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Invoice or journal for inter-company transactions?

Intercompany and recharges double entry

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All premises expenses and salaries have been processed through company A but during preparation of year-end accounts client has now decided that 70% of the costs need to be re-charged to company B customer.

My question is - can I just process a journal to reduce the expenses in Company A and debiting the Inter-Company Debtor in the Balance Sheet and CR exp in P&L and raise a Sales Invoice in Company B to recharge 70% of the costs to company's B customer Dr customer Cr recharges ? And then dr recharges and Cr intercompany creditors in company B?

Is this correct ?


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20th Jan 2019 14:24

What about the VAT ?

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By Balx
21st Jan 2019 10:11

That would be my 2nd question?

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