Example: Multi-Site Payment Posting
Three sites exist for Entity XYZ. Site A is designated
as the centralized collection site where all customer payments are collected.
If Site A receives a $300 payment from a customer to pay 3 invoices, each
from a different site, the following journal entries must occur.
- Invoice customer - $100 from each entity.
| |
Debit |
Credit |
| Site A transactions: |
|
|
| A/R |
$100 |
|
| Sales |
|
$100 |
| |
Debit |
Credit |
| Site B transactions: |
|
|
| A/R |
$100 |
|
| Sales |
|
$100 |
| |
Debit |
Credit |
| Site C transactions: |
|
|
| A/R |
$100 |
|
| Sales |
|
$100 |
- Post payment of $300 - distribute $100 to each entity.
| |
Debit |
Credit |
| Site A Transactions: |
|
|
| Cash |
$300 |
|
| A/R |
|
$100 |
| Inter-Site Liab (Entity B) |
|
$100 |
| InterEntity Liab (Entity C) |
|
$100 |
| |
Debit |
Credit |
| Site B transactions: |
|
|
| InterEntity Asset |
$100 |
|
| A/R |
|
$100 |
| |
Debit |
Credit |
| Site C transactions: |
|
|
| InterEntity Asset |
$100 |
|
| A/R |
|
$100 |
NOTE: To reverse
the inter-site transactions; each site will create a manual entry when
corporate pays cash to the sites.
Related Topics
Posting Payments