EC Intercompany Accounting Concept

There are no accounting considerations until the Expense Claim is approved

On Approval the following occur :

Example

Home-Company :    1-NZ            Employee : Joe                  Job : 1234 (GLabcNZ)                            Airfares $400+GST (15%)
                                                                                                 Inter-Job : IC2 (GLinterNZ)
                                                                                                 Creditors (GLcredNZ)                            GST (GLgstNZ)

Away-Company :      1-AUS                                                     Job : 3456 (GLabcAUS)                         Airfares $200+GST (10%)
                                                                                                 Inter-Job : IC9 (GLinterAUS)
                                                                                                 Creditors (GLcredAUS)                          GST (GLgstAUS)

Employee : Joe

Only the GST incurred in the Country of the Home-Company is Claimable. In this example all the Air Fares were purchased in NZ.

Transaction	Home-Company	Away Company
Create nominated Job Transaction	Dr GLabcNZ $400 Job 1234 Dr GLgstNZ $90 Cr GLcredNZ $690	Dr GLabcAUS $200 Job 3456
Create Intercompany Control	Dr GLinterNZ $200 Job IC2	Cr GLinterAUS $200 Job IC9

The example assumes a foreign currency translation of 1. If it were AUD-1 : NZD-1.25 the Cost in the Away-Company would be $160.