Understand that there is only General Ledger (GL) and Accounts Payable (AP) Invoice for ICT. It would be great to have AP Payment in ICT as well. Reason being the originator can make payment on behalf for the destination. This is very common transaction among Intercompany.

By having AP Payment in ICT, the Bank Services in originator can be updated, as well as able to use the Print Check feature in AP and also do bank reconciliation. This is like killing two birds with one stone.

Giving an example that Company A (originator) make payment on behalf for Company B (destination), AP Payment in ICT should generate the following double entries:

In ICT company for AP Payment (Misc. Payment):
Debit Expenses (in Company B)
Credit Bank Clearing (in Company A)

In Company A's (originator) AP Payment (Misc. Payment):
Debit Bank Clearing
Credit Bank

In Company A's (originator) GL:
Debit Loan - B
Credit Bank Clearing

In Company B's (destination) GL:
Debit Expenses
Credit Loan - A

With the current Sage 300 ERP version 2012, the journal entry that entered in ICT's GL will not update AP Payment Batch in the originator. With AP Invoice in ICT will definitely NOT update into AP Payment in the originator.

I am sure with this enhancement, it will save the time for the accounts staff to key in the payment on behalf for the intercompany transaction.

by: Cecy T. | over a year ago | Financial Management