Just to confirm I can create elimination entry rules in D365 and not use the on line consolidation functionality but just have them booked to a seperate legal entity.
You have multiple options. You can use theConsolidate onlineoption, and include eliminations during the process or as a proposal. The transactions will be posted in the consolidation company. Alternatively, you can have a separate company that you manually create the eliminations in, and then use that company in Financial reporting or in the consolidation process.