If you’re producing consolidating financials for multiple companies, there are a couple of ways to handle the consolidating entries in
- Designate a set of accounts for intercompany entries. If you will have intercompany entries in multiple departments, profit centers, and so on, then this method can make it easy to track these entries. Use a range of accounts such as 10990 to 10999 for intercompany receivables; 20990 to 20999 for intercompany payables, and so on. You will be able to produce reports that track intercompany activity at any level of your company.
- Designate a segment of the GL code for intercompany entries. If you want to segregate all intercompany activity from normal activity, then use one of the GL segments other than the natural account. For example, if your GL structure is Account – Department – Location, use 999 in the Department of Location segment. You will be able to produce consolidated and company-level financials that separate out the eliminations, but will not see these entries included at the individual department or location levels.
- Designate an eliminations company
by Lisa Suggs, Senior Consultant at InterDyn – Artis,