Is there a way to create an intercompany allocation schedule where we can use different intercompany accounts for payable and receivable (other current liability and other current asset)? For example, under the Source tab, I can select the Intercompany Due From in the Intercompany Account field. Under the Destination subtab, I can select an Intercompany Account only if I select the account to be debited as well? This is not ideal because all expense accounts are included in the Source. I can't create separate intercompany allocation schedule per expense. That'd be too many.

are you using IC Framework?

For netting the balances, we don't for these types of transactions.

it is the account that should be used there, and with the frame it is one and the same (IC Netting), it does not work any other way if you have IC Framework enabled

I think it's me who is not explaining this very well. The problem: We have a parent subsidiary that records and pays the bills that are actually expenses of its child subsidiaries. Transactions: Vendor Bill recorded by the parent: Debit: Expense Credit: A/P Vendor Bill Payment recorded by the parent: Dr. A/P Cr. Cash We need to move the expenses from the parent to the child subsidiary and recognize intercompany due from and due to. Parent: Debit: Intercompany Due From Credit: Expenses Child: Debit: Expenses Credit: Intercompany Due To Yes, we can manually record these as advanced intercompany JEs but we are looking for a more automated way. In the vendor bills, we are tagging them to dummy Departments that represent the child subsidiary where the expense should go. We created an intercompany allocation schedule per child subsidiary with the following Source details: From Subsidiary: Parent Intercompany Account: Intercompany Due From Account: All Expenses Department: Child A (dummy department) Destination details: Use Source Account/Credit: Checked Subsidiary: Child A Weight: 100% The problem with this is we can elect to use the Intercompany Due To account for the child subsidiary. We are forced to use the Intercompany Due From from the source tab because we checked the Use Source Account/Credit box. But, if we don't check that box, then we would have to create separate intercompany allocation schedules per subsidiary and per expense account which is not sustainable.

I honestly have never encountered this issue. I have not used due to/due from forever and never for IC allocations, now I recall why. This IC allocation feature is designed to use with one IC AP and one IC AR account and preferably with systematically generated IC customers and vendors. IC Framework makes is it even simpler (using just one account IC Netting on both sides). So I do not think you can use it here, sorry, because you do not use the required features.