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  • 1.  Intercompany asset sales

    CO19 Speaker
    Posted 06-04-2021 08:03 PM

    We are looking to learn how other companies that are capital intensive deal with intercompany asset transfers/sales of used assets between ledgers and how to handle all of the mark-up and/or necessary elimination entries?  Generally we are selling or transferring assets from one entity to another where there is a mark-up involved.  For example, an asset with a NBV of $800 is transferred to a European entity for $1000.  This would generate a $200 elimination entry for the selling org however that asset goes on the foreign entity's books at $1000 leaving the need for a negative $200 asset to be depreciated to satisfy statutory requirements.


    We would appreciate any insight as to how your company might be handling such situations concerning Intercompany sales/transfers of asset where is a transfer price/mark up element including how you are handling in GL with any entries, additional ledgers, etc.  Also, how you may be utilizing the FA module to track obviously the transferred asset and where/how the $200 intercompany charge is handled.

    Donna DuBois
    Business Systems Analyst
    Carlsbad CA