Vendor Invoices clearing

[Former Member]

Hi,

We have a requirement that Company is divided into 2 companies. The other company is using Oracle for its business.

We have an issue is that How to clear the vendor invoices in the base company?

What are the neccessary steps to be followed for the separation (demerger) ?

At the end of day, all the invoices related to 2nd company will be shown as cleared (in Base company).

could any one suggest your views and explain the process to be followed.

I appreciate your early response.

Regards

Pratap

[Former Member · Accepted solution]

Hi !

We can do the followings ::

1st : In Compny Code A, we need to pass following entries :

Entry would be : In the Books of Comapny A :

(a ) Pay to the Vendor of B's..

Vendor A/c DR ...

TO Bank A/c CR

(b) Claim the same from B..by Debiting B's A/c...

B's A/c .. DR

TO A's A/c...CR

(c) After receive the same from B...

Bank A/c DR...

TO B's A/c..CR

( After all you would find Vendor A/c.. Dr.. to A's A/c )

2nd : In the Books of B's..

( a ) Pay the amount to Company A ..

A's A/c Dr...

To Bank A/c CR..

I hope the above would clarify to some extent.

Regards,

Bhabani

[Former Member · Accepted solution]

Hi Bhabani,

Thank you very much.

I appreciate your response.

Regards

Pratap

[Former Member · Accepted solution]

Hi Dash,

(b) Claim the same from B..by Debiting B's A/c...

B's A/c .. DR

TO A's A/c...CR

How will you pass the entry to "A a/c" in his books?

can you explain me?

[Former Member]

which company is paying to vendors?

[Former Member]

Hi,

Example: AB is the original company. Now it is divided into A and B. Now We have extracted the open items from table level related B and sent it in excel. In Company code A, we need to clear the vendor open items related to B. B will take care of those vendors in future like payments/receipts if any.

Regards

Pratap