An Inter Company Example

Say we have 2 Fincos (with GL accounts):

01 Projecting

• 450 - Plant Costs
• 902 - InterCo Suspense 02

02 Plant

• 210 - Plant Recovery
• 901 - InterCo Suspense 01

The projecting jobs all reside in 01 and the plant in 02.

The following batch of plant issues is entered in a 02 batch, to a 01 job:

With batch list ...

Batch is exported, to Xero in this case.

Now when we look at the batch list, this batch is showing as "InterCo to be generated".

At the end of the month, or more often if required, the intercompany AR and AP Invoices can be generated for selected batches which have an intercompany component.

This creates a "selling" invoice (AR Invoice) in Finco 02 and and a "buying" invoice (AP Invoice) on Finco 01. These go in system batches.

On Finco 02 (Plant)

On Finco 01 (Projecting)

These can then be exported to the financials:

The GL Effect in Financials

* Intercompany resolves

If it is desired to show the balances of the "loan accounts" in the balance sheets, a manual journal could be entered to a B/S account with the balance of the intercompany debtors and creditors accounts.  This is in effect the loan balance.