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spentell
Level 1

Holdings Company with separate QB accounts for subsidiaries - how to record transfer of funds for payments

Hello, we have a Holdings Company with subsidiaries, let's say Company A, B, and C. Per our tax accountant, we have set up payroll for management with the Holdings Co. and will be paying our health insurance for all subsidiaries with the Holdings Co. via money transfers from the subsidiaries for their portion of the bills. 

 

Example:

 

An invoice is sent to the Holdings Co. for $20,000. Holdings Co. will pay the invoice.

>Company A must pay $10,000 to the holdings company for their portion.

>Company B must pay $7,000 to the holdings company for their portion.

>Company C must pay $3,000 to the holdings company for their portion

These 3 payments are moved via bank transfers from all 3 subsidiaries' bank accounts to the Holdings Co. bank account and the Holdings Co. will pay the $20,000.

 

How do we record these transactions? 

1 Comment 1
Rustler
Level 15

Holdings Company with separate QB accounts for subsidiaries - how to record transfer of funds for payments

Invoice the three companies for their share. the item you use should post to a liability account you set up for this

receive payment and deposit.

make the total payment and use the same liability account as the expense (reason) for the payment

 

Since you are paying an accountant, I have to wonder why he is not helping you, teaching you how to make these entries.  He works for you.

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