Re: question about posting

[ario <..hidden..>]

A little follow up here.

As it is not possible to have a department inside a department I've been
able (or forced as you wish) to split the whole accounting in 3
companies, avoiding until now the matter mentioned in the previous posts
in this thread.
However, recently we have been confronted with the same 'problem' again:
departments working for and selling to other departments.

I suppose we can't use the AP/AR Transaction forms for that, replacing
the 'accounts receivable/payable' by 'assets borrowed from other
departments'/'loan by department 1', '... 2', etc.?

Thanks


On Thu, 2010-06-10 at 05:15 -0700, Chris Travers wrote:
> On Thu, Jun 10, 2010 at 5:03 AM, ario <..hidden..> wrote:
> > Yes! Thanks to dwmbeancounter.com I now even do understand what you
> > mean. What seems to make LSMB especially useful for us is the
> > implementation of Projects and Departments with the possibility of
> > creating a balance per department.
> >
> > Now there's one conceptual thing that I am still trying to figure out.
> > And that's borrowing between departments. Our departments will
> > constantly borrow cash from each others wallets and I have no idea how
> > to implement that on de COA, while being able to constantly keep track
> > of their balances for each department.
> > Of course I could make liabilities and asset accounts that would look
> > like:
> >
> > 1210    borrowed to dept 1
> > 1220    borrowed to dept 2
> > 2310    borrowed from dept 1
> > 2320    borrowed from dept 2
> >
> > so that the balance would be reflected on each department's balance
> > sheet, but of course would be zero on the company's balance sheet.
> > I feel however as if it wouldn't be justifiable to use a company's asset
> > (liability) account to reflect money borrowed by one department to
> > (from) one of the other departments.
> 
> What I'd actually do is this:
> 
> 1200 Borrowed assets from other departments
> 2301 Internal loan by dept 1
> 2302 Internal loan by dept 2
> 
> Then one tags the transactions as the borrowing transaction.  Then
> your balance sheet will show how much departments owe eachother, but
> won't be too specific.  Yet the departmental balance sheets will show
> who money is owed to.  It would also allow a department to loan money
> in other internal ways and have that show up in this way.
> 
> For example, suppose the company offers credit cards for business use
> only to managers.  Suppose the credit cards sometimes have personal
> incidental expenses that the company isn't willing to cover (aside
> from misuse of cards, there could be legitimate reasons for such,
> including anything from disagreements as to exactly what incidentals
> would be covered to the fact that a given purchase might have a
> mixture of items that the company was willing to pay for and those the
> company was not).  These could then be treated as loans, using this
> same system plus an additional account to track them as basically cash
> advances.
> 
> Best Wishes,
> Chris Travers
> 
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