Description

SoftLedger has the ability to add offsetting Journal line items for Intercompany Journal Entries. An intercompany journal is used when there are multiple entities (SoftLedger Locations) used in a transaction, such as a cash transfer between a parent and child Location.

 

Setup

Enable system wide setting

  1. Navigate to Settings System.
  2. Toggle "Allow Intercompany Entries" to on, and click Save.

Set up Ledger Account default Intercompany Account

  1. Navigate to Financial>Accounts
  2. Update the Ledger Accounts to be used in IC entries with default Intercompany Account

Creating Intercompany Entries

Create an Intercompany Journal Entry

  1. Navigate to Financial>Journals, click Add Journal
  2. Set a Location and an IC(intercompany) Location. You'll notice that when the IC Location is set a new line item column (IC Account) is shown. [Order of operations matters here, for the default IC accounts to populate, please select the IC Location before adding ledger accounts to the journal lines.]

3. When selecting Ledger Accounts you'll notice that accounts with default Intercompany Accounts will pre-populate the line item's IC Account.

 

Note: If the situation requires a different IC Account you may always update to use any account you'd like.

 

Viewing the Entry

When viewing the Journal Entry you'll notice that there are now twice as many lines as entered. Each extra line will have IC Line set to True, this indicates that it is an Intercompany line entry. Each line item will have an offsetting intercompany line item created.

 

When viewing the entry in a journal report, you'll notice the IC Line column as well. For lines where IC Line is True the IC Location will be set as that lines Location and vice versa. This allows the entry to properly offset when running reports.