Explain Inter company Sales process



Explain Inter company Sales process..

Answer / Zafar Alam

Intercompany sales refer to transactions between different legal entities within the same organization. The intercompany sales process involves several steps:

1. Identify and create the goods or services to be sold between companies.
2. Determine the transfer pricing method for the transaction (e.g., cost-plus, market-based).
3. Create an intercompany sales order, including details such as item description, quantity, price, and delivery terms.
4. Process the sales order through the relevant software system or ERP.
5. Transfer inventory from one company to another, updating inventory levels accordingly.
6. Generate and issue invoices between companies for the sale and record the transaction in each company's books of accounts.

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