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Former Member
Feb 27, 2016 at 05:03 AM

Cross company payment


Dear Gurus,

I need one clarification regarding inter company payment.

1. My company code(1700) taking all invoices from c.code (1100) behalf of other vendors. It means all vendors they are sending invoices to 1100 c.code

At that time 1100 c.code passing entry.

01 Customer account(1700) dr

31 to Vendor account cr

In 1700 c.code books entry

40 Expenses account dr

31 to Vendor(1100) account cr

Now, my question is Holding company code(1000) is paying to 1100 c.code behalf of 1700.

How we can clear in 1700 company code liability(1100).and what is the entry?

Could you please advise me on this?