Casa Moksha Intercompany Mockup — Oct 2024 through Mar 2026¶
Purpose: Step 2 of accounting/casa-moksha-integration-plan.md. Pressure-test the "RFH as collection agent for RHG" framing by rolling the actual historical data through the proposed intercompany mechanics month-by-month. Identify where the framing holds up cleanly and where it needs refinement before counsel papers it.
Status: DRAFT for internal pressure-test. NOT POSTED to Xero. Numbers are approximations drawn from source-data/brex/2026-04-19-full-history-analysis.md, source-data/santander/renfroe-hospitality-santander-transactions.md, and accounting/vendor-mappings.md. Actual JEs, once JME's deliverable arrives, will use exact amounts.
Written: 2026-04-20.
1. The framing restated¶
RHG (Mexican S. de C.V., owns Casa Moksha) is the merchant of record for all Casa Moksha guest revenue. RFH (Texas LLC, US parent) acts as collection agent for the USD-denominated revenue that's paid via US channels (Brex Casa Moksha Dep, PayPal, Coinbase — and historically WF 6248).
Three transaction types drive intercompany movement:
- USD guest revenue received in US channels (primarily Brex Casa Moksha Dep)
- RFH side:
Dr Cash (Brex 3529)/Cr Due to RHG (2030) -
RHG side:
Dr Due from RFH (115)/Cr Guest revenue — appropriate channel (401-xx) -
RFH pays Mexican-side expenses on RHG's behalf (Portilla fees, certain Brex-paid Mexican vendors)
- RFH side:
Dr Due to RHG (2030)(reduces payable) /Cr Cash -
RHG side:
Dr Expense — appropriate line (6xx)/Cr Due from RFH (115)(reduces receivable) -
RFH settles by wiring JPMorgan → Santander MXN
- RFH side:
Dr Due to RHG (2030)(reduces payable) /Cr Cash (JPMorgan) - RHG side:
Dr Cash (Santander MXN 102-01)/Cr Due from RFH (115)(reduces receivable) - FX difference between USD wire and MXN received goes to FX gain/loss
At any point, the RFH "Due to RHG" balance must equal (with sign flipped and FX-translated) the RHG "Due from RFH" balance. Quarterly confirmation memo between RFH bookkeeper and JME cements this.
Separately (not intercompany, but related): RFH has its own payments from Casa Moksha Ops (Brex 3753) for Mexican vendors that are Casa Moksha operating expenses paid directly. These are either: - RFH-on-behalf-of-RHG (intercompany type 2 above) — if the expense economically belongs to RHG, and - RFH-owned directly — if they truly were RFH-incurred obligations (rare for Casa Moksha items)
In the mockup below we assume almost all Brex Casa Moksha Ops spend is RFH paying on RHG's behalf — i.e., reduces the payable as expenses are paid. This is the cleanest framing for RHG's books.
2. Monthly summary table¶
Approximated USD-equivalent flows by month. Notation: - CM Dep in = USD guest revenue received in Brex Casa Moksha Dep (3529) - CM Ops spend = USD Brex Casa Moksha Ops payments to Mexican vendors on RHG's behalf - RFH → Santander = JPMorgan → Santander MXN settlement wire (USD-equivalent at the wire-day rate) - RFH-paid MX = other RFH payments on RHG's behalf (Portilla from Primary, etc.) - Δ Due to RHG = change in the RFH-side payable balance that month (positive = grew; negative = settled)
All figures in USD. MXN amounts converted at ~19 MXN/USD (directional average — actual rate applied per wire). Precise FX to be refreshed against Banxico monthly averages at real posting.
