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Cyrious Control allows the free transfer of vendor credits between different divisions. The presumption is that to the vendor, you are one establishment. As such, Control will automatically make transfer entries between different divisions when vendor credit is applied or given.

There is no accounting requirement to zero out the InterDivision Vendor Credit, however it is often the case that at the end of an accounting period the controller may wish to “settle” accounts and have each division actually pay the other division for any InterDivision Vendor Credit . In this case, the divisions may be adjusted with a manual journal entry. (See example below.) Note however, that the Vendor Credit account in the system should never be manually altered and that only the InterDivision Vendor Credit should be adjusted.

Examples

Example 1

The controler wishes to “zero” the InterDivision Vendor Credit account by actually transfering money between the divisions. If Division A has a $275 credit (negative amount) in its InterDivision Vendor Credit asset account, Division B has a $315 credit (negative amount) in its InterDivision Vendor Credit asset account, and Division C has a $590 debit (positive amount) in its InterDivision Vendor Credit asset account, the GL Activity would look like this:

See Also

• vendor_credits
• Interdivisional vendor_credits