Intercompany transactions

What are Intercompany transactions ?

Intercompany transactions refer to financial transactions that occur between two or more companies that are part of the same corporate group or enterprise. These transactions can take many forms, such as the transfer of goods or services, lending or borrowing money, or the purchase or sale of assets between companies within the same group.

What is the role of intercompany transactions?

Proper accounting and reporting of intercompany transactions is essential to ensure compliance with regulatory requirements and to provide accurate financial information to stakeholders.

What are the implications of intercompany transactions?

Intercompany transactions can have significant financial implications for the companies involved, as they can impact the profitability and financial health of both the parent company and its subsidiaries.

Intercompany accounting can be eliminated using collaborative processes, which include having full visibility of account balances of the underlying transactions. Learn more!