Intercompany AR Transactions

I am trying to help out someone pick software and accounting is my weekness. Sorry if I do not explain this very well…

But I need to run 2 companies, but I only have 1 AP Clerk. That AP Clerk will have 5 Payables to create (aka jounal entries)…can they simply pick which company they need to post to in a single journal, or will the clerk have to log into each company to process transactions.

Hope this is clear enough [:)]

they have to log into each company to pay the payable.


But to clarify, what about entering the Payable, same thing?

Are these companies legal entities? Do they need to just run income statement by company or Balance sheet as well? If it’s income statement, then you can use dimensions and use one company. I’ve done modifications where the company had multiple companies, and they were doing paying out invoices (AP) from one company, but it’s not standard NAV. You can use inter company module, but it increases the amount of work and due to/from inter company entries. Paying out of one company is only one side of it. What happens to the goods that you are purchasing? What company owns it? I know accounting clerks would like this feature, but it opens up a big hole. Most mid/small Accounting system leave the feature out, and big accounting system require you to go through so many steps, that opening a second company very simple.

This is not so difficult. We run 6 companies for our Management Service team and they do not find this a problem. Perhaps the working practices should be reviewed and revised to gain some efficiences?

Good luck [:)]