In-House cash Centralized payments

[Former Member]

Hi experts,

We have a common scenario where there is group of 5 affiliate companies and a centralized company (head quarters).

Now one of those 5 affiliates is a centralized company(example CCode: 1000). When i make payments for 1000 on behalf of centralized company (1000 itself), I see an intercompany entry in the books of 1000 for ICC1000 only.

Is this weird or this is only the structure we need to follow.

Please advise.

P:S: We only want to go through IHC for all payments.

Regards,

Manish

[Former Member]

"When i make payments for 1000 on behalf of centralized company (1000 itself)"

Apologies!!

It would be opposite: When i make payments for centralized company 1000 on behalf of affiliate company 1000.

Thanks

Manish