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yfente1122
Aug 2, 2014, 10:54 AM
I work for a multi unit company and I have the following to post and I need to know how to post:

2 companies: 1st company receives money that belongs to 2nd company.

1st company deposit sample $25.00 post to (due to account to 2nd company.)
2nd company money must be entered as income in 2nd company. I post journal entry for sales $25.00 and $25.00 to (due from $25.00). My questions is how do I post cash to show in my bank. Debit to cash and credit to?

Fidget1
Aug 4, 2014, 02:30 AM
The credit will go to the customer account

Company 1 will:

Dr bank
Cr Intercompany Creditor: Company 2

Company 2 should already have recorded the sale in the normal way:

Dr Customer Account
Cr Sales

When Company 1 sends the money to Company 2

Company 1 will:

Dr intercompany creditor: company 2
Cr Bank

Company 2 will:

Dr Bank
Cr Customer Account