Each subsidiary company in ContactsLaw has its own, independent chart of accounts. This makes it possible to produce separate financial reports, correctly reconcile accounts and more. However, there are some operational circumstances where a subsidiary company may share a bank account with the practice, or other subsidiaries.

 

The solution to this problem is two-fold: Firstly, create a loan account in both charts - in the company with the bank account, the loan account will be an asset, while in the other company it will be a liability. Whenever cash transactions occur in the company with the bank account, they must be posted to the loan account. You do not need to use special transaction types, as you will not be adding file numbers or paying creditors, however you must record the correct payment method.

 

Then, in the other company, record the transaction using the appropriate cash transaction type, adding the detailed information pertaining to the operational aspects of that company (e.g. correct file, expense account, etc). You must use the loan account payment method and select the loan account.

 

Reconciling the loan accounts in both charts will ensure that the balances sum to zero.