The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> intercompany accounts
Post Info TOPIC: intercompany accounts
Nimac


Senior Member

Status: Offline
Posts: 137
Date:
intercompany accounts
Permalink  

I am dealing with a client who has affiliate companies and needs to set up links between these companies in terms of bookkeeping.

I believe this is done by way of intercompany accounts?????

Can anybody give me a few pointers on how to set this in the chart of accounts and any other infomation.

I am using Sageline 50.

Many thanks.

__________________
Dustin57


Senior Member

Status: Offline
Posts: 125
Date:
Permalink  

I normally set up a debtor or creditor account in the 1000 to 2999 range specifically for intercompany transactions. One tip is to obtain a statement from the associated company quite frequently to ensure your balance matches theirs. I've find it's all too easy to end up out of sink. If you're doing the books for both companies this obviously won't be a problem.

I find the most difficult aspect is when goods and services are recharged from one company to another. Other than this they are normally quite straightforward.   

__________________
"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
Nimac


Senior Member

Status: Offline
Posts: 137
Date:
Permalink  

Thanks Dustin57

I will be doing the books for both companies so should hopefully be able to keep a track of it all!!!

In terms of using it with Sageline 50 there will obviously be 2 companies created seperately in Sage, each with a newly created intercompany nominal which will record the flow of funds, goods, services between them both - is this correct.






__________________
Dustin57


Senior Member

Status: Offline
Posts: 125
Date:
Permalink  

Thats correct Nimac. Let me know if you need any further help.

__________________
"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
Nimac


Senior Member

Status: Offline
Posts: 137
Date:
Permalink  

Thanks

I'm sure i'll be in contact about this soon!!!

__________________
AccountantsCircle


Senior Member

Status: Offline
Posts: 164
Date:
Permalink  

Just keep in mind the entry in an inter-company account needs to have a reverse entry in the account for the other relevant company.

So if you debit the inter-company account in one company (just as you might a debtor but kept in a separate account in the Nominal Ledger). you would credit the inter-company account in the other company (as that debtor would then treat you as a creditor in their accounts).

__________________

John Gesch
The Accountants Circle
Online Tools & Excel Templates | Online Map Directory | Accountant & Bookkeeper Blogs
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> intercompany accounts
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About