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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Intercompany Eliminations
Microsoft Dynamics GP (Archived)

Intercompany Eliminations

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Posted on by Yolanda 690

Our firm is a parent company operating with 9 subsidiaries and at some point we will be adding more.  We are trying to figure out the best way to handle elimination transactions.  The options that we have considered is to create a separate eliminations company database and process elimination transactions from there or possibly set up an eliminations ledger within the parent company.  Does anyone out there have any experience with this and if you are a company dealing with eliminations as well how are you handling this in Great Plains?  We also deal with foreign entities as well and are using the Great Plains multicurrency feature.    

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  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

    Yolanda, most of my multi-entity clients setup separate Eliminations companies to record the intercompany transctions.  This is especially useful when using FRx for reporting as it allows you to show all the eliminations activity as separate entity(ies) in the balance sheet.

    Hope this helps,

  • Yolanda Profile Picture
    Yolanda 690 on at

    Thank you!  This lets me know that we are on the right track.

  • Community Member Profile Picture
    Community Member on at

    Hi, just with a customer doing this very thing. The eliminations company as suggested by Frank is probably the best idea - and probably favoured by Auditors as the data is 'Hard' posted, but there are other ways that I have seen creative customers getting this done.

    1. Create accounts in one of the companies that will be consolidating. Maybe set the first segment to be 999 or something so you can distinguish them. If you are doing monthly reports, post a reversing journal each month to these accounts for the elimination amounts.

    2. Create a budget in one of the companies called 'Eliminations'...you can include this as a column in FRx reports and have a final column that adds / subtracts amounts in the Elimination Budget column. One customer actually has two budgets...eliminations debit and eliminations credit...so that they get two columns on their FRx report - one for credits and one for debits. Also maitaining the budgets is easier....they can lay around with elimination figures etc...and the amounts are directly comparable to actual GL accounts.

    Food for thought maybe.

    Best regards,

  • Yolanda Profile Picture
    Yolanda 690 on at

    Ian, thank you for your comment as well.  We never considered using a budget to track our intercompany eliminations. 

  • Jared Karney Profile Picture
    Jared Karney 5 on at

    Hi Frank,

    We are trying to figure out this whole elimination company and how to book the entries.  Can you give us a small description as to how this gets set up and how we utilize this elimination company using GP? Would we still set up intercompany processing? Our set up is that our subsidiary is a vendor of ours, so we will never be exchanging actual cash.  We would like to eliminate that cash portion and just recognize payable on one company and revenue on the other. Please help!

    Jared

     

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