Business Case
My Group company incurs expenses on behalf of its subsidiary company. They then post recharge entry to subsidiary at month end. An excel is shared to the subsidiaries charged of the break up of expenses. The subsidiary then decides which GL they want to receive the charge in along with respective financial dimensions. They can contest the charges pushed by holding
Example
Assume group company paid 6000 USD for legal compliances of three subsidiaries - A, B, C
| Amount |
Charged to |
GL reversed |
| 1500 USD |
Subsidiary A |
Visa Expenses |
| 1800 USD |
Subsidiary B |
Visa expenses |
| 2700 USD |
Subsidiary C |
Visa Expenses |
The Subsidiaries action
| Action by Subsidiary |
Amount Approved |
GL Booked |
| Approved fully |
1500 USD |
Visa expenses |
| Approved fully |
800 USD
1000 USD
|
Employee cost
Travelling Cost
|
| Approved partial |
2000 USD |
Other expense |
Requirement
1. Not post entry in Subsidiary unless approved (including point 3)
2. Option to select own GL and financial dimension by Subsidiary - separate GL from Head office. Entry should hit in books of sub, when approved.
3. Due to/ Due from entries posted because of Intercompany.
