Inter Company Sale


Active Member
Greetings List, The accountants would like to ship product to a sister
company, however instead of using the normal sales accounting,(debit
cos/credit inv, credit sales/debit a/r), they would like to debit a/r and
credit inventory only, anotherwords no income statement accounts would be
hit only balance sheet accounts... any ideas??? thanks, s.e.t.


Well Known Member
We do something similar, but just say that we will sell to the related
company at 0% markup. This mindset is an important distinction. I'd try to
sell it to your accountants.
You could try selling at cost so that sales and cogs are equal and direct
the AAI to the same account number XYZ . Of course, if you are using average
costing, there will be small variances due to timing.