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Inter-Company Transactions

Problem Details:

How does Inter-Company Transactions work?

 

Solution:

As an example, we will take an AP invoice that has charges for Company A and Company B, but the whole amount of the invoice will be paid by Company A.  The source entry will be done in the Inter-Company database.  In the header of the AP invoice entry, Company A will be identified since they will be paying the invoice.  In the detail lines, the individual expense amounts and GL accounts for Company A and Company B will be itemized.  After posting the invoice, a GL entry is created in the Inter-Company database, and an AP invoice is created in the Company A database.  This invoice debits the AP Trade account.  When the GL entry in the Inter-Company database is posted, it will create a GL entry in Company A and Company B databases.  These GL entries will reflect the expense accounts, inter-company due to/from accounts, and (in the case of Company A) the AP Trade account. 

 

 

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