FamousP said:

Hi, our primary company that has been set up for the past 4 months in Sage, has just purchased a 50% share in another company, which I will set up separately in Sage to do all the books for.

FamousP said:

Can I use the same credit card for purchases for both companies, or should each company have their own credit card?

You would know your business better than I can, and what's practical to do given the type and number of purchases. 

You can set up a set of inter-company asset or liability accounts to keep track of purchases and transfers between companies, and set them up for reconciliation (you can do this even if they are not bank accounts).  

Reimbursing between companies is not too complicated, but it is extra work to enter each transaction in both companies and reconcile the accounts between them.

Purchases of inventory are best done like any other purchase, through the Purchase Invoice screen, to the inter-company account for the cardholder, with an offsetting amount to the inter-company account in the company that received the goods.

FamousP said:

And if I can use the same credit card, do I reconcile the statement in the primary company?

Every transaction on the card has to go through the primary company, so yes.  Every intercompany transaction will go through an intercompany account in each company, so there will be two more accounts to reconcile.

If there are separate card accounts for each company, you will probably still have some intercompany transactions, because the 'wrong' card gets used, or the 'wrong' vendor account is charged.

I hope that helps, please post back!

Randy

FamousP said:

Hi, our primary company that has been set up for the past 4 months in Sage, has just purchased a 50% share in another company, which I will set up separately in Sage to do all the books for.

FamousP said:

Can I use the same credit card for purchases for both companies, or should each company have their own credit card?

You would know your business better than I can, and what's practical to do given the type and number of purchases. 

You can set up a set of inter-company asset or liability accounts to keep track of purchases and transfers between companies, and set them up for reconciliation (you can do this even if they are not bank accounts).  

Reimbursing between companies is not too complicated, but it is extra work to enter each transaction in both companies and reconcile the accounts between them.

Purchases of inventory are best done like any other purchase, through the Purchase Invoice screen, to the inter-company account for the cardholder, with an offsetting amount to the inter-company account in the company that received the goods.

FamousP said:

And if I can use the same credit card, do I reconcile the statement in the primary company?

Every transaction on the card has to go through the primary company, so yes.  Every intercompany transaction will go through an intercompany account in each company, so there will be two more accounts to reconcile.

If there are separate card accounts for each company, you will probably still have some intercompany transactions, because the 'wrong' card gets used, or the 'wrong' vendor account is charged.

I hope that helps, please post back!

Randy