What is an inner income?

The word "income" generally refers to the money that comes to the company from the external source, but the internal income is different. With this version of income, money will not be obtained, but transferred from one part of the company to another. It usually comes in the form of one section that invoices the other, and the other part moved part of its money balance to the first section that covered the account. Unlike normal income, which is recorded as extra money coming into business, internal income does not change the company's total balance. The main use is that one section can charge the other for the sources spent and this part can use money for stocks or other needs. He just moves. As a result, this term is a partial incorrect name, because income usually means that more money comes into business instead of the same money that is easy to move within society. Sections between which money is your in general are departments or other facilities that exist within a company such as men's clothing department and female clothingDepartment in the same store or different retail stores in the same chain.

While there are several ways to process internal intake, it is generally performed as one section that invoices the other. This bill often spends resources such as workers, supplies and time. For example, if the women's clothing department needs someone from men's clothing to help create a display, then men's clothing can be charged for this service, at least partially to cover the worker's salary. As with a normal invoice, the female department will have to pay an account from their own funds.

Invoicing sections receives money in this scenario, but the business itself is not; This means that the internal intake is administered differently. For example, if a business has 1,000 Secadlars (USD) and is divided between two sections, it does not matter how much or how one section is charged with the other; There will still be $ 1,000 in business. This increase in money is administered in the billing section, while the company registers it as a transfer.

This is commonly used when billing sections must use money or resources to help another section. In order to replace the loss, the billing section will charge money from the billing section. Internal income can be used as normal money, so the section can be used to get more products, better marketing materials and many other things.