Intercompany transaction

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Intercompany transaction

Transaction carried out between two units of the same corporation.

Intercompany Transaction

A transaction that occurs between two companies. For example, if a supplier sells to a retailer, this is said to be an intercompany transaction. It should not be confused with an intracompany transaction.
References in periodicals archive ?
Adoption of stricter rules on intercompany transactions and arrangements.
The state impact, especially on the dividend exemption, may be mitigated in combined reporting states, where certain foreign dividends are eliminated as intercompany transactions.
The restructuring better aligns operations with the current and anticipated market environments, reduces administrative burden, and eliminates reported intercompany transactions between Rig Technologies' capital equipment and aftermarket operations.
Second, intercompany transactions suffer inefficiency that drives the cost of finance up while talent is sub-optimized.
If a UAE-based company engages in intercompany transactions with related parties in jurisdictions with transfer pricing rules, the intercompany transactions will be subject to a new level of scrutiny under BEPS.
2002 return audit and MOU: In auditing Medtronic's 2002 tax return, the IRS analyzed the intercompany transactions and the transfer prices among MPROC, Medtronic US, and Med USA.
The Nolan solutions provide advanced functionality for Microsoft Dynamics GP, specializing in streamlining the bank reconciliation process and intercompany transactions.
Misys is now using a single unified instance of NetSuite OneWorld to run business processes including key financial reports, billing, procure to pay, order-to-cash, revenue recognition, multi-currency, multi-language, intercompany transactions, and multi-country taxation compliance.
HP Software is using one single unified instance of NetSuite OneWorld to run mission-critical business processes including order-to-cash, revenue recognition, multi-currency including the Euro, the Japanese yen, the Swedish krona, the Swiss franc, the British pound and the dollars of the US, Canada, Australia, New Zealand, Singapore and Hong Kong, intercompany transactions and multi-country taxation compliance.
As companies grow and expand, intercompany transactions proliferate.
Intercompany transactions can be used to shift income from entities with a physical nexus in many states to a related member with a limited nexus in favorable taxing jurisdictions.
It is important for corporate treasurers to understand the difference between the income statement currency rate used in consolidations and the rate at which intercompany transactions are recorded by the subsidiary that uses the non-functional currency.