The Nerdly Multicompany Automation (NMCA) supports automated intercompany allocations on Vendor Bills, Journal Entries, and Checks.
We'll use the following scenario as an example:
Honeycomb Holdings, Inc. owns two other subsidiaries: Honeycomb Manufacturing and Honeycomb Services, LLC. Honeycomb Inc. uses a centralized accounts payable group to pay bills on behalf of its subsidiaries but needs expenses incurred by its subsidiaries to show up on the subsidiary general ledger. Today, Leesa Marks (the Purchasing Supervisor), is recording an accounting bill for $1,000, and allocating the expenses to the subsidiaries.
Leesa creates the vendor bill and enters the information on the header level as normal. As she enters the expenses, she chooses to allocate half of the bill to Honeycomb Manufacturing, and the other half to Honeycomb Services, LLC. To do this, she simply enters two lines for $500 each, selects the advertising account, and then selects "Honeycomb Manufacturing"
in the "Transfer to Subsidiary" on the first line and "Honeycomb Services, LLC" on the second line.
As she saves the bill, the NMCA recognizes that there are unallocated lines on the bill, and sends the bill data to a service that generates an intercompany journal entry that reverses the expense from Nerd Co, Inc, and allocates the expense to the other subsidiaries. While the transaction is processing, there will be a warning at the top of the bill:
The service should process the bill fairly quickly, and once it does the warning will disappear and a link to the intercompany JE is added to the vendor bill.
The intercompany Journal Entry should look a little like this:
If the transaction remains in the processing status for longer than 10-15 minutes, then there is likely an error with the transaction, and it wasn't able to process. In that case, call your administrator, and point them to the troubleshooting guide.