Collecting Money in QuickBooks for a Sister Company

How to Record Sister Company Credit Card Sales in QuickBooks

A reader wrote, "We have a main company and a sister company, each with its own EIN number, so each has its own QuickBooks company file. Only the main company has a merchant account, and we don't want to open a second merchant account for the occasional credit card sale that the sister company has. If we use the main company to sell with a credit card, how do we track how much we owe to the sister company?"

Create an Other Current Liability account named Money Due to Sister Company. Create QuickBooks items for those things you're selling for the sister company and link them to that Other Current Liability account, instead of linking to an income account. At the end of the week, or month, or whenever you settle up, write a check for the amount of money in the Other Current Liability account, post the check to that account, and deposit it in the bank account of the sister company (don't forget that the sister company has to receive the income using a Sales Receipt). If you run item reports for the items you sold using the appropriate date range, the quantity of each item shows, and the total sales should equal the amount of the check you wrote.

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