Sage InterCompany Transactions

Sage InterCompany Transactions

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Hi All,

I have 5 Companies under 1 group that are set up in Sage (this is something I have inherrited rather than set up myself.

They all have separate bank accounts with different banks.

Invoices are posted under Company A using the Suppliers module (correctly), but Company B has made a payment against them to clear the balance.

So, as you can appreciate when it comes to reconciling the balance sheet accounts then this becomes a bit 'sticky'.  As I cannot show the payment leaving Company A's bank account to clear the balance of the invoice I wanted to check the best way to do this with you that would not cause any future problems.

Currently I thought the best way to do this would be:

a) From Company B (the company paying the invoice), create a bank payment to an InterCompany Bank Nominal code (say 1210) in order to have the transaction appear within the bank module of Company B for reconciliation.

b) In Company A, post a journal for the transaction into an InterCompany Bank Account (say Cr 2009. Dr 1210) as 1210 will not be a physical bank, but just a platform for step C.

c) Pay the Supplier Invoice (using the bank module to ensure that is clears the balance from the creditor control account and the Supplier account module) from the 1210 account.

d) Ensure the 1210 account in A & B at the end of the period comes back to 0.

Does anyone have any better suggestions or am I on the right path? 

Ant

Replies (2)

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By Andywho is fed up
28th Aug 2012 12:24

Inter company

That's one way.   What I tend to do is in company A pay the supplier through the normal bank account at the same date that company B actually makes the payment.   This entry is shown as a contra.   A corresponding contra receipt is also posted to the bank account but this entry goes to a the general intercompany account with B.  

In B the payment is simply posted to the general intercompany account with A, the annotation being the payment of A's creditor.

In this way, the intercompany clearly shows the transactions and the bank should always reconcile

 

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By Anthony.Evans82
28th Aug 2012 13:06

Thanks Andy

I had thought of doing it like that too, i just wasn't sure if there is a preferred way of dealing with these transactions from a Sage point of view.

:)

 

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