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

There is no accounting requirement to zero out the InterDivision Customer 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 Customer Credit Balance. In this case, the divisions may be adjusted with a manual journal entry. (See example below.) Note however, that the Customer Credit account in the system should never be manually altered and that only the InterDivision Customer Credit Balance should be adjusted.

Notes

Examples

Example 1

The controller wishes to “zero” the InterDivision Customer Credit account by actually transferring money between the divisions. If Division A has a $300 credit (positive balance) in its InterDivision Customer Credit liability account, Division B has a $150 credit (positive balance) in its InterDivision Customer Credit liability account, and Division C has a $450 debit (negative balance) in its InterDivision Customer Credit liability account, the GL Activity would look like this:

~ Account~ Debit~ Credit~ Division~ Order
Bank A $300.00 Div. A
InterDivision Customer Credit$300.00 Div. A
Bank B $150.00 Div. B
InterDivision Customer Credit$150.00 Div. B
Bank C$450.00 Div. C
InterDivision Customer Credit $450.00Div. C

See Also