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KatL
Level 3

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Sales invoices in company A which have been paid by client into Company B so I want to post that they are paid using an intercompany account. In the past I've raised a credit note and coded it to the intercompany account but I can't seem to do that in Quickbooks - please can you help and advise best way to do it? thank you in advance
Solved
Best answer October 08, 2020

Accepted Solutions
JonpriL
Moderator

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Hello @KatL,

 

You did nothing wrong. A credit note is posted and will affect the customer's balance or Debtors account. This is why you're unable to select the created nominal account for a credit note.

 

With this, let's consider following the suggestions shared by my colleague above. You'll want to create an invoice in company A for Company B and a bill for company A in company B. Learn more about creating these transactions through these articles:

Additionally, you can also visit and read through the steps in this helpful article about other methods to use in recording a customer payment: How to apply a journal entry credit to an invoice?

 

Let me know in the comments if you have any other questions. Stay safe always!

View solution in original post

GeorgiaC
QuickBooks Team

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Hi KatL, 

 

To close the invoice as paid you would need to apply a payment/credit note or journal entry and link this to the invoice payment. 

 

The only way to link a nominal account to a credit note is through the 'income account' chosen on the product/service which is selected on the transaction - e.g. by creating a non-stock product which posts to the specified account. 

 

We'd strongly advise consulting with an accountant for the best practice on recording the intercompany transactions, please get back to us below if you have any questions.🙂

 

 

View solution in original post

6 REPLIES 6
KatL
Level 3

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

This is for a UK Company

EmmaM
QuickBooks Team

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

 

HI KatL, The intercompany account is that linked to Company A and B in QuickBooks? You could invoice Company B in Company A and in the company create a bill for Company A, in Company B. There are other options if you want to record it as a credit note in Company A. What have you recorded at the moment in the invoice in the company a marked as paid to the intercompany account in Company A?

KatL
Level 3

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

In Company A I have 2 customer sales invoices and I had created an intercompany nominal account (in the balance sheet for Company B which is not in QB).  I thought I could create a credit note and post it to the intercompany nominal a/c but I don't have the option to apply a nominal account in sales credit notes in QB.  Am I doing something wrong?   Hope that explains it

JonpriL
Moderator

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Hello @KatL,

 

You did nothing wrong. A credit note is posted and will affect the customer's balance or Debtors account. This is why you're unable to select the created nominal account for a credit note.

 

With this, let's consider following the suggestions shared by my colleague above. You'll want to create an invoice in company A for Company B and a bill for company A in company B. Learn more about creating these transactions through these articles:

Additionally, you can also visit and read through the steps in this helpful article about other methods to use in recording a customer payment: How to apply a journal entry credit to an invoice?

 

Let me know in the comments if you have any other questions. Stay safe always!

View solution in original post

KatL
Level 3

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Hi it won't let me mark the sales inv in company A as paid - so wondering how I best do this?

GeorgiaC
QuickBooks Team

Sales invoices in company A which have been paid by client into Company B - how do i credit them?

Hi KatL, 

 

To close the invoice as paid you would need to apply a payment/credit note or journal entry and link this to the invoice payment. 

 

The only way to link a nominal account to a credit note is through the 'income account' chosen on the product/service which is selected on the transaction - e.g. by creating a non-stock product which posts to the specified account. 

 

We'd strongly advise consulting with an accountant for the best practice on recording the intercompany transactions, please get back to us below if you have any questions.🙂

 

 

View solution in original post