Process Intercompany Transactions

Overview

GoldFinch supports intercompany transactions among multiple subsidiaries and automatically tracks the corresponding Due To and Due From balances.

This section demonstrates how to process intercompany transactions between two subsidiaries using:

• Intercompany Sales Orders
• Intercompany Purchase Orders
• Intercompany General Journals

Warehouse Setup

Create a warehouse for each subsidiary and assign it to the appropriate GL Ledger.

This ensures inventory transactions are posted to the correct legal entity.

Note

For information on segregating inventory by subsidiary, see Configure Multi-Currency Overview – GoldFinch Clientcare.

Intercompany Sales Orders

Create a Sales Order using the intercompany customer.

Populate the following fields:

• Sell-to Customer – Intercompany customer
• Warehouse
• GL Ledger

When the Sales Invoice is posted:

• Revenue and inventory entries are posted to the selling subsidiary.
• The customer balance is posted to the configured Due To/Due From GL Account instead of a normal Accounts Receivable account.

Intercompany Purchase Orders

Create a Purchase Order using the intercompany vendor.

Populate the following fields:

• Buy-from Vendor – Intercompany vendor
• Warehouse
• GL Ledger

When the Purchase Invoice is posted:

• Inventory or expense is recorded in the purchasing subsidiary.
• The vendor balance is posted to the configured Due To/Due From GL Account instead of a normal Accounts Payable account.

Intercompany General Journals

General Journals can be used to transfer or reclassify balances between subsidiaries without creating purchasing or sales documents.

For example, an expense initially recorded in Actual-US can be reclassified to Actual-CA.

Journal Entry Setup

Complete the following fields on the General Journal lines.

Posting Results

When the journal is posted, GoldFinch automatically:

• Creates offsetting entries in the participating subsidiaries.
• Updates the corresponding Due To/Due From accounts.
• Maintains balanced intercompany receivable and payable balances.
• Preserves a complete audit trail for consolidation and elimination.