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 ?