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Intracompany Trade
(redirected from Intracompany Transaction)

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Intracompany trade
Transactions between or among subsidiaries that are part of the same parent company.

Intracompany Trade
A transaction that occurs between two subsidiaries of the same parent company. For example, if a supplier sells to a retailer, and both are owned by the same conglomerate, this is said to be an intracompany transaction. It should not be confused with an intercompany transaction.


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One way of achieving this is through the allocation of revenue and expenses in intracompany transactions.
To offset decreasing demand brought on by higher input costs, suppliers tend to reduce prices when dealing with divisions that handle intracompany transactions at a price above cost.
In addition, Freddie Mac incorrectly accounted for certain commitments to purchase and sell mortgage-related securities, including those executed in conjunction with intracompany transactions.
 
 
 
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