How to do Inter-Company Transactions?

Example, Company A paid for Administration Charges of $1000.00 for Company B. Subsequently Company A bills Company B and it should show as Related Debtors in Company A's account book.

STEP 1: Zero Cost Pte Ltd billed Company B for Administration Charges of $1000.00.  However Company A took in the bill and post to a contra account called 08000 Rebillable A/c.

 

Step 2 : Company A paid the bill of Zero Cost Pte Ltd.

 

Step 3 : In Co. A's account book, Co. B is a Related Debtor.  

 

Step 4 : Company A bills Company B for the "payment made on behalf" through a Debit Note.

Step 5 : In Company B's Account Book, Company B took in the Debit Note from Company A and Company A became a Related Creditor.