Intercompany settlement with your own organisations
Pay costs on behalf of another organisation you are also a member of, hand the document over to it and reconcile the open amounts on both sides.
If you are a member of several organisations, for example as the owner of a sole proprietorship and managing director of a GmbH, and pay costs of one through the other, Accounting → Intercompany keeps both sets of books clean: the organisation paying on behalf posts a receivable, the organisation bearing the costs receives the document and posts the liability.
Leadmode does not replace tax advice. The invoice should be addressed to the organisation that bears the costs; otherwise it cannot deduct input tax (§ 14 Abs. 4, § 15 Abs. 1 UStG). Only costs paid on behalf without a markup are covered. If receivables stay open for a long time, check with your tax advisor whether this counts as a capital contribution or a distribution for tax purposes.
Each organisation has its own bookkeeping. Leadmode only transfers what you deliberately hand over (document file, number, date, amount), and only if you are a member of both organisations and have the necessary permissions there. You only see the status on the other side if you may view entries there.
Setting up a link
- In one of the two organisations: Intercompany → Set up link. Choose the other organisation, the direction (who pays on behalf of whom) and the account on this side. You need the ‘Set up accounting’ permission for this.
- In the other organisation: Intercompany → Confirm and choose the account there. Only then is the link active.
| Side | Account | SKR03 | SKR04 |
|---|---|---|---|
| pays on behalf | ‘Receivables from affiliated companies’, account type ‘Other’ | 1594 | 1260 |
| bears the costs | ‘Liabilities to affiliated companies’, account type ‘Payable’ | 0700 | 3400 |
The accounts come with Accounts and mapping → Apply template. You can create and choose a separate account for each partner organisation.
Recording and handing over a cost paid on behalf
- In the organisation paying on behalf, record the document as an incoming document and code the line to the settlement account, without input tax. After approval, match the payment in Bank as usual.
- Under Intercompany → Documents paid on behalf, click Hand over to …. A submitted incoming document with the original file, number, date and amount is created in the other organisation.
- There, the document is reviewed, coded (expense and input tax) and approved. It is posted against the link's liability account, not the general one.
If the handover fails, for example because the document already exists there or a permission is missing, the reason is shown on the document; you can try again.
Reimbursement and reconciliation
When the organisation bearing the costs transfers the amount, match the transaction in Bank on both sides: there as a payment on the handed-over document, here as a bank entry to the settlement account. The card for each link shows the amount open here, the amount open there and the difference. A difference arises as long as a document there has not been approved yet or a reimbursement has only been matched on one side. As always, correct it with a reversing entry or a new document.
Continue to submit costs paid privately as an expense in the organisation that bears them; you don't need a link for that.
Ending
End removes the link. Entries and handed-over documents remain in both sets of books.
Fixed assets and depreciation
Create fixed assets from incoming documents, post depreciation for each fiscal year, record disposals and create the fixed asset schedule for Anlage AVEÜR.
Customers and products
Create billing customers and products with prices, tax case and packages, and use them in documents.