Entering an intercompany bank transfer

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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.

Note:

Use intercompany bank transfers to reconcile your intercompany accounts. It provides a complete audit trail and keeps the intercompany accounts in balance.

To enter intercompany bank transfers

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.