processing refund that came into wrong company account

[rachael79]

Hi,

I understand how to process bills paid in a company A for another company B, in company B we do it as a spend money but from a loan account for company A. But we have a refund in company A that needs to go to company B how do I process that?

[LRBooks61]

Just do what you normally do but in reverse 

Receive money against the loan

So in company A you receive money ( the refund) and allocate to the loan for Company B ( reduces the loan)

In Company B receive money to the loan account and allocate it to the gl  account for the refund

Hope this helps

Lisa

[LRBooks61]

If you can't post to the loan account do a journal entry

DR Loan acc

CR expense account

Lisa