Setup Considerations: Multicompany Procurement

You can use this topic to help make decisions when planning your configuration and use of multicompany procurement. It explains:

Why to set it up.

How it fits into the rest of Workday.

Downstream impacts and cross-product interactions.

Security requirements and business process configurations.

Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is

At the tenant level, you can enable multicompany on requisitions and purchase orders. This setup centralizes procurement by enabling you to order on behalf of other companies with a single document.

Workday automatically supports multiple companies on supplier invoices.

Business Benefits

You can create consolidated requisitions and purchase orders for goods, services, and project-based services on behalf of other companies. This business practice reduces the number of purchase orders sent to suppliers, saving you time during reconciliation.

Use Cases

Request goods and services for multiple companies with 1 requisition.

Order for multiple companies with 1 purchase order, simplifying workflow.

Match multicompany invoices to multicompany purchase orders for accurate reports.

Expenses and assets post accurately based on the companies at the line and header level, reducing accounting workloads.

Questions to Consider

Questions	Considerations
How does your business use supplier contracts to procure?	When you consolidate requisitions across supplier contracts at the tenant level, create a supplier contract for a company hierarchy that includes the companies for which you procure. For multicompany transactions that don't consolidate across supplier contracts, the contract pricing at the header applies to all companies at the line.
How does your business use intercompany?	Create an intercompany relationship between companies to use them on multicompany transactions. You can create this relationship on the Edit Company Intercompany Profile task. Set up the procurement company as the parent company.
How do you edit and approve lines on spend transactions?	You can edit the companies on requisition lines during the creation and approval process. You can't edit the companies at the line level on sourcing tasks.
Does your business use Inventory?	For Inventory, you can't edit the company at the line on replenishment or par-replenishment requisitions. For replenishment-type orders: Configure the company that orders on behalf of the location on the Maintain Inventory Sites and Maintain Par Location tasks. You can only add requisition lines and purchase order lines that are for inventory or par companies. To set up the procurement company for inventory locations, you must also have the company setup as the parent company on the Edit Company Intercompany Profile task.
How does accounting work for multicompany transactions?	Using the Create Account Posting Rule Set task, set up these account posting rules: Intercompany Receivables , which posts for the parent company. Intercompany Payables , which posts for the children companies. You can view accounting on multicompany procurement transactions on these tabs, which list accounting for each unique company on the purchase order or requisition: View Accounting for Purchase Order View Accounting for Requisition You can view all liquidated journals, but you must have security permissions for that company to view its operational journal.

Recommendations

Select the Requisition
and Purchase Order
options on the

Enable Multi-Company

prompt on the

Edit Tenant Setup - Financials

task.

Quickly run receipt accruals for companies on purchase order lines by using a company hierarchy of all the companies on the

Create Receipt Accrual

task.

Requirements

To enable multicompany for requisitions, enable multicompany for purchase orders.

Using the

Edit Intercompany Company Profile

task, create an intercompany relationship between companies for which you procure. Select the procurement company as the parent company.

You must have security permissions for the company at the header level to use the

Put Away Inventory

task and to view these documents:

Purchase Order

Receipt

Requisition

Invoice

Limitations

You can't disable this feature once you have active multicompany purchase orders or requisitions.

You can't change the companies on order lines on sourcing tasks or after you approve the purchase order. You also can't change the companies on lines on these resulting documents:

Receipts

Returns

Invoices

You can't change the company on replenishment-type orders.

You must have security permissions for the company at the receipt header to use the

Put Away Inventory

task.

On the

Roll Forward Procurement Documents

task, the

Balances

tab and these fields display blank when a company at the document line has a different currency than the company at the header:

Amount Invoiced

Total Amount

Total PO Amount

Tenant Setup

On the

Edit Tenant Setup- Financials

task, select Requisition
and Purchase Order
on the

Enable Multi-Company

prompt.

Security

To view and edit multicompany documents, you need security permissions for the company at the header. You can also view all liquidated journals, but you need security permissions for that company to view its operational journal.

You can route approvals based on the companies at the line level when you add these subprocesses to the requisition and purchase order business processes:

Requisition Intercompany Event

Purchase Order Intercompany Event

For each company on a multicompany document, Workday displays lines that need review for assigned reviewers in their Inbox.

Business Processes

To route transactions for review and approval based on companies on requisition lines:

Configure the Requisition Event
business process and security policy in the Procurement functional area.

Configure the Requisition Intercompany Event
business process and security policy in the Procurement functional area.

Add the Initiate Requisition Intercompany Event
action step to the Requisition Event
business process.

To route transactions for review and approval based on companies on purchase order lines:

Configure the Purchase Order Event
business process and security policy in the Procurement functional area.

Configure the Purchase Order Intercompany Event
business process and security policy in the Procurement functional area.

Add the Initiate Purchase Order Intercompany Event
action step to the Purchase Order Event
business process.

Reporting

You can use Workday reports or custom reports for these documents with multiple companies:

Change Order

Purchase Order

Requisition

Supplier Invoice

Integrations

These web services support procurement documents with multiple companies:

Get Purchase Orders

Get Purchase Order Change Orders

Get Receipts

Get Returns

Get Supplier Invoices

Submit Purchase Order

Submit Purchase Order Change Order

Submit Receipt

Submit Supplier Invoice

Connections and Touchpoints

Features	Considerations
Create Receipts	To view and edit multicompany receipts, you must have security permissions for the company at the header.
Put Away Inventory	To use the Put Away Inventory task, you must have security permissions for the company at the receipt header. Workday automatically puts away items based on the companies at the receipt lines.
Replenish Inventory	Workday populates the companies as read-only on multicompany documents for replenishment. For replenishment transactions, Workday populates the company at the line based on the replenishment procurement company setup on the Maintain Inventory Site task. For par replenishment transactions, Workday populates the company at the line based on the source requisition company setup on the Maintain Par Location task.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Steps: Set Up Multicompany Procurement

Set Up the Requisition Business Process

Reference: Edit Tenant Setup - Financials

Workday 32 What's New Post: Multiple Companies on Requisitions

Workday 31 What's New Post: Multiple Companies on Purchase Orders