When two intercompany legal entities are transacting with one another, a discrepancy in the Intercompany screen usually indicates that the transaction has not fully completed.

In the example shown, A New Book Shop raised an intercompany purchase order with Little Bad Publishing Limited for £599.99, and this amount has been paid.

However, the Intercompany balance between the two entities still shows £599.99 outstanding.

This happens because, although the sales invoice was automatically created for the receiving entity, the receipt for that sales invoice was not automatically generated. The receipt must be created manually to complete the transaction.

If an intercompany document type was used, the receipt can be created directly from the invoice screen. If a standard document type was used instead, a bulk receipt will need to be created.

Once the sales invoice has been marked as paid, the Intercompany balance will return to nil, as expected.

Customer search terms

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