how would paying a vendor bill from a holding company with the bill in a subsidiary work with intercompany

AI generated answer (using internal Slack threads):

Based on the conversations, there are several ways to handle paying a vendor bill from a holding company with the bill in a subsidiary, especially when dealing with intercompany transactions. Here are some of the methods discussed: 1. Intercompany Journal Entry: This is a common method where you create a journal entry to move the vendor bill amount from the subsidiary's Accounts Payable (AP) ledger to the parent company's AP ledger. This will make the bill show up under the parent company's payable account. You can then pay this Journal Entry using the regular bill payment method for the parent company. This method is straightforward but not very elegant. 2. Scripting: Another option is to use scripting to create the Journal Entry in the background. The rest of the process remains the same as the first method. This method can automate the process and reduce manual work. 3. Dummy Bank Account: In this method, a dummy bank account is used to create a Bill Payment against the original bill. Then, an advanced intercompany journal entry is created to zero out the dummy bank account, take it out of the actual bank account, and recognize the intercompany receivable and payable. This method works well if the liability is okay to sit in the child subsidiary until payment by the parent. 4. Third-Party Products: There are third-party products like Shared Vendor Bill from NetSuite or Nerdly Multico automation that can create intercompany transactions for you when saving the bill. These products can be worth it if you're doing a lot of these transactions a month. 5. Intercompany Framework: If the subsidiary is procuring services on behalf of the parent company, it is possible to do a true up or a transfer pricing adjustment. This method requires a paper trail that follows certain rules set forth by your auditors. Remember, the method you choose depends on your specific needs and the complexity of your intercompany transactions. Always consult with your auditors or financial advisors to ensure compliance with all relevant regulations. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******