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Entering journal entries to intercompany accounts

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As part of the monthly reconciliation process, review the Multi-company Reconciliation report and reconcile your intercompany accounts.

However, if you must cancel out losses and gains quickly, you can enter journal entries to the intercompany accounts.

You can enter journal entries for up to two companies at a time. To ensure that their intercompany accounts remain in balance, when an entry is made to Intercompany Due To for one company, you must enter an entry for Intercompany Due From the other company. In addition, to ensure these accounts remain in balance you can only create a cash basis or accrual basis entry.

Note:

The following steps describe the underlying processes of entering journal entries to intercompany accounts. They link to the Entering journal entries topic, which provides specific details on how to perform that task.

To enter an intercompany journal entry

From > Manage > Journal Entries or from the Journal Entry task widget, click New.
Check the Intercompany Entry check box.
Select a company.
Select an offset company.
Select a Basis.

Note:

When the Intercompany Entry check box is selected the Both basis is unavailable for selection.

Enter a description that helps you to identify this journal entry.
Enter the accounting date.
Enter a reference number that helps you to identify this journal entry.
Enter any notes. You can enter notes to include additional facts, details, or comments about the journal entry.
Click Done.

After clicking Done, a new row in the Journal Entry detail area is available for additional editing.

Enter an account ID and description.
Enter a department. unavailable in ajeraCore unless you have the Departments add-on
For the company assigned to the Journal Entry, enter an amount in the Debit Amount column.
To balance the entry, enter the same amount in the Credit Amount column.
For the offset company, enter an amount in the Offset Debit Amount column.
To balance the entry, enter the same amount in the Offset Credit Amount column.

Note:

You cannot enter a negative value for a transaction; however, if necessary, you can enter a credit to an account that normally contains a debit, or a debit to an account that normally contains a credit.

The credit or debit amount that currently causes the journal entry to be out of balance appears at the top of the table. When you finish entering all your transactions, In Balance appears to indicate that your entry is in balance.

Example: Lease rental paid by Company 1 and they want to expense it to Company 2 (offset company) .

Company 1 recognizes the Due From:

From the Journal Entry task widget or from > Manage > Journal Entries, select new to create a new intercompany journal entry.
From the Account column, select the Rent account and Admin department. Enter 2000 in the Credit Amount column.
From the Account column, select the Intercompany Due From account. Enter 2000 in the Debit Amount column.

Company 2 recognizes the Expense using the offset account columns:

From the Account column, select the Rent account and Interiors department. Enter 2000 in the Offset Debit Amount column.
From the Account column, select the Intercompany Due To account. Enter 2000 in the Offset Credit Amount column.
Enter any additional notes.
Click to save.