USA Mutual settlements or how to call them in the accounting system correctly


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Dear colleagues,

Actually, I am not an accountant and it is very hard for me to explain what I need. So I am sorry in advance for my question.
I hope I'll manage to explain what I need in simple terms. )))))

I need a correct term to name the following process or a state:
1/ There is a company. It has some departments. Department A renders a service to Department B. So Department B is under the obligation to Department A. Then Department B pays its debt. All these opartaions are recorded on the company balance sheet.

2/ There are 2 companies. Company A renders a service to Company B. So Company B is under the obligation to Company A. Then Company B pays its debt. All these opartaions are recorded on the companies' balance sheets.

So the question is to find the correct term for these process and states.
Can they be called settlements of account or internal/external mutual settlements or account settlements? or even Indebtness?

Are there any forms of agreements called Mutual Settlement Agreement? It seems you use other terms for this.

Thank you very much in advance.
 
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kirby

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Item 2 - these are referred to as Intercompany Transactions
Item 1 - sometimes called interbranch transactions or interdepartmental transactions
 
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Thank you very much for your reply. 'Intercompany transactions' sounds great!
 

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