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stock transfer his company to company what is infact?
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Answer Posted / h.r. sreepada bhagi
Question is not clear. However I assume that it's about
stock transfer.
When Raw Materials, Work-in-process or Finished goods are
transferred from one factory to another factory of the same
company, from factory to ware house located in a different
location or to a sales depot, or from one show room to
another show room or one warehouse to another warehouse of
the same company, it's called Stock Transfer. Even when a
principal sends his goods to his agent or consignee for
sale, it's considered as stock transfer.
In case of stock transfer the property in the goods are not
transferred from the consignor(transferor) to the consignee
(transferee), hence sales invoice is not required to be
prepared. Only internal stock adjustments are required to be
made in sending and receiving locations (branches).
Stock transfer is common when a company has multiple
branches/godowns/sales outlets/branches, etc.
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