How do I record intercompany sales?

To record intercompany sales, first, recognize the sale in the books of the selling entity by crediting sales revenue and debiting accounts receivable or cash. The purchasing entity should simultaneously record the transaction by debiting inventory or expense accounts and crediting Accounts Payable. It's important to ensure that intercompany transactions are eliminated in the consolidated financial statements to avoid double counting. Additionally, both entities should maintain accurate records to comply with transfer pricing regulations.