Inter-Company Due to/Due from

Overview 

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.

Record Inter-Company Due to/Due from

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