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I
I hatebookkeeeping001
July 6, 2019
Question

Payments between businesses

  • July 6, 2019
  • 1 reply
  • 0 views

Hello peoples
I have researched and googled all day but still confused.
I have 2 businesses (same ABN) and 2 quickbooks online
Often company A will pay a bill for Company B. How do I set up in Chart of accounts
1) The refund from Company B (so as it does not record as company A income)
and
2) the payment/expense from Company A seeing as it isn't really company A's expense?
.......and it might be same set up or completely different! But
Sometimes business A receives a payment that was really for company B
I transfer the funds from A bank to B bank....how do I record so again
1) the customer  payment is not recorded as income for A
2) the receipt of payment by B
TIA as I am not really a bookkeeper and the 2nd business has thrown me :)


1 reply

Rustler
Rustler
July 7, 2019

Company A pays a company B bill

In A create an asset account called due in B, make the payment to B and use that account as the expense (reason) for the payment
Then invoice B using a service item that links to that same asset account
Receive payment and deposit.
The asset account will now be zero and your funds are back in the bank


Sometimes business A receives a payment that was really for company B
Create a liability account called due to B
deposit the payment and use that due to B liability account as the source account for the deposit
Write a check to B and use that same due to B liability account as the expense for the payment

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