i don’t know how to handle holding company accounts to maintain transaction between the main company and it’s sub company .
i was thinking about making sub companies as accounts in the main company -
is it the right way to handle this situation ?
and how i’m going to know loss and profit for each company and makes report ?
You have 1 company with 2 or more sub company, its right? If true, use cost center to handle your case.
What type of transaction?
i want to make money transfer from sub company A to B , OR
is it possible to transfer money between companies via cost center?
Sub A (Sending)
Cr Bank
Dr “Transfers to Sub B”
Sub B (Receiving)
Dr Bank
Cr “Transfers from Sub A”
that means i will make multiple companies … and in each company i will create account for ‘Transfers to sub “*other companies” and " Trasfers from sub"*other companies’’ right ?
That’s how I would do it if financial statements were required for each of the companies.
Thank you very much Chude for your help