I have a created an intercompany transaction between Company A and Company B.
Now, in Company A I have an entry for the Intercompany receivables:
Intercompany receivables (A/B) 100
Bank 100
Similarly, in Company B, I have an entry for the Intercompany payables:
Accounts payable (Vendor Balance) 100
Intercompany payables (B/A) 100
How do I treat the intercompany balances? I understand that these gets eliminated in consolidation, but what if I am not consolidating, how do I cancel/pay off these balances?
The intercompany payable/receivable is not tied to the subledger, how do I mark the exact entries in respective entries for cancellation.
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