internal income

Income transferred from one department in an organization or company to another. For example, an organization with several departments, such as a university, might use internal income as a way of keeping track of expenses. If the physical plant department brought in landscape materials for a benefit run by the foreign language department, the physical plant could charge the foreign language department for services rendered even though the cash balance for the university remains unchanged. Internal income is generally processed in a different manner than income gained from sources outside of the company since it does not represent an exchange of cash.