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Intercompany Transfers
Intercompany Transfers

Transfer transactions between two files for one client

Updated over a week ago

Intercompany transfers allows you to reconcile Due To/From account balances across accounting files and post adjusting transactions from one file to the other.

Video Overview

How to set up Intercompany functionality

Let's say you have two clients with intercompany transactions between them: ParentCo and ChildCo.

1) In ParentCo's file Settings, set up ChildCo as an Associated Company

2) In ParentCo's Account Reconciliation section, click the Add New button and add the Due To/From ChildCo account

3) Map ChildCo's offsetting Due To/From ParentCo account via the info button so its balance shows up in the Other File column, and you can tie out the two files' balances against each other

4) To post an offsetting Journal Entry from ParentCo to ChildCo (e.g., for an expense that is attributable to ChildCo but was paid by ParentCo):

  1. Click the More Information Button

  2. Navigate to the Transfer tab

  3. Fill in the details of the offsetting Journal Entry

  4. Click Transfer to create a Journal Entry in ChildCo with matching dates, amounts, descriptions, and accounts

5) Perform steps 1-4 in ChildCo for ParentCo

This feature does not currently support multi-line expenses or invoices.

Due To/From Reconciliations

If you reconcile Due To/From Accounts against each other, you can also set up the Account Reconciliation tasks to pull the balance from the other file to make it easier to tie them out in your closing process.

The Other File column pulls the month-end balance of the offsetting account in the related company file.
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