@ndfbroadwick wrote:
Hi All, I'm in the process of compiling and organizing all of your responses. So far, Teri's outline is very organized, easy to follow, and appears to balance out. Frinfrocktax's outline for accrual basis for the scenario "If Company B makes direct payment to CC company" however doesn't balance out, and I think might be missing an entry. Qbteachmt's logic seems to be aligned with Teri's, but just different methods. Thank you all so much for your time and contribution! Really truly appreciate all your help. I hope this will be helpful to others as well.
The bullet for "If Company B makes the direct payment to CC company" is the 2nd part of the transaction when payment is made. The first part of the transaction is when the expense is incurred, which is the first bullet I listed in the accrual-basis section. You need to first book the expense and receivable/payable in both companies before you book the payment made. I'll revise the post so that it is more clear as to what is required versus what is an option.
