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RE: Intercompany transaction eliminationby
So with 45 intercompany transactions.
How are you going to handle the stock value?
Company A sells to B for (sales price) 50 => COGS read stock value is e.g 40.
Company B has stock value of 50 (purchased of company A) and selling it to company C for (sales price) 70 => COGS read stock value is 50.
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From: John Pia Jr [mailto:firstname.lastname@example.org]
Sent: zondag 10 april 2016 17:28
Subject: RE: Intercompany transaction elimination
Thank you Eric.
I'm going to give this scenario a try and review with my accounting department for their input.
I will report back what we come up with. I can only assume other large corporations who have to produce Consolidated financial statements have the same need.
Thank you for your input
- John Pia Jr
On Apr 10, 2016 2:33 AM, "Eric Caudal (Elico Corp)" <email@example.com> wrote:
It might depend a lot on your structure but usually you create a specific account for sales/cogs (call it intercompany) and a fiscal position called intercompany which will replace the standard account with intercompany account. You assign this fp to any partner related to softer company.
Doing so, all your intercompany transactions will be recorded/isolated into specific accounts.
When doing mono company report you obviously select both normal and intercompany accounts.
When doing intercompany/consolidation reports, you rule out the intercompany accounts.
Same might apply on your analytical accounting (set a default to intercompany specific account for the partners being sister company)
Eric Caudal from my mobile device
My implementation of odoo includes 45 different operating companies under a single umbrella.
Are there ways to eliminate inter-company transaction so that when I run reports across multiple companies j don't have to clutter the reports with a bunch of lines.
If parent company A sells $500 worth of product to child company B, on a Consolidated financial report that line would not be displayed , (assuming the balance is 0, as it always should be)
My reasoning is that we do a ton of sales between different inner companies.
I have a feeling that this solution will include consolidated accounts, but I'm.not sure.
Any insight is appreciated.
- John Pia Jr