Shared supplier invoice evidence must explain which company bought the goods or services and how any allocation is supported. Do not copy the same full invoice into two companies’ purchase ledgers. Identify the contracting party, actual supply and payment arrangement, then ask the accountant whether corrected invoicing or a documented recharge is needed.
Establish the supplier’s customer
Read the agreement, purchase order and invoice. Record the legal entity named and the service period. A shared director, office or group logo does not make two companies interchangeable. Confirm the entity identifiers when names are similar.
Ask the operational owner who received the benefit and why the invoice was combined. The answer should be specific enough for the accountant to review, rather than a general instruction to split everything equally.
Obtain appropriate support
Where the invoice names the wrong customer or obscures separate supplies, ask the supplier about an appropriate correction. Do not edit the supplier’s PDF yourself. If one company genuinely incurs a cost and another bears a share, the accountant should assess the allocation, any recharge and associated tax treatment.
Example: one software invoice for two entities
A supplier invoices Company A for a subscription used by staff in A and B. The contract and licence terms need checking before half the amount is posted to B. The group may need better supplier records or a properly documented internal arrangement. A spreadsheet percentage alone does not decide the supplier relationship or GST entitlement.
Separate payment from allocation
Record which company paid the supplier and whether another company owes it money. Avoid paying the original supplier twice while resolving the allocation. Keep any intercompany settlement identifiable and subject to normal approval controls.
Give the reviewer a complete pack
Retain the original invoice, contract, explanation, approved allocation and any corrected documents or recharge records. Reconcile both companies’ entries so the group does not record the entire cost twice. IRAS requires transaction records that explain business activity; the pack should make the entity and amount in each ledger understandable.
Related practical guidance
For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.
Official guidance: IRAS official guidance.
Help with your company records
For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.
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