Note: If you post intercompany invoices (e.g., the AR company in JC Company Parameters differs from the JC/JB company), and tax is applied to an invoice (billing), the tax liability remains with the AR company. For example, if JB Co #1 posts an invoice of $1050 (includes $50 tax), AR Co #2 receives a debit of $1050 to its Receivables account, a credit of $50 to its Sales Tax Payable account, and a credit of $1000 to its Intercompany Payables account. JB Co #1 receives a debit of $1000 to its Intercompany Receivables account and a credit of $1000 to its Contract Revenue account.