Intercompany Distribution
Intercompany transactions occur when one entity is involved in a transaction with another entity. When an intercompany transaction is created, each entity must record the amount to be paid or collected among entities. This information is recorded in accounts often called intercompany payable and intercompany receivable, or the Due To/Due From accounts.
In Multi-Entity Management, when an intercompany transaction is created, the Due To/Due From journal entries are added to the transaction distribution.
For example, the following payable transaction is created to the entity 100:
| Debit | 200.00 | Entity 100 | ||
| Debit | 300.00 | Entity 200 | ||
| Credit | 500.00 | Entity 100 |
In Multi-Entity Management, the journal entries are as follows:
|
Debit Intercompany Due From |
300.00 | Entity 100 | ||
|
|
Credit Intercompany Due To |
300.00 | Entity 200 |
