This guide explains how to create an intercompany recharge in GATHER.nexus.
You can allocate one or more costs from a paying company to other companies in your Group, configure how the costs are shared, apply markups, and schedule when the amounts are retrieved and the resulting transactions are created in your connected accounting systems.
1) Open Intercompany Recharge
Go to Intercompany Control.
Select Intercompany Recharge.
Click Perform to start a new recharge.
Choose Rules Based Automation to configure the recharge using ledger accounts, cost allocations, markups, and schedules.
2) Name the Recharge
Enter a descriptive name in What would you like to call this workflow?
For example, use Monthly IT Recharge or Group Salary Recharge.
This name helps you identify the recharge when reviewing it later.
3) Select the Companies
Choose the Group and the companies involved in the recharge.
Select the Group: Choose the Group containing the companies.
From Company: Select the company that originally incurred the cost.
To Company: Select one or more companies that will receive their share of the cost.
The paying company cannot also be selected as a receiving company.
If the companies use different currencies, GATHER.nexus indicates that currency conversion will apply when the recharge amounts are calculated.
4) Choose the Transaction Type and Schedule
Select how the recharge should be recorded and when the resulting transactions should be created.
Transaction Type
Journal Entry: Records the accounting entries directly in the companies' books.
Invoice: Creates a sales invoice for the paying company and a corresponding bill for each receiving company.
Transaction Option
Single Entry: Creates one transaction on a specified date.
Recurring Entry: Creates transactions according to a schedule.
For recurring entries, choose whether transactions should be created automatically in the accounting software on their scheduled dates or prepared for manual review and posting.
Frequency
Available options include:
Weekly
Bi-weekly
Monthly
Quarterly
Semi-Annually
Annually
Depending on the frequency, choose the appropriate weekday or day of the month, together with the start and end dates.
The frequency determines the accounting period covered by each recharge. For example, a monthly recharge covers one calendar month, while a weekly recharge covers one week.
GATHER.nexus displays the number of transactions the schedule will create and the scheduled dates so you can review them before continuing.
Understanding the Accounting Period, Ledger Retrieval and Posting Dates
When setting up a recurring recharge, it is important to distinguish between the accounting period being recharged, when the amounts are retrieved from the ledger, and when the resulting transactions are posted.
These are three separate considerations:
Accounting Period: Determines which period's costs are being recharged.
Pick up from ledger: Determines when GATHER.nexus retrieves the relevant amounts from the paying company's ledger for the completed accounting period.
Post: Determines when the resulting recharge transactions are posted to the connected accounting systems.
The ledger retrieval and posting dates can be scheduled after the accounting period has ended. This allows sufficient time for the paying company's accounts to be closed and the relevant costs to be finalised before the recharge is processed.
Example: Recharging January Costs
Suppose you want to recharge costs incurred during January:
Accounting Period: 1–31 January.
Pick up from ledger: 5 February.
Post: 5 February.
In this example, GATHER.nexus retrieves the relevant January costs on 5 February. This allows five days for the January accounts to be closed and any outstanding transactions to be recorded before the recharge amounts are calculated.
The resulting transactions can then be posted on 5 February or scheduled for a later date if additional review or approval is required.
Why Are There Two Separate Dates?
Retrieving the amount and posting the transaction are two different processes. You may want GATHER.nexus to retrieve the ledger amount as soon as the accounts are closed, but delay posting until the recharge has been reviewed or approved.
The posting date must not be earlier than the ledger retrieval date. If an earlier posting date is entered, GATHER.nexus displays a validation message and prevents the schedule from being saved.
Automatic Creation or Manual Review
For recurring entries, you can choose whether transactions should be created automatically in the accounting software on their scheduled dates.
Yes: Transactions are automatically created in the connected accounting systems on the scheduled dates.
No: Transactions are prepared for manual review and posting from the Transaction Summary screen.
Both options follow the same configured schedule. The difference is whether posting happens automatically or requires manual action.
Status
Choose the status for the resulting accounting transactions.
For Journal Entry: Draft or Posted.
For Invoice: Draft, Awaiting Approval, or Authorised (Awaiting Payment).
The selected status determines the state of the resulting transaction in the connected accounting software.
5) Add Ledger Codes or Vendors/Contacts
The Ledger Codes & Split step lets you add one or more costs to the same recharge.
For each row, choose either:
Ledger Code: Select an account from the paying company's chart of accounts.
Vendor/Contact: Select a specific vendor or customer whose cost you want to recharge.
You can add several rows to handle multiple costs in one setup.
Each ledger code or vendor/contact can only be used once within the same recharge.
6) Allocate the Cost Between Receiving Companies
For each row, enter the Split % and Markup % for every receiving company.
Split %: Determines the share of the cost allocated to that company.
Markup %: Adds an extra percentage to that company's allocated share.
You can use Split evenly to divide the cost equally between receiving companies.
Use Same markup to apply one markup percentage to all receiving companies for that row.
The combined split percentages must not exceed 100%, and at least one receiving company must have a percentage greater than zero. The split does not have to equal 100%; the paying company can retain the remaining portion of the cost.
For example, a £1,000 cost could be allocated 60% to one company and 40% to another, with a 5% markup applied to each receiving company's allocation.
7) Configure Tracking and Custom Schedules
Where applicable, you can also:
Filter the amount using tracking categories or classes: This limits the amount retrieved from the paying company's books to transactions matching the selected tracking criteria.
Set a Custom Schedule: Give an individual ledger-code row its own frequency and date range instead of using the shared schedule.
A custom schedule allows a particular ledger-code row to follow a different schedule from the rest of the recharge. You can configure its transaction option, frequency, dates and applicable retrieval and posting settings independently.
If you do not set a custom schedule, the row follows the shared schedule configured earlier.
8) Review the Double Entries
Open the Double Entries step to review the accounting entries for each receiving company.
For Journal Entry recharges, review the debit and credit lines on both sides.
For Invoice recharges, review the paying company's invoice and the receiving company's bill, including the relevant income or expense account, customer or vendor, and tracking information where applicable.
You can add additional debit or credit lines where needed. Check the accounts and tracking selections before proceeding.
9) Save the Recharge
Review the configuration and complete the required fields before saving.
When a recharge contains multiple ledger-code or vendor/contact rows, each row with an active allocation is saved as a separate recharge workflow. Each can be reviewed and managed independently.
Once saved, you can access the Transaction Summary to review the scheduled periods, accounting entries and posting status. You can also review the amounts retrieved for each period and manage the resulting transactions.
Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or contact support for assistance.