Transferring funds received by one company to another company

Amber_7920354
Amber_7920354 Member Posts: 3
edited February 2018 in Accounts Hosted
We have two companies in Quickbooks but one eftpos terminal that is linked to Company A. If funds are received through the eftpos terminal for Company B, I transfer the funds electronically. How do I show this for both companies without it showing Company B's income in Company A? Thanks!

Comments

  • Shannon Sciuto
    Shannon Sciuto Member Posts: 98
    edited February 2018
    Best to double check with your accountant but if you've got your two companies set up as different files what we've done is treated them as loans to the company. I.e. When the sale is processed: Company A: Make deposit to bank account - from account "Loan from Company B" (other liability) Company B: * Journal: Loan to Company A (other current asset) DR Sales CR (use GST tax code and customer name here if required) When the funds are transferred * Company A: Write Cheque to Company B from bank account to "loan from company B" account. Use the NT or no tax code Company B: Receive Deposit to bank account from loan to company A account. *you can enter these transactions in bulk if you wish for relevant reporting periods like weekly or monthly At the end of the reporting period, both loan accounts should balance and be reconciled to each other. This is what we've done for grouped entities - in the case of ungrounded companies, the accountant may prefer you handle it differently. Good luck.!