Transfer price between class

Mathieu

Hi There,

Here is the context, I run a business with a central kitchen and different shops. One shop and the central kitchen are actually part of the same company. I use 2 different classes to track performance of both shop and Kitchen. 
I would also like to be able to produce invoices between the 2 classes as well as with external customers so I can get a real idea of the profit made by the central kitchen. I cannot seem to find the functionality. Also these invoice are internal transfers and should not be impacting GST figures.
Thanks 
Mathieu

Charley

Mathieu, if a shop and the central kitchen are of the same company then by invoicing the kitchen from the shop and the shop from the kitchen you are creating a false income. You create a disaster for yourself and your accountant.

The best way is to probably class you income on a percentage/production (or whatever) basis and the same with your expenses

Adrian_6974554

You can have a chart item called "Internal Transfer" COGS type account

You can then prepare a journal and debit Internal Transfer for the shops class and then credit Internal Transfer for the central kitchen class.  

No tax codes so does not effect GST, The accountant  then ignores this account as the total over all divisions comes back to nil.

The Central Kitchen will then have a credit for its extra income and the shops will have a debit for their extra expenses.

Mathieu

Thanks Adrian, this looks like a good option