How to Book Corporate Finance Referral Fees
Accounting for internal referral fees paid by the investment banking arm to the wealth management division.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inter-Departmental Receivable | Asset | 5,000.00 | - |
| Internal Referral Revenue | Revenue | - | 5,000.00 |
💡 Accountant's Note
When a private banker refers a client's business to the corporate finance division for an M&A deal, an internal fee is credited to the wealth manager's P&L.
Practitioner & Systems Framework
💻 ERP Architecture
Inter-unit settlement entries within the consolidated banking ERP.
⚠️ Audit Flags
Compliance with internal transfer pricing policies and anti-kickback regulations.
📄 Required Documentation
Internal referral agreement and proof of deal closure.
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Discussion & Community Questions
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