One payment for two different companies

Happygirl

How do I reconcile a single payment received for 2 invoices but for 2 different companies in the one payment.. e.g. 

 

They have paid us as a lump sum deposit into Company A. despite there being two different companies involved. e.g.

Invoice 1 - Company A - $200

Invoice 2 - Company B - $50

Total Payment - $250 which was deposited into Company A.

How can I move the $50 from Company A - to Company B without doing a bank transfer?

Tracey_H

Hi @Happygirl 

 

Thanks for your post. Generally speaking, when operating two companies each company would have a liability account set up for the other company, so Company A would have a Company B liability account and Company B would have a Company A liability account.

 

For your example in Company A you would:

 

1. record the payment for Company A invoice as normal with the Deposit to Account as the Undeposited funds account
2. record a Receive Money transaction for Company B's payment, the Deposit to Account should be the Undeposited Funds account and allocated to the Company B liability account
3. in Prepare Bank Deposit tick the two transactions and record the deposit, this will give you a lump sum deposit to match in bank feeds or Reconcile Accounts
4. if you transfer the amount from Company A's bank account to Company B's bank account record a Transfer Money transaction, from the bank account to Company B's liability account

In Company B:

 

1. record the payment transaction as normal but change the Deposit to account to Company A's liability account
2. if you've transferred the amount into Company B's bank account record a Transfer money, from account Company A's liability account to account is the bank account

This will allow you to track the amounts owed to each company for tax purposes. If you're not sure about recording transactions between two companies I'd recommend speaking to your accountant to ensure it is set up correctly.

 

Please let me know if you need further help or I've misunderstood your question.

 

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