Account 18 " Intra-entity transactions " is used to record transfers between establishments, branches, factories or workshops within the same entity that keep independent accounting records.

1. When the transfers involve items whose value is found directly in one of the general ledger accounts of the transferring establishment, they are recorded:

   • by the supplying establishment, to the credit of the relevant general ledger account by debiting account 181 " Intra-entity transactions between establishments " opened in the name of the receiving establishment.

   • by the receiving establishment, to the debit of the corresponding general ledger account, by crediting account 181 opened in the name of the supplying establishment.

2. When the transfers concern goods and services whose cost can only be determined by cost accounting or statistical calculations, the establishments concerned open accounts 186 " Goods and services traded between establishments (expenses) " or 187 " Goods and services traded between establishments (income) " which are subdivided as required.

   Transfers are recorded:

   • by the supplying establishment, to the credit of account 187 by debiting account 181 opened in the name of the receiving establishment;

   • by the receiving establishment, debiting account 186 by crediting account 181 opened in the name of the supplying establishment.

   Entities may value transfers either at the cost of the good transferred or the service provided, or at a value different from that cost. In the latter case, however, inventories of goods manufactured by the transferee establishment with items supplied by the transferring establishment are valued at the production cost for the entity, without taking into account the notional profit or loss included in the transfer price of these items.

   The income statement of each establishment is calculated by adding together the various items in the income and expense accounts and the accounts 186 and 187 " Goods and services traded between establishments (expenses and income) " .

   For the entity as a whole, accounts 186 and 187 have balances that cancel each other out: the amounts credited to account 187 by supplying establishments and the amounts debited to account 186 by receiving establishments balance each other out.

3. Entities can use a different method of accounting from that described in (a) and (b) above.

   When each of their establishments keeps separate cost accounts as part of a common general accounting system for all establishments, account 18 is not used. Internal transfers are recorded in the cost accounts; the general accounts record only transactions with third parties.

Account 18 is also used for transactions carried out through a joint venture.

Consolidation of the joint venture accounts in the accounts of the manager partner responsible for managing the transactions can be done in account 188 " Intra-entity transactions through a joint venture " .