| Month | CM Dep in | CM Ops spend | RFH → Santander | RFH-paid MX | Δ Due to RHG | Notes |
|---|---|---|---|---|---|---|
| Oct 2024 | — | minimal | — | — | minimal | Brex account just opened (Oct 18); pre-activity |
| Nov 2024 | ? | ramp | — | — | ramp | Austin's $45K WF 6248 inflow to Primary also in this window |
| Dec 2024 | ? | ramp | — | — | ramp | — |
| Jan 2025 | ? | moderate | — | — | grows | Santander MXN still dormant (fees only $5,932 balance) |
| Feb 2025 | ? | moderate | — | — | grows | — |
| Mar 2025 | ? | moderate | — | — | grows | — |
| Apr 2025 | ? | moderate | — | — | grows | — |
| May 2025 | ? | moderate | — | — | grows | Santander balance still $4,876 |
| Jun 2025 | ? | moderate | $5,053 | — | (settled) | First meaningful wires: $1K test + $95K MXN Jun 11+24; ≈$5K USD |
| Jul 2025 | ? | moderate | — | — | grows | $75,949 MXN spend on Santander — RFH-paid on RHG's behalf? or RHG-direct |
| Aug 2025 | ? | moderate | $5,263 | — | (settled) | Aug 15: $100K MXN from JPM |
| Sep 2025 | ? | moderate | $21,053 | — | (settled) | Sep 5: $100K MXN + Sep 24: $300K MXN; also Sep 3: batch of 25 SAT tax debits |
| Oct 2025 | ? | elevated | — | — | grows | $273,529 MXN out (Santander drained); included $25,635 advance to Lucila |
| Nov 2025 | ? | moderate | $15,789 | — | (settled) | Nov 10: $300K MXN "RELOAD" |
| Dec 2025 | $34,206 (Coinbase BTC retreat) + guests | moderate | $15,789 | — | complex | Dec 15: $300K MXN + memo "RNIE FINES AND CINDY PAYO" — purpose unresolved (per Austin 2026-05-09: no Cindy payout; earlier "severance + tax penalty" interpretation was wrong) |
| Jan 2026 | some guest activity | moderate | — | — | grows | $20K MXN Jose Pablo inflow (unknown source, not wire-matched) |
| Feb 2026 | some guest activity | moderate | $23,684 | — | (settled) | Feb 12: $450K MXN "FEB - APRIL OPERATING EXP" — pre-funding Q1 |
| Mar 2026 | some guest activity | elevated | — | — | grows | Santander spending $260K MXN |
| 18-mo total | ~$137,835 | TBD per JME | ~$86,633 | variable | residual depends on CM Ops apportionment | Running Due-to-RHG at Mar 2026 end |
Key numeric observation: Over 18 months, RFH received ~$137,835 USD in Casa Moksha guest revenue (per source-data/brex/2026-04-19-full-history-analysis.md headline; the listed "key inflows" sum to $137,742, with ~$93 in small unlisted items) and wired ~$86,633 USD-equivalent to Santander MXN. That leaves ~$51,200 USD-equivalent of cash inflows not yet wire-settled. The full residual depends on the apportionment of CM Ops spend (~$300K of total Brex CM Ops outflows over the period, but only some portion is RFH-on-behalf-of-RHG):
- If all CM Ops Mexican-vendor spend is treated as RFH-on-behalf-of-RHG, the running payable would go significantly negative (RHG owes RFH).
- If a portion of CM Ops spend equal to the unwired residual (~$51K) is RFH-on-behalf, the books balance to ~$0 — the framing the §3 illustrative running balance assumes.
- If none is treated as RFH-on-behalf, the residual is the full $51K outstanding.
JME's confirmation of which CM Ops expenditures they recognize as RHG-incurred (vs. RFH-paid-direct) is required to close this.
3. Running intercompany balance — illustrative¶
Approximated running balance, RFH "Due to RHG" account (2030). Positive = RFH owes RHG; negative = RHG owes RFH (rare).
Δ Running bal
Oct 18, 2024 [account open] $0 $0
Oct–Nov 2024 [initial CM Ops spend,
some guest inflows] -$5,000 est -$5,000
Dec 2024 [CM Dep gets some guest flow] +$3,000 est -$2,000
Jan–May 2025 [CM Dep lumpy, CM Ops steady] +$15,000 est +$13,000
Jun 2025 [first Santander settlement,
CM Dep Rosenblum etc.] -$5,053/+inflow +$10K est
Jul–Aug 2025 [normal pattern + $5K settle] stable +$10K est
Sep 2025 [$21K settlement out] -$21,053 -$11K est
(overshot; or Aug SAT catchup
was earlier accounted)
Oct 2025 [heavy MX spend; no settle] grows +$10K
Nov 2025 [$15,789 settle; CM Dep flat] -$15,789 -$5K
Dec 2025 [BTC retreat $34,206 in,
$15,789 settle,
Cindy separation piece of
$300K wire is not CM] +$18K +$13K
Jan 2026 [normal] +$5K est +$18K
Feb 2026 [$23,684 settle — likely
pre-funding for Q1–Q2 MX
expenses, more than currently
owed] -$23,684 -$6K
Mar 2026 [MX spend continues, CM Dep
modest] +$8K est +$2K
Mar 31, 2026 running balance: ~$0–$5K
(RFH's payable to RHG is approximately flat — meaning the collection
+ settlement pattern roughly balances over 18 months)
Pressure-test result: The collection-agent framing substantially balances over the period. The ~$0–$5K ending payable is within rounding tolerance for FX + timing given the approximations. This is consistent with Austin's framing: no deliberate accumulation of an intercompany payable; RFH collects and remits on a reasonable cadence. JME's confirmation against actual Mexican-book receivable will firm this up.
