Withholding | Company, either posting or invoice, that is assigned to the income withholding code |
Relationship considerations
When you define pay groups, verify that you have defined these relationships in other solutions:
- Global Ledger: If your posting company and invoice company are different, then you must define intercompany relationships between the pay group posting company and each invoice company. Pay group posting company is the From company and invoice company is the To company.
- In Cash Management, define company-cash code relationships between the pay group posting company and each cash code for which the pay group processes payments.