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Rbutton01
Level 2

How do I record an intercompany transfer?

I have a manager who salary is paid by two of our companies.  I would like to know what is the best practice.  The employee is on salary, example $50,000.  Company A will pay $25,000 and Company B will pay $25,000.  Or is it better to have Company A pay for the $50,000 and Company B reimburse Company A?  

2 Comments 2
Rustler
Level 15

How do I record an intercompany transfer?


@Rbutton01 wrote:

  Or is it better to have Company A pay for the $50,000 and Company B reimburse Company A?  


yes

Rbutton01
Level 2

How do I record an intercompany transfer?

Thanks for the response.  If Company B pays back Company A, I would have Company A invoice Company B?  

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