Transfer Pricing and Unrealized Profit(1)

当一个部门(Department) 或流程 (Process)把货物Transfer到另一个部门或流程时所开的内部价钱，我们将称它为Transfer Pricing。所以当一间工厂的生产部门把所生产的货物transfer到销售部门时，如它的transfer pricing 是以production cost 来计算的话，Manufacturing Account 将不会有manufacturing profit。但如它的transfer pricing 是以production cost加mark-up的话，Manufacturing Account 将会有manufacturing profit。由于manufacturing profit只是内部的盈利，而这些盈利已经包含在stock的valuation里，如果这些货一天还没卖出，这些内部盈利将是属于Unrealized的，所以我们称它为Unrealized Profit。如果货已经卖出，Unrealized Profit将会转为Realized Profit。所以如果你有Manufacturing Profit，而在Year End 又有Stock，所以就会由Unrealized Profit了。

Unrealized Profit = Value of closing stock at transfer price x (mark-up% / 100 + mark-up%) => Bal. c/d

Double Entry :

Debit Profit and Loss Account Credit Provision for unrealized profit
(如果c/d 大过b/d =>增加)

Debit Provision for unrealized profit Credit Profit and Loss Account
(如果b/d 大过c/d =>减少)