Intercompany Development Ledger Accounts Payable Invoice with Tax at Child Company (Project)

Based on this debit being possibly split over many General Ledger acc instead of the one, we see that an additional nominated account will have to be established for GJC defaults for retentions

•      Debits - General Ledger A/c as per Debit of cost centre property

•      Debits - GST Paid

•      Credits - Trade Creditor

Using the following General Ledger accounts as

Cost Centre Properties

•      CC1 - Debit General Ledger A/c (A)

•      CC2 - Debit General Ledger A/c (B)

•      Interco A/c (both companies)

Other General Ledger Accounts

•      Trade Creditors - from supplier account group

•      Retentions Payable - from GJC defaults for retention

•      GST Paid - tax code setting as per system maintenance

•      Deferred WIP - from GJC Defaults for retention (only for retentions before tax)

•      Retentions Recoupment - from GJC Defaults for retention (only for Development Ledger linked Accounts Payable invoices)

Sample One - Development Ledger Accounts Payable Invoice

Accounts Payable (before tax retention) retention (15% retention example) with tax held at child company

Journals as follows –

Now we go into the inquiry screen as you discussed and we RELEASE which will create the invoice.

Retentions to be held

Accounts Payable (after tax) retention (15% retention example) tax at child co

Journals as follows –