Inter group billing.
I am the Managing Director of a subsiduary company of a larger group, we are experiencing some slight difficulty in agreeing on an inter group billing procedure. As an example, should all services provided to the other group subsidiaries be billed at cost or with a Gross Margin attached, I am in favour of a group margin attached due to the billiability issue of staff salaries and utilities etc however am feeling some resistance to this idea. Also when services are provided to group, they are journaled rather than paid in cash which can cause severe cash flow issues, does anyone have any experience of inter group billing and journaling? Much appreciated. G
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