Departmental transfers
Costs that move, moved properly.
Inside one company, stock and costs cross between departments every week. Nothing is charged to a department that has not accepted it, finance sees each one as it happens, and the company total never moves.
How it runs
Both ends agree, and the total stays put.
Stores sends 6 units to Maintenance
Tue 5 Aug, 16:20 · £84.00
Raised it
Stores
✓ Sent it16:21
Charged
Maintenance
✓ Accepted16:34
No department is charged for something it has not accepted.
Finance sees it as it happens
Not a journal someone writes up at the end of the month
Soho Ltd · one company, one ledger
Stores£1,860.00£1,776.00−£84.00
Maintenance£2,415.00£2,499.00+£84.00
The company£4,275.00£4,275.00No change
Nothing left the company. Both departments own the right number the same afternoon.
Between two companies rather than two departments, it is a cross-charge.