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June 03, 2010

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Sandy:

You'll want to check in with the trust accountant on the best way to handle this.

Since the money is not going to be paid back, the due to/due from concept does not apply.

Normally, something like this is a distribution or investment of some type.

Scott Gregory

What if we are moving money between a living trust and a trust account? Do I still use the due to and due from? And the money is not going to be paid back.

Hi My Company open a Brokerage account in Wells Fargo. So i need to open the same in Quickbook. So its under Bank Account or Other Current Assets

Miriam:

The best bet for your question is to check in with the CPA for the business. There are many ways to handle this type of question.

Scott Gregory

what if the money from ABC company is investment in XYZ company.
Equity investors give the Money to ABC that will go to XYZ to complete a project.
How do I book that type of transfer?

Madlav:

Normally, the transfer of inventory is recorded as a sale on the books of the transferring company and a purchase on the books of the company that receives the inventory.

However, there are some other possibilities here depending on the specifics of your business setup.

You'll want to get guidance from your accountant on how they want this intercompany information handled.

Scott Gregory

LJ:

You'll want to check with your CPA/accountant on the best way to track this type of information.

If money is leaving the ABC Company checkbook, it has to be recorded as a payment - your accountant will determine what account to use.

If money is coming into the XYZ checkbooks, it has to be recorded as a deposit.

Scott Gregory

What if you have 2 different businesses, use ABC Co. to forward payments for XYZ co so transfers are not to pay back but to cover expenses of XYZ co. Is there a way to record this in quickbooks? Thanks, LJ

Thanks for this. Question though how do you handle inter company transactions that deals with the transfer of inventory? Should it be recorded as normalsales transactions included sales tax or an adjustment?

Ramsay:

You'll want to check with your accountant on the best way to handle the question you ask. There are several different ways to approach it - they will be in the best position to help you sort it out.

Scott Gregory

But what if your not paying ABC company back because you are transferring the money to XYZ to close ABC account?

thank you for posting this information. Extremely helpful

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