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Intercompany Inventory Transfer ( Arm's Length vs NON-Arm's Length)

in Ask A Guru 8 comments

Hello Gurus,

I am trying for my ERP certification and a bit confused with the intercompany concept. Regarding this two types of inventory transfer, I have a few queries.

  1. I understood that Arm's length try to bucket the profit/loss in the selling entity.
  2. THe non- Arm's lenght is just to transfer the item at cost between subsidiary.

I am not clear whether we need elimination JE for both the scenario. Please clarify.

Thanks & Regards,

~BN

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