How to capture Dividend payments?

johnt

I have an operating corp and a holding corp. Holding corp owns operating corp. I own holding corp. Operating corp dividends its income up to holding corp. And holding corp dividends out to me,

How should these dividend payments should be captured and categorized? It is unclear in the UI.

Mikeg

@johnt,
Can only speak from a US perspective. Dividends are a reduction of equity. So if one company pays a dividend to the other it is recorded as a distribution(payor) and dividend income on receiver. However, in the US, since it is a wholly owned subsidiary, the income is not taxable, So if I had to make journal entries it would go
Payor
Debit - Distributions (equity account)
Credit - Cash
Receiver
Debit - Cash
Credit - Dividend Income
To you
Debit - Distributions
Credit - Cash