I manage two companies that are interlinked - The Freehold Company and the Property Service Company. An invoice was raised by the Freehold Company but the client made the payment into the Property Service Company. Please note the person is a client in both companies. I have thought of transfering the amount from the Property Service to the Freehold as a bank transaction. I just cannot find the best way to tag or do the accounting in both companies. Can you help please. Many thanks.
In the property service company tag the money in from the client as a bank transfer from director’s loan and the money out where you pay the freehold company as a transfer back the other way, so the net effect is zero - this money never belonged to the PSC in the first place. Then on the freehold side tag the money as payment from a customer in the normal way.
Sounds good. Never thought of using the director’s loan account. Thank you.
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