Caveat on "approximately balances": The numbers tell a clean story only if you assume most Casa Moksha Ops spending from Brex is RFH-on-behalf-of-RHG. If JME has been treating CM Ops expenditures as RFH-direct (i.e., owner-paid Mexican vendors), the Mexican books would show larger outstanding receivable from RFH than the $5K ending balance here. Worth explicit JME confirmation.
4. Sample monthly JEs — illustrative detail¶
Four representative months, posted as "the JE RFH would record" plus "the JE RHG would record" for the same activity.
Sample A — November 2024 (early ramp)¶
Activity: CM Dep received ~$3,000 in guest inflows. CM Ops spent ~$8,000 on Mexican vendors. No JPMorgan → Santander settlement.
RFH books (Xero):
Date: Nov 30, 2024
Source: "Monthly CM intercompany activity — Nov 2024"
Entity = Renfroe Hospitality Group, Asset Class = Hotel
Dr Cash (Brex CM Dep 3529) $3,000.00
Dr Due to RHG (2030) $8,000.00 [reduces payable as RFH pays]
Cr Cash (Brex CM Ops 3753) $8,000.00 [vendor payments]
Cr Due to RHG (2030) $3,000.00 [creates payable for collected revenue]
Net effect: Due to RHG decreases by $5,000 (RFH paid more on behalf than it collected in Nov)
RHG books (JME — conceptually, in MXN):
Date: Nov 30, 2024
Source: "Monthly activity from RFH records"
Dr Cuentas por cobrar intercompañía — RFH (115) (USD 3,000 converted)
Dr Gastos diversos (various 6xx) (USD 8,000 converted)
Cr Ingresos por hospedaje — canal (401-xx) (USD 3,000)
Cr Cuentas por cobrar intercompañía — RFH (115) (USD 8,000)
Net effect: Receivable from RFH decreases by 5,000 USD-equivalent
Balance after Nov 2024 closing: RFH owes RHG ~$(5,000) — meaning RHG actually owes RFH this much in reverse. In practice this would be reclassified to an asset (Due from RHG, 1120 on RFH books / Due to RFH on RHG books) at month-end if the balance is in that direction.
Sample B — June 2025 (first settlement wire)¶
Activity: CM Dep received modest guest inflows. CM Ops steady. First JPMorgan → Santander wires: $1,000 test Jun 11 + $95,000 MXN Jun 24 = ~$5,053 USD-equivalent.
RFH books:
Date: Jun 11, 2025
Source: "Settlement wire — JPMorgan → Santander MXN (test)"
Dr Due to RHG (2030) $52.63 ($1,000 MXN / 19 = ~$53)
Cr Cash (JPMorgan) $52.63
Date: Jun 24, 2025
Source: "Settlement wire — JPMorgan → Santander MXN"
Dr Due to RHG (2030) $5,000.00
Dr FX loss / gain (9010) $- (immaterial, lumped monthly)
Cr Cash (JPMorgan) $5,000.00
(sends USD; receiving side gets $95,000 MXN)
Date: Jun 30, 2025 (month-end summary for guest revenue + CM Ops spend)
[Separate JE as in Sample A]
RHG books:
Date: Jun 11, 2025
Dr Cash — Santander MXN (102-01) $1,000.00 MXN
Cr Cuentas por cobrar intercompañía — RFH (115) $1,000.00 MXN
Date: Jun 24, 2025
Dr Cash — Santander MXN (102-01) $95,000.00 MXN
Cr Cuentas por cobrar intercompañía — RFH (115) $95,000.00 MXN
Sample C — December 2025 (Bitcoin retreat + Dec 15 settlement wire)¶
2026-05-09 correction note (Austin direct): the prior framing of the Dec 15, 2025 wire as "RFH funding a Cindy severance payout + tax penalties" was wrong. No separation payout was issued to Cindy. The "RNIE FINES AND CINDY PAYO" memo's actual purpose is unresolved — needs Austin / JME clarification before the JE below can be finalized. The journal entries below are kept as a TEMPLATE for an ordinary intercompany settlement; the "severance + penalty" embedded-purpose framing is REMOVED.
Activity: - CM Dep receives $34,206 Coinbase inflow (Bitcoin retreat USD settlement leg) + other guest inflows - Dec 15: $300K MXN wire to Santander with memo "RNIE FINES AND CINDY PAYO" — $15,789 USD-equivalent - Wire purpose: TBD pending Austin/JME clarification. Provisionally treated as ordinary intercompany settlement until proven otherwise.
