Due to the nature of your business we appreciate that you have many trading entities and that in doing so you have loans for funds that are issued on or received on behalf of another company. It is the Inter Company Loan Matrix that allows you to build the relationships between these companies and the relevant accounts.
Accounts Payable Invoice
If you are landing an invoice in Company 100 for a cost in an estate in Company 200 because the liability for the invoice will remain in company 100 the loan accounts are used.
The system will place a Credit to Trade Suppliers in company 100, a Debit to the linked loan account for company 200 in company 100, a Credit to the linked loan account in company 200 for company 100 and a Debit to the account associated with the Cost Centre in company 200.
Sales Process
Much in the same manner as the Accounts Payable Invoice described above the sales process handles the Cost of Sales Accruals where a sale is made in Company 200 but the liability for the cost of sales invoices resides with Company 100.
This Matrix is maintained via the Maintenance Menu option Inter Company Loan Sets.