How to setup inter company accounts and do inter company postings: Difference between revisions
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The objective of inter-company accounts in NEOSYS is to allow you to work (post journals) for a pair or group of companies (or divisions) with the same ease as if they were a single company while still keeping fully balancing and separately audit-able accounts per company or division. Once the inter-company accounts are set-up between a pair of companies, NEOSYS allows direct postings from one company into another company subject to authorisation. From one journal data entry session, NEOSYS will create separate balancing vouchers in each company just like one would do manually by entering the same transaction twice, once in each company. | The objective of inter-company accounts in NEOSYS is to allow you to work (post journals) for a pair or group of companies (or divisions) with the same ease as if they were a single company while still keeping fully balancing and separately audit-able accounts per company or division. Once the inter-company accounts are set-up between a pair of companies, NEOSYS allows direct postings from one company into another company subject to authorisation. From one journal data entry session, NEOSYS will create separate balancing vouchers in each company just like one would do manually by entering the same transaction twice, once in each company. | ||
=== How VAT amounts are handled in intercompany transactions === | === How VAT amounts are handled in intercompany transactions === | ||
As of the 03/2018 the VAT amount in an intercompany posting, will remain in the originating company account and only the NET amount will be posted to the intercompany account. | As of the 03/2018 the VAT amount in an intercompany posting, will remain in the originating company account and only the NET amount will be posted to the intercompany account. | ||
=== Why VAT amounts stay in originating company accounts === | |||
This ensures that when you print/export the journals for one company, the total of the VAT column agrees with the VAT report for that company, this helps makes auditing easier. | This ensures that when you print/export the journals for one company, the total of the VAT column agrees with the VAT report for that company, this helps makes auditing easier. | ||
Revision as of 14:38, 10 October 2018
How to setup inter company accounts and do inter company postings
Objective
The objective of inter-company accounts in NEOSYS is to allow you to work (post journals) for a pair or group of companies (or divisions) with the same ease as if they were a single company while still keeping fully balancing and separately audit-able accounts per company or division. Once the inter-company accounts are set-up between a pair of companies, NEOSYS allows direct postings from one company into another company subject to authorisation. From one journal data entry session, NEOSYS will create separate balancing vouchers in each company just like one would do manually by entering the same transaction twice, once in each company.
How VAT amounts are handled in intercompany transactions
As of the 03/2018 the VAT amount in an intercompany posting, will remain in the originating company account and only the NET amount will be posted to the intercompany account.
Why VAT amounts stay in originating company accounts
This ensures that when you print/export the journals for one company, the total of the VAT column agrees with the VAT report for that company, this helps makes auditing easier.
Also if you issue an invoice for company X then even, if for example, you post the income of that invoice to another company, the VAT on the invoice still has to be shown under the company of the invoice.
Setup
Inter company transactions are handled in NEOSYS by first creating inter company accounts in the Inter company ledger and then linking this account in the Company file.
For example a company NEOSYS A wants to transfer an amount to company NEOSYS B
1. Create intercompany accounts for Company A and Company B in Chart of Accounts>Intercompany Accounts Ledger
2. Link the account NB in Company File of Company A and NA in Company File of Company B
Data Entry
3. Use an appropriate Journal Type to show the Transaction
Result in company A
Note how NEOSYS automatically creates a voucher under each company using the inter company accounts and auto-numbers these vouchers
Result in company B
