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Journal Entry Examples >
Stock Transfers
Stock Transfers
1. Transfer between two locations within the same warehouse - no journal entries generated.
2. Transfer between two warehouses within the same company.
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0000000
|
accounting cost per unit at Whs. A
|
|
15.0000000
|
accounting cost per unit at Whs. B
|
|
DR
|
Inventory - Whs. B
|
15.00
|
|
|
CR Inventory - Whs. A
|
10.00
|
|
|
CR Transfer Price Variance - Whs. B
|
5.00
|
3. Transfer between two warehouses within one company - with transfer price.
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0000000
|
accounting cost at Whs. A
|
|
16.0000000
|
transfer price at Whs. A at time of transfer
|
|
15.0000000
|
accounting cost at Whs. B at period end
|
|
DR
|
Inventory Whs. B
|
15.00
|
|
DR
|
Transfer Price Variance Whs. B
|
1.00
|
|
|
CR Transfer Price Variance Whs. A
|
6.00
|
|
|
CR Inventory Whs. A
|
10.00
|
See Transfer Prices in the Key Concepts section of this manual for more information on the use of transfer prices.
4. Transfer between two warehouses within one company - with non-acquisition cost.
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0000000
|
accounting acquisition cost at Whs.B
|
|
2.0000000
|
non-acquisition cost at Whs.B
|
|
10.0000000
|
transfer price at Whs.A
|
|
9.5000000
|
accounting cost at Whs. A at period end
|
|
DR
|
Inventory Whs.B
|
12.00
|
|
|
CR Inventory Whs.A
|
9.50
|
|
|
CR Transfer Price Variance Whs.A
|
.50
|
|
|
CR Non-Acquisition Expense Whs.B
|
2.00
|
The inventory cost per unit is the sum of the acquisition and non-acquisition costs. Non-acquisition costs may be defined for the part to reflect add-on charges, such as freight and material handling. Multiple types of non-acquisition costs may be defined for each part resulting in multiple expense entries for the receiving warehouse. Transfer price variance in the receiving warehouse is calculated against acquisition costs only.
5. Transfer between two companies.
|
1
|
unit transferred from Co/Whs. A to Co/Whs. B
|
|
10.0000000
|
transfer price at Co/Whs. A
|
|
10.0000000
|
accounting cost at Co/Whs. A
|
|
15.0000000
|
accounting cost at Co/Whs. B
|
Journal Entries for Company A:
|
DR
|
Intercompany Receivables
|
10.00
|
|
|
CR Inventory
|
10.00
|
Journal Entries for Company B:
|
DR
|
Inventory
|
15.00
|
|
|
CR Intercompany Payables
|
10.00
|
|
|
CR Transfer Price Variance
|
5.00
|
6. Transfer between two companies with transfer price.
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0000000
|
accounting acquisition cost at Whs. B
|
|
2.0000000
|
non-acquisition cost at Whs. B
|
|
10.0000000
|
transfer price at Whs. A
|
|
9.5000000
|
accounting cost at Whs. A
|
Journal Entries for Company A:
|
DR
|
Intercompany Receivables
|
10.00
|
|
|
CR Inventory
|
9.50
|
|
|
CR Transfer Price Variance
|
.50
|
Journal Entries for Company B:
|
DR
|
Inventory
|
12.00
|
|
|
CR Intercompany Payables
|
10.00
|
|
|
CR Non-Acquisition Expense
|
2.00
|
7. Transfer with Receiving Transfer Price Variance
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0078000
|
accounting cost per unit at Whs. A
|
|
15.0040000
|
accounting cost per unit at Whs. B
|
|
DR
|
Inventory Whs. B
|
15.00
|
|
|
CR Transfer Price Variance Whs. B
|
4.99
|
|
|
CR Inventory Whs. A
|
10.01
|
8. Transfer with Sending Transfer Price Variance
|
1
|
unit transferred from Whs. A to Whs. B
|
|
10.0350000
|
accounting cost per unit at Whs. A
|
|
10.0350000
|
accounting cost at Whs. B at time of transfer
|
|
15.0000000
|
accounting cost at Whs. B at period end
|
|
DR
|
Inventory Whs. B
|
15.00
|
|
|
CR Transfer Variance Whs. B
|
4.96
|
|
|
CR Inventory Whs. A
|
10.04
|