Overview
The Intercompany Recharge feature in GATHER.nexus allows shared costs to be allocated across multiple entities using percentage-based allocation methods.
This module is commonly used for distributing expenses such as payroll, management fees, shared services, and operational overheads across a group structure.
GATHER.nexus automatically calculates allocations, applies markups where required, and creates balanced intercompany entries across all participating entities.
This guide covers two recharge methods:
Split by Percentage
Split by Percentage with Markup
Accessing Intercompany Recharge
To begin:
Navigate to Intercompany Control from the main menu
Select Intercompany Recharge
Click Perform to start a new workflow
Step 1: Create Workflow
Enter a workflow name to identify the recharge process.
Example:
2026 Management Overhead Recharge
Click Update and Next to continue.
Step 2: Select Companies
Define the entities participating in the recharge.
A. FROM Company
This is the originating entity where the shared cost is initially incurred
B. TO Companies
These are the entities receiving their allocated portion of the cost
You can:
Select one FROM company
Include multiple TO companies in the same workflow
Use predefined Groups to quickly select multiple entities
Note: A company cannot be both a FROM and TO entity in the same workflow.
Click Update and Next.
Step 3: Select Transaction Details
Select the required transaction settings:
Transaction Type
Choose how the recharge should be created across participating entities.
Available transaction types include:
Journal Entry
Used for direct intercompany journal postings between entities.
Commonly used for management allocations, payroll sharing, and internal cost distributions.
Invoice
Used when intercompany recharges should be created as Accounts Receivable / Accounts Payable invoices between entities.
Invoice-based recharges are created using Customer/Vendor relationships within the connected accounting systems.
Transaction Date
Select the effective posting date for the recharge workflow.
Click Update and Next.
Step 4: Choose Recharge Configuration
You will now see the available recharge methods.
Option A: Split by Percentage
Use this option to distribute costs across multiple entities based on percentage allocations.
You can:
Use sliders to adjust percentages
Enter exact percentages manually
Allocation Rules
Total allocations must not exceed 100%
If total allocations are less than 100%, the remaining balance stays with the FROM company
This method is ideal for fixed internal cost sharing arrangements.
Option B: Split by Percentage with Markup
Use this option when transfer pricing, management fees, or service markups need to be applied during the recharge process.
Step 1: Define Allocation Percentages
Assign the percentage share for each receiving entity.
Step 2: Apply Markup Rates
You can set:
One common markup rate for all companies, or
Individual markup percentages per company
Step 3: Automatic Calculation
GATHER.nexus automatically calculates final recharge values based on:
Percentage allocation
Markup rate applied
This ensures consistency and compliance across intercompany pricing structures.
Step 5: Set Recharge Amount
On the left panel, click Set up Amount.
Choose one of the following methods:
Enter Manually
Input the recharge amount directly
Click Apply
Pick from Ledger Code
Use an existing transaction from a connected accounting system such as:
Xero
QuickBooks Online
GATHER.nexus automatically retrieves the transaction value based on the ledger code selected in the workflow.
Automatic Posting Logic
Once configuration is complete, GATHER.nexus automatically creates balanced entries across all participating entities.
This ensures:
Both sides of the intercompany transaction are recorded
Allocations are accurate
Markups are calculated correctly
Group balances remain aligned
Full audit traceability is maintained
Workflow Statuses
Each recharge workflow moves through defined statuses:
Draft – Used for review before posting
Posted – Recharge has been finalised and recorded
Repost – Used when adjustments are required while preserving audit history
Processing Options
Once ready, workflows can be completed by:
Posting individually
Bulk posting multiple workflows
Scheduling recurring recharges
Completion Outcome
Once posted:
Costs are allocated automatically across entities
Markups are applied where required
Balanced intercompany entries are created
Group reporting updates in real time
Transactions remain fully traceable
Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email us at [email protected] for assistance.