How to record IC product testing fee
Record the allocation of quality control and product testing costs to a foreign subsidiary.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Intercompany Receivable | Debit | 2,500.00 | - |
| Intercompany Revenue - Service Fee | Credit | - | 2,500.00 |
💡 Accountant's Note
HQ bills a subsidiary for specialized testing services performed on the subsidiary's inventory prior to local distribution.
Practitioner & Systems Framework
💻 ERP Architecture
Use intercompany trade modules to ensure automatic offset in the subsidiary books.
⚠️ Audit Flags
Inconsistency between testing volume and intercompany billings.
📄 Required Documentation
Testing lab reports and master service agreement.
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