Inter Company Journal Entry
Inter Company Journal Entries allow you to record transactions between two companies within your YousrERP account. Each entry automatically creates corresponding journal entries in both companies.
When to Use
- Transfer of funds between sister companies
- Allocation of shared expenses
- Inter-company sales and purchases
- Management fee allocations
Creating an Inter-Company Journal Entry
- Go to Accounting > Inter Company Journal Entry and click New.
- Select the From Company (the company initiating the entry).
- Select the To Company (the receiving company).
- Enter the Posting Date.
- Add rows specifying accounts in each company:
- For each row, select accounts from both companies
- Enter debits and credits that balance
- Click Save and Submit.
YousrERP will create:
- A Journal Entry in the From Company
- A corresponding Journal Entry in the To Company
Both entries reference each other for audit trail purposes.
Important Notes
- Both companies must be set up in your YousrERP account.
- The accounts selected must exist in the respective company's Chart of Accounts.
- Total debits must equal total credits across all rows.
- Inter-company entries should be eliminated during consolidation if you prepare consolidated financial statements.