@SFWineKolohe @Cooper69
When Co. A generates the invoice for Co. B, you should reduce the invoice by the amount of the health insurance reimbursement. There are a couple of steps. First, you need to book the health insurance expense in Co. A. Then, you will need to create a service product that can be added to the invoice to reduce the amount due.
To book the health insurance expense in Co. A, first, create an other current liability account called 'Due to Co. B'. Then, create a journal entry - debit health insurance expense and credit the newly-created 'Due to Co. B' liability account. You now have the health insurance expense booked and a corresponding amount due to the parent company.
Next, create a service product called 'Health Insurance Credit' or something similar and select the 'Due to Co. B' liability account under the income account drop-down. Finally, when you create the invoice to Co. B for the services provided by Co. A, add the 'Health Insurance Credit' item to the invoice with a negative dollar amount. This will reduce the invoice amount by the health insurance expense and zero out the 'Due to Co. B' liability account.
