Shared Bank Account

DATABUILD  allows the sharing of Bank Accounts between two or more companies.

n.b. The SYSTEM database must be common to all the selected companies.

Steps for setting up a Shared Bank and Loan mechanism:

1. create a BANK in the company (User company) which is to use the actual Bank account of another company, and tag the "Holding Account: Link to another Company" check box.  As for any standard Bank there must be a unique Asset and Liability account set up and nominated.

Company                select the company which holds the target Bank account

Loan Account                select the GL account (typically an Asset) created in the Holding Company

to record the intercompany transactions generated by the User company

Bank                        select the Bank account to be used by the User company

Job                        select the Job (typically the General Ledger GENLED) to record the

intercompany transactions

Supplier                the Supplier (typically the User company) which will use the account

Cost Centre                the Cost Centre which is linked to the general ledger Holding Loan Account

Processing entries and the resulting automatic system generated entries:

Invoices are posted in the User company and the costs will be recorded and borne by that company.  The basic accounting entries would be debit cost and credit Creditors.  Payment of these invoices will be performed through the User company, however the Bank account of the other linked company can be used.  The entries created in the User company for a payment will be a debit to Creditors and credit to the intercompany loan account.  The system will generate automatic entries in the Holding company (the company with the actual bank) of a debit to the Intercompany account and a credit to the used Bank.

Similarly, Claims are posted in the User entity thus creating a debit to Debtors and a credit to Income.  Receipts posted to the linked Shared Bank account will generate a debit to the Intercompany account and credit to Debtors.  The automatic entries in the Holding company will be a debit to Bank and a credit to the Intercompany account.