Intercompany accounts

SUGGESTED

I need help.

We are currently working with 2 companies in Sage. One (Company A) where we record all company expenses and revenues and one ( Company B )where we enter all client expenses and transfer that to main company each month using an intercompany account.

Company B pays clients from their bank account and money is transferred from Company A when needed.

The account is balanced between the 2 , Company A and B. My concern is that there is an ever increasing DR in Company A and CR in Company B. Will there always be a balance? I just keep thinking it needs to reset to zero.

Any help would be appreciated.

  • 0
    SUGGESTED

    Hi Janchristie:

    Depending upon company setup and organization will determine whether the balances will clear out. It appears Company A owns Company B but I am unsure from my vantage point. I know this doesn't help you, but without the necessary information I am unable to determine an answer to your question.