Creating Due To and Due From GL Accounts

Multi-entity organizations also need a way to recognize receivable and payable balances between organizations. Due To and Due From general ledger (GL) accounts must be set up in addition to each organization's regular GL accounts. These accounts allow the organizations to recognize and receive the payable balances between legal entities.

For example, the Associated Parent organization must have a Due To Associated Child liability account to pass balances to the Associated Child organization.

The Associated Parent organization must also have a Due From Associated Child asset account to recognize balances from the Associated Child organization.

Likewise, the Associated Child organization requires a Due To Associated Parent liability account to pass balances to the Associated Parent organization and a Due From Associated Parent asset account to recognize balances from the Associated Parent organization.