---
title: "Understanding Multi-Company Supplier Payments"
canonical: "https://kb.myframeworks.com.au/space/FRAM/41680930/Understanding%20Multi-Company%20Supplier%20Payments"
format: markdown
---
# Overview

The **Multi-Company Supplier Payments** feature enhances the supplier payment process across multiple companies, improving efficiency and accuracy for accounts payable managers. This feature allows for the selection of supplier invoices from different companies and processes them in a single payment batch.

# **Key Benefits**

- **Simplified Multi-Company Payments:** Select and process supplier invoices from multiple subsidiaries in a single batch.
- **Accurate Payment Cancellations:** Cancel payments with the correct reversal of rebates, GST, discounts, and intercompany loan adjustments.
- **Improved Financial Accuracy:** Ensures clean financial records by automatically adjusting intercompany loan accounts and retaining default company settings.
- **Faster Invoice Handling:** Quickly locate supplier invoices using the new invoice number search functionality.
- **Increased Efficiency:** Reduces manual work for accounts payable teams and streamlines the overall supplier payment process.

> 📝 ## **Use Case Example**
> 📝 
> 📝 A large organization with multiple subsidiaries manages supplier payments separately. This creates extra admin work, increases the risk of errors, and makes cash flow harder to manage.
> 📝 
> 📝 **With the Feature:**  
> 📝 Payments from all subsidiaries are combined into one batch. This simplifies the process, cuts admin time, improves accuracy, and helps manage cash flow more effectively.
> 📝 
> 📝 **Without the Feature:**  
> 📝 Each subsidiary keeps processing payments on its own, leading to more manual work, errors, and poor cash flow visibility. The company also misses out on negotiating better payment terms with suppliers.

# Setup & Configuration

1. **Enable Multi-Company Payments: **Ensure the system flag **APPaymentsMultiCo** is enabled to allow multi-company supplier payments.
  1. Go to **System Administration > Configuration > System Settings - Flags**
  2. Enable the **APPaymentsMultiCo** flag.
  3. Save your changes.
2. **Define Intercompany Loan Accounts: **Intercompany loan accounts must be defined for the processing company.
  1. Go to the **General Ledger > Maintenance > Ledger Loan Accounts** section.
  2. For each processing company, define the appropriate intercompany loan accounts.
  3. Specify the loan account numbers for each company combination as required.
  4. Save your changes.

> ✅ Refer to [Ledger Loan Accounts](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28404070) for more information.

3. **User Access: **The list of companies is restricted to those that the user has access to.
  1. Go to **System Administration** > **Users & Security** > **User Maintenance**.
  2. Select the user who will process multi-company supplier payments.
  3. Assign the user access to the relevant companies (single, all, or a selected list).
  4. Save your changes.

> ✅ Refer to [User Maintenance](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28378032) for more information.

# How the Process Works

1. **Enable Multi-Company Payments**  
Ensure the **APPaymentsMultiCo** flag is turned on to allow invoice selection across multiple companies.
2. **Create a Payment Batch**  
Go to the **Payment Selection Batches** screen, create a new batch, and enter basic details like description, date, and payment method.
3. **Add Supplier Invoices**  
Use the **Add Invoices** option to search and select invoices. If **APPaymentsMultiCo** is enabled, you can choose invoices from different companies and add them to the batch.
4. **Finalize and Approve **  
Finalize the batch, then approve it by entering your credentials.
5. **Process the Payment**  
Process the payment by completing required payment details and generating the output file (e.g., ABA).
6. **Cancel if Needed**  
If necessary, cancel the payment—reversals will be handled automatically, including adjustments for GST, rebates, discounts, and intercompany loans.

# Additional Information

> ✅ Refer to [Payment Selection Batches](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28396048) for more information. 
> ✅ 
> ✅ Refer to [Operating Frameworks with Multiple Companies](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28396178) for more information.