Organizational transactions are financial actions that affect the resources of a company. These can be within the business or business-to-business transactions, business-to-consumer transactions or business-to-government transactions. Every time a company agrees to take some action -- such as make a payment in exchange for anything of value -- it creates a legal contract. Therefore, organizational transactions are also contracts.
Inter-organizational transactions pertain to events that take place within the organization. This can include partnership agreements, technology and software licensing, trademarks and copyrights, non-disclosure agreements and employment contracts. Partnership agreements take place when two or more parties decide to start a business. Non-disclosure agreements and employment contracts are normally human resources transactions.
Business to business, or B2B, transactions can take place between for-profit organizations or nonprofit organizations. Types of common B2B transactions are buy and sell agreements, commercial leases, sales contracts, real estate transactions and franchise agreements. Companies are required to keep a journal, which is a book in which business transactions are recorded and shown on supporting documents. Some companies have to keep separate journals for transactions that occur frequently.
This includes everyday buying and selling of retail goods and services. It also includes the buying and selling of stock shares. Oral agreements between a business and consumer can also be treated as a legal transaction and therefore can be a legal, binding contract.
The federal government is the largest contractor in the country. It contracts various businesses for products and services pertaining to government needs. The government contracts for many different departments, including military and day-to-day operations. Examples could be toothpaste for the military or toilet paper for the Justice Department building.
