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Our client has a parent company P which purchases on behalf of child company C(all service items). To effect this transaction we are creating an inter-company sales(in P) and purchase(in C). Also there is a direct delivery order from the inter-company sales order. The accounting entries created are
For Direct delivery order(company P)
dr cost Food(eg.)
cr Vendor payable
For inter-company sales order(company P)
dr intercompany receivable
cr intercompany revenue
For intercompany purchase order entries(company C) are
dr cost Food
cr intercompany payable
I want to eliminate the intercompany transactions for consolidation purpose. I understand that if I define an account for elimination entire balance for account would be eliminated. So if I eliminated Cost Food Account in company C all the balance for company C would be gone but we have got certain transactions with the same account which C does with external vendor. We cannot eliminate the transaction on company P as there could be some transactions remaining which are not allocated to child. How can we effect it in AX.
Also on a second thought there would certainly be scenarios where parent company manufactures some good and sells it to subsidiaries. How do those companies do elimination as an expense account cannot be identified to be for intercompany transactions only for balances to be eliminated.
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