Deal with CA companies (interest calculation)

Modified on Thu, 02 Nov 2023 at 03:27 PM

Disclaimer

All screenshots in the article were taken in the Dutch version of Yuki.


In Yuki there are several CA relations that are dealt with by Yuki:

  • CA companies
  • CA employees 
  • CA {director(s)} 
  • CA {participation(s)}.


You can find the '20100 CA companies' ledger account on the trial balance under short-term liabilities.


How does it work?

'CA companies' will be used automatically by Yuki when in one domain a transaction in an administration will be linked (matched) to a transaction in another administration. The most frequent situations:

  • Transfer of amount of a bank account in administration A to a bank account in administration B
  • Payment of an invoice in administration A from a bank account in administration B.


TIP!

If a CA relation exist between two administrations that are both present in another domain then you have to manually create a CA ledger account in both domains for the relevant administration.

So don't use '20100 CA companies' ledger account in this situation.


In a Yuki domain several administrations can be created like for example a holding and an operating company. All administrations are also created as a contact in Yuki. When creating a new bank account you have to indicate in which administration this bank account has to be created,


When money of bank account 1 in administration A is transferred to bank account 2 in administration B then both bank transactions will first be automatically recorded in the '23000 Internal transfers of funds' ledger account. If the debit of bank account 1 as well as the receipt on bank account 2 are linked (matched) to each other on the '23000 Internal transfers of funds' ledger account then an additional entry is created in order to update the CA companies in both administrations.


Hover your mouse over the Financials icon in the navigation bar, click on Trial balance and then click on the 20100 CA companies ledger account.


The following screen is opened:



The overview of the '20100 CA companies' ledger account should balance to zero when you select All administrations in the drop-down menu. 


When you filter by administration you will see an overview of the entries (transactions) that are directly linked to that administration, the contact indicates which entry it concerns. The contra entry will not be shown in this overview because this entry is directly linked to another administration.


Interest calculation for administration

The tax authorities demand the calculation of a business compensation (interest) on the CA relation between companies (administrations). 


In a CA agreement between the different companies (administrations) not only the duration of the agreement, the maximum amount of the CA relation etc. will be registered but also the interest rate.


In order to calculate the interest on the entries (transactions) in a specific administration in the domain you have to click on the Interest calculation button.



The following screen is opened:



In this interest overview you now see the entries (transactions) that are directly linked to the selected administration. 

So the contra entries will not be shown here because these entries are directly linked to another administration.  


At the bottom of the interest overview the balance of the calculated interest to be received or paid will always be shown.


Select, if necessary, another administration in the domain for which you want to make an interest calculation.

Enter the interest rate as stated in the CA agreement and then click on the Calculate button. 


Yuki will perform the interest calculation based on the days.


TIP!

For loans Yuki will calculate the interest based on the days and the exact day on which a repayment has been made (The interest calculation will be adjusted accordingly). 


The calculated interest must be recorded manually in administration A (the interest to be paid) and the contra entry in administration B (the interest to be received) via a journal entry in Yuki. 


Is the calculated interest settled via the CA relation by both administrations then you have to record both journal entries as contra entries in the '23000 Internal transfers of funds' ledger account. As a result the journal entries in both administrations can be linked (matched).

Is the calculated interest actually received or paid via the bank by both administrations then you have to record contra entries for both journal entries in the '16530 Interest to pay' and '13600 Interest to receive' ledger accounts.


TIP!

Also always mention the contact in both journal entries so the GL account will be assigned to the desired administration.


If there is a CA agreement then a additional GL account can be created via the dynamic '85600 Interest earned free 1' ledger account in order to record the interest to be received.



Via the dynamic '86600 Interest paid on other loans and debts' ledger account an additional GL account can be created in order to record the interest to be paid.



If there is consolidation, a group company, participations or loans between the different companies (administrations) then the calculated interest on CA companies will be recorded in the GL accounts that are automatically generated by Yuki like for example:

  • Consolidation: 13400 Short-term receivables from affiliated enterprises / 16320 Subordinated loans
  • Group company: 85100 Interest on loan to group company {0} / 86100 Interest on loan from group company {0} (dynamic GL accounts)
  • Participations: 85200 Interest on loan to participating interest {0} / 86200 Interest on loan from participating interest {0} (dynamic GL accounts)
  • Loans: 85300 Interest on loan to participant {0} / 86300 Interest on loan from participant {0} (dynamic GL accounts).


The chart of accounts in a domain can only be edited by an user with a 'Back office' role in the domain or the 'External accountant' role


The interest calculation can be downloaded as a CSV file by clicking on the Download button.

You can open this CSV file in Excel, for example.


TIP!

Save the CSV file as a PDF document and then link it to the general journal entry.


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