Transferring funds between two companies within the same family

Make sale and purchase following all rules as you in normal sales and purchase transaction. Payments receipt and payment also as you do for regular sales and purchase transaction.

Originally posted by : Beriwal
	Make sale and purchase following all rules as you in normal sales and purchase transaction. Payments receipt and payment also as you do for regular sales and purchase transaction.

What?

Debtor Purchases a/c

To Purchases a/c

this will derecognise the purchases

 Bank a/c

To Receivables a/c

Since your working on a software, simply

Bank a/c

To Purchases a/c

make a note of the transaction

There is another situation I remembered when you didn’t recognise purchases

Debtor a/c

To Bank a/c

then 

Bank a/c

To Debtor a/c

there is nothing wrong if you receive orders for other companies