Intercompany Recharges in GATHER.nexus streamline the process of allocating costs, billing services, or recharging expenses between group entities. They ensure that both sides of a transaction - the charging entity and the receiving entity - are automatically posted, balanced, and reconciled.
This reduces manual effort, strengthens audit trails, and provides flexibility in how the transactions are represented: either as Journals within GATHER’s ledgers or as Invoices pushed back into source accounting systems.
Workflow Overview
Navigate to Group Financial Control → Intercompany Recharge.
Click Perform to start a new workflow.
Enter a workflow name (e.g., “Q1 2025 Management Salary Recharge”).
Select participating companies:
From Company – the cost originator.
To Companies – the cost recipients.
Choose via Group (predefined set) or Direct Selection (individual pick).
Note: Only one From Company can be selected, but multiple To Companies are allowed. GATHER automatically manages multi-currency translation using appropriate FX rates.
Configure transaction type, frequency, and posting status.
Note: Only one From Company can be selected, but multiple To Companies are allowed. GATHER automatically manages multi-currency translation using appropriate FX rates.
Transaction Type Options
Journal Entries
Posts balanced debit/credit entries directly within GATHER.
Immediate impact on group P&L and Balance Sheet.
Best for allocations, management charges, or adjustments where invoices are not required.
No AR/AP impact; clearing is internal only.
Traceable in GATHER’s audit logs but does not produce external documents.
Invoices
Generates matching AR/AP invoices between entities in the source systems (QuickBooks, Xero, etc.).
Recommended when billing requires supporting invoice documents for settlement or compliance.
Provides full visibility in AR/AP subledgers, so balances can be tracked and settled like external transactions.
Strengthens audit evidence by producing external documents alongside ledger postings.
Both options maintain balanced double-entries across entities. The choice depends on whether you need invoice visibility or a ledger-only allocation.
Recharge Configuration Options
Option 1: Simple
Best for straightforward recharges (two companies, fixed costs).
Configure debit/credit accounts for both From and To companies.
Add narrations and enable tracking categories if required.
Option 2: Split by Percentage
Allocate costs across multiple To Companies based on percentages.
Adjust sliders or enter exact percentages.
Percentages must not exceed 100%. Any unallocated portion remains in the From Company.
Journal entries automatically reflect proportional allocation.
Ideal for shared services, overheads, or department-level allocations.
Ensures consistency across reporting periods without manual recalculation.
Option 3: Split by Percentage with Markup
Supports transfer pricing or management fee markups.
Configure percentage allocations for each To Company.
Add markup rates:
Same for all – apply one uniform markup.
Different for all – apply individual markup rates.
GATHER calculates adjusted amounts automatically and reflects them in journal entries.
Example:
Demo UK: 60% allocation + 5% markup.
Demo US: 40% allocation + 8% markup.
Markups are useful when regulations or agreements require a margin on intercompany charges.
Posting & Balancing
Posting & Balancing
All recharges are auto-balanced across entities, ensuring both sides of the transaction post simultaneously.
Intercompany accounts are used to record the debit/credit flow.
Invoices appear in AR/AP; journals flow directly to ledgers and consolidation.
Posting Options
Posting Options
Bulk Post – process many transactions at once.
Individual Post – review and post transaction-by-transaction.
Recurring Setup – system posts automatically on schedule.
Status & Management
Status & Management
Draft – allows review before impacting financials.
Posted – finalised and visible in accounting system.
Repost – adjust or correct a posted transaction while maintaining audit trail.
Xero View – open directly in Xero for confirmation.
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