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# How to record and manage intercompany transactions in COUNT

Once two workspaces are linked, you record money moving between them once and COUNT writes both sides together. This article covers recording transfers and settlements, recoding expenses, voiding entries, and keeping both sides in agreement.

You'll need an active link first. See [How to set up Intercompany workspaces in COUNT.](https://support.getcount.com/en/article/how-intercompany-notifications-work-in-count-1icch6e/)
## **At a glance**
|  |  |
| ---- | ---- |
| Where to find it | Settings > Workspace Settings > Intercompany, then open the link |
| Who can post and void entries | Owners, admins and Accounts Approve & Pay, on both workspaces |
| Who can write off a balance | Owners and admins on the side that holds the balance |

## **Record a transfer from a bank transaction**
Use this when the bank feed has already brought the transaction in, which is most of the time.
1. Open the transaction in **Transactions** and categorize it as a transfer, on the **Transfer** tab.
2. COUNT checks your linked workspaces for a bank transaction with the same amount going the other way. Any it finds appear under **Intercompany Matches**, with the date, amount, description and account.
3. Pick the matching transaction and click **Confirm Match**.
Both real bank rows are now linked and categorized. Nothing extra is created on either side.

## **Post a transfer or settlement from the link page**
Use this to record a movement before it shows up in the bank feed, or to record a settlement.
1. Go to **Settings > Intercompany** and click the link to open it.
2. Open the **Events** tab and click **Post Event**.
3. Choose the **Type**. A **Transfer** sends money and creates a balance. A **Settlement** pays a balance back (Loan links only).
4. Under **Money Leaves**, choose the company the money comes from.
5. Enter the **Amount** and **Date**, and choose the bank or card account on each side. A description is optional.
6. If the bank transaction is already in COUNT on either side, select it under **Match an existing source bank transaction** or **Match an existing destination bank transaction**.
7. Click **Post Event**.
![](https://storage.crisp.chat/users/helpdesk/website/-/4/c/b/1/4cb158bef87e0400/image_10x3snx.png)

**Match a real bank transaction whenever you can.** If you don't, COUNT creates a placeholder transaction. When the real row arrives from the bank feed later, it will look like a duplicate and you'll need to exclude it.

The date has to fall in an open period on both workspaces. If either side has closed its books for that date, COUNT won't post and tells you which date the period is closed through.
## **What gets recorded: an example**
Northwind Holdings lends $2,500.00 to Northwind Coffee on a Loan link. One entry writes both books:
| Workspace | Account | Debit | Credit |
| ---- | ---- | ---- | ---- |
| Northwind Holdings (sends) | Due From Northwind Coffee | $2,500.00 |  |
| Northwind Holdings (sends) | Business Checking |  | $2,500.00 |
| Northwind Coffee (receives) | Operating Account | $2,500.00 |  |
| Northwind Coffee (receives) | Due To Northwind Holdings |  | $2,500.00 |

When Northwind Coffee pays $1,000.00 back, post a **Settlement** with Northwind Coffee as the company the money leaves. It runs the other way: Coffee's Due To balance drops to $1,500.00, and so does Holdings' Due From.

Neither entry touches income or expenses, because lending money isn't earning or spending it.

## **Move an expense to the company it belongs to**
Say someone paid for $300.00 of Northwind Coffee's supplies on the Holdings card. The cost belongs to Coffee, but the payment came out of Holdings' account.
1. In the Holdings workspace, open the expense in **Transactions**.
2. In the transaction panel, find **Recode to Linked Company** and click **Recode**.
3. Choose the **Linked Company** and the expense account it should land in on their books.
4. Click **Recode Expense**.
![](https://storage.crisp.chat/users/helpdesk/website/-/4/c/b/1/4cb158bef87e0400/capturejpg_v40q9f.jpg)
Holdings' card transaction moves out of expenses and into Due From Northwind Coffee. Coffee gets a matching $300.00 expense in the account you chose, owed back through Due To Northwind Holdings.
| Comes across to the other company | Doesn't come across |
| ---- | ---- |
| Description, dates, amount, vendor name and receipts (copied) | Tags, projects, customers and taxes. Add these on the other side if you need them. |

### **Don't see Recode to Linked Company?**
It only appears when all of these are true:
* You can post intercompany entries (owner, admin or Accounts Approve & Pay on both workspaces).
* The workspace has an active link.
* The transaction is money out and categorized as an expense.
* It isn't yet reviewed or reconciled.
* It isn't split.
* It isn't attached to a bill, invoice or deposit.

## **What happens to linked transactions**
Every transaction created or matched by Intercompany carries an **Intercompany** badge in the register and is marked as reviewed on both sides. Click the badge to open the entry it belongs to.
Because each one has a twin in the other company's books, the parts that affect the accounts are locked so the two can't drift:
| Locked until the entry is voided | Editable at any time |
| ---- | ---- |
| Amount, dates, category and account, type, splitting, transfer links, undoing review, excluding, hiding and deleting | Description, notes, vendor and customer |
* **Receipts stay in sync.** Add or remove a receipt on either side and COUNT does the same on the other.
* **Comments don't cross over.** They stay in the workspace where they were written.

If you try to change a locked field, COUNT tells you the transaction is part of an intercompany event. To change it, void the entry and post it again.

## **Undo an entry by voiding it**
1. Open the link from **Settings > Intercompany** and go to the **Events** tab.
2. Click **Void** on the entry, then **Void Event**.
![](https://storage.crisp.chat/users/helpdesk/website/-/4/c/b/1/4cb158bef87e0400/capturejpg_7exrb0.jpg)
Voiding undoes the entry on both workspaces at once:
* **Real bank rows** go back to the category they had before and become unreviewed again.
* **Placeholder rows** are removed.

If the only rows involved are placeholders that have since been reconciled or fall in a closed period, COUNT keeps them and posts a reversing entry instead. The optional **Void Date** is the date of that reversal.

**Void blocked?** A real bank row on one side has been reconciled, or sits in a closed period. Undo that reconciliation or reopen the period, then void again.

## **Keep both sides in agreement (drift)**
On Loan links, what one company is owed should always equal what the other owes. Every night COUNT compares the two and records the result on the link's **Drift** tab. The difference, if there is one, is the drift amount.

Drift almost always comes from something posted outside Intercompany, like a manual journal entry into a Due From or Due To account on one side only.
1. Find the entry that was posted outside Intercompany and correct it.
2. Click **Run Check Now** to re-check without waiting for tonight.
Already know about it and working on it? **Snooze 7 Days** pauses the drift notifications for a week.

## **Write off a balance that can't be recovered**
Sometimes a difference is real and won't be repaid. An owner or admin on the side that holds the balance can write it off:
1. On the link's **Drift** tab, click **Write Off**.
2. Choose the Due From or Due To account.
3. Enter the amount, a reason and a date.
COUNT posts a one-sided entry to **Bad Debt - Intercompany** on that company only, and notifies the other company.

### **Dispute a write-off**
The other company has 30 days to dispute it from the write-offs list on their **Drift** tab. A disputed amount goes back into the nightly check until you've sorted it out between you. If nobody disputes it within 30 days, the write-off becomes final automatically.

## **Common questions and fixes**
### **Post Event says I need posting permissions**
Posting changes both companies' books, so you need to be an owner, admin or Accounts Approve & Pay in both workspaces, not just the one you're in.
### **This transaction is part of an intercompany event" when I try to edit**
* The amount, date and category are locked. Void the entry from the link's **Events** tab, make your change, and post it again. Description, notes, vendor and customer can be edited at any time.
### **I have a duplicate bank transaction after posting**
* The entry was posted without matching the bank row, so COUNT created a placeholder. Exclude the duplicate feed row. Next time, select the real transaction under **Match an existing source bank transaction** or **Match an existing destination bank transaction**.
### **COUNT won't post because the period is closed**
* The date has to fall in an open period on both workspaces. COUNT tells you which date the period is closed through. Pick a later date or reopen the period on that side.
### **An error says "The intercompany accounts for this link are missing"**
* This shouldn't happen. Contact COUNT Support and we'll restore them for you.

**Still stuck?** Reach COUNT Support through Help Center in the app sidebar. Tell us both workspace names and, for a specific entry, its date and amount.