Pay a purchase invoice from Inter-company loan account

[w9gga]

Hi, how can I use an inter-company loan amount to pay an inter-company cross charge?
Our 2 companies often supply services to each other so invoice each other for the work. Rather than exchanging cash I would like to pay some invoices off against the inter-company loan so it starts lowering the balance. Is this possible?

[QFSteve]

Hello @w9gga

You would select the intercompany loan account when logging the payment.

[w9gga]

Thanks Steve, when I click the log payment button it lists all the bank accounts but not the inter-company loan. Just looking at your screen dump it says paid ‘from’ whereas the way Im trying says paid ‘to’. Does this suggest Im doing it from the wrong screen?

[w9gga]

oh hang fire… I see what you are doing. Mine is the other way round. I want to pay an invoice with the IC loan. Not pay a purchase invoice…

[QFSteve]

You can only pay invoices with accounts listed in the bank screen.

Purchase
If you IC loan in not in the list you could pay them with a dummy bank account and then move the balance from the IC loan account (Money In transaction tagged to specific code)

Sale
If you IC loan in not in the list you could pay them with a dummy bank account and then move the balance to the IC loan account (Money Out transaction tagged to specific code)

[w9gga]

Thanks Steve! Successfully done. I created an ‘Inter-Company Control’ bank account, paid a few invoices off to that then manually entered a new transaction moving the money out to the IC loan code.

Worked a dream.

Cheers!