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Elimination Entries

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Posted on by lally

19,790

Hi All,

I am going through the manual of consolidation process.

Can any one help me with elimination process while running consolidation between two companies.

Below is the scenario:

Consolidation company -- CONS (currency - USD )

Subsidiary companies -- Comp A (currency - CDF ) & Comp B (currency - USD)

There are some inter company transactions posted b/w Comp A & B, while running consolidation these entries needs to be eliminated.

I know that i need to create elimination rule in Consolidation company & mapped all those ledger a/cs which got posted with inter company entries and tried to run consolidation online process also by selecting elimination rule in elimination tab with proposal only option.

a) In which company i need to create the elimination rule ?

Either COM A or COM B or Consolidation company ?

b) My question is when we run the elimination rule proposal what does the elimination rule ?

I request you please explain with an example of elimination rule does .

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Hossein.K 6,642 on at

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RE: Elimination Entries

Hi,

Some useful links about Elimination:

docs.microsoft.com/.../set-up-elimination-rules-for-transactions

docs.microsoft.com/.../elimination-rules-for-transactions

www.axug.com/.../DownloadDocumentFile.ashx

community.dynamics.com/.../elimination-transactions
Faraz Anwer 15 on at

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RE: Elimination Entries

I have made a document which explain how we can do the elimination. I believe intercompany outstanding balances should be settle through gl or bank before performing consolidation and then you created a bank transfer between two legal entities to transfer the intercompany bank / cash balances to elimination accounts. share your email to obtain the document.
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Community Member Microsoft Employee on at

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RE: Elimination Entries

Hi Julieta,

The wording "Net change" suggests that also non-zero eliminations should work. I don't know. Maybe you should just give it a try?

Elimination is not related to intercompany functionality. There is no need for that: elimination bookings are made within one (elimination) company.

As said earlier: "Note that we changed this screen a little bit in order to show source and destination dimensions in this screen, instead of clicking to sub screens. Nothing has been changed to the functionality of the whole elimination process."

Regards, Daan

PS. We do not use consolidation functionality in AX anymore. The system cannot handle the combination of multi-currency consolidations, regular currency revaluations and opening balances. We decided to buy the consolidation and reporting tool Tagetik.
Julieta Arenoso 80 on at

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RE: Elimination Entries

Hi DAAN. I'm strugling with elimination rules now and your comments may come handy. In your example yo assume the net amount for the elimination will allways sum up zero. What if this it not the case?

Maybe the following question will clarify this for me. Does elimintation rules apply only when intercompany functionality is used? We want to use it in an scenario where intercompany is not enable, so we just want to eliminate the net amount of an account.

Thanks a mil!

Rgrds.

Julieta Arenoso

PS: I'm also confused with your print of the lines of the elimination, where you can edit the Company Source. I couldn't find that field in order to add it to grid. I did find "company" and "Destination Company"; any way I could not edit neither of them.
Community Member Microsoft Employee on at

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RE: Elimination Entries

In mother 1014 I have ledger accounts:

022016 Participation in daughter 2016 100 debit

022017 Participation in daughter 2017 100 debit

022018 Participation in daughter 2018 100 debit

022021 Participation in daughter 2021 100 debit

In each daughter (2016, 2017, 2018 and 2021) I have ledger accounts:

080000 Share capital 80 credit

080001 Retained earnings 20 credit

In my consolidation company 9005 I created a rule that eliminates 022016 from company 1014 against 080000 and 080001 from company 2016 (100 debit against 80+20=100 credit). So, with this rule I can create an elimination journal entry in company 9005.
lally 19,790 on at

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RE: Elimination Entries

Hi DAAN ,

My Question is in the consolidation company against the which accounts i need to create the elimination rule ?

In the above post you mentioned general ledger accounts 02* v.s. 09* and general ledger accounts 114* and 115*.

Could you explain bit more about the above mentioned accounts in detail ?
Community Member Microsoft Employee on at

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RE: Elimination Entries

Please tell me what exactly you do not understand.
lally 19,790 on at

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RE: Elimination Entries

Thanks DAAN for the clarification .

You have mentioned that " The participation within the mother v.s. the share holder capital in the daugthers (general ledger accounts 02* v.s. 09*)

The current accounts between the five companies (general ledger accounts 114* and 115*)

The full amounts in the general ledger accounts need to be eliminated (elimination method: Net change)."

Can you explain bit more about this ?
Community Member Microsoft Employee on at

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RE: Elimination Entries

If you want to create a Ledger Elimination Rules in a company that is not an elimination company, you will get the following message:

This means that you will have to create the rules in the elimination company
lally 19,790 on at

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RE: Elimination Entries

Hi ,

In the above both replies , SUNIL mentioned need to define the rules in each company , but DAAN mentioned that rules should define in Elimination company only .

Bit confuse about the above statements . Could you clarify me the exact path to create the rules ?