Intercompany billing refers to the process of generating invoices for transactions that occur between different units, divisions, or subsidiaries within a single parent company. It involves documenting and recording the details of these internal transactions, similar to how transactions with external customers are documented. In intercompany billing, goods or services may be provided by one company within the corporate group and delivered directly to the customer using the stocks of another company within the same group. This internal invoicing ensures accurate financial tracking and accountability within the parent company structure.