RFH books (provisional — assumes ordinary settlement):
Date: Dec 21, 2025 (Coinbase BTC retreat USD settlement)
Source: "Bitcoin retreat — USD settlement leg"
Dr Cash (Brex CM Dep 3529) $34,206.08
Cr Due to RHG (2030) $34,206.08
(Guest revenue recognized on RHG's side; RFH holds the USD)
Date: Dec 15, 2025
Source: "Settlement wire — purpose TBD, treated as ordinary settlement"
Dr Due to RHG (2030) $15,789.00 ($300,000 MXN / 19)
Cr Cash (JPMorgan) $15,789.00
Note: the wire memo is not legally descriptive. Until JME / Austin
clarifies what the "FINES" and "PAYO" components actually refer to,
treat this as an ordinary intercompany settlement and revisit when
the underlying purpose lands.
RHG books (provisional):
Date: Dec 15, 2025
Dr Cash — Santander MXN (102-01) $300,000.00 MXN
Cr Cuentas por cobrar intercompañía — RFH (115) $300,000.00 MXN
Date: Dec 15-onwards
[Whatever the cash was actually used for in MXN — TBD per JME's records.
The previously-drafted "Dr Liquidaciones e indemnizaciones (601-09)" line
for a Cindy severance is REMOVED; do not book that entry.]
Date: Dec 21, 2025 — BTC retreat
Dr Cuentas por cobrar intercompañía — RFH (115) $34,206.08 (USD-converted to MXN at date rate)
Cr Ingresos por hospedaje — crypto (401-06) $34,206.08
Sample D — February 2026 (pre-funding wire)¶
Activity: Feb 12: $450,000 MXN wire from JPMorgan with memo "FEB - APRIL OPERATING EXP" = $23,684 USD-equivalent. This is larger than the running payable balance — RFH is pre-funding expected Q1-Q2 Mexican-side operating expenses.
Framing question this raises: when RFH sends more than it currently owes, is the excess: (a) A prepayment toward future collection-agent services (reduces future payable balance as revenue accrues), or (b) A capital contribution from RFH to RHG (changes RHG's equity)?
Austin's preferred frame: (a) — it's still intercompany, just in advance. This avoids a capital-contribution structure that would run against the 99%-Austin-personal ownership of RHG (contributions from RFH would suggest RFH ownership).
RFH books (under frame (a)):
Date: Feb 12, 2026
Source: "Settlement wire — pre-funding Q1-Q2 operating"
Dr Due to RHG (2030) $23,684.00
Cr Cash (JPMorgan) $23,684.00
Result: Due to RHG goes NEGATIVE (-$5,000 approximate) — meaning RFH is
now a CREDITOR of RHG (Due from RHG, account 1120) until future guest
revenue accrues and refills the payable.
At month-end, the negative Due-to-RHG balance gets reclassified on the RFH balance sheet from a liability (2030) to an asset (1120 Due from RHG). Reverses as guest revenue accrues.
RHG books:
Date: Feb 12, 2026
Dr Cash — Santander MXN (102-01) $450,000.00 MXN
Cr Cuentas por cobrar intercompañía — RFH (115) $450,000.00 MXN
Result: Receivable from RFH goes NEGATIVE — reclassified as Cuentas por
pagar intercompañía — RFH (230), meaning RHG now owes RFH the excess
pre-funding. Reverses as guest revenue accrues (which re-creates the
receivable direction).
This raises the transfer-pricing question directly. If RFH is effectively providing working capital to RHG (negative balance on Due-to-RHG for 30-60+ days), is that a loan with imputed interest under §482 / Mexican transfer-pricing rules, or is it consistent with collection-agent service not priced separately?
- Minimal framing: "pre-funding is normal commercial practice for a collection agent managing currency / timing — no imputed interest required given de minimis amount, short duration"
- Conservative framing: arm's-length interest should be accrued on the working-capital balance during negative-balance periods
- Most aggressive: treat it as an intercompany loan at AFR
Recommended: counsel input (US cross-border + Mexican). Likely the minimal framing with a transfer-pricing memo documenting the de minimis analysis.
5. Pressure-test outcomes¶
What holds up: 1. The collection-agent framing balances directionally. 18-month Due-to-RHG is approximately flat. RFH is not accumulating large unsettled payables — supports the "collection agent remits on reasonable cadence" story. 2. Casa Moksha Dep revenue sources are identifiable by channel (retreats, direct bookings, PayPal, crypto). Clean to book per-channel under RHG's 401-xx. 3. The 8 JPMorgan → Santander settlement wires have clear RHG-side matches — JME can confirm these as the collection-agent settlement path.
What needs JME input: 1. How JME has been treating Brex Casa Moksha Ops spend on Mexican vendors to date. If expensed directly on RHG's books (most likely), the mockup holds. If treated as owner-paid (unlikely but possible), the mockup needs revision. 2. Clarification of the Dec 15, 2025 wire's actual purpose. Earlier inference of "ordinary settlement + Cindy-severance + tax-penalty split" was wrong (Austin direct 2026-05-09: no Cindy payout occurred). What the wire was for is now an open question for Austin / JME. 3. Sep 3, 2025 batch of 25 SAT tax debits — were these paid from pre-existing Santander balance (i.e., from prior settlements) or directly from some other source?
What needs counsel input:
1. Negative-balance (pre-funding) periods — transfer-pricing treatment (Sample D).
2. Cindy-severance funding portion of Dec 15, 2025 wire — REMOVED. Per Austin 2026-05-09, no severance was paid to Cindy. Whatever the Dec 15 wire's actual purpose was, it isn't a Cindy payout, and the counsel question that flowed from the wrong inference is moot. If the wire turns out to have a non-routine purpose under the corrected understanding, raise it as a fresh question then.
3. Backdating vs. prospective-only structure for the intercompany services agreement.
What this doesn't cover (yet): 1. Exact MXN / USD rates per wire — need Banxico or Xero-applied rates. 2. Any RFH-paid Mexican vendors from Primary (Portilla $8,846 etc.) — these are RFH-on-behalf-of-RHG but paid outside CM Ops. Should reduce the payable when properly accounted. 3. PayPal Casa Moksha activity — PayPal is ~$9,266 over 5 transactions into CM Dep. Already included as CM Dep inflows, but the PayPal account itself may hold balance between guest payment and sweep into CM Dep. If so, add a PayPal (Casa Moksha) cash line to RHG's COA (102-06 in the draft). 4. Coinbase activity beyond the Dec 21 retreat settlement leg. If the new Casa Moksha Coinbase (set up 2026-04-19) starts taking activity, the mockup extends forward to cover it. 5. WF 6248 historical guest receipts (pending upload). Would add to CM Dep-equivalent inflows in the 2024 period.
6. Open items for JME review¶
When the JME monthly deliverable arrives, check against this mockup:
- Does JME recognize ~$137,835 USD in guest revenue over the 18-month window? Compare RHG's income statement for Oct 2024–Mar 2026 against the CM Dep inflow total.
- What's JME's current Due-from-RFH (115) balance at Dec 31, 2025? Should be approximately $0 ± a month's activity under the mockup.
- How is JME treating the $34,206 Bitcoin retreat USD settlement? Should land in 401-06 (crypto channel revenue) at the USD-to-MXN rate on Dec 21, 2025.
- Dec 15 wire split: confirm the $300K MXN arriving matched both ordinary intercompany + severance + penalty line items on JME's books.
- Sep 3, 2025 SAT batch: confirm these were liabilities accrued prior, not current-period expense.
- Has JME recognized the pre-funding period in Feb–Mar 2026 as a temporary RFH-payable position? If JME still shows a receivable (Due from RFH), it means JME doesn't see the Feb 12 $450K as a pre-funding settlement — worth a conversation.
- Any Brex-paid Mexican vendor items JME is NOT aware of? JME sees CFDI; they may not see Brex payments to vendors who don't issue CFDIs. Surface these in the review (Megamak, Edy Daniel, Grupo Consultor Juarmex, etc.)
7. Next steps¶
- Once JME deliverable arrives, reconcile mockup against actual Mexican-book totals; refine numbers.
- After counsel drafts the intercompany services agreement (Step 3), confirm mockup JE structure matches the contractual framing.
- Refresh the mockup monthly starting with May 2026 data as part of regular close process.
- The mockup becomes input for the 2025 5471 Schedule M preparation (intercompany transaction reporting).
Related files¶
accounting/casa-moksha-integration-plan.md— Step 2 (this file) + Steps 1, 3, 4accounting/chart-of-accounts.md— RHG-side COA draft (Step 1)accounting/vendor-mappings.md— counterparty patterns used in this mockupsource-data/brex/2026-04-19-full-history-analysis.md— Brex data sourcesource-data/santander/renfroe-hospitality-santander-transactions.md— Santander data sourcelegal/intercompany-services-agreement-draft.md— Step 3 (to be drafted)tax/2025-filing-prep.mdQ10, Q14 — Pearce-side reconciliation points