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Importer223
Level 1

How to record Intercompany Transactions with no payment

Hi, we would like to account for transactions that will never receive a payment for but need to be recorded in order to account for VAT. Example below:

Our company in UK sends goods to our company in DE. Both companies share the same bank account, and any profits made by the DE company are paid straight into the UK bank account.

Nevertheless we need to record an invoice/sales receipt (which one is better for this?) in order to declare this export of goods in the UK and declare it in our UK VAT returns. Also we need the invoice to declare the Import of goods in Germany by German company.

The idea is that this transactions do not affect the profit and loss statement or balance sheet.

Any help is appreciated

1 REPLY 1
Rasa-LilaM
QuickBooks Team

How to record Intercompany Transactions with no payment

Keeping track of intercompany transactions is crucial for accurate VAT and tax reporting, Importer223. This keeps the company in line with tax regulations across different jurisdictions. I can help you connect with the right resources for advice on how to tackle your issue.

 

 

The data displayed in your financial reports are based on the transactions created in your company. Since QuickBooks Online (QBO) is like a diary that keeps track of your actual entries, let's make sure to record the intercompany entries properly.

 

That said, I recommend reaching out to an accountant for further advice. They can guide you on how to enter the transactions (without any payment received) and ensure that the export of goods is accurately reflected in your VAT return. You can also inquire whether the entries will impact your Profit and Loss Statement and Balance Sheet report.

 

Browse through the links below for additional insights into the different VAT codes, their usage in sales and purchase forms, and tips on when it's best to use a sales receipt compared to an invoice:

 

For your future reference, I've included an article that discusses how to submit a VAT return, make a sales tax adjustment, and update the VAT accounting scheme, to name a few: VAT: Getting started.

 

Keep me updated if you have any other questions about managing imported goods or your sales transactions. The Community is ready to help you at any time.

 

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