Currencies and group companies
Prepare consolidation eliminations
Record the balanced entries that remove inter-company revenue, balances and profit from the group's figures, then post them once the month's inter-company transactions are reconciled.
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In this article
A group's consolidated figures must not count a sale from one of its companies to another as revenue, or a loan between them as an asset and a liability. Elimination entries remove those amounts. You prepare each one as a draft, check that it balances, and post it at the period end.
Before you start
Record and reconcile the period's inter-company transactions. Posting an elimination marks the month's reconciled transactions as eliminated.
Find the ID of each account you will use. Open the account from the chart of accounts: its ID is the number at the end of the page address. Every account must be a level-5 posting account of a branch.
The fiscal year of the elimination date must be open for your branch.
The screen has no entry in the standard menu. Open it by adding
/s/accounting.intercompany.eliminations.indexto your workspace address, or ask your administrator for the link.
Create an elimination
Open Consolidation Eliminations and select New Elimination.
Choose the Type, for example revenue and expense, receivables and payables, or profit in inventory.
Set the Date and enter the Fiscal Year, for example 2026.
Enter the Description, such as "Eliminate March sales to the distribution company".
Under Lines, fill in each line: the Company, the Account ID, Debit or Credit in Dr/Cr, and the Amount.
Select Add line for more lines. An elimination needs at least two.
Check Total Debit and Total Credit. Save stays disabled until they are equal.
Select Save.
The elimination is saved as Draft with a code made of the fiscal year and a sequence number, such as ELIM-2026-0001. Each line's account must belong to the company you chose on that line.
Typical entries
Type | Usual lines |
|---|---|
Revenue / Expense | Debit the seller's sales revenue, credit the buyer's purchases or expense. |
Receivables / Payables | Debit the payable in one company, credit the receivable in the other. |
Profit in Inventory | Debit cost of sales, credit inventory, for profit on goods still in stock. |
Dividend | Debit the parent's dividend income, credit the subsidiary's dividends declared. |
Agree the exact entries with your group accountant. The system checks only that each elimination balances and uses valid accounts.
Post an elimination
Open the draft's actions menu, or open the elimination, and select Post.
Confirm in the window that opens.
When you post, the system:
records the lines as one balanced journal entry dated on the elimination date;
changes the status to Posted, after which the elimination can no longer be posted again;
marks every reconciled inter-company transaction of your company dated in the same month as Eliminated.
Posting is refused if the elimination is not balanced, if an account is not a level-5 posting account of a branch, or if the fiscal year of its date is closed or inactive.
Review eliminations
Filter the list by Status, Type, Period or Fiscal Year, or search it. Select a row to open the elimination: its header, its lines with company, account, side and amount, and the debit and credit totals, with an Unbalanced warning when they differ. Use Export to download the list as Excel or PDF.
Common questions
Can I edit a draft? The screen does not offer editing. If a draft is wrong, create a corrected one and leave the wrong draft unposted.
Which transactions are marked eliminated? Those that are Reconciled, belong to your company as source or destination, and are dated in the same calendar month as the elimination. Reconcile them before you post.