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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Consolidation Eliminat...
Small and medium business | Business Central, N...
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Consolidation Elimination Queries

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Posted on by Revan Jaunt 297
Hi Everyone,
 
I would to thank everyone in the community for their support.
 
I was able to setup consolidation in Business Central. However,  I have got a few questions after I run the consolidation and elimination processes.
 
1. What is the purpose Residual account in the Business unit card?
 
2. Is there any report available that will identify the intercompany elimination entries? I know we have to manually create entries general journal but is there any Feature available in BC to simplify this process?
 
Thanks.
Categories:
Dynamics 365 Business Central
Microsoft Dynamics NAV
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 85,982 Super User 2025 Season 1 on at
    Consolidation Elimination Queries
    Hi, hope the following helps as well.
    Residual account on consolidation business unit
    For the second point, this requires some simple customization, and perhaps you can discuss the specific needs with your local partners.
     
    Thanks.
    ZHU
  • Verified answer
    Sohail Ahmed Profile Picture
    Sohail Ahmed 4,829 on at
    Consolidation Elimination Queries
    More Details 
     
     
    1. Residual Account:
    This account is used during the consolidation process to post small differences (typically from currency rounding) when consolidating subsidiaries using different currencies.
    Example: If your subsidiary in GBP converts balances to USD for consolidation, rounding differences (e.g., $0.01 or $0.02) are posted to the residual account on the consolidation company side.
     
     
    2. Elimination Entries & Reports:
    Business Central does not automatically eliminate intercompany transactions. You must manually post elimination entries via General Journals in the consolidation company.
    To simplify:
     
    Use dimensions or intercompany accounts to help identify elimination needs.
     
    Reports like "Consolidation Trial Balance" or custom account schedules can highlight intercompany balances that should be eliminated.
     
     
    Example: If Subsidiary A sells goods to Subsidiary B, you’ll see revenue in A and purchase expense in B. In the consolidation company, you'll post a manual elimination entry to remove both sides from the consolidated financials.
     
     
     
    ✅ Mark this answer as verified if it helps you.
     
     
  • Suggested answer
    Sohail Ahmed Profile Picture
    Sohail Ahmed 4,829 on at
    Consolidation Elimination Queries
    1. Residual Account captures any rounding differences during currency conversion in consolidation.
     
     
    2. Business Central doesn’t auto-create elimination entries — you need to post them manually. Use Consolidation Trial Balance or custom reports to review intercompany balances.
     
     
     
    ✅ Mark this answer as verified if it helps you.
     
     
  • Verified answer
    RockwithNav Profile Picture
    RockwithNav 7,241 on at
    Consolidation Elimination Queries

    From all my understanding which I can sum up - 

    Imagine you’re adding up money from different branches of your company in different countries. Each branch uses its own currency, and you need to convert everything to one common currency, like dollars.When you do the math, sometimes the numbers don’t line up perfectly—maybe because of exchange rates changing or rounding small amounts (like cents). Most of the difference goes into special “exchange rate gain or loss” buckets. But sometimes there’s still a tiny bit left over that doesn’t fit anywhere—like a few cents.That’s where the Residual Account comes in. It’s like a "leftover box" where Business Central puts those small, unexplainable amounts, so your final numbers still add up neatly.

     

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