Joining two or more companies

Pay groups are most often used to join two or more companies for payment processing. The benefit is that you can create a single payment to a vendor that covers invoices for multiple companies.

For example, ABC Company operates three chains of retail stores. Each chain is set up as a company, and each receives a monthly phone bill from the same phone services vendor. A pay groups lets them join those three chains (companies) together for payment processing. Therefore, they can generate and mail one check each month for the phone bill, instead of three.

Company considerations

If you are using a pay group to join companies for payment processing, these must be true:

  • All companies in a pay group must use the same vendor group.

  • All companies in a pay group must use the same base currency.

  • Each company or combined company and process level combination can belong to only one pay group.

    Each pay group must be assigned to one posting company. (The posting company must be a general ledger company.)

    Illustration: Using a pay group to join multiple companies