I'm helping a friend to try to get her books straight. There are two companies, one is the holding company the other is the operational company.
Historically, there are invoices and payments for certain suppliers that have been posted to the wrong company, but for these suppliers there is a balance either outstanding or overpaid for both companies.
As they are for past years, 2007/2008/2009 how do I get these straight to get the balance to agree to the current statement? I can obviously do a CN against invoices that have been paid on the wrong company but as they are from past years, for which accounts have been completed, I'm not sure what I can do.
I would hope that the balances either outstanding or overpaid on either company agree to the relevant supplier?
I wouldn't touch the previous years as these have been done and completed.
Probably the best way is to credit and invoice on the relevant companies to clear the balances, but when posting these, dont use the normal nominal code, but instead create a balance sheet code for inter co transactions in each of the companies. One will be a creditor and the other a debtor depending on which way the balance goes.
These too then should agree and balance off.
I would suggest your friend get a qualified accountant to look at this and confirm the correct action to take. Obviously its an honest mistake so you could go back and amend and resubmit accounts etc.. but an accountant would be able to give the best advice in this case.
