Move balances between bank accounts of different legal entities

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Hi experts,

What would you say it's the best way to move balances between bank accounts of different legal entities without:

* Invoice or any other financial document

* Not allowing multiple subledger transactions per voucher

* Not using centralized payments

Basically, we transfer money between bank accounts that belong to the same group but sit in different legal entities. From a bank perspective is a bank transfer but system wise I can't find an effective and clean way to reflect that. Any ideas will be welcomed.

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Frank Hamelly | MVP... 46,220 Super User 2024 Season 2 on at

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Move balances between bank accounts of different legal entities

You must have an intercompany relationship between the two companies but you can do a bank->bank transfer as below.
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Morgan Bazin 44 on at

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Move balances between bank accounts of different legal entities

When I've encountered this requirement, I typically suggest the creation of a 'suspense' account in the legal entity accepting the incoming bank transfer. So, if I'm in the legal entity USMF and I want to transfer funds to USSI, I would make the following journal entries:

In USMF:

DR Suspense main account (remember to use Intercompany to USSI)

CR BANK Account

then, in USSI:

DR BANK Account

CR Suspense (not intercompany)

It's not ideal, but the only way I've found to do this.
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Ramit Paul 22,295 Most Valuable Professional on at

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Move balances between bank accounts of different legal entities

Hi,

I think it's only way to create bank as credit in one LE and debit in One LE.