it is best practice to use accounts receivable accounts for intercompany customers

AI generated answer (using internal Slack threads):

Based on the conversations provided, it is not considered best practice to use Accounts Receivable (A/R) accounts for intercompany customers. Instead, it is recommended to use Other Current Assets or Other Current Liabilities for intercompany transactions. This is because using A/R and Accounts Payable (A/P) accounts for intercompany transactions can lead to additional restrictions and limitations, especially when it comes to intercompany transactions. For instance, if you use A/R and A/P accounts for intercompany transactions, you will need to use intercompany customers and vendors, which can lead to restrictions on how you can enter Journal Entries and other transactions. This can make the process more complex and potentially lead to errors. However, there may be exceptions to this rule. For example, if you need to issue a real VAT invoice to another subsidiary, you may need to use A/P and A/R accounts. In terms of whether to create separate intercompany A/R and A/P accounts per entity, it seems to be a matter of preference. Some prefer to create separate accounts to make reconciliation easier, while others prefer to use only two intercompany accounts (IC A/R and IC A/P) for any number of subsidiaries to allow for auto-balancing. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******