--- title: "Create an Inter-Company Journal Entry from a Bank Statement" canonical: "https://kb.myframeworks.com.au/space/CO/402685980/Create%20an%20Inter-Company%20Journal%20Entry%20from%20a%20Bank%20Statement" format: markdown --- Create a journal entry from the Bank Statement Reconciliation screen that spans multiple companies, such as inter-company transfers, allocations, or adjustments. > 📝 ## Prerequisites > 📝 > 📝 - Bank Statement Reconciliation screen is open with an imported bank statement. > 📝 - Unmatched statement transaction exists in the **Unreconciled** tab requiring a journal entry adjustment spanning multiple companies. > 📝 - User security is configured with access to multiple companies (all companies or selected list of companies). > 📝 - Inter-company loan accounts are configured between the companies in [Ledger Loan Accounts](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28404070). > 📝 - GL account numbers are known for the adjustment in each company. > 📝 - Access to create journal entries in the General Ledger module. ## Inter-Company Requirements **Inter-Company Loan Accounts:** When a journal includes transaction lines from different companies, Frameworks requires inter-company loan accounts to be configured. These accounts track the financial relationship between companies and ensure accurate inter-company balances. One inter-company loan account must exist for each pair of companies that will transact with each other. Configure inter-company loan accounts in **Ledger Loan Accounts** before creating inter-company journals. Refer to Configure Inter-Company Loan Accounts for setup instructions. **Restrictions:** - Inter-company accrual journals are not allowed. Use the **New Journal** button alternative method if you need accrual functionality. - All companies in the journal must use the same General Ledger year and be in compatible periods. ## When to Use This Method Use the **Bank Statement Journal Entry** window for inter-company transactions when you need to create a journal entry to balance a statement transaction that affects multiple companies. Common scenarios include: - Inter-company transfers or payments - Allocation of shared expenses across companies - Corrections requiring adjustments in multiple companies - Bank statement transactions paid by one company on behalf of another company > ✅ **For single-company transactions:** If the journal entry only affects one company, refer to [Create a Journal Entry from Bank Statement](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/403996675). > ✅ > ✅ **Alternative method:** You can also click **New Journal** to open the standard Journal Entry screen. Refer to [Create a Journal Entry for Bank Reconciliation](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/401801224) for this alternative approach. ## Steps 1. Under the **Unreconciled** tab in the **Statement** section, locate the statement transaction requiring an inter-company journal entry adjustment. 2. Click the **Journal Entry** icon for the statement transaction to open the **Bank Statement Journal Entry** window. The window displays the statement transaction details (description and amount) at the top for reference. 3. The first journal entry line is automatically added. Complete the following fields for the transaction line: - **Company:** Select the company for this journal entry adjustment. The field defaults to the bank account's company. Select a different company to record the inter-company portion of the journal entry. - **Acct. No:** Enter the GL account number or click the **search** icon to open the **GL Account Finder** window to find accounts exist in the selected company. - **Narration:** Enter a description identifying the purpose of this journal entry line. 4. Enter the transaction amounts in the **Debit** or **Credit** field as positive values in the appropriate column based on the transaction type. Update the **Tax Code**, **Tax Amount**, and **Analysis** fields as required. 5. If additional journal entry lines are required to balance the entry, click **Add** and repeat steps 3-4 for each additional line. The running totals display at the bottom of the window. 6. Verify the total debit amount equals the total credit amount at the bottom of the window. The journal must be balanced before posting. Frameworks will validate that inter-company loan accounts exist between the companies used in the journal. 7. Click **Post** to create and post the inter-company journal entry to the General Ledger across all companies. > ℹī¸ Enable the **Print Journal** checkbox before clicking **Post** to print the journal transaction when it posts. ## Result The inter-company journal entry posts to the General Ledger for all companies included in the transaction lines and automatically matches to the statement transaction. The **Bank Statement Journal Entry** window closes, and you return to the **Bank Statement Reconciliation** screen. The matched statement transaction and the journal entry GL transactions move from the **Unreconciled** tab to the **Reconciled** tab. ![image-20260115-002528.png](media://e54a7b4f-2022-40ec-84b0-c33c1ca0720a) The **inter-company loan accounts automatically update** to reflect transfers between companies. The journal entry is created with a **Posted** status and can be viewed in the Journal Entry Dashboard but cannot be edited or deleted. The GL Reference displays in the **Reconciled** tab showing which statement transaction it matches. Click the **GL Reference** link to view the journal movements for the transaction. ![image-20260115-002140.png](media://82f1fcf9-5d14-42d8-9bb8-22a660503b68) > ❌ If the journal entry does not balance or inter-company loan accounts are not configured, an error message displays and the journal will not post. The error message "*The inter-company loan account between company "n" and company "1" was not found for the posting to gl account "nnnn"*" indicates missing inter-company loan accounts. Configure the required inter-company loan accounts and click **Post** again. > ✅ ## Related Tasks > ✅ > ✅ - [Create a Journal Entry from Bank Statement](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/403996675) (for single-company transactions) > ✅ - [Reconcile an Imported Bank Statement](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/30515312) > ✅ - [Create a Journal Entry for Bank Reconciliation](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/401801224) (alternative method using New Journal button) > ✅ - [Create and Post a Multi-Company Journal Entry](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/398983178) (for detailed multi-company journal guidance) > ✅ - [Configure Inter-Company Loan Accounts](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28404070) > ✅ ## Related Information > ✅ > ✅ - [Bank Statement Reconciliation Screen - Field Definitions](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28380810) --- ## Additional Notes > ⚠ī¸ **Bank account usage:** The system setting flag **GLCompanyBank1** prevents Company Bank Account 1 from being used in journal entries. If you attempt to enter this account number in the **Acct. No** field, an error message displays: "*Cannot use Company's Bank Account 1.*" Use the appropriate expense or income GL accounts instead of the bank account itself.