AP Liability and Inter company Accounts.

Hi,

We are Using Release 12.1.3.

We have a subsidiary company and the subsidiary company is defined as one of the Supplier from whom we procure services.

All the Payable Invoices are hitting the AP Liability Account for this Supplier.

We are not using the Inter company features but we have Inter company Accounts.

For this Supplier we want to hit the Invoices to this Inter company account instead of AP liability account.

One of the option we are planning is at the Supplier site level, change the AP Liability Account to Inter company account. Is this the correct way?

Also How to transfer the previous balances from the AP Liability Account for this Supplier to Inter Company Account?