How to Record Inter-Org Transfers
Recording the transfer of goods or services between divisions at cost in accordance with FAR 31.205-26.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| WIP - Receiving Division | Asset | 25,000.00 | - |
| Inventory - Transferring Division | Asset | - | 25,000.00 |
💡 Accountant's Note
Transfers between segments of the same company must generally be made at cost, including applicable G&A but excluding profit, unless the transfer qualifies for a price-based exception.
Practitioner & Systems Framework
💻 ERP Architecture
Automate inter-company eliminations to ensure no double-counting of G&A or overhead.
⚠️ Audit Flags
Markup or profit inclusion in inter-organizational transfers on cost-reimbursable contracts.
📄 Required Documentation
Bill of materials and cost build-up from the transferring division.
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Discussion & Community Questions
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