Franchisors have the option of recording and paying AP invoices on behalf of their franchisees. The expense can then be passed on and billed to the franchisee.
Entering AP Invoices on Behalf of Franchisees
Enter the details of the invoice on the AP Invoice form, and toggle the Franchising toggle in the invoice header.
When Franchising is toggled, the Details grid includes a column titled Company. This value represents the franchisee that will eventually be billed for the invoice expense.
Select the Company (franchisee) during the detail entry process for each detailed line item.
Once completed, approve and close the invoice.
Pay the AP invoice via Pay Bill, Manual Payment, or the Check Run.
If the invoice has already been paid and is simply being recorded, toggle the Mark as Paid toggle to automatically create and apply an AP payment for the invoice upon approval.
Billing the Franchisee for the AP Invoice
During the Franchise Billing process, any approved AP invoices that were entered on behalf of the franchisee are automatically included on the AR invoice that is generated for the franchisee. The AP invoices are captured based on the Company (franchisee) value set on the AP invoice and the date range for the franchisee billing.
