Is there a way to journal a payment to another company?
Jenni
Member Posts: 55
Hi Guys,
My boss accidentally paid an invoice with the wrong company account. He paid it with company "A's" account when it should have been "B's" account. Both Companies are on Accounts Hosted. Can I just transfer the payment across to company B? If so how do I go about doing it? Thank you
My boss accidentally paid an invoice with the wrong company account. He paid it with company "A's" account when it should have been "B's" account. Both Companies are on Accounts Hosted. Can I just transfer the payment across to company B? If so how do I go about doing it? Thank you
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Comments
Jenni at the end of the day Company B should physically pay back/reimburse Company A for the expense.
Then in Company A there is then an outgoing journal for the full amount (with no GST) into say Sundry Expense, then when Company B pays Company A back the incoming journal also goes to Sundry Expense and then it's all zeroed out.
Company B then records the payment to Company A as a payment to the Supplier with the normal GST etc
Effectively you have 2 separate entities whose accounts should be kept separate so I find this the most accurate way of doing things.
Don't worry too much about Kevin, he can be a grumpy old curmudgeon sometimes but he does know what he's talking about most of the time.