---
title: "AP Invoices for Franchises"
slug: "franchising-ap-invoices"
description: "Franchisors record and pay AP invoices on behalf of franchisees using the Franchising toggle to route the expense correctly."
updated: 2026-03-06T19:23:28Z
published: 2026-03-06T19:23:28Z
canonical: "docs.restaurant365.com/franchising-ap-invoices"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# AP Invoices for Franchises

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/franchising-ap-invoices-image-gpuhsxq4.png)

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**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-UE32LGEN.png)

1. Enter the details of the invoice on the [AP Invoice](/doc/docs/ap-invoice-record) 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.
2. Select the **Company** (franchisee) during the detail entry process for each detailed line item.
3. Once completed, approve and close the invoice.
4. Pay the AP invoice via **Pay Bill**, **Manual Payment**, or the **Check Run**.

> [!WARNING]
> If the invoice has already been paid and is simply being recorded, toggle the [**Mark as Paid**](/doc/docs/ap-invoice-autopay) 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](/doc/docs/franchisee-billing-process) 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.

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-1U6QKGQS.png)