Spend money using different company bank account

[MichelleC11]

Hi Everyone,

Currently running 2 companies: Company A and Company B. However there's always some mistaken making payment through wrong company bank account.

For example, Company A has an invoice amount $300 but my manager has mistakenly pay through Company B bank account for the outstanding payment (it should be pay through Company A's bank account).

Any MYOB adjustment i can make so that the bank reconcile is correct (in company A)??? Any help would be appreciated

[Keen]

create a inter-company loan account in both A & B, process $300 payment in B company as loan to A, process in A company as $300 expense paid via loan from B company

[MichelleC11]

Hi Keen,

thank you for the quick response!!

Will it cause any follow-up work?

[Keen]

The reality is A might pay for B more than B pays for A.  You may like to settle the net difference of the inter-company loan accounts periodically by transferring money from B's bank account to A's bank account or vice versa.  Based on your info, you might need to work out the difference for your manager to do the transfer.

That is one way of doing it, have fun

[MichelleC11]

nice solution but as what you mentioned is for periodically.

Is there any way to do it one-off?

[MichelleC11]

Hi All,

Currently running 2 companies: Company Y and Company Z. An invoice amount $100 entered in Company Y. However, My manager has mistakenly made the payment through Company Z's bank account (suppose to be Company Y's bank account).

Is there any adjusment I can do it one-off? (without transferring any money)

[Tracey_H · Accepted solution]

Hi @MichelleC11 

As explained by @Keen, creating loan accounts for both companies is an easy way to deal with these situations.

In your example:

1. In Company Y enter a Pay Bills transaction to pay that invoice, but change the Pay From Account to the Company Z loan account.
2. In Company Z enter a Spend Money transaction for the amount of the invoice payment, the Pay From Account will be Company Z's bank account, and allocate to Company Y's loan account.

You can either transfer the money or leave it for the accountant to work out at the EOY.  If you did transfer the money you would the need to record Transfer Money transactions. I answered another post on this recently which has a more detailed explanation of how this all works: Customer payments made into incorrect entities 

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.