Can you simply send them an invoice for what you are transferring?

If we send an invoice, it hits sales/cost of goods leaving a balance to be paid.

I'm assuming you are indicating we would set up an internal transfer customer account, which would be tax exempt as the transaction is not an actual sale of material but is there a way to set this account up so it does not show as an actual sale?

Or would we have follow up and enter a Credit Memo for the amount of the invoice, hitting a specific GL account designated to track intercompany sales, and then apply this Credit Memo to the given invoice?

Send it to an asset or liability account.  Due to  XYZ company   and Due From ABC company

Is there a recommended way in doing so?  Only asking as many things that should be straight forward unfortunately have not always been so within Sage 50 . . 

Below are steps we have used to address various issues over time, which the third bullet point I am sure would not be used as it will result in the transfer transaction reporting as sales.

• Add a line item to the invoice sending the total to the appropriate account, resulting in a zero balance invoice?
• Enter a Credit Memo for the invoice total, applying amount to the appropriate account,, followed by connecting the invoice to the credit memo via Cash Receipts and/or Payments?
• Enter a Cash Receipts and/or Payment applying the payment amount to the appropriate account

If you are transferring the inventory to another company, the other company still owes you for it.   If you are transferring back and forth between the two, send the invoices to an asset or liability account and balance out at the end of each month or quarter. 

I agree.  Unless you are actually transferring money back and forth, you should keep the invoice open since the other company actually does owe the money to the company.  Set a long due date so that it doesn't show up as a late receivable.

If you ever settle these balances, by actually transferring money between the entities then you apply that payment against these invoices.

Thanks,
Ron

I agree.  Unless you are actually transferring money back and forth, you should keep the invoice open since the other company actually does owe the money to the company.  Set a long due date so that it doesn't show up as a late receivable.

If you ever settle these balances, by actually transferring money between the entities then you apply that payment against these invoices.

Thanks,
Ron