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MichelleC11's avatar
MichelleC11
Experienced User
5 years ago

Spend money using different company bank account

Hi Everyone,

 

Currently running 2 companies: Company A and Company B. However there's always some mistaken making payment through wrong company bank account.

 

For example, Company A has an invoice amount $300 but my manager has mistakenly pay through Company B bank account for the outstanding payment (it should be pay through Company A's bank account).

 

Any MYOB adjustment i can make so that the bank reconcile is correct (in company A)??? Any help would be appreciated

 

 

  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi MichelleC11 

     

    As explained by Keen, creating loan accounts for both companies is an easy way to deal with these situations.

     

    In your example:

     

    1. In Company Y enter a Pay Bills transaction to pay that invoice, but change the Pay From Account to the Company Z loan account.
    2. In Company Z enter a Spend Money transaction for the amount of the invoice payment, the Pay From Account will be Company Z's bank account, and allocate to Company Y's loan account.

    You can either transfer the money or leave it for the accountant to work out at the EOY.  If you did transfer the money you would the need to record Transfer Money transactions. I answered another post on this recently which has a more detailed explanation of how this all works: Customer payments made into incorrect entities 

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • Keen's avatar
    Keen
    Contributing Cover User

    create a inter-company loan account in both A & B, process $300 payment in B company as loan to A, process in A company as $300 expense paid via loan from B company

    • MichelleC11's avatar
      MichelleC11
      Experienced User

      Hi Keen,

       

      thank you for the quick response!!

       

      Will it cause any follow-up work?

      • Keen's avatar
        Keen
        Contributing Cover User

        The reality is A might pay for B more than B pays for A.  You may like to settle the net difference of the inter-company loan accounts periodically by transferring money from B's bank account to A's bank account or vice versa.  Based on your info, you might need to work out the difference for your manager to do the transfer.

        That is one way of doing it, have fun