@ndfbroadwick wrote:
FinFrockTax, I will be using the Enter Credit Card Charges/Refund for posting the Amex charges to the appropriate expense category in Co A. The rest of the entries will be JE. Will this be ok? How do you see the actual QB steps? Here's a recap of the situation for your reference: Co A is amex cardholder. Co B no amex. Amex bill arrived showing $1000 balance due which breaks down to Co A's charges = $700 and Co B's charges = $300. Co A and B made direct payments to amex in the amounts of $700 and $300, respectively.
In Company A, you'll need to create an AR account for "Company B Intercompany Loan". You'll also need to create a Customer for Company B. When you go to Enter CC Expenses, you'll choose Customer Company B and enter the amount that applies to their charges in bulk (no need to itemize the expenses). In the Account line, you'll choose the Company B Intercompany Loan as the account, and the full amount that is applicable to Company B.
If you want to also use a QB function in Company A for when Company B makes the payment directly to Amex, you could create a new Item as Other Charge and have it apply directly to the Amex payable account. When Company B makes a payment directly to Amex, you would create a Credit/Memo for Company B, choose your Company B Intercompany Loan receivable account, and use your new Other Charge item created for the amount that was paid. When you record the credit memo, it will ask you if you want to apply it against the open invoice for Company B to relieve the balance due that was created when you entered the original CC charge.
If the payment is made from Company B to Company A directly, rather than to Amex, you can simply receive a payment from customer Company B and select the Intercompany Loan as the receivable account to apply the payment against the amount due from Company B.
The above is all for Company A though.
In Company B, you would create a new Accounts Payable account for your Company A Intercompany Loan. You also need to create a vendor account for Amex/Company A (with the check payable to Amex). You can then go to Enter Bills and select the Intercompany Loan as your AP account rather than having it go directly to your regular AP. You would then enter the expenses as normal for Company B based on the expenses incurred on the statement as a bill from Company A.
When you go to Pay Bills, you would make sure your AP account is set to the Intercompany Loan and then select the bill that was entered for Amex/Company A and make your payment against the bill as you normally would pay any other bill.
If you end up making a payment directly to Company A rather than Amex, you'll just need to update the name printed on the check before it prints.
I would recommend checking to make sure the Receivable in Company A and the Payable in Company B have the same balances at least monthly to make sure nothing is missed on either side.
If you wanted to do this all as JE's, I would recommend following my original post since it provides the debits and credits to post in each company.
