I have a client I am working with that has two companies, the US based company does all the engineering work, creation of products on paper etc. The company in India actually makes the products. Customers pay the US based company, once payment is received the US based company does a wire transfer to the India based company.
I came on board a couple weeks ago and see that the prior bookkeeper/accountant posted the money transferred differently historically. I have not been able to get any information on the correct way for these transactions to be done.
Since they do not have the same IEN my thought was to simply add the India based company as a vendor and post the transactions accordingly.
I just want to make sure it is done correctly. Any help or direction would be appreciated!
I came on board a couple weeks ago and see that the prior bookkeeper/accountant posted the money transferred differently historically. I have not been able to get any information on the correct way for these transactions to be done.
Since they do not have the same IEN my thought was to simply add the India based company as a vendor and post the transactions accordingly.
I just want to make sure it is done correctly. Any help or direction would be appreciated!