Example: Multi-Site A/P Check Printing/Posting

Three sites exist for Entity XYZ. Site A is designated as the centralized payment site where all sites' vouchers are paid. If site A makes a $300 payment to a vendor to pay 3 vouchers, each from a different site, these journal entries must occur:

• Create vouchers to pay vendor - $100 from each site.

  		Debit	Credit
  Site A transactions:	Purchases	$100
  	A/P		$100
  Site B transactions:	Purchases	$100
  	A/P		$100
  Site C transactions:	Purchases	$100
  	A/P		$100

• Post Payment from corporate to vendor of $300 - $100 from each site.

  		Debit	Credit
  Site A transactions:	Cash		$300
  	A/P	$100
  	Inter-Site Liab (Site B)	$100
  	Inter-Site Liab (Site C)	$100
  Site B transactions:	Inter-Site Liab		$100
  	A/P	$100
  Site C transactions:	Inter-Site Liab		$100
  	A/P	$100