Our Non-Profit Society sells items on consignment. We do not purchase the items. Upon the sale of the items, we keep 25% and the consignee gets 75% at the beginning of each month. I am having a terrible time trying to find the actual Dr and Cr postings. Thank you.
below are the steps our new software company uses to handled Inter-co sales.
my question is on steps #3 and #5 which company should claim the sale, company 1 that is mailing the invoice to the customer and receiving the payment, or company 2 that is selling to company 1?
or should we be using inter-sale account as below: Interco sales instead of regular sales for # 3 and Interco sales instead of cost of sales on step # 5 (see t-accounts atached)
more important question - should all intercompany accounts, when consolidated, = -0- one company with a credit balance and the other with a debit that when added together = 0?
shared- internal = company 2 1 Co 2 makes a purchase from outside vendor- DR WIP / CR AP 2 Co 2 pays the outside vendor - DR AP / CR Cash 3 Co. 2 sells to Co. 1- CR Sales / DR AR DR Cost / CR WIP
Owner- external = company 1 4 Co 1 records invoice from Co 2 - DR WIP / CR AP 5 Co 1 records sale to outside customer- CR Sales / DR AR - DR Interco Exp Cost of Sales / CR WIP 6 Co 1 receives payment from customer - DR Cash/ CR AR 7 Co 1 receives payment from customer - system generated trans. DR AP / CR Inter-co Due to/from 8 Co 2 to clear AR - system generated trans. DR bank (linked to Due to/from) / CR AR
Making January transactions show up in Decembers numbers
(Chesterton, IN USA)
I paid out some expenses in late December that should be included in the books for 2010 but the checks did not clear the bank until January 2011. Therefore when I reconciled the December statement they were not included. How do I make them show up in my last fiscal year for tax purposes? Both of these expenses are for companies that I have already issued a 1099 for income earned in 2010. Thanks, Kathy E.