Hello, we have a Holdings Company with subsidiaries, let's say Company A, B, and C. Per our tax accountant, we have set up payroll for management with the Holdings Co. and will be paying our health insurance for all subsidiaries with the Holdings Co. via money transfers from the subsidiaries for their portion of the bills.
Example:
An invoice is sent to the Holdings Co. for $20,000. Holdings Co. will pay the invoice.
>Company A must pay $10,000 to the holdings company for their portion.
>Company B must pay $7,000 to the holdings company for their portion.
>Company C must pay $3,000 to the holdings company for their portion
These 3 payments are moved via bank transfers from all 3 subsidiaries' bank accounts to the Holdings Co. bank account and the Holdings Co. will pay the $20,000.
How do we record these transactions?
