Why?
Basically, the transfer of assets/stock between companies that have legality and/or different entities must carry out a buying/selling process, but there are times when on Odoo we use a Virtual Company/Virtual Company, indeed technically sales/purchases between companies can be carried out but new problems will arise, namely invalid financial reports and tax matters (PPN/PPH/Transfer Pricing) later, moreover a consolidation process will be carried out to the parent company
The Background
The use of Virtual Company on Odoo is usually motivated by several things, but what we mainly encounter is the Balance Sheet. Yes, usually for a company with multiple sub-brands under it, it wants to analyze the company's financial performance, not only from Profit and Loss but from the Balance Sheet and Cash Flow which can only be achieved by using the virtual company method. If you only want Profit and Loss, we can use Tagging. The main reason why companies want to be able to read the balance sheet reports for each sub-brand is usually for future needs where if they consider this brand to be mature, able to live on its own, a spin-off process will be carried out for the brand to become a separate legal entity and become a new subsidiary of the parent company.
The Odoo Solution
To solve this problem we can use a combination of Locations/Virtual Locations and Operation Type. Where before we setup the Operation Type we have to make sure the interco inventory accounts and inventory accounts for each company already exist. The key to the automatic interco journaling process is Operation Type, while Locations/Virtual Locations function as virtual / in-transit warehouses for sending / receiving goods. Meanwhile, to make Interco Transfer transactions, you can go through the Transfer menu from the Inventory module by selecting the appropriate Operation Type and Location
For more information about how this solution can help you, please contact us