Settlement account with multiple administrations

In Profit, you can record settlement account entries if an environment has two or more administrations. It can happen, for example, that amounts are paid or received in one administration that are actually intended for another administration.

Description

You can configure a settlement account relationship between the administrations so that you have a quick and easy way to make mutual settlement account entries. The advantage of a settlement account relationship between multiple administrations is that you only have to enter the financial data once. Profit automatically enters the entered data in the other administration. For this sort of charges, you therefore do not create an internal invoice that you have to enter separately in the other administration.

Moreover, a correct settlement account relationship ensures that the auditing between two administrations is very simple: the balance of the settlement account ledger accounts involved will always be 0.00 if the facility has been properly used.

Note:

For the VAT, the following rules apply:

• When you enter a purchase order, you cannot copy the VAT amount to the other administration.
• However, for a cash book entry, you can copy the VAT amount to the other administration because you do not know who the creditor/responsible person is.

Transfer a payment from the holding company to the operating company

A Holding has a settlement account relationship with operating company X. A debtor of X has unintentionally transferred an amount of € 1,013.88 to the bank of the Holding. You want to transfer this amount to operating company X. You post the following journal entry:

Holding:

Upon completion, an automatic entry has been made for operating company X:

Charge costs to two operating companies

The Holding receives an invoice for € 1,210 and you want to charge the costs to the two operating companies X and Y. For operating company X that is € 750.00 and for operating company Y € 250.00. You post the following journal entry:

Holding:

Upon completion, an automatic entry has been made for operating company X:

And for operating company Y:

Preparation

• Configure a settlement account

Procedure

• Post to a settlement account
• Change and delete a settlement account entry
• Enter settlement account corrections