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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Elimination company
Microsoft Dynamics AX (Archived)

Elimination company

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Posted on by lally 8

Hi All ,

In the Click Organization administration > Setup > Organization > Legal entities. There is field called  Elimination company . When i go throught the help it says

When a parent company does business with one or more subsidiary companies and the parent company uses consolidated financial reporting, any transactions between the companies must be removed, or eliminated, from the financial reports. These transactions are called elimination transactions.

Assume that i have created the 3 legal entities  called   A , B , C and between these 3 legal entities transactions happened . Consolidation purpose have created one more company called D .

my question is for which company i need to place a check mark  Either A or B or C  ?

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  • lally Profile Picture
    lally 8 on at

    Any one can guide me  ?

  • Weaveriski Profile Picture
    Weaveriski 23,620 Moderator on at

    I can see on the general tab the "Use for Financial Consolidation Process" and "Use for Financial Elimination Process", but no "Elimination Company" field.

  • lally Profile Picture
    lally 8 on at

    Hi Weaveriski ,

    I agree with you . I am taking about the Use for Elimination process field  .

    Assume that i have created the 3 legal entities  called   A , B , C and between these 3 legal entities transactions happened . Consolidation purpose have created one more company called D .

    my question is for which company i need to place a check mark  Either A or B or C  ?

  • Suggested answer
    Weaveriski Profile Picture
    Weaveriski 23,620 Moderator on at

    Where there is consolidated financial reporting and the elimination of the transactions because of the need to report by the consolidated company and the companies outside the group there will be elimination transactions to ensure the need to correctly report financially.

    I believe the elimination journal to remove those entries can only be processed in a company flagged as part of the financial elimination process, this can be a separate company setup to hold the elimination transactions or the company can be both an elimination and a consolidation company.

    It is the concept of elimination rules that impacts on this setting as you can see here:

    technet.microsoft.com/.../gg231040.aspx

  • Community Member Profile Picture
    Community Member on at

    I agree with Weaveriski . You should check this in cpy D or make a separate Elimination (not necessary).

  • lally Profile Picture
    lally 8 on at

    You mean to say , that company which i have created for Consolidation  ( in this example - D ) , in that company i need to place a check mark in the field of  " use for Financial Elimination process ?

    Am i right ?

  • Weaveriski Profile Picture
    Weaveriski 23,620 Moderator on at

    As stated:

    "this can be a separate company setup to hold the elimination transactions or the company can be both an elimination and a consolidation company. "

    Therefore you first have to make your decision on the purpose of company D. Technically the answer at this stage is both yes and no :-)

  • lally Profile Picture
    lally 8 on at

    Hi Steven ,

    Thanks for the reply .

    You mentioned that i need to confirm the purpose of the company D .

    Here it is :

    Assume that i have created the 3 legal entities  called   A , B , C and between these 3 legal entities transactions happened . Consolidation purpose have created one more company called D .

    my question is for which company i need to place a check mark  Either A or B or C  ?

  • Weaveriski Profile Picture
    Weaveriski 23,620 Moderator on at

    Neither of those would hold your elimination transactions I believe, your choice is D or E where E is purely for elimination transactions. I suggest you speak to a finance consultant within your organisation.

  • lally Profile Picture
    lally 8 on at

    You mean to say i need to create two companies apart from the original companies in the consolidation process

    a) Consoilidation company  - D

    b) Elimination company   - E

    Am i right ?

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