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I understand the process of needing to do intercompany transactions. However, I am at a business and they are doing intercompany transactions in a unusual manner. Company A and Company B are identified by separate cost center codes. To pay Company B for services rendered to Company A, this business debits an expense account under Company A’s cost center and then credits the same expense account under Company B’s cost center
This does not provide the level of transparency I am used to in intercompany transactions. Has anyone else seen this and does this appear appropriate?
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