Eliminate Inter-company Accounts & Transactions

 

When consolidating together multiple entities it is often necessary to eliminate inter-company balances & transactions.

 

Using BI4cloud there are a number of ways to achieve this, choosing the best method will depend on how you identify and account for inter-company transactions within your accounting system:

  1. Simple - Eliminate Inter-company GL Account Balances
  2. Eliminate Inter-company transactions (Sales & Purchases)
  3. Create a new entity to record Elimination Journals

 1. Simple - Eliminate Inter-company GL Account Balances

If you use a separate GL account to capture Inter-company Sales, Purchases and loan balances you will want to simply eliminate or exclude these GL accounts from the consolidation. 

Using Bi4Cloud you can allocate each Inter-company GL account a tag e.g. "Interco" using GL Custom Lists, then simply set a filter to exclude all accounts labeled as "Interco".

GL_Custom_LIst_-_Interco.png

This method will work well for inter-company loan balances.

2. Eliminate Inter-company transactions (Sales & Purchases)

If your sales and purchases to related entities are mixed in with other external sales and purchase transactions then you will need to first identify then eliminate just the inter-company transactions.

  • Tag each inter-company transaction using Analysis codes e.g. a Job or Category called "IC"

 

 

 

 

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