What happens if the transaction that needs to be billed to other entities was posted at the entity level? Do you have to manually make the inter-entity Journal entry?
Great question, and thanks for reaching out! In this scenario, the first thing to consider if the bill has been paid yet or not. If the bill is still unpaid, the preferred route would be to reverse the bill and re-enter from the top level since we don’t have any payments to reverse. Once this is done, when the re-entered bill is paid, we can allow the system to make the intercompany entries for us. If the bill is already paid, then yes, you’re absolutely right. A journal entry from the top level that moves the expense amounts requiring allocation from the original entity (credit) and reallocating to the other entities (debit), would be the correct route. The system will then take care of the inter-entity lines for us. Just note that you will need to; 1) have the inter-entity mapping set up, and 2) be sure to select the entity you’re moving the expense out of as the source entity at the header level of the JE.
@Sockeye_Consulting that's what I figured. Good tip on the source entity being the original entity. Sadly the client in question uses a 3rd party software to pay bills- integrated at the entity levels.
HI! Is there a standard report within Sage that helps reconcile intercompany balances between entities? For instance, does a report exist where if Entity A has a receivable from Entity B, I could compare that receivable on Entity A to the payable on Entity B?
What happens if the transaction that needs to be billed to other entities was posted at the entity level? Do you have to manually make the inter-entity Journal entry?
Great question, and thanks for reaching out!
In this scenario, the first thing to consider if the bill has been paid yet or not. If the bill is still unpaid, the preferred route would be to reverse the bill and re-enter from the top level since we don’t have any payments to reverse. Once this is done, when the re-entered bill is paid, we can allow the system to make the intercompany entries for us.
If the bill is already paid, then yes, you’re absolutely right. A journal entry from the top level that moves the expense amounts requiring allocation from the original entity (credit) and reallocating to the other entities (debit), would be the correct route. The system will then take care of the inter-entity lines for us. Just note that you will need to; 1) have the inter-entity mapping set up, and 2) be sure to select the entity you’re moving the expense out of as the source entity at the header level of the JE.
@Sockeye_Consulting that's what I figured. Good tip on the source entity being the original entity. Sadly the client in question uses a 3rd party software to pay bills- integrated at the entity levels.
How does the system knows which company the bill should be paying from in this case (Construction vs. Venture)?
HI! Is there a standard report within Sage that helps reconcile intercompany balances between entities? For instance, does a report exist where if Entity A has a receivable from Entity B, I could compare that receivable on Entity A to the payable on Entity B?