I am feeling really lost today so any help would be appreciated.
I have 4 companies owned by the same partners.
There are times when international payments are wired into the wrong company bank account. So we have to show the deposit in the wrong company and then transfer the money to the correct bank account.
So I show the deposit as intercompany escrow because its not really that companies money.
I have the same intercompany escrow showing on the correct company and that is only used when the reverse happens. At the year end the previous account would move money out of the main company into a subsidary for tax reasons. (they do not do consolidated returns) So they showed a huge amount going out but no payable linked to the payment. This has caused a lot of chaos for me.
Other wise Company A has a deposit of say $5000.00 that belongs to company B so in order to recieve it I created the intercompany escrow account. It is not sales, it is not income, it is techincally a liability. Right?
When Company B recieves the money it goes towards the open invoice. UNLESS it is the year end money being moved back into the main company.
Should I have an intercompany account in both my assets and my liability accounts? OR should they be in the same place on both company books?
I consider it to be a contra-asset but QB does not really have a place for that...does it?
Sorry my post is so long. My mind is frazzled over this issue.