In this example an inter company payable transaction is demonstrated. For this purpose two test companies are used:
|THREE||Tree (copy of TWO)|
The inter company transaction:
Company TWO records an invoice related to company THREE in its books of accounts and issues payment to the vendor on behalf of company THREE. Company TWO will record an inter company invoice as follows:
Transaction >> Purchasing >> Transaction Entry:
Create the distribution as follows:
Note for line one of distribution the account number is picked from company THREE. For Line two the account number is picked from company TWO. Click OK.
GP will prompt an alert
and post the invoice. The resulting AP posting journal is as follows:
GP has passed the required inter company entries at AP – Good.
Check the Journal entry at TWO:
Check the GL journal entry passed by GP at THREE