Best Practices for Inter-Company Due to/Due from Transactions

Due to/Due from accounting allows you to track funds owed between companies. Billing and Payable transactions are created from one company to another. This article describes how to best record Inter-company Due to/Due from so the transactions can be identified for elimination in a consolidation.

Recommendations for Due to/Due from

  • Setup each company as an Account
  • Setup each company as a GL Variable
  • Each transaction would result in 1 billing and 1 payable
  • For Billing transactions:
    • Select the company you are billing as the account.
    • Select the company that you will be creating the receivable for and on the Billing Line. 
    • For example, Company A is creating a Billing to Company B. Company A would click on new Billing and enter Company B as the customer. On the Billing Line, the GL Variable would be Company A.
  • For Vendor transactions:
    • Select the company you are paying as the account.
    • Select the company that you will be creating the payable for and on the Payable Line.
    • Continuing with the above example, Company B would create a payable to Company A. On the Payable Line, the GL Variable would be Company B.
  • Reports can be generated to help with elimination entries:
    • Click into reports and select New Report. Create a Billing with Billing Lines report and filter by Customer (Company) and GL Variable. Add the Revenue GL account and Amount field as columns.
    • Click into reports and select New Report. Create a Payable with Payable Lines report and filter by Vendor (Company) and GL Variable. Add the Expense GL account and Amount field as columns.
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