Easy inventory transactions and eliminations
Inter-company transactions between organizations typically enable the sale/purchase of inventory among the companies to take advantage of changes in demand and supply across locations, and optimize inventory and costs. An inter-company transaction in abas is recognized in the financial records of both units of the entity as if it were an arm’s-length transaction with an unrelated party.
abas also provides for inter-company eliminations, the removal of transactions between companies that were included in a group during the preparation of consolidated accounts. The process of inter-company elimination is helpful in managing eliminations of operations among companies within a single group. Inter-company eliminations encourage and establish controls in multifaceted corporate environments.