One of our brother company paid an invoice on our behalf, on my end i had already posted the invoice in quickbooks, now that it has been paid how do i make the payment? without crediting our bank account? I would appreciate short and precise answers. Thank you
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Debit the unpaid invoice and credit the inter company account. Then make sure your balance on the inter company account agrees with the other company’s.
Agree with the approach suggested already - specifically for QB if you don't have an intercompany account set it up as a long term liability account (desktop) or current liability account depending on how long you will take to repay (wihin 12 months or longer).
When you use accounts payable on a journal entry you need to use the suppliers name in the name column. Do not use any VAT entries.
You will need to use pay bills to associate this payment with the bill or you will have the two transactions on your A/P reports. Pay the bill with a credit. This creates a zero transaction but it still needs a payment account, use your cash account for ease.
Mike