Hi I have a question if anybody could kindly help. We use old version of sage that allow one company set up on it, we have two legally separate companies that one is supporting anther. I want to set up an inter company account on sage, but I am not sure if I should set it up as a creditor or as a bank account, shall I set it up as an inter company loan bank account? Or as a creditor? Many thanks for your help.
Think I would use creditors (as in creditors a N/L/ account, rather than purchase ledger), assuming that the company you've set up in Sage will be receiving funds from the company not set up in Sage.
Thanks for your reply. According to you shall I set up a N/L account for inter company account in current liabilities which is in Blance Sheet section, such as 2109? If that is the case, how can i pay an invoice in purchase ledger by this inter company account as this is not a bank account? If I do a journal, how can it cancel out the invoice in the purchase ledge??
Cindy, Nick is correct as you would not raise a purchase invoice. You would just use a direct bank payment/ receipt to show monies transferred between the loan accounts.
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