Intercompany payables and receivables are business transactions between two entities of the same organization. This could include payments to another division or subsidiary, or to a parent company. They represent an obligation owed by one entity to another, either payable or receivable. Payables can be anything from employee salaries to purchases of inventory, while receivables are usually sales or services provided by the seller to the buyer. Understanding a company’s intercompany payables and receivables is important in forming a solid financial foundation for any organization.