Inter-Company Transfers

Inter-company transfers allows you to transfer transactions between two files you manage for the same client (e.g., for transactions in Due To/From Accounts).

This will let you create a Journal Entry in a related file that corresponds to a transaction in an existing file.

Let's say you have two clients with inter-company transactions between them: ParentCo and ChildCo.

1) In ParentCo's file Settings, set up ChildCo as an Associated Company.

2) In ParentCo's Account Reconciliation section, click the Add New button and add the Due To/From ChildCo account.

3) Map ChildCo's offsetting Due To/From ParentCo account in the info button so its balance shows up in the Other File column and you can tie out the two files' balances against each other.

4) To post an offsetting Journal Entry from ParentCo to ChildCo (e.g., for an expense that is attributable to ChildCo but was paid by ParentCo), click the More Information Button, go to the Transfer tab, fill in the details of the offsetting Journal Entry, and click Transfer. This will create a Journal Entry in ChildCo with matching dates, amounts, descriptions, and accounts.

5) Perform steps 1-4 in ChildCo for ParentCo.





If you reconcile Due To/From Accounts against each other, you can also set up the Account Reconciliation tasks to pull the balance from the other file to make it easier to tie them out in your closing process.