About expense reports with multi-company
To keep financial information separate, the setup of each employee, project, and bank account and credit card is linked to a company. When you enter an expense report, Ajera associates each transaction to its corresponding employee, project, or credit card.
|
Ajera associates this transaction type |
With the company linked to the |
|---|---|
|
Project-related |
Project |
|
Nonproject-related and advances |
Employee |
|
Personal expenses |
Credit card |
As you enter expenses, Ajera creates intercompany entries when the companies involved are different.
|
Ajera creates intercompany entries for |
When this happens |
|---|---|
|
Credit card-related transactions |
Credit card company and transaction company are different and the expense is not a personal expense. |
|
Noncredit card-related transactions |
Employee company and transaction company are different. |
Credit cards assigned to employees belong to the same company associated with the employee. For expenses other than personal expenses, Ajera creates intercompany entries if the credit card company and the employee company are different. Be sure to reconcile your intercompany accounts regularly.
Example
An employee works for Company 1 and uses the company credit card to charge an expense to a project that belongs to Company 2. The employee makes another expense to the project, this time paying with cash.
In the expense report:
|
Ajera associates this |
With this |
|---|---|
|
Employee |
Company 1 |
|
Credit card |
Company 1 |
|
Project |
Company 2 |
|
Credit card, project-related transaction |
Company 2 |
|
Noncredit card, project-related transaction |
Company 2 |
As a result:
|
Ajera creates these entries |
For this |
|---|---|
|
Employee Receivables/Accounts Payable and Due From |
Company 1 (employee company) |
|
Credit Card Payable and Expense and Due From |
Company 1 (credit card company) |
|
Work-in-progress, Expense, and Due To |
Company 2 (project company) |
