abas inter-company functionality enables the automated flow of transactions between one company of an entity and another company of the same entity. While these transactions can occur for a variety of reasons, they often occur as a result of the normal business relationships that exist between these companies.
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.
Inter-company transactions can also include centralized services for accounts receivable, accounts payable, allocation of overheads and other support costs.
