Entering an intercompany bank transfer

unavailable in ajeraCore

About multi-company

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

You can use an intercompany bank transfer to move funds between companies in your organization. This bank transfer type automatically relieves the intercompany accounts.

The following steps describe the underlying processes of an intercompany bank transfer. They link to the Entering a bank transfer topic, which provides specific details on how to perform that task.

1. In the Manage > Bank Register window, select a bank account that belongs to Company 1. Then do the following:

1. Select Intercompany Transfer as the type.
2. Enter the payment or deposit amount.
3. Follow the steps in the Entering a bank transfer topic.

2. Press the Tab key until the distribution table appears.
3. To calculate the debit and credit accounts, Ajera does this:

• Accrual accounting: Debits the Intercompany Due To account for Company 1 as payment; credits the Intercompany Due From account for Company 1 as deposit

• Cash accounting: Debits the Intercompany Other Income account for Company 1 as payment; credits the Intercompany Other Income account for Company 1 as deposit

4. Select Company 2 as the recipient of the bank transfer.
5. To relieve the intercompany accounts, Ajera does this:

• Accrual accounting: Credits the Intercompany Due From account for Company 2 as deposit (debits Cash); debits the Intercompany Due To account for Company 2 as payment (credits Cash)

• Cash accounting: Credits the Intercompany Other Income account for Company 2 as deposit; debits the Intercompany Other Income account for Company 2 as payment

6. Click Save.

Example

Company 1 owes $1,400 to Company 2.

1. In the Manage > Bank Register window, select one of Company 1's bank accounts. Intercompany bank transfers are available only for bank accounts, not credit card accounts.
2. Enter the intercompany transfer amount of 1400 in the Payments field.

3. Press the Tab key until the distribution table appears.

4. From the To field, select one of Company 2's bank account. The table now contains the debit and credit accounts, relieving the intercompany accounts.

5. Click Save.

Here is how it looks in the session journal: