Posting an Intercompany Journal - Step-by-Step Transcript
Step 1
Posting an intercompany journal with SoftLedger
Abacus Global will transfer $4m to its new subsidiary Abacus Europe. The journal will include the required intercompany entries which will automatically eliminate for consolidated financial statement reporting.
Step 2
In SoftLedger journals are created to reflect any transaction (financial, AR, AP, digital asset).
Journals can be easily bulk uploaded (via XLS file) or via API (learn more about our open APIs here).
To enter a manual journal left-click +New.
Step 3
When adding an intercompany journal you enter all applicable information including primary Location, IC/Intercompany Location, currency, account, values and your unique dimensions (e.g. fund source, loan type?) and supporting comments and documentation.
Step 4
Selecting the IC Location drives SoftLedger’s automated intercompany eliminations.
In this case we need to intelligently eliminate the $4m intercompany investment by the primary Location Abacus Global in the IC Location Abacus Europe.
Step 5
We will eliminate the first line of the intercompany journal (the intercompany receivable/intercompany payable impact) but not the second line (the $4m movement from Abacus Global cash to Abacus Europe cash).
Step 6
The completed journal details every aspect of the financial transaction.
Step 7
Once complete, Submit the journal.
Journals start in draft status and may be edited/adjusted as needed until they are progressed to posted status. A complete audit trail per journal is retained.
You can report on draft, posted and all journals in views and reports.
Step 8
Our new Journal 00000005 is now drafted.
We can use views to investigate, filter, sort, report and audit report our journals (by type, value, account, location, etc.)
Step 9
The $4m is now reflected in Abacus Global and Abacus Europe cash accounts correctly (and intelligently eliminated through Intercompany Receivable and Intercompany Payable for consolidated financial reporting).
Step 10
Left-click the $4m balance drills down to the underlying transactions (in this case only our journal 00000005).
Step 11
Scroll across the journal to review all of its details (you can update views to show/hide any journal details you wish).
You can further drill-down to the detailed transaction (open the journal).
Step 12
Our journal details are available for checking, updating, exporting or reporting.
Step 13
Scroll down the journal details to confirm that SoftLedger has automatically created and posted our cash movement, our intercompany lines and elimination lines.
Step 14
The Trial Balance is the perfect report for reviewing movements in account balances by individual and consolidated Locations.
Step 15
Want to explore SoftLedger’s multi-entity and intercompany capabilities in more detail?
Book a demo and we can walk through multi-entity consolidations, managing intercompany transactions and eliminations, and accounting for when multiple currencies are present.
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