SaaS
Intercompany Revenue — Parent Licenses to Subsidiary
Billing a foreign subsidiary for use of the parent company's SaaS platform on an arm's-length basis.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Intercompany Receivable | Asset (+) | 10,000.00 | - |
| Intercompany Revenue (License) | Revenue (+) | - | 10,000.00 |
💡 Accountant's Note
Transfer pricing rules require intercompany software licenses to be priced at arm's length. This creates internal revenue for the IP-owning entity and an expense for the subsidiary.
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