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Former Member
Nov 15, 2013 at 07:19 PM

Eliminate incremental depreciation IC asset transfer


We have one company that is buying computers. They record it is inventory and COGS after they will be selling them to another internal company. They are selling it to another internal company at a profit. The company buying from the other internal company will record it as a fixed asset. I think can manually elminate the internal revenues, COGS and the profit on the fixed asset. I must then elminate the incremental depreciation. The depreciation will be recorded at the book value amount with the internal profit amount in it. I must also remove the depreciation recorded from this profit. Just wondering if this can be done automatically through consolidation entries?

Hope it makes sense.