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Apr 09, 2009 at 09:28 AM

special business - goods exchange

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Hi experts,

Pls advise whether the solution is acceptable. Or, any other advice? Many thx.

Solution:

To use consignment order. For so-called "selling", internal price (not post to AR) is applied.

Scenario:

Customer borrow goods from ABC company due to short of stock. Later, customer return the goods to ABC company.

Although the business is not related to selling, ABC company wants to evaluate the value of borrowed goods against customer. For e.g., DEF customer borrows the goods which is worth $100. ABC conpany internally considers that DEF customer "buys" the goods ($100).