Intercompany Transfer between two Reckon files

MM_7769277
MM_7769277 Member Posts: 115
edited December 2016 in Accounts Hosted
Hi all,

I need some advice on how to process an intercompany transfer between two related Reckon files with job code tracking. I'll give you an example.

A supplier invoices Company A. It's actually an invoice for Company B but they don't have enough in their account. Company A pays the invoice and invoices Company B to be reimbursed.

The job code that this invoice relates to is in Company B.

My question is this:

In order to keep track of all the invoices Company A pays on behalf of Company B, which GL account - or Customer:Job code - should I use?

Thanks in advance,

MM

Comments

  • Bradley
    Bradley Member Posts: 3
    edited December 2016
    Hello MM
    If I have understood your issue correctly I think you are making this far more difficult for yourself than it needs be.
    First- if the supplier is providing services or product it should only be invoicing the correct company - company B. Whether company B has the money or not is not important at this point.
    By ensuring the correct entity is billed you eliminate a lot of issues with warranty on products/services, legalities for GST and company law as well as complicating your accounting and creating potentially significant Tax and GST issues.
    So the supplier invoices the correct company and company B processes the invoice correctly to the job code.
    Second- when it comes time to pay the invoice, company B pays it. If it finds it has insufficient funds to pay Company B can then go to company A and ask for a loan of money to enable it to pay the supplier.
    Create a loan account in each company - so Company A has a loan account to company B, and Company B creates a loan account from Company A. Company A will create an asset account and company B will create a liability account.
    Money is then transferred through the bank accounts using transfer money with the other side being the appropriate loan account.
    Company B now has the funds to pay the supplier and pays as per normal.
    Result- all invoices made out to the correct company and paid by the correct company. All record keeping and job records correct and able to be accessed and found later.
    All supplier payment systems maintained and standard.
    Hope this has helped.