Dynamics Community Forum Thread Details

Consolidations - processing elimination rules for intercompany

Hi all,

We are using D365 Finance and Operations. We are trying to setup elimination rules in the consolidations module for intercompany transactions.

Background:
We have a Canadian entity (operating in CAD) and a USA entity (operating in USD). A separate consolidation entity is setup and operating in Canadian dollars as that is the currency we want to report in.

Daily intercompany transactions happen as product is being shipped directly from our Canadian entity to our USA entity's customers. The intercompany invoices are always in USD. The intercompany transactions in our Canadian entity are translated to their applicable Canadian dollar value at the end of every month through foreign currency revaluation.

Objective:
We want to eliminate intercompany sales and intercompany trade receivables and payables. We expect the elimination entries to do the following:

Debit Sales, Credit COGS (to eliminate intercompany sales)
Debit A/P, Credit A/R (to eliminate intercompany trade receivables and payables)

Problem:
The elimination rules do not execute as we expected. In the screenshot below, we have specified the source account of 40000 (sales) and our intercompany dimension has been specified in source dimensions. However, when this elimination rule is executed, the journal is out of balance. The intercompany sales are pulled into the journal but there is no offsetting credit to COGS (account # 50000). How do we specify the offsetting entry for this rule?