# Multi-entity accounts payable in Sage X3 for manufacturers

Sage X3 has multi-entity accounts payable built in. Many manufacturers run more than one plant or legal entity. Each may keep its own company or ledger with its own supplier list.

## Why it matters for manufacturers

- A supplier can invoice the wrong entity, which puts GST credits and cost in the wrong place.
- Group-wide suppliers such as steel and gas are bought on one agreement but billed to several plants.

## For manufacturers in Sage X3

- Flag the supplier as a site. A receipt is intersite when both sites are in one legal company and intercompany when they are not. An intersite receipt cannot be invoiced but an intercompany receipt can.
- Once signed, a purchase order to a site creates the reciprocal sales order. Set the Intercompany flow management setup for it.
- Intercompany purchase invoices use the GESBICI and GESBISI functions under the INTCO activity code. Map the target company in Intercompany account mapping and set INTCPYINV to Yes for it.
- An invoice line can carry a different site from the header. The journal is balanced site by site using inter-site link accounts.

## What Sage X3 does on its own

Sage X3 is multi-company and multi-site by design. The INTCO activity code switches on intercompany functions: Supplier intercompany invoice, Customer intercompany invoice, Intercompany account mapping and Intercompany journal entry. For Australian GST, companies are put in GST groups and each member company needs an ABN.

- Intercompany functions need the INTCO activity code.
- A GST group reports as one entity and needs one head entity. A company with no group partner still needs a group of one.

If VAT posting is on for a VAT entity with several companies, define the intercompany accounts between each company.

What you need and the setup steps: https://www.pulsify.tech/multi-entity-ap-for-sage-x3/

## Example

Example Gas Supplies sends one invoice covering bottled gas for Plant 1 in Sydney and Plant 2 in Brisbane, which are separate entities.

- Gas cylinders, Plant 1 Sydney: $3,200.00 (Bill to Example Manufacturing East Pty Ltd)
- Gas cylinders, Plant 2 Brisbane: $2,100.00 (Bill to Example Manufacturing North Pty Ltd)
- Cylinder rental, shared: $300.00 (Split by agreed ratio)

Each plant's cost is coded to its own entity and shared rental is split by the agreed ratio. Each entity claims only its own GST.

## Common mistakes

- Entering the whole invoice in one entity and fixing it later with an intercompany journal.
- Using different supplier names for the same supplier in each entity, so group spend cannot be added up.

## Step-by-step guides for Sage X3

- How to close the month in accounts payable in Sage X3: https://www.pulsify.tech/how-to/close-the-month-in-ap-in-sage-x3/
- How to set up purchase invoice approval in Sage X3: https://www.pulsify.tech/how-to/set-up-bill-approval-in-sage-x3/

## What Pulsify adds

Pulsify gives each company its own address, suppliers and approval rules, with one login across all of them. Pulsify connects to Sage X3. We set up the connection for you. More: https://www.pulsify.tech/multi-entity-workflows/

## Common questions

### Can Sage X3 invoice stock moved between our plants?

Between plants in the same legal company the receipt is intersite and cannot be invoiced. If the plants are in different companies it is also intercompany and can be invoiced. Intercompany invoices need the INTCO activity code and company mapping.

### How should a manufacturer handle a bill that covers two entities?

Split the bill by line to each entity, with the supplier ABN on file for both. Each entity claims GST on its own part, and the split should match the supply agreement.

### Do I need to set up account mapping first?

Yes. Only companies defined in Intercompany account mapping can be picked on an intercompany transaction.

## Sources

- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESPTH.htm
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESPOH.htm
- https://online-help.sagex3.com/erp/12/en-us/Content/FCT/GESBIS.htm
- https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices

Source: https://www.pulsify.tech/multi-entity-ap-in-sage-x3-for-manufacturers/ (last checked 2026-10-19)