I have 2 Companies. Group 1 and Group 2. A staff member owes money to Group 1 (Noted as a loan from Group 1 to member). Member now pays the loan back on a monthly basis, but into Group 2. I now have a loan owed to Group 1 and a loan paid into Group 2. How do I transfer the loan from Group 1 to Group 2 in order for these payments to balance out in both companies? The client does not want to transfer the owed amount from Group 2 to Group 1. I assume with a Journal entry but am afraid I might make a mistake and need advice on how to do this correctly.
Will appreciate any advice.
