Inter-Facility AP

Performing AP across facilities can be done in LifeCare Plus.

Setting Up Inter-Facility AP
There are two fields in the AP Control File that contribute to this process:

INTER-COMPANY RECEIVABLE G/L#
You may charge expenses from one facility to another. Use this field to indicate the receivable account(s) that have been set up as the "DUE FROM" account(s); each is 6 numeric characters with a description that will prompt to the right of the number.

If more than one receivable needs to be established, you may use a special "X" formatting symbol to distinguish one receivable from another. For example, say you are in facility #1, and anticipate A/P receivables from facilities #2 & #3. Furthermore, say that facility #1 has the following two receivable accounts on it's chart of accounts: 128002 and 128003 with the last two digits indicating the facility number. If you enter 1280XX as the G/L# here, the system will insert the proper facility number when processing for each company.

INTER-COMPANY PAYABLE G/L#
You may charge expenses from one facility to another. Use this field to indicate the payable account(s) that have been set up to indicate the "DUE TO" facility; 6 numeric characters and a description will prompt to the right of the number.

If more than one payable needs to be established, you may use a special "X" formatting symbol to distinguish one payable from another. For example, say you are in facility #2, and anticipate that facility #2 will "owe" A/P funds to facilities #1 & #3. Furthermore, say that the payable accounts are 218001 and 218003 with the last two digits being the facility #. If you enter 2180XX as the G/L number here, the system will insert the proper facility number when processing for each company.

Using the Inter-Company GL#'s
When you ENTER an invoice in facility #1 and key in the 8-digit GL number (i.e. 02805655 with "02" being the facility number) in the Invoice Entry process, Run the Daily Payable Invoice Register and Update - the expense account number in facility #2 is debited and the A/P Trade Account (in that facility) is credited.

When you PAY the invoice out of facility #1, facility #1 is affected as follows: there is a debit to the Inter-Company Receivable GL#, and a credit to Cash GL#.

Facility #2 is affected as follows: there is a debit to the A/P Trade Account GL#, and a credit to the Inter-Company Payable GL#.

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