Recording payment deductions through intercompany transactions

Summary:

BU1 has made a payment of 1200 to the supplier Google using its own credit card, but this payment was actually on behalf of its related company, BU2. Meanwhile, BU1 owes BU2 1800 for monthly water and maintenance charges.Since BU1 paid 1200 for BU2, this amount should be adjusted against the 1800 that BU2 owes BU1 for the services. After adjusting the 1200 payment, the net amount BU1 needs to pay BU2 is only 600 (1800 - 1200).

1.Created an AP Invoice on BU2 for supplier Google.
	Dr	Cr
Expense - Office Expense	1200
Liablility - Payables Control		1200
2.Created Cross BU payment by BU1 for BU2 Invoice