Intercompany Due To/Due From Account setup

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Posted on by DinB

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I am trying to setup some sample data for Intercompany transactions. I have following questions:

1) In standard practice, is it better to use separate accounts for "Due To" and "Due From" or use combined "Due To/From" Account Number for both?

2) In the Account Maintenance, What should be the "Posting Type", "Typical Balance" and "Category" for Intercompany Accounts - "Due To", "Due From" or "Due To/From" Accounts?

3) What is the standard naming convention for segments for those Accounts? Should I name the accounts -2XXX- similar to AP account?

4) How are the balances in those accounts handled after the intercompany transactions they are posted? Do the Companies enter payments to each other?

Thanks.

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Redbeard 12,931 on at

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Nolan does a heck of a job on this type of functionality, and has online demonstrations and screenshots, which will likely provided better answers to your "standard practices" questions for Intercompany accounting than a protracted post from me.

www.nolanbusinesssolutions.com/.../intercompany-postings

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