Intercompany Posting for Medical Premiums

[gvosburgh]

I have a question concerning Intercompany Posting on Medical, Dental, etc. Hope this doesn't confuse anyone....

I have a main company that I pay the Medical Bills out of, but need to create a Invoice from the other company billing the Main co. Normally I would create a bill in the main company to the other company, then create a Invoice in the other company for the Main Company. The payroll comes out of both companies but I am trying to transfer the Medical portion for the employees in the other company to the books.

ABC Co. pays bill
DEF Co. has employees that ABC pays for the Medical
If I create a bill in ABC company to DEF co for the Medical bills then would I be duplicating the entry if I turned around and create a JE# DR Loans between ABC/DEF co. and CR Insurance Premiums?

Then create a JE# DR Ins Premiums and CR Loans between ABC/DEF. The create a Invoice to ABC Company.

Are these the correct entries? Just need valadation on if this is correct, if not what am I doing wrong?

[RobJoy]

Either do it with journals, or bills and bill payments. I prefer bills and bill payments because they seem more intuitively appropriate.

So create a sales invoice in ABC company to DEF co, then use Receive Payments, the 'bank' account being 'Inter-company'. In DEF company record it as a bill, then pay it from 'Inter-company'. 'Inter-company' in the two company files should always add up to zero.