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Level 1

How do I invoice a sister company but not record it as revenue but instead have the Invoice amount be equity not revenue

We have a sister company where we expend labor and resources to support that company. I want to record the amount of effort as an invoice but the invoice amount should be recorded in a Equity account to represent that amount expended supporting that company
2 Comments
QuickBooks Team

How do I invoice a sister company but not record it as revenue but instead have the Invoice amount be equity not revenue

I'll guide you here, al-alper!

 

If you really want to use an invoice, you can create an item and assign your equity account to it. That way, the amount will reflect in it.

 

service item equity account.PNG

 

If you have other questions, you can always go back to this thread. You can also check more references on the main support page. Have a good one!

Level 1

How do I invoice a sister company but not record it as revenue but instead have the Invoice amount be equity not revenue

That will definitely account for the equity contribution - but will still leave a balance on the Customer account. Assume that is then Written Off via a Credit Memo allocated to write off or Bad debt (e.g 63000 Uncollected Debt)? But that will artifically inflate expenses, no?

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