Key Takeaways
- Odoo automates inter-company transactions: a sale in Company A auto-generates a purchase in Company B.
- Transfer pricing must comply with tax regulations, especially for cross-border transactions between subsidiaries.
- Consolidated reporting requires eliminating inter-company balances to avoid double-counting revenue and expenses.
Setting Up Inter-Company Transactions in Odoo
Odoo's multi-company framework supports several inter-company patterns:
- Inter-company sales/purchases: A sales order confirmed in Company A triggers a corresponding purchase order in Company B. Invoice and payment follow automatically.
- Inter-company transfers: Inventory moves between warehouses owned by different legal entities, with automatic journal entries in both companies.
- Shared services: One company provides services (IT, HR) to others, with automated internal invoicing.
- Transfer pricing: Set inter-company price lists that comply with arm's length pricing regulations.
Tax Compliance
Transfer pricing between related entities is heavily scrutinized by tax authorities. Ensure inter-company prices are at arm's length (market value). Document your pricing methodology. Consult a tax advisor for cross-border inter-company transactions.
Frequently Asked Questions
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