Corporate Accounting
- A company or department that handles payroll expenses incurred on behalf of subsidiaries.
- Cash, asset, and liability transfers between headquarters and subsidiaries allocations.
- Consolidating financial statements.
- Inter-company financial reconciliations.
- Import/export transactions from/to subsidiaries.
Inter-company accounting can be intimidating because of all the variables. However, the concept is very simple: when Inter-company Accounts Receivable and Accounts Payable are consolidated, they should balance to zero.
Modular-based systems require the user to enter inter-company transactions separately in each company: a one-to-one relationship. Plus & Minus supports many-to-one and one-to-many relationships. Additionally, Plus & Minus allows the host company to generate inter-company transactions among subsidiaries (top-down) or the subsidiaries to generate inter-company transactions (bottom-up).
Note: All inter-company transactions route through one inter-company gen account. The inter-company gen account must be the same in all companies.