TABLE OF CONTENTS

• Description
• Use Case
• System Setting
• How To Steps
• Elimination
• Default Intercompany Account

Description

SoftLedger makes it easy to create the journal lines on each entities ledger when recording an intercompany transaction. This article covers how to use the Intercompany Journal Entry feature in SoftLedger, with and without elimination lines. To see how to create Intercompany Bills & Invoices, please refer to referenced articles. 

Use Case

To record a Journal Entry to account for expenses incurred by a Subsidiary, paid for by a Parent company.

System Setting

1. Navigate to Settings > System
2. Toggle On Intercompany Entries & Eliminations as desired, and click SAVE

How To Steps

1. Navigate to Financial > Journals
2. Click on +NEW
3. In this Example, the Location is the Entity paying [Operating Company-1] for the Expense and the IC Location [Subsidiary 1] is the Entity recognizing the Expense.
4. Please see Debit & Credit column to ensure each journal line is done appropriately

Journal Creation in the UI

Journal Entry generated from the above input

Elimination

Note: Journal Entries have journal line level eliminate options. To have the Journal Lines eliminate, check the box to the left of the journal line. 

Journal Creation in the UI

Journal Entry generated from the above input

Default Intercompany Account

For ledger accounts that have a related Intercompany Account, the system allows you to set the default. For Example, if using your Intercompany Receivable should always be paired with Intercompany Payable, you can default that into the Chart of Accounts.