Intercompany settlement is a type of adjustment of funds made between two parental companies. lets take an example: If Co.A Sell goods worth $1000.00 to its own Subsidry Co.B and in the meanwhile Co.B sell goods worth $8000.00 to Co.A(it has to be in same FY), then at the end of the Financial Year Co.B has to pay only $2000.00 to Co.A. Co.A will pass an adjustment entry in their books for the difference amount. (In case of other vendors this procedure cannot be followed)
1. If assume we paid 50/- as an advance for worth or 100/- goods, but our supplair sent only up to 25/- worth of goods. Know My question is that we want to close the transaction now. How it possible? 2. what about VAT like Tax Setups in AP and AR? 3. what about the SWEEP command in AP?