When creating an invoice, the general ledger entry associated with the invoice generally posts as a debit to accounts receivable and a credit to an income account. Accounts Receivable is always posted to the branch associated with the customer’s invoice. Revenue is posted to the branch associated with either the site the items and parts are attached to or the RMR the invoice is being created from. If there are two branches associated with one invoice, the inter-branch entry is added to the GL entry posted from the invoice.
- There is a debit to the revenue amount to the branch not associated with the customer the invoice is being generated from.
- There is a credit to the revenue amount to the branch associated with the customer the invoice is being generated from.
There is a post to the inter-branch account when an invoice hits the general ledger for two different branches, which happens in these two scenarios:
- Items and parts on an invoice can be manually attached to different sites. If the invoice has two sites on it that are attached to different branches, this will post an inter-branch entry.
- Multiple RMRs can be charged on the same invoice. If there is more than one RMR line being charged on the same invoice and the site those RMRs are attached to are using a different branch, this will post an inter-branch entry.
Entry Example: This example shows posting a recurring invoice for a customer associated with the Ohio branch that includes RMR for two different sites: Site 1 - Ohio Branch and Site 2 - Michigan Branch.
- Ohio Monitoring - $50
- Ohio Sales Tax - $5
- Mich. Monitoring - $50
- Mich. Sales Tax - $5
These will post to the GL as normal with branches associated with the individual entries and AR being associated with the branch the customer is on (Ohio).
Debit | Credit | Branch | |
---|---|---|---|
Accounts Receivable | $110 | Ohio | |
Monthly Revenue |
$50 | Ohio | |
Sales Tax |
$5 | Ohio | |
Monthly Revenue |
$50 | Michigan | |
Sales Tax |
$5 | Michigan | |
Inter-Branch Due from Ohio | $50 | Michigan | |
Inter-Branch Due from Ohio | $5 | Michigan | |
Inter-Branch due to Michigan | $50 | Ohio | |
Inter-Branch due to Michigan | $5 | Ohio |