SunSystems gives organisations that run multi-company set-up the ability to generate intercompany postings across business entities.
This is important because without parent companies executing their intercompany accounting properly, their consolidated financial statements will be affected. For example, inaccuracies and incorrect data can become the order of the day within their financial statements.
With the intercompany feature, you can treat your intercompany transactions in different ways — you can treat each posting in the way that best fits your business and reporting requirements.
- You can set up intercompany accounts in your chart of accounts to record your intercompany transactions. These can be debtor, creditor, or client account types.
- You can charge interest on intercompany balances due to you. You can use a memo account to add interest to your outstanding balances and then post them to the relevant business entity.
- Your head office may want to levy a management charge on its subsidiaries each period. You can use Corporate Allocations to calculate and distribute charges across business units or ledgers.
- If a company unit buys goods or services that are used throughout the company, you can recharge the expenses.
To learn more about how SunSystems can meet your organisation’s accounting needs, reach out to us and one of our experts will speak to you.