How do we have to record the transaction when one company used their credit to pay for another company?
We do have two accounts, they pay invoices using independent ACH company. The ACH company used a credit (issued previously by us for overpayment) from Company A to apply to Company B - to pay for open invoice. Our records are separate within our QuickBooks, because these companies locate in different countries and billing addresses are different. We received the payment where Company A used their credit to pay for another company B open invoice. One company paid for another company. How correctly to record this transaction?
It is happening in our company. We issued two invoices for two different companies. They decided between each other that one company A can pay for another company B because Company A has a available credit with us.