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Create transactions between different company files in QuickBooks Desktop Enterprise.

SOLVEDby QuickBooks2Updated 1 year ago

Learn how to issue a bill or check between your separate company files. 

In QuickBooks Desktop Enterprise 2023, you can transact between your company files. This is useful if you have separate, but shared companies that conduct business with one another. Or, if your businesses share a common set of accounting practices.

Note: Available only in QuickBooks Enterprise Accountant, Diamond, or Platinum. 

Link your company files

First, set up a relationship between the company files

Note: Once you create a relationship it can't be removed. We recommend, before you create a relationship, you save a backup of your file. If you decide to remove a relationship, you'll need to restore a backup copy of your file from a time before the relationship was created.

Step 1: Create a relationship from the original company file

  1. Go to Company, then select Intercompany Transactions.
    You can also select the Intercompany Transactions from your Home display. 
  2. Select Create a relationship from the dashboard. Go through the detailed message, then select Continue.
  3. Select the company file you want to link, then Continue.
    Only the companies where you are part of the Intuit Account will display. If you don’t see the one you need, you may need to add it to your Intuit Account. 
  4. Select Due to and Due from accounts for this company file. You can choose from existing accounts for future usage or add a new account. 
    • We recommend you use Current assets for the Due To account and Current liabilities for the Due From account. 
    • Once you create both accounts, select Send Request, which becomes available after you set up both accounts.
  5. Go through the instructions that appear when you finalize the relationship setup. 
  6. See the new relationship in the Sent for approval tab in the Intercompany transactions dashboard.

Approve the request in the other company before you enter intercompany transactions. 

Step 2: Approve/Reject the relationship in the secondary file

  1. Go to Company and select Intercompany transactions.
  2. Then select Relationships and Pending my approval.
    You will see a relationship request which needs your approval.
  1. Select the action for Approve. (You can also choose to reject the request)
  2. Select Due to and Due from accounts for this company file. You can choose from existing accounts for future usage or you can add a new account. 
  3. Select Create relation to complete your relationship approval process.
  4. Go through the instructions that appear when you finalize the relationship setup.
  5. See the new relationship in the Approved tab in the Intercompany transactions dashboard. The new relationship shows Approved status.

Once the relationship is approved, you can create an intercompany bill or check. 

Create and send the intercompany transaction for approval

Step 3: Create intercompany transactions:

Go to the company that will pay with an intercompany transaction directly on Enter Bills or Write Checks. 

  1. Select Vendors, then Enter Bills.
  2. Select Intercompany transactions to convert the Bill to an Intercompany transaction Bill.
  3. Select a Vendor
  4. From the table, select the Company to receive the bill and enter the amount.
  5. The account you created at the time of relationship creation will populate once you select the company. You can change the account.
  6. Save the bill.
  7. Select Transactions, and then Sent for Approvals to see the bill in the Intercompany dashboard.

You can use these same steps for Checks.

Step 4: Approve/Reject Transactions:

Go to the company that will receive payment.

  1. Go to Company and select Intercompany transactions
  2. Select Transactions, then Pending my approval.

You’ll see all the bills and checks which require your approval. 

  1. Select an expense account for the transaction you want to approve.
  2. Select the action for Approve. (You can also choose to reject the transaction).
  3. Once you approve the transaction (bill/check), QuickBooks creates the Intercompany transaction journal entry with the Due To account and expense account you chose. 
    • Select Transactions, then Approved to see it in the Intercompany dashboard. You can also view Rejected transactions. 

To see the approval in the related file

  1. Open the company file from where you initiated the transaction. 
  2. Go to Company and select Intercompany transactions
  3. Select Transactions, then Approved to see the status. 

Intercompany transactions report

View the report that helps you track intercompany transactions.

  1. Select Company, then Intercompany transactions.
  2. Then select Transactions and View Reports.

The report lists all the intercompany transactions across related companies.

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