Microsoft Dynamics AX (Archived)

Elimination Entries

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Posted on by lally

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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Sunil 755 on at

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I think the elimination rules are needed in each of the companies as they detail how the entries need to be eliminated. However, the rules can only be executed in the elimination company.

In your above example, I would create the rules in each of the companies; then designate my Consolidation company as the elimination company. Then I would create the elimination proposal / entries in the consolidation company.

More information about setup are available on Customer Source.

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Community Member on at

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First of all you have to mark the consolidation company as elimination company as well (or create a new elimination company). In the picture below I defined company 9005 as both consolidation and elimination company:

Next step is to create a Ledger elimination rule in the consolidation/elimination company (in my case in company 9005):

Within this rule you can create lines. In my case there is one mother (company 1014) and four daugthers (2016, 2017, 2018 and 2021). Two things need to be eliminated:

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).

This is shown in the picture below. 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.

When all the settings are correct, you can create an elimination journal proposal in the elimination company.

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lally 8 on at

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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 ?

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Community Member on at

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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

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lally 8 on at

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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 ?

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Community Member on at

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Please tell me what exactly you do not understand.

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lally 8 on at

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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 ?

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Community Member on at

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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.

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Julieta Arenoso 80 on at

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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.

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Community Member on at

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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.

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