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2 businesses taking payments on one card machine

My main business(1) has a credit card connected to it but I use to take payments for my other business(2). Each business has its own solar account file. How do I record a card payment taken for business 2 on business 1 without it looking as if its income and how do I then show a transfer of that payment from business 1 to business 2. Hope this makes some sense!


Posted by Chris Brook on Mar 11, 2012 5:30 PM GMT

Hi Chris,

In the Business 1 file create a new liability account called 'Money Owed To Business 2', then record a General Transaction from this account to the Cheque Account.

Then in the Business 2 file create a new asset account called 'Money Owed From Business 1' then record a Money Received transaction to record the income in the usual way except with the Paid Into Account set to the asset account you just created.

When you transfer the money between the businesses record a General Transaction in the Business 1 file from the 'Cheque Account' to the 'Money Owed To Business 2' account, and record a General Transaction in Business 2 file from 'Money Owed From Business 1' account to 'Cheque Account'.

Regards,


Posted by Mark McLaren (Solar Accounts) on Mar 12, 2012 7:37 AM GMT