goverment accounting:

company X pays for the utlities of the building in December 2022, so company Z owes their part.

D: utilities expense

C: cash

so company X makes an invoice

D: due to/from company Z

C: utilites expense.

in January 2023 company X is trying to pay off their invoice.

how would both company recognize it??

i understand that due to/from are suppose to be zero every month. if thats the case then retained earnings would be affected?