all transactions were to 1 division and I had to keep splitting them for IRD sake(Partnership). So my bright Idea was to split every thing to 2 divisions. so I went back through all the years I have been doing their accounts and split everything. Now I have interdivisional Loans in the balance sheet and its non clickable. Can someone tell me where it comes from or how do I correct it?
Oh and what is a Interdivisional loan exception report .
Sorry first time I have dealt with divisions
They are automatically created and necessary to balance the books of each division. Divisions may not be appropriate for your situation.
Hi Tut I have been through everything and I have fixed everything and now its not there.
That indicates that all the various transactions involved balance each other out. In the background, the interdivisional loans are still there, but they net out to zero, so they don’t show. That isn’t always the case. In some organizations, transfers go predominantly in one direction and do not balance out.
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Thank goodness Its the only one I do like that. Also it would of been better if I had of done it from the start and not try and change it after 5 years. It worked out great in the end as I could do the reports with the divisial columns and a combined column, so much easier for IRD until they change their minds again.
Oh and thanks Tut for guiding me
Hi, I know that any transactions that come from a bank account of one division that pay or receive for another division are automatically added to interdivisional loans.
However I have been through all the transactions and there are none that are for a different divsion for any bank account.
Any ideas why this would be?
An interdivisional transaction should never appear in any bank statement. The amounts still belong to the business and is not transacted as such. It is more an operational than a financial issue. The business does not receive more or less money. Divisions are not separated for tax purposes by any authority as they only recognize the ins and outs of the business not how it internally organizes its finances.
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Hi Eko
Thankyou very much. I don’t think I explained very well what I am seeing.
I’m using manager for a scout group and we have 4 sections that I have setup as divisions so I can show them separately on the balance sheet and when I do a P&L statement. When I make or receive payments they are tagged for the relevant division.
I have not, that I can find, tagged any payments from or to a divisions bank account to another division so I can’t work out why the balance sheet has interdivisional loan balances on it.
Have I set the bank accounts up wrong maybe?
Thanks
Show edit screens if the bank accounts and also edit screens of payments and receipts.
Hi Eko
I did read this post before I posted. Here are the screenshots from one of my receipts. I can only attach one image as I am a new user.
This can be narrowed down through Advance Query. Go to Payment and Receipt lines and create a new advance query.
Select Bank and Cash account of a division and select Division does not contain “Division for which you have selected bank account”
Do this for every bank and cash account.
Also keep in mind that this may not be only because of receipts and payments but can also be due to sales invoices ,purchase invoices and so on.
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Thanks! I’ll check the bank account setup.
I found the majority of the amounts shown on the balance sheet. It was from the opening balances of the bank accounts, I had to have a credit for each division to the retained earnings account to balance the debit of the bank account opening balance. This has made the total interdivisional loan balance across all divisions 0 now.
I still however do have payments or receipts that have not been asssigned to the correct division and given the help from here I can now go and find them.