Elimination transactions are a common part of the consolidation process .This blog post (6th in a series) will help you create reports that include eliminations for intercompany accounts.
In this example, five accounts are eliminated during consolidation: 142600, 211400, 401420, 401180, and 510820. Different companies set up their intercompany accounts differently. For example, some companies set the last digit to a 9 if it is used in intercompany transactions. Regardless of the method, knowing the accounts will allow you to show eliminations on your consolidated financials.
Following is a column definition for a consolidated income statement. Using the Dimension Filter, the three profit and loss intercompany accounts are defined for each company. Column D includes only the elimination accounts for CEU company and Column E includes eliminations for CEED company. Both Column D and E are set to NOT print on the financial statement.
When the report is generated, the eliminations amounts are calculated (Columns D and E) and then totaled in Column F. Column G shows the consolidated amounts excluding eliminations for CEU and CEED.
TIP: Create a second report that shows you only the elimination entries and use it in a report group with your consolidated report so you have all the information you need to create any required journal entries.
Whether you use accounts, dimensions, or both, Management Reporter can filter out the elimination entries using the dimension filtering capabilities.
Will this work if the Chart of Accounts is different in the CEU and CEED company? As long as the 2nd segment is the same number of characters and has the same segment name across the companies?
You just need to make sure the ranges for accounts include the right accounts in both companies.
Part 7 of 7?
Jason - You can find it here: blogs.msdn.com/.../creating-consolidated-financial-statements-using-management-reporter-owning-less-than-100-of-a-subsidiary-part-7-of-7.aspx
What if you need to eliminate a specific amount against an account? Say that you have to eliminate only $100 off the Retained Earnings amount in the trial balance - can you specify an amount in a particular row or cell?