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  #1  
Old 03-21-2013, 02:27 AM
chuot chuot is offline
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using 1 credit card for 2 companies

I have 2 companies and set up 2 separate files in QB.
I use the credit card of 1st company to pay for some expenses on the 2nd company.
How to record the expenses?
How to pay back the 1st company?
How to reconcile the credit card statement?

Thank you.
Chuot
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  #2  
Old 03-21-2013, 01:34 PM
Deidre56 Deidre56 is offline
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SEt up an account in Company one called Due From XYZ (company 2 name). Set it up as a current asset account. When you pay the expenses, code them to this account. Then go to Company 2. Create an account on this company called Due To ABC (company 1 name). SEt it up as a current liability. Do a journal entry in this company to record those same expenses. Go to Company>Make General Journal Entry. Debit the appropriate expenses and credit the new Due to ABC account. The balances on these new accounts should now both be the same for each company. You will want to make sure they are always the same.

To pay the money back, have Company 2 write a check to Company 1. Code the check to the new acct called Due To ABC. When ABC deposits the money on their end, code it to their new account, Due From XYZ. Clear as mud? In short, get a credit card for Company 2 to pay its own expenses.
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  #3  
Old 03-21-2013, 09:49 PM
chuot chuot is offline
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Thank you so much Deidre!
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Old 03-25-2013, 12:23 AM
chuot chuot is offline
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Hi Deidre,
This is so complicated, are these 4 steps right?
- Enter the credit card charge for the ABC company
- Do a journal entry with debit expense on XYZ and credit Due to ABC
- Cut the check to ABC company to pay back
- Back to ABC company and deposit to the Due from XYZ

Instead of these 4 steps, I can just do Reimbursement from XYZ to ABC?

Thanks in advance for your help.
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  #5  
Old 03-26-2013, 05:42 PM
Deidre56 Deidre56 is offline
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Where do you intend to code?
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  #6  
Old 03-26-2013, 05:55 PM
cojhl2 cojhl2 is offline
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Quote:
Originally Posted by chuot View Post
Hi Deidre,
This is so complicated, are these 4 steps right?
- Enter the credit card charge for the ABC company
- Do a journal entry with debit expense on XYZ and credit Due to ABC
- Cut the check to ABC company to pay back
- Back to ABC company and deposit to the Due from XYZ

Instead of these 4 steps, I can just do Reimbursement from XYZ to ABC?

Thanks in advance for your help.
You should do as Deidre suggested and what would be correct in the first place, get a CC especially for the second company.

Otherwise there is no simple way to handle it in your books. Reimbursement or not you are still going to one way or another follow the steps Deidre laid out.

And I know, because I have the same issue with sharing machinery and labor across two companies.
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