Accounts Payable Inter-Company Trust Posting

OPERATION:

This enhancement provides the ability to have one company (called the trust) enter and pay Accounts Payable invoices while distributing the General Ledger expense to an unlimited number of other (distribution) companies. Accounts Payable is active only in the Trust company. A simple setup program defines which company is the trust and which companies are the distribution companies for that trust. The setup program also identifies the Due-to and Due-from accounts for the inter-company General Ledger posting. Multiple trusts may be established and there may be companies on the system that are not involved in any trust at all.

As Accounts Payable invoices are entered into the trust company, the system will prompt for the distribution company before the General Ledger expense account. All accounts are verified and displayed from the distribution company that was entered. The General Ledger account lookup in Invoice Entry displays from the distribution company also. The distribution company code prints on the Invoice Entry Register and the inter-company postings show on the Invoice Entry General Ledger Recap. As the invoices are updated, the Accounts Payable liability is posted to the trust, while the expense is posted to the distribution companies as entered. Inter-company postings are made to the General Ledgers of all the companies involved to take care of the Due-To-Trust and Due-From-Distribution postings.

The Accounts Payable Invoice History Display will show the distribution company on the lines panel. Because Accounts Payable exists only in the trust, 1099 vendors will receive only one 1099 for all invoices to the trust company. The companies involved in any one trust do not have to have the same chart of accounts, although they must have the same account format (e.g., ####-###).

NOTE: This enhancement is NOT available when Accounts Payable is interfaced to either Job Cost or Time and Billing.