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MikePeck
July 1, 2022
Question

PO in one Company, payment will be made in another. How are the due to / due from accounts

  • July 1, 2022
  • 1 reply
  • 0 views

PO established in one Company, payment will be made in another. 

 

When the items are received / billed in the first company I do not want an accounts payable entry to be recorded but a Due To the second company. This will add the PO value to Inventory but not create an AP liability.

In Company One, where can I modify the offset account being credited for the debit to the Inventory Asset?

In the Second Company I was able to debit a Due From account to set up a payment.

1 reply

J
jamespaul
July 1, 2022

Hello, MikePeck.

 

I'd like to lay down a solution to help you manage the inventory transactions in two companies. 

 

We'll want to create an inventory adjustment to add value to the inventory in Company One. This is where we can also manage the offset account for the inventory asset.

 

Doing this ensures that an AP liability isn't created in the process. Here's how we can process an adjustment: 

 

  1. Open the Vendors menu.
  2. Hover on Inventory Activities.
  3. Select Adjust Quantity/Value On Hand. 

 

An in-depth guide for inventory adjustment can be found here: Adjust your inventory quantity or value in QuickBooks Desktop. 

 

In regards to the Due To part you've mentioned, are you trying to associate the Company Two's vendor profile to it? We don't have a direct way of doing it, but we can add it to the Memo field instead. 

 

Since doing an inventory adjustment requires editing your inventory-related account balances, I'd recommend consulting an accountant before doing it. They'll ensure your books are correct, and that the inventory adjustments are properly done. 

 

Also if you haven't done it already, create a PO in Company One. After making the adjustments, manually mark it as closed by opening it then clicking on Mark as closed button at the top menu. 

 

In Company Two, create a check for the payment. 

 

If you need to review your inventory and other financial data, I'm sure you'll find this article helpful. It'll give you a list of reports you can run and help you see what data will be shown on each: Understand reports. 

 

You're more than welcome to ask any other questions you might in managing your inventory. If you have questions about recording customer entries or other expenses, let me know and I'll assist you again some time in the future. 

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