From V11 I see the introduction of a much needed feature, theability to pass inter company journal entries.
I have read up and practiced how to use this feature and I seem to be missing something.
For me to be able to pass intercompany journal entries I must use the inter company entry option when creating the Journal —no problem here
When I choose the intercompany journal entry option, I can only choose accounts that have been created specifically for intercompany purpose, you do this by ticking the “inter company account” box when creating the account…still no problem here
However, and this is where the problem occurs, at least for me…you cannot use an account that has been ear marked as inter company when creating normal journals. This is a catch 22. let me try and explain.
We normally raise intercompany entries when Company A incurs a financial obligations on behalf of Company B and they are both part of the same group of companies.
For exampleif Company A spends $1000 cash on rent on behalf of Company B the ideal posting should be
In Company A Books
Dr Intercompany Account (Company B)
In Company B Books
Cr Intercompany Account (Company A)
Unfortunately in ERPNext as structured I will not be able to pass the above transactions because Cash and Rent cannot be created as intercompany accounts (the two accounts are used by the two companies internally). And if they are not created as intercompany accounts they will not show up when I want to pass intercompany journal entries.
And if I create them as intercompany accounts, they will not be available to be used when posting normal transactions within the two companies.
Am I missing anything here ? looking forward to someone explaining this to me.