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Do I invoice and journal entry for intercompany transactions?

Kristen W's Profile

We have two separate companies that are owned by the same person and work under the same building, currently the Real Estate Management company is invoicing the airline company for Rent every month. How do i handle these intercompany transactions? Do i continue using the invoicing method and doing a month end journal entry to put the rent expense directly into the due to/from account? Or do i skip invoicing the rental expense account and hit the due to/due from account on the invoice?

Please advise.

Answers

Maqsood Hassan
Title: Manager Tax
Company: Rafiq Spinning Mills (Pvt.) Limited
(Manager Tax, Rafiq Spinning Mills (Pvt.) Limited) |

I think you are doing ok. You are doing right by doing a journal entry.

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