Inter-company TS ↔ M&G
LHP Technical Services buys processed glass and aluminium from LHP Metals & Glass. Orders, deliveries, invoices and payments pass between the two systems automatically and are removed in group reports.
Balance today
AED42,000
Matched in both books
Orders in 2026
5 orders
AED 146,550 across 5 TS projects
Delivered & invoiced
AED58,900
Related-party purchases YTD
Open orders
AED87,650
3 orders · 1 waits for your approval
How an inter-company order flows
Live example: PR-TS-26-0142 → SO-MG-26-025 · now at step 2Ordering
1 · LHP TSPurchase requestForeman raises it on site — PR-TS-26-0142, 1 Oct
2 · LHP TSPartners approveOver AED 5,000 needs both · Investor Partner ✓, you next
3 · LHP TSLPO to M&GCreated on approval — LPO-TS-26-121
4 · M&G · automaticSales orderSO-MG-26-025 appears with tempering slot 5 Oct
5 · LHP M&GProductionJob cards: cut, edge, temper, QC
Delivery & money
6 · LHP M&GDelivery to TS siteDelivery note and signed POD photo
7 · LHP M&GM&G invoiceOn delivery · 30 days · VAT 5%
8 · TS · automaticTS supplier billMatched to the LPO and goods received
9 · LHP TSPaymentOne partner up to 25,000 · bank transfer
10 · GroupReconciledBoth books match · removed in group reports
Each company keeps its own books, VAT number and bank account. TS users see M&G only as a supplier, M&G users see TS only as a customer — the partners see both.
Inter-company orders 2026
Every M&G sales order with its TS purchase order and project| M&G order | TS LPO | Project | Value (AED) | Status | |
|---|---|---|---|---|---|
| SO-MG-26-025 · Glass partitions & doorsFrom PR-TS-26-0142 · tempering slot 5 Oct, delivery 6 Oct | LPO-TS-26-121draft until approved | TS-26-014 Bay View Tower | 38,450 | Awaiting TS approval | |
| SO-MG-26-021 · Shopfront glass & entrance doorTempering back 6 Oct · powder coating back 5 Oct · delivery 9 Oct | LPO-TS-26-118 | TS-26-017 Oasis Walk G-24 | 26,800 | In production | |
| SO-MG-26-023 · Balustrade & shower glass15 mm laminated tempered, 22 rm + 3 shower screens | LPO-TS-26-117 | TS-26-018 Arabian Ranches villa | 22,400 | Planned · cutting 5 Oct | |
| SO-MG-26-017 · Frameless partitions & doorsDelivered 14 Sep · INV-MG-26-0031, 42,000 incl. VAT | LPO-TS-26-109 | TS-26-016 Al Noor Medical | 40,000 | Invoiced · pay 12 Oct | |
| SO-MG-26-012 · Café glass shopfrontDelivered in August · no VAT (M&G registered on 1 Sep) | LPO-TS-26-102 | TS-26-011 Bean Theory Café | 18,900 | Paid | |
| Total 2026 · delivered 58,900 · open 87,650 | 146,550 | ||||
Balance between the companies
Checked automatically every morningTS owes M&G42,000
M&G is owed by TS42,000
- Open invoice
- INV-MG-26-0031 · SO-MG-26-017 · LPO-TS-26-109
- Amount
- 40,000.00 + VAT 2,000.00 = 42,000.00
- Due
- 14 Oct 2026 · payment scheduled 12 Oct, ENBD ••4521 → ENBD ••7710
Statement 2026
Aug · INV-MG-26-0014 (SO-MG-26-012)18,900
14 Sep · INV-MG-26-0031 (SO-MG-26-017)42,000
24 Sep · paid, PAY-TS-26-0080−18,900
Balance today42,000
Inter-company pricing policy
Approved by both partners on 1 Sep 2026−8%
TS pays the M&G external list price less 8%. TS buys below market, M&G keeps a margin, and prices stay at arm’s length for UAE corporate tax.
Example · 12 mm clear tempered glass, per m²
M&G list price310
Inter-company price (−8%)285
Al Safa Glass, last price paid298
TS saves against the market13 / m²
On PR-TS-26-0142 (86 m²) that is AED 1,118 less than buying the same glass from Al Safa.
- Same price list as external customers
- Related-party schedule for corporate tax
- Removed from group reports
Inter-company sales by month
M&G sales to TS · AED, excluding VATDelivered & invoicedOpen orders (pipeline)
Share of M&G sales to TS · September40%
To TS 40,000External customers 58,900
Removed in group reports. Together the two companies invoiced AED 353,700 in September, but group income is AED 313,700 — the 40,000 M&G sold to TS is counted once, as TS project cost. Consolidated finance