I have posted an invoice to suppliers as the invoice is in the companies name. However the director has paid for this invoice from a seperate company. I suppose this now becomes a loan so how do I post on sage and clear the balance??
Funny. I do the book keeping for the other company as well. So when i come to this transaction do i just post a BP? This just doesnt seem right So confused
Stop the director doing it in the first place! It just causes more transactions, which the accountants will not thank you for.
Some bookkeepers will do a separate bank account, named for the other company. They will put the payment of the invoice through that 'bank', and when it's paid back, the balance on that bank will return to zero. Not done it myself, but I've seen it done.
Open a new bank account, calling it 'X Ltd - Intercompany Loan Account'. Pay the invoice from this 'bank' account. When (if!) the money is returned to company X, you'll post it as a bank transfer from the (actual) Bank Account to this intercompany account.
In company X (the one who has paid the bill), you will also need to create a bank account 'A Ltd - Intercompany Loan Account'. The initial transaction will be a bank transfer from the actual Bank Account to the intercompany account. When (if) the moeny is repaid, it'll be another transfer - from the intercompany to the Bank.
Open a new bank account, calling it 'X Ltd - Intercompany Loan Account'. Pay the invoice from this 'bank' account. When (if!) the money is returned to company X, you'll post it as a bank transfer from the (actual) Bank Account to this intercompany account.
In company X (the one who has paid the bill), you will also need to create a bank account 'A Ltd - Intercompany Loan Account'. The initial transaction will be a bank transfer from the actual Bank Account to the intercompany account. When (if) the moeny is repaid, it'll be another transfer - from the intercompany to the Bank.
This was a really helpful posting, however, i dont know if I am dog tired which is why i am confused. Can someone please elaborate on this. It was reagrding company 'A' paying company 'X' invoices.
Also company 'X' has paid company 'A' invoices do i put it through the intercompany loan ac as a receipt to reduce the debt??
Funny. I do the book keeping for the other company as well. So when i come to this transaction do i just post a BP? This just doesnt seem right 
So confused
