Internal Company Transactions

Hi Everyone,

I’m hoping some of you can share your experiences with using NetSuite to keep track of internal company transactions.  We budget by department, and different departments can consume the goods and services of others.  This is primarily non-inventory but can be inventory-related as well.

For example, if we carry an inventory of office supplies, how do we consume/expense that inventory internally to a specific department, without just doing an inventory adjustment?

Another example, we have a kitchen on campus that has a budget under the food services department.  If the learning and development department wants to host a meal for a class, we’d like to be able to have the learning and development budget cover the cost.  There is no actual cash transaction though, it is simply a shuffling of budgeted funds.

We don’t want to falsely inflate Accounts Receivable or hit the usual Cost of Good Sold expense account since these are internally consumed items.  Any advice?

Thanks!

Rookie Asked on December 15, 2020 in Best Practices.
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