Allocations and central payments
Clear what companies owe each other
Receive a payment against the amount due from another company.
What it does
An incoming payment against the "due from" account clears the balances between two companies.
When you need it: Head office collects what a subsidiary owes from the central payments.
How it works
- In the company that is owed, say head office, open the Incoming Payment window and set the document type to "Account".
- Enter the other company's branch code in "Receiver IC Branch" (and its branch in "Branch" where it uses branches). "Intercompany Document" is ticked for you, and the table is filled with the due-from account kept for that company.
- Enter the amount and the means of payment and post the incoming payment, which debits cash or bank and credits that company's due-from account.
- In the paying company, a draft outgoing payment is made automatically, debiting the due-to account for head office against cash or bank.
- The paying company opens the draft through its system alert, or through Banking › Banking Reports › Payment Draft Report, checks it and posts it.
Set it up
The accounts come from Administration › Setup › Intercompany › Branch Accounts Setup in both companies. To pay by cheque or credit card, replicate the Banks and Credit Cards master data through the company template each company uses, and map their keys; the "Default Credit Card Account" in Default Accounts Setup applies once credit card replication is on.
Good to know
- The aim is to settle the receivable and payable balances between two companies, for example after allocations or delegated payments, so they come down on both sides together.
- The paying company still posts its own outgoing payment; Intercompany only prepares it as a draft.