These general ledger accounts are used where you have multiple companies and you are transacting between same. This stops your system from going out of balance or transactions being allocated to e.g. the 1zzzzzzzz GL.
You create your general ledger accounts for the different companies which may be loan accounts. Once created, you then update your Company Codes - Accounting parameters with the new general ledger accounts for each Company.
Say you have a matter on Company 4, and the funds where then received into Company 1 bank account. You enter a cash receipt for bank 11 and allocate to the matter which belongs to company 4. The system will then create the transactions as follows:
Company 1:
- DR Bank GL
- CR Intercompany Loan GL
Company 4:
- DR Intercompany Loan GL
- CR Debtors
This is also the same where you may make payments for disbursements that belong to one company out of another bank account that does not relate to that company.
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