Intersegment Sales

AAA

DEFINITION of 'Intersegment Sales'

The transfer or exchange of goods for monetary compensation from one department in a company to another department within the same company. Intersegment sales exists where a corporation has multiple segments or divisions, and product sales occur between these segments. A segment report containing data related to intersegment sales and transfers is typically included in a corporation's annual report.

INVESTOPEDIA EXPLAINS 'Intersegment Sales'

Segments are components of the same corporation or entity that provide products (or a group of products) that have different risks and returns than another segment. Intersegment sales can be manufacturing products, such as the sale or transfer of steel from one segment to another, or it can be a financial product, as with the banking and insurance industries. Accurate bookkeeping is important in order to correctly assign revenue and expenses related to the transfer or sales.

RELATED TERMS
  1. Segment Margin

    The amount of profit or loss produced by one component of a business. ...
  2. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  3. Operating Income

    The amount of profit realized from a business's operations after ...
  4. Segment

    A component of a business that is or will generate revenues and ...
  5. Annual Report

    1. An annual publication that public corporations must provide ...
  6. After Tax Operating Income - ATOI

    A company's total operating income after taxes. This non-GAAP ...
Related Articles
  1. The Importance Of Segment Data
    Active Trading

    The Importance Of Segment Data

  2. What is the difference between an industry ...
    Investing

    What is the difference between an industry ...

  3. Finding Per Diem Rates
    Budgeting

    Finding Per Diem Rates

  4. Understanding 'Per Diem'
    Budgeting

    Understanding 'Per Diem'

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center