Inter-Company Stock Transfer

Related Issue:

I would like to get feedback from the community on how to properly record Inter-Company stock transfer from One Company to another for the purpose of internal Sub-contract. The 2 companies are actually like branches of the same product brand and sometimes, either of the 2 sub-contracts manufacturing of certain items. So if Company A sub-contracts to Company B, Company A delivers the raw materials to Company B for free of charge.

I have read in the above related issue to use the Sales and Purchase Cycle. Though how do we do it in a way that it reflects correctly in our Accounting? Can we do “Material Issue” in Company A and “Material Receipt” in Company B instead? How different is the Accounting entries compared to the Sales and Purchase Cycle if this is used?

It had been mentioned in the previous issue that this feature will be available soon though no ETA yet.

If we can gather enough ideas, we would like to contribute our customization in the community for this functionality.

Thanks and regards

@creamdory We have a scenario where we are stocking items (raw materials) from our regular clients, to be used for production as and when orders come up. So we don’t want this stock to impact our Balance Sheet. We could do stock inwards with 0 valuation, but it still impacts the valuation rate for the same items stocked by us. (it brings down the valuation rate).
One way around this could be to stock client items under a different company in the same site and transfer then to our main company when a PO is created, using Material Issue and Material Receipt.
Have you already done any customization for this. We were considering giving a Company select in Stock Entry, which would bring warehouses from the selected Company. And behind the scenes do a Material Issue in the other company for the items selected.
Any comments ?


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I would love to know more regarding this. Please guide me if there are good solution here.

If these two companies are legal entity then it should be Sales from one company and Purchase to other company.

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I also would like to know if there is any updates to this topic, cause it is very uncomfortable to make such stock entries via sale and purchase.
At least due to price control process (inner prices are equal to items cost)


In latest stable version 12 or more, you can create customer and supplier as company by tagging as Inter Company.
Once you create a Sales Invoice for Inter Company transaction, then you can see Make Purchase Invoice" option in submitted Sales Invoice. In this way you can make purchase invoice with same rate and amount.

Hope this will help.