Share this content
5

Inter-company sales, purchases & stock movement

Intercompany accounts

Didn't find your answer?

We hold stock in one company, the sales invoicing and purchases are going to be put through this company, but I will need to show the sales revenue and ultimately the gross profit and net profit in another company.  So that everything ties up do I tranfer the sales revenue, purchase costs and closing balance of the stock at month end via an intercompany account to this second company?  We currently dont consolidate our accounts, will I need to do anything else?

Replies (5)

Please login or register to join the discussion.

avatar
By Bobbo
19th Jan 2021 13:25

sharonburgess wrote:

We hold stock in one company, the sales invoicing and purchases are going to be put through this company, but I will need to show the sales revenue and ultimately the gross profit and net profit in another company. 

Pardon? Why?

Thanks (0)
avatar
By Paul Crowley
19th Jan 2021 13:45

What is really happening

Are the companies a group

Not enough to even consider a reply

Thanks (0)
Routemaster image
By tom123
19th Jan 2021 14:06

As well as CT effects, think about VAT too.
Perhaps even Contract Law.

I would really question quite hard the 'why' on this.

Are the shareholders the same.

Do not let the 'tax tail' wag to operational dog.

Keeping this kind of thing going will be a monotonous drag..

Thanks (0)
avatar
By sharonburgess
19th Jan 2021 14:17

Thank you, I'll take this up with my line manager

Thanks (0)
Replying to sharonburgess:
avatar
By paul.benny
19th Jan 2021 16:11

There's a welcome change :).
Thanks rather than push back from the OP to some good responses. Do come back if you need more help.

Thanks (1)
Share this content