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Intra group transaction

This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.

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December 5, 2017 at 1:48 pm #420671
Arooba
Member
- Topics: 58
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If subsidiary sells $6000 worth goods to parent and then sells $5000 of it to a third party. do we deduct 6000 or 5000 from the revenue? also will URP be 1000?
December 5, 2017 at 5:57 pm #420758
MikeLittle
Keymaster
- Topics: 27
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We cancel the FULL amount of the intra-group transaction from both revenue and from cost of sales
We calculate the PROFIT ELEMENT of the remaining $1,000 and add that unrealised profit to combined cost of sales
OK